VICTORY OF GOOD OVER EVIL

LET IS SIGNIFY THE VICTORY OF OUR UPDATION OF PENSION

HAPPY NAVRATRI/ DUSSHEERA
On the auspicious occasion of Navartri /Dusheera I convey my happy greetings to
you and your family
The Ramayana is an ancient Sanskrit epic that tells the story of Rama.
Thematically, the Ramayana explores human values and the concept of Dharma or
righteous action.
An important event in the Ramayana is the abduction of Rama's wife Sita by the
dreaded demon Ravana, who was known to have ten heads. Symbolically,
Ravanas ten heads represent the negative tendencies that take control of the mind
which is where the seed of action is sown. When our minds are overtaken by
negative emotions, such as anger, envy, pride, and malice, we lose control over
ourselves and often perform actions that we later regret. The negative emotions
become like power centres in themselves, drowning out the voice of wisdom, and
are therefore represented as independent heads. Rama eventually confronts Ravana
in battle when their powerful armies symbolizing the forces of good, led by Rama,
face off against the evil forces, led by Ravana. After many days of incessant battle,
Rama kills Ravana and his evil forces are decisively routed by Rama's army of
Vanaras or 'monkey warriors'. Rama's victory over Ravana occurred on the tenth
day of the Hindu lunar calendar month of Ashvin, or Ashwayuja, which falls in
September or October of the Western calendar. This day is celebrated as the
festival of "Dussehra", which literally translates as "defeat of the one with ten
heads", referring to the fall of Ravana. Dussehra is an extremely popular festival
that is celebrated with great fervour throughout India, even to this day. It is also
known as Vijaya Dashami or the tenth day of victory.Rama's victory over evil
is symbolic of a victory that we seek each day as we are faced with choices and
decisions about all kinds of things. What is the best path for me to take? What
should my decision be? These are dilemmas we often find ourselves confronted
with. Vishnu as Rama teaches us that any action rooted in Dharma or
righteousness, expressed as unconditional love towards all beings, is an action
worth standing up for. If action stems from weakness. fear, jealousy or any other
negative emotion, such an action is best avoided.

Many bankers has been doing splendid job in fighting against the 10 negative
emotions, such as anger, envy, pride, greed, attachment ,jealousy , malice, losing
control over ego , scuttling dissent ,often perform actions against members interest
standing in the way of our tenth bipartite. .. Dussehra is a Sanskrit word and
literally translated means Dasha Hara or remover of bad fate. It is a festival
symbolic of victory of good over bad. Ten heads of Ravana just represent these
scourges. Every time we try to cut off any vice and it again growswe again cut, it
again grows until we reaches to the source. the source is impurity from there it
gets energy
Let us hope commemorative with this Dasha Hara, THE DEMAND UPADTION
OF PENSION of ours sees light
Supreme court Judgement on pension
Hon Supreme Court has spelt out clearly that Govt should avoid litigations for the
sake of litigation, in recent verdict in Civil Appeal No 1123 of 2015, Arising out of
SLP(C) NO. 321 OF 2015 between State of Rajasthan and Ors. ... Appellants
Versus Mahendra Nath Sharma ...Respondent and ors.
the Supreme Court Judgement delivered on 01.07.2015 in Civil Appeal No. 1123
of 2015 (Arising out of SLP (c) No. 321 of 2015). The judgement has recognized
that revision of pension and revision of pay scales are inseparable. It has also
reiterated that on revision, the basic pension cannot be less than 50% of the basic
pension in the minimum of the pay band in revised scale corresponding to the prerevised scale. When pension is upheld to be a right and not a bounty, as a corollary
to above, upgradation of pension is also a right and not a bounty. Because of the
pre-enumerated on the above judgement and also those in the case laws like D.S.
Nakara and others, the demand of upgradation of pension of retired employees in
the banking industry should immediately be reconsidered by the IBA and Govt.
of India.
The most recent judgment delivered on 1/7/2015 on pension.
The most recent judgment delivered
Implications of SC judgment on pension

on

1/7/2015

on

pension.

Implications of the Supreme Court verdict in CIVIL APPEAL NO. 1123 OF 2015
[Arising out of SLP(C) NO. 321 OF 2015]

Highlights
The judgment has been delivered by the Bench headed by Honble Justice Deepak
Misra who has displayed a good comprehension of pension case laws including the
landmark judgment in D S Nakra case and who is heading the Bench hearing the
Civil Appeals in our cases.
The judgment has also recognized that revision of pension and revision of pay
scales are inseparable.
It has also reiterated that on revision, the basic pension cannot be less than 50% of
the basic pension in the minimum of the pay band in the revised scale
corresponding to the pre-revised scale.
When pension is upheld to be a right and not a bounty, as a corollary to 3 above,
upgradation of pension is also a right and not a bounty.
Because the principles enumerated in the above judgment and also those in case
laws like D S Nakra & others are not followed by LIC while implementing the LIC
Pension Rules, 1995, a plethora of anomalies have arisen and imposed prolonged
injustice on LIC pensioners right from the date the Rules became effective
FORMATION OF UFBP
THUS IT IS PROVED THAT THE ALMIGHTY AND JUSTICE ARE
ALWAYS ON OUR SIDE WILL PUT AN END TO THIS TREACHERY
GIVING US THE COURAGE OT FIGHT AGAINST THIS SOCIAL
INJUSTICE .. IT IS HIGH TIME WE TAKE A PLEDGE TO REMAIN
UNITED IIN OUR FIGHT AND FORM UNITED FORUM BANK
PENSIONERS BRINGING ALL ORGANIZATIONS ESPOUSING THE
CAUSE OF PENSION UPDATION ON ONE ROOF . and end this treachery
once for all

HISTORY OF TREACHERY AGAINST PENSION FUNDS :

We have read many articles about how UFBU has been selling the interest of
the retired and serving bankers in last 4 BPS. However, these issues have been
discussed in parts and bankers find out it difficult to comprehend the exact
issues. An attempt is made to consolidate the same in a beautiful manner. This
will serve as an eye opener to the bankers as to how they have been cheated
under every BPS since 1997. This has not ended. Once again the ground is
being prepared to ditch the retirees again under 10th BPS. Therefore, there is a
need to be cautious and BANKERS should not wait till actual treachery
happens.
History of Act of Treachery in the past, Committed by UFBU are enumerated
below:
TREACHERY No. 1 in 7th BPS
In 7th BPS for the period 01.11.1997 to 31.10.2002,
(a) the DA upto 1664 points was merged with the Basic Pay
(b) But for the purpose of payment of pension, merger upto 1616 point was
considered,
which resulted in lower basic for the purpose of pension calculation. The
pension of the employees retired from 01.11.1997 till the date of settlement
(11.03.1999) was reduced from 50% to 41% due to above illegal settlement.
The 50% pension was restored by intervention of the Supreme court and UFBU
forced the employees to take shelter of the Court.
TREACHERY No. 2 in 7th BPS
All the employees who retired during 01.11.1997 till the date of settlement (some
time in year 2000) were paid the revised pension from the date of settlement.
They were denied the arrears of revised pension. They were forced to give
undertaking that revised pension will be paid if they agree not to claim the arrears
of pension and revised commutation.
TREACHERY No. 3 in 8th BPS
The VIIIth BPS for the period 01.11.2002 to 31.10.2007 was signed in 02.06.
2005. The employees retired during 01.11. 2002 til the date of signing of
settlement ( i.e. upto July 2005) were denied the arrears of pension and
commutation as happened in 7th BPS.

TREACHERY No. 4 in 7th 8th & 9th BPS

UFBU agreed to share the incremental cost of pension since 7thBPS and
violated the pension regulations. this caused huge loss of wages to employees

The incremental cost of pension was 16.5% p.m. as per 7 th BPS

and shared equally @8.25% by employees and their wages were reduced by
16.5%.;

The incremental cost of pension was 18.5% p.m. as per -8th- BPS
and shared equally @9.25% by employees.;

The incremental cost of pension which was 26% as per -9th- BPS
and shared equally @13%p.m. by employees ;
DO YOU KNOW THAT THIS INCREMENTAL COST WAS RECOVERED
ROM THE EMPLOYEES AND EQUAL MANAGEMENT SHARE HAS NOT
BEEN DEPOSITED IN THE PENSION FUND TRUST? ARE YOU AWARE
AOF THIS SCAM PERPETUATED BY UFBU AND BANK MANAGEMENT.?
is it not the responsibility of the Unions to ensure that the incremental cost of
pension, so agreed, has been deposited in the pension fund?
TREACHERY No. 5 SINCE LONG
Do you know that the Bank management stopped depositing 10% of basic pay
each month in the pension fund as per pension regulation?. They are
manipulating the Actuarial valuation report and accordingly depositing there
share (lower amount) on quarterly/ half yearly/ yearly basis. Is it not the
responsibility of the Unions to ensue that the incremental cost of pension, so
agreed, has been deposited in the pension fund?.
TREACHERY No 6 SINCE LONG
The wages of the PF optees were reduced to the extent of incremental cost of
pension in successive wage settlement since 01.11.1997. How there wage can be
reduced when they are not the beneficiary of the pension fund trust? Can you be
forced to contribute toward pension of Prime Minister of India?.
Proof of not deposited even 10% in pension fund
(a) SBI CMD transferred Rs 7927.41 crs from General reserve to Pension Fund
as on 31.03.2011. Central Statutory Auditors clearly certified that this amount

arisen because inadequate funds were transferred in the previous years. Hence
previous year balance sheet was falsified to this extent.
(b) Bank of Baroda Chairman not deposited 10% statutory contribution every
month as on 31.03.2010. See their annual report from the website. In fact he
withdrew Rs 57 cr from pension fund to boost the profit to 3058 crore in March
2010.The bank has deposited Rs 472 crore during 2008-09 and 365 crore during
2007-08 but during 2009-10 employer contribution to pension fund is NIL . How
the employer contribution can be Nil during 2009-10.?
(c) The list of PSB not deposited the statutory share in pension fund is very long
which includes PSB, United Bank, UCO Bank, Central Bank Union Bank. Central
Bank sponsored Common wealth game (Rs 50cr) by employees pension fund and
showed their inability to deposit their 10% statutory due in pension fund.
(d) It is diversion / loot of employees retirement funds to boost the profits and
claim incentive of Rs 8 lacs from the Bank on the basis of falsified balance sheet.
The amount involved is more than one lac crores which has been laundered since
01.11.1997.
TREACHERY No 7 Scam on bank employees pension fund in the name
of Amortization of the pension cost.

RBI circular No DBOD.No.BP.BC:80/21.04.018/2010-11 dated

09.02.2011 permitted amortization of enhanced expenditure of pension liability
on account of new pension option under 9th BPS and amendment of Payment of
Gratuity Act 1972 to banks, at the request of IBA vide guidelines on Prudential
Regulatory Treatment.

Accordingly -19- PSB amortized Rs 19611.57 crore as on March

2011. This amount of Rs 19611.57 will be deposited in -5- yearly installments
ending 2015 in the pension fund trust.

When existing employees have deposited their 2.8 times of basic

pay and retired employees have refunded 100% of provident fund and addition
56% cost in one installment, why the banks have not deposited this 19611.57 cr in
one installment.

Is it not a loss to the pension fund?. The 9% average return on

amortised pension cost of Rs 19611.57 will add to pension kitty by 1765.04 cr per
year.

When our Annual wage rise was Rs. 4816 (Rs. 2239 crores for
officers and Rs. 2,577 crores for award staff) w.e.f. 1-11-2007 agreed as per
9th BPS (CIRCULAR NO. 85 dated 29 / 11 / 2009 of AIBOC). Loss of interest of

Rs 1765.04 cr to pension fund is equal to 40% of wage rise offered in 9 thBPS.

Will you allow such crime/loot on your pension fund to continue?.

Can RBI allow amortization of pension cost to boost the banks

profit and falsify the balance sheet?.

Can RBI allow Banks to amortize interest payable on FDR of

customers and deny them the quarterly/ annual interest in the name of
amortization and allow banks to boost their profit.?

Can RBI allow amortization of depreciation to boost the profits?.

Is it not a fraud on the pension fund? Is it not a fraud on the balance sheet of
banks?
TREACHERY No 8 in 9th BPS Loot of your pension fund

Denial of 2nd pension option to retirees/volutry retirees/ resignee is not

treachery. Wrong interpretation of 2nd pension option by IBA.

Do you know that when a GM becomes ED, his no longer a bank

employees but a GOI nominee on the Board. He is not governed by Bank
employees Pension Regulation. In fact he has to resign but his resignation is
treated as retirement and his retirement dues are paid. He is entitled to gratuity/
pension leave encashment PF and other retirement benefits.

GM becoming ED is entitled for pension on his resignation but normal

employees resigning after -20- years is denied the pension.

So ED gets salary fixed by GOI plus monthly pension.

Do you know that now ED/ CMD are getting -2- pensions. One pension
from parent Bank from where he was GM and 2nd pension of Chairman/
Executive Director from the Bank he retired as CMD/ ED. Your pension fund is
paying pension of ED/CMD and he has never contributed incremental cost or
10% to the fund.?
WHY THE PENSIION FUND DETAILS ARE NOT IN PUBLIC DOMAIN.
Why Pension Fund Subscriber who have paid Rs 16-20 lacs in their whole life,
are not provided the Annual Report of the Pension Fund Trust.
Treachery in 10th BPS
As per settlement signed with IBA, UFBU has agreed that DA upto 4440 index
point i.e.60.15% will be merged and Basic plus 60.15% plus 2% amouting Rs
597 cr will be used to construct the scale, meaning thereby 102% of Basic plus
60.15% will be new basic. Where the remaining 13% will be utilized . whether it
will be grade pay or else?. Whether it will be counted for pension purpose of
not? . these are the pit holes and UFBU may cheat you again. Therefore please
be watchful.

the various issues relating to retirees so that they can understood ,the anomalies
better and in future if they wish to take up the issue with IBA, Bank
Management, Ministry of Finance, GoI or ultimately go to Court are able to get
the maximum background material. We are giving authentic links to the
material proving as to how in the past retirees have been cheated alongwith the
serving bankers, WHEREAS RETIRED CMDs AND EDs ARE NOT
AFFECTED !
In the meantime, Retired Bankers needs to organize themselves into pressure
groups and if necessary organize some protests to bring their issues in the public
domain.
In case any discrepancy is noticed in these facts, union leaders, IBA or other
officials can freely write in comments columns, the authentic links / data so that
these can be included here and TRUTH prevails as our aim is to spread
TRUTH.
/////////////////////
Annexures Giving Links to Background Material to Prove as to How UFBU
Has Cheated in the Past
1. SBI CMD Interview where in he admitted that they have not deposited the
due amount in pension fund to inflate the profit. [You can read the details at the
link given below : http://articles.economictimes.indiatimes.com/2013-0925/news/42394698_1_pratip-chaudhuri-state-bank-balance-sheet]
2. BOB Annual report of 2010 showing NIL contribution in pension fund
during
March
2010.
(Folio
114)

[http://www.bankofbaroda.co.in/download/Annualreport2009-10.pdf ]
3. Circular no.85 dated 29.11.2009 of AIBOC communicating the recovery of
cost of pension from employees by reducing their wages by 23% of incremental
cost of pension.
4. CIRCULAR NO.64 dated
naked truth

12.05.2010 of AIBOC confirming the above

5. SBI Union circular no.1 dated 27.01.2011 on pension cost balancing and its
payment to SBI employees as Special Balancing Allowance of 6.5%
6. AIRBF letter of August 2013 to Union for taking issues relating to
management of pension funds
7. Payment of pension to ED /CMD April 2012 -MOF Notification

8. Pensionery benefit to whole time Directors of PSBs Jan 2013-MOF

Notification
Treachery in 10 bipartite Loss by not taking Spl.Allowance of
7.75% for Retirement Benefit!!
(see attachment )
REALISTIC SUGGESTION : A WAY FORWRAD

A WORKING ON THE 100% DA FOR ALL RETIREES PRIOR

TO 01.11.2002 AND UPDATION OF PENSION FOR ALL
RETIREES UPTO 31.10.2007 RETIREES DURING THE
PERIOD 01.11.1987 TO 31.10.1992
Basic Pay Pension
Pension + If 100%
50%
40%
DA
DA is
Updation Updation
paid
Pension + Pension +
DA
DA
1670
835
6581
6581
10680
8544
3220
1610
12244
12688
19148
14773
4520
2260
15765
17359
24594
19675
5050
2525
16493
19394
27572
22058
5650
2825
17316
21698
32508
26007
7000
3500
19170
26883
44252
35402
RETIREES DURING THE PERIOD 01.11.1992 TO 31.10.1997
6420
3210
12777
13209
19148
15318
9200
4600
16597
18929
25274
20220
10450
5225
17723
21501
30806
24645
12650
6325
19704
26027
39827
31861
14000
7000
20920
28805
44252
35402
RETIREES DURING THE PERIOD 01.11.1997 TO 31.10.2002
5850
2925
8232
8232
11361
11361
10880
5440
14739
15310
19828
15863
14240
7120
17566
20038
25275
20220
15760
7880
18671
22177
28338
22671
17280
8640
19776
24316
33444
26755
21300
10650
22698
29973
44252
35402

The above table is prepared on an illustrative basis and hence not exhaustive. We
have in fact made working for all the 36 possible stages on which retirement
normally takes place in all cadres from subordinate staff to General Manager cadre
and based on the August 2012 month DA paid to the bank retirees, after one
completes the minimum full qualifying service of 33 years in order to get full basic
pension of 50% of last drawn basic pay. Only the basic pay has been taken into
account and the FPP, PQP, SPECIAL PAY & Educational allowances drawn by the
retiree at the time of retirement have not been reckoned. The columns above are:
Basic pay drawn at the time of retirement, basic pension at 50%, the present basic
pension + DA drawn, if 100% DA is conceded, what would be the amount of basic
pension + DA @ 100%, updation of basic pension at 50% of the IX Bipartite/joint
note effective from 01.11.2007 for all retirees upto that period and the assumption
that if the updation is done for past retirees at 40% of the basic pay of 01.11.2007
on the lines of the central government CCS Rules governing Pension.
The working has been done taking into account approximately 1,23,500 retirees
upto 31.10.2007 from the inception of pension implementation i.e. all those who
have retired after 01.01.1986.
Based on the working for the entire number of retirees who have to get the
advantage of 100% DA, updation of pension till 31.10.2007, costing exercise has
been undertaken. It is found that if 100% DA is to be paid to all retirees upto
31.10.2002 for the entire basic pension instead of the present system of DA
compensation which is based on four slabs of 100% for a small part of pay for
officers, 82.5% for a part, 50% for another small part and for a major part at 25%
compensation of DA [Since all retirees after 1.11.2002 are being paid 100% DA on
full basic pension with single slab of DA @ 0.18% for all from sub staff to General
4

Manager] then the annual costing of implementation of 100% for all past retirees
comes to Rs.291 crores.
In respect of updation of pension at 40% updation, on the lines of central
government pension rules for retirees prior to the date of the present pay
commission period, upto the retirees of the period i.e. 31.10.2002 and 50%
updation for the retirees after 01.11.2002 [since for them 100% DA has already
been implemented and the 40% updation for them would be adverse] the annual
costing comes to Rs.431 crores.
If pension updation is done at 50% of the notional pay taking all retirees basic pay
to the equivalent stage in the present scale of pay effective from 01.11.2007, then
the annual cost of pension updation for the 1,23,500 retirees comes to about
Rs.1082 crores.
Calculations have been done on exact basis though the number of retirees from sub
staff cadre to the General Manager cadre in respect of all the retirees from
01.01.1986 may vary based on certain number in each stage of retiral level. It can
very confidently be said that the cost mentioned cannot be more than the above
working and hence cannot go beyond this amount. In fact, cost would be less only.
For information of all concerned, it is stated that the total establishment expenses
in the banking industry as of 31.03.2012 for the entire in-service employees and
officers - numbering about 8,00,000 - as has been furnished to the Negotiating
Unions for the X Bipartite Settlement/Officers wage revision - has been given as
Rs.56292 crores. Under this circumstance, conceding the 100% to the entire about
1,23,500 retirees comes to just Rs.291crores which would be just a meager 0.55%
of the total establishment expenses.
Similarly for 40% updation of pension upto 31.10.2002 and 50% for retirees
during 1.11.2002 to 31.10.2007, it comes to Rs.431 crores i.e. 0.76% of the
establishment expenses as of 31.03.2012.
For 50% updation of pension which is our demand as well as that of the Bank
Retirees Federation, if conceded for all the retirees upto 31.10.2007, then the
annual costing which is estimated at Rs.1082 crores is just 1.92%.

PLEDGE ACTION PLAN

Retirees : Act Now or Perish - This is the Time for Appealing to Highest Court
of Land As All Other Authorities Have Either Ignored Pleas of Retirees or
Have Played Active Role in Cheating Them

S.NO NAME BANK DATE OF

EMPLOYE
RETIREMENT E NUMBER SIGNATUR
E

TREACHERY CONTINUES
UNITE TO FORM
UNITED FORUM OF ALL BANK PENSIONERS ORGANISATIONS
( UFBP)
AND ENSURE VICTORY OVER EVIL FORCES AGAINST UPDATION
OF OUR
JUST PENSION !

Retirees : Act Now or Perish - This is the Time for Appealing to Highest Court
of Land As All Other Authorities Have Either Ignored Pleas of Retirees or
Have Played Active Role in Cheating Them

we would like all the retirees who are in agreement with the contents of the
letter to form small groups at their local levels and sign as a group (2 or more
persons) the letter addressed to CJI, and send the same to CJI alongwith
Exhibits. The letter to CJI and Exhibits can be downloaded by clicking on the
links given below:(a) Draft Letter addressed to CJI That Can Be Downloaded and Signed by
a Group (2 or more persons) of Retired persons ;
http://www.allbankingsolutions.com/Wage-Revision/Legal-Cases/Appeal-toSC-by-retirees.htm

(b) Download the PDF file containing all the 10 Exhibits (i.e. Annexures) to the
draft letter addressed to CJI as mentioned above;

http://www.allbankingsolutions.com/Wage-Revision/Legal-Cases/Exhibits.pdf

Love
S.Srinivasan