E circular DK 53 dated 3.2.21 from Gen.Secy. Fedn.of Retd.LIC cl 1 Officers Associations.

 

FEDERATION OF RETIRED LIC CLASS I OFFICERS' ASSOCIATIONS   

Acting President :    Shri P.P.Dhamija R-6/104, Raj Nagar, GHAZIABAD – 201002. Tel: 0120-4107104 / 9810186067 Email Id – premdhamija38@gmail.com

General Secretary :    D Krishnan No.6/1, Sreshta Riverside Apartments, Wood Creek Road, Nandambakkam, Chennai - 600089 Tel : 9176635967 / 044 42850049. Email Id - dkrishnan1@gmail.com

 

E circular No.DK/53                                        3-02-2021

Friends,

Reg: 1. The Parliamentary Question on Up-gradation of

Pension for Bank Pensioners, and

2. The Budget pointers towards LIC IPO

 

It’s been some time since you heard from this platform of the Federation. I thought there was some grist for the mill now, to get back to all of you.  This context brings in two items for general information – 1. The Parliamentary Question on Up-gradation of Pension for Bank Pensioners, and 2. The Budget pointers towards LIC IPO.  I reproduce here the starred Question raised before Parliament and the Answer to it:

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12th Position

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

 DEPARTMENT OF FINANCIAL SERVICES

 RAJYA SABHA

STARRED QUESTION No. *12

 TO BE ANSWERED ON 2nd FEBRUARY, 2021(TUESDAY)/ MAGHA 13, 1942 (Saka) 

Revision of pension of retired bank employees  -   Question 

*12. SHRI M. V. SHREYAMS KUMAR: 

Will the Minister of FINANCE be pleased to state: 

(a)  whether it is a fact that pension of retired bank employees has not been revised for the past three decades and the Indian Bank Association at its 72nd Annual General Meeting (AGM) has advised the Bank authorities to update the pension; 

(b)  if so, the response of the Ministry thereon when Regulation 35 (1) of Bank (Employees’) Pension Regulations, 1995 emphasise the updating of Basic Pension and Additional Pension, wherever applicable; and 

(c) the details thereof along with reaction of Government in this regard?

 ANSWER  The Finance Minister  (Smt Nirmala Sitharaman)

 (a)  to (c) : A statement is laid on the table of the house.

 Statement referred to in reply to parts (a) to (c) of the Rajya Sabha starred question no. 12 for answer on 2nd February, 2021, regarding revision of pension of retired bank employees, tabled by Shri M. V. Shreyams Kumar, Member of Parliament

 Pension of pensioners of nationalised banks is financed by the respective bank out of its commercially generated revenues. Such pension was introduced as a funded scheme on the basis of consensus arrived at between bank employee unions/associations and the Indian Banks’ Association (IBA), which negotiated on behalf of participating banks. The Boards of the respective nationalised bank accordingly made Employees’ Pension Regulations in exercise of their powers under section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980. While the said regulations do not provide for revision of the pension fixed thereunder consequent upon the retirement of an employee, regulation 37 thereof provides for six-monthly revision in dearness relief on the basis of rise in All India Consumer Price Index for Industrial Workers. Insofar as regulation 35(1)is concerned, the same applies only to employees who retired between 1.1.1986 and 31.10.1987 and the updating referred to therein (in terms of certain formulae) only have effect on the initial fixation of their pension and does not entail any revision of pension so fixed. With regard to whether IBA at its 72nd AGM has advised bank authorities to update pension, it is stated that as per IBA no such advice has been given and, further, that IBA has recently (on 25.1.2021) recommended that family pension, which is currently payable at the slab rates of 15%, 20% and 30% for different categories of pensioners with a cap of Rs. 9,284 per month, be improved to 30% for all employees without any cap, and the said recommendation is under consideration of the Government. 

-----------------------------------------------------------------------------------------   There were a no. of reactions to this , bordering on shock and disappointment, after what the FM had spoken on the subject in the IBA meeting around the culmination of the Negotiations and signing of the MOU with the Bank Associations, some days back. My own response to this was sent to one of those references to me, and it was this:

“My own humble submission is that we should not read too much into this response of the ministry to a starred question. This holds good till such time a Revision in pension is announced. They cannot be expected to lay bare their future plans in the context of such a focused question.

 If it is to be answered without bringing in any commitment from the Govt. on a change, the answer has to be only this. It will be noted that it does not seek to state anywhere that pensions have to remain static. They are merely quoting the concerned Rule as on date.

 Let us see how it all progresses, as the Actuaries who have been entrusted with the job of checking on the strength of each Bank to withstand such a step, will necessarily have to come out with their Report. Govt's answer in Parliament today, is no proof against a change in future.”

 

In any case we do also have the back-up of our Case still in the Supreme Court and when normal Hearings start in March 21,  we will be pushing ahead on this in the absence, till then, of any positive movement on this front.

 

The second one relates to the indications in the Finance Bill regarding steps towards the LIC IPO. This matter now assumes some criticality since the Govt. has budgeted the revenues accruing out of all the privatization plans, of not just the LIC IPO, but sale of other public sector units like Air India and the BPCL etc.

 

As for the LIC IPO the path towards doing it is pretty arduous as it involves making suitable amendments in the Insurance Act and the LIC Act. These are all indicated in the clips from Finance Papers being sent  here as Attachments to the Circular.

 

With warm greetings to all 

D.Krishnan.

Encl: Press clippings

 

 

 

 

 

 

 

 

 

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