PENSION DRAFT AGREEMENT ANALYSIS

ANALYSIS OF PENSION RELATED CIRCULAR OF VARIOUS UNIONS DT 13.04.2010

RETIRED PF OPTEES They have to pay 56% of additional amount that they have received for getting pension. .The figure 56 is nothing but interest for 7 years at the simple rate of 8% aiming the bulk VRS pf optees of 2001 and assume that the pension pay out date may oscillate between 01.04.20008 and 01.04.2010 depending on who is going to convince whom ie UFBU AND IBA .The draft has cleverly avoided the WORD INTEREST because the moment you say that they have to pay interest on their accumulation they may be notionally entitled for pension from the date of their retirement at least for argument sake which nobody is interested.to give. Since the vrs 2001 scheme was a golden handshake scheme which union opposed at that time and because of the pressure only they have taken the pension cause now, no better package can be expected. They can keep this 56 % figure only for those retired under vrs 2001 scheme with pf option with exgratia amount.because at that time amount of pf received also was less


MODIFICATION TO BE DONE
The figure should be reduced proportionately for the normal retired pf optees after 2001 vrs scheme OR they can arrive the figure with the base date of effect of pension settlement and the date of retirement @ 8% p.a by going on the reverse direction subject to a maximum of seven years without calling it as interest and calling it as a lump sum amount for filling the gap in pension fund. No justification for a retired normal pf optee of say 2005 paying a much higher amount with increased accumulations than a person of 2001 retiree .
For a pf optee retired on or after 01.11.2007 recovery of 56% is highly inhuman and totally un accepatable .They should be asked to return the PF received with simple interest of 8% p.a from the date of retitrement in the same method suggested above.

EXISTING PF OPTEES AND PENSION OPTEES: Since mou itself says that one more pension option to be given to those who has not opted earlier , legally the pf optees are getting that chance to become member of the pension fund. EXCEPT THAT THEY HAVE NOT OPTED PENSION EARLIER, NO LINE CAN BE DRAWN BETWEEN TWO SERVING EMPLOYEES SAY A AND B OPTED FOR PENSION EARLIER AND THE OTHER PERSON WANTS TO OPT NOW. THE OUTFLOW OF FUNDS FROM BOTH CASES TO THE BANK BY WAY OF PF SUBSCRIPTION IS IDENTICAL.
IN RBI WHERE ONE MORE OPTION WAS GIVEN EVERYBODY WAS TREATED IDENTICAL ONLY.
So to avoid legal complications the UFBU/IBA combine has adopted the easy method of recovering money from the existing serving employees whether pf or pension opted to contribute equally to the GAP IN PENSION FUND. Since our pension regulations provide for arriving the deficit and to be provided they are adopting it now as per the MOU. Whether such sharing is correct or not is a different issue. Having agreed for 1800 crores that has to be done in a less combursome way by taking into account legal angle also.

SUGGESTUION TO UFBU

The recovery clause should be modified as follows

The amount repayable is to be arrived as the number of completed years that the PF bank portion is in the hands of the retirees and the factor is simple rate of 8% p.a. THEY NEED NOT CALL AS INTEREST IF THEY FEAR LEGAL COMPLICATION . LET THEM CALL IT AS A FACTOR FOR ARRIVING TO FILL THE GAP IN PENSION FUND.
THIS ONLY WILL GIVE JUSTIFICATION.
LET THEM IMPLEMENT THE PENSION AGREEMENT WEF THE RESPECTIVE RETIREMENT DATE WITH MONETARY BENEFIT FROM 01.04.2008 OR 01.04.2009 ETC. THIS WILL MAKE THE PF OPTEES TO GET IN TO THE PENSION FOLD FROM THEIR RETIREMENT DATE. SINCE THEY ARE CHARGING EXORBITANT AMOUNT LIKE CAPITATION FEE FOR GIVING PENSION, THE COMMUTATION CAN BE FROM THE NOTIONAL DATE OF RETIREMENT WITH 15 YEARS PERIOD ALSO DETERMINED FROM THAT DATE AND THE RECOVERIES FROM THE DATE OF RETIREMENT TO THE DATE OF EFEFCT CAN ALSO WE WAIVED. THIS PACKAGE ONLY WILL HAVE SOME MEANING FOR THE RETIRED PF OPTEES.

FUTURE PENSION DETERMINATION. : ANY OTHER PENSION IMPROVEMENT OTHER THAN 100% DA NEUTRASLISATION TO PRE 01.11.2002 RETIREES AND ROUTINE DA INCREASE ,SHOULD IN FUTURE COVER THESE RETIRED PENSION OPTEES ALSO FOR THE PURPOSE OF EQUITABLE RECOVERY AS THEIR NUMBER BECOME SLOWLY MOVING UP IN THE YEARS TO COME.BECAUSE OUR FUNDS ARE COMING FROM BANK PROFITABILITY AND NOT CONSOLIDATED FUND OF INDIA. HENCE IT IS BETTER TO REQUEST IBA TO RELEASE 100% DA TO PRE 01.11.2002 RETIREES. NOW ITSELF.
NOW THAT ALL EMPLOYEES BEARING A FEW HUNDREDS WHO MAY CONTINUE WITH PF OPTION IF AT ALL,MAY BECOME MEMBER OF THE PENSION FUND, THE REPRESENTATIVES OF THE RETIREES ASSOCIATION SHOULD ALSO BE CALLED FOR FUTURE DISCUSSION AND SERVING EMPLOYEES ALONE CAN NOT BE ASKED TOBEAR THE LOAD OF FUTURE ACTUARY AMOUNT ARRIVED.IF UPDATION OR INDEXATION TOOK PLACE.

EFFORTS SHOLD BE MADE TO IMPROVE HRA TO 30% / INTRODUCTION OF GRADE PAY AND OTHE R ALLOWANCES TO THE EXISTING SERVING STAFF AT LEAST FROM 01.11.2012 WITHOUT GOING FOR MERGER OF BASIC EXCEPT RECTIFYING THE ANOMALIES ARISING NOW BY RESTRUCTURING THE PAY SCALES AT THE \SAME INDEX LEVEL. LET THE SERVING EMPLOYEES DRAW INCREASED WAGES TO THE TUNE OF 30 TO 40% IN NON PENSIONABLE AREAS LIKE HRA, EDUCATION ALLOWANCE. TRANSPORT ALLOWANCE ETC. WHICH WILL ACT AS A DISINCENTIVE TO TAKE VRS UNLESS AND OTHERWISE THEY ARE IN APOSITION TO MANAGE FAMILY ON THEIR OWN WITHOUT MUCH SALARY.

ACCEPT NOW IBA S TERMS AND SIGN THE SETTLEMENT AS THIS NINETH BIPARTITE THE MAIN FOCUS IS SECOND PENSION OPTION SAVING 2.6 LAHS EMPLOYEES.
.VIGOROUSLY FIGHT FOR RESIDUAL PENSION ISSUES AFTER IMPLEMENTING THE 9 TH BIPARTITE. STUDY TH E IMPACT OF THE LOAD. THE MOMENET THE BALANCE SHEET OF 31.03.2011 WAS FINALISED PREPARE A VERY GOOD CHARTER OF DEMANDS AND FIGHT AND IMPLEMENT WEF 01.11.2012. DON’T BRING MUCH COMPONENT WHICH WILL HAVE PENSION BEARING EFFECT . LET IT BE TAKEN CARE OF AFTER 01.11.2017 BY TAKING CLUE FROM THE GOVERNMENT AND THE FUTURE SCENARIO OF BANKING GROWTH IN THE YEARS TO COME.

K BALASUBRAMANIAN RETIRED SENIOR MANAGER VRS 2001 PENSION OPTEE