Bank Pension Scheme

This is an old circular now published in the blog. Time constraints did not allow earlier posting

Dear Fellow Bankers,


Bank Trade Unions are functioning in queer ways. Leaders are working for their own goals. There are two directors ( representing workers and officers) on board different public sector banks charged duty is to function as spokesmen of the workforce. All along, they have been sleeping or clapping hands on all wrong decisions prejudicially affecting workers.

Unions severe the connections with members when they retire. They drove all the retired to different courts for justice without addressing their issues. Many who were denied Pension Option had to approach Courts. Pension matter was a stale one until early 2006 and Unions had, in the course of 8th Bipartite Talks, surrendered the right of employees agreeing not to reopen it again.

Unions started adddressing the issue only after I issued an all India Circular on 10th January, 2006 to all fellow bankmen. ( You can see some items in the blog " www.bankpension.blogspot.com". You may visit the blog and scroll against the different items seen on the left hand side in the blog. ). Agitating for five days on the Pension Issue that was buried deep in the grave yard for years together, the bank unions once again proved that they have power. The MOU dated 25th February, 2008 agreeing to settle Pension Issue within three months from then is the Magna Carta of Pension in the history of Banking. Unions that were averse to Pension in mind did not enforce the MOU even after the anniversary date and allowed to mix it up with wage revision. The reluctant horse was pushed to the pond, but still it refused to drink water. If Pension issue was settled within the agreed time frame or within the next six months it would never have got mixed up with the Wage Talks, giving the IBA a bargain to for employee's contribution for meeting pension bill. Once again, the interests of workforce got pledged. The elephant continues to walk as per the tunes played by the mahout without realising its strength.

Pension becomes contributory for all present employees who will have to surrender Rs.8.00 lakhs to Rs.12.00 lakhs standing to their CPF for joining the scheme. Again, a portion of the proposed wage hike is reportedly contributed towards Pension Burden. After making it contributory for the existing work force, Unions bargain for a non-contributory Pension Scheme for people who are to be recruited in future without any sacrifice or contribution from their side. Is it not strange? Let you be the judge.

I have spent about Rs.3.00 lakhs out of my terminal benefit on Printing Postage and stationery to bring the issue of Pension to the present status. While unions say that they have no commitment or responsibility to retired employees, one retired officer has spent huge money and efforts lasting for eight years to secure Pension Benefit to those working when the unions they subscribe to remained non-performing on it.

Union is strength. Unions in might Union is right. Split among the different unions alone created the issues. Let a change of heart take place among the leaders so that they work for the real benefit of the members

The option is not a second option. As per the present Pension Scheme in operation in Banks ( sans the clause enabling forfeiture of entire past services for participation in strike) no employee has got an option. If the existing Pension Scheme is implemented in letter and spirit, all are entitled to a fresh option which is the "first option" itself. It appears to be ridiculous when one calls it a second option. If they fail to sort out the Pension Issue separately people may start calling them UFBU assigning the expansion"Unscrupulous" for U