Why the need for Pension updation & Is there any provision for Updation in our scheme

The GIC Pension scheme 1995 was drafted with basic Principles of CCS Pension rules 1995 as amended up to 4^th central Pay commission. Consequently the formula of fixation of Pension is adopted from the CCS pension rule as amended on the implementation of 4^th CPC in 1995.

The Core values taken from the CCS Pension rules as amended up to 1995 are as follows

1) 50 % Pension for 33 years & Pro rata for lesser years.

2)  Minimum Pension & Minimum Family Pension as mentioned in 4^th CPC.

3) The rate of Commutation of Pension (30%)

The above three core values as amended in CCS Pension Rule 1972 up to 7^th CPC are as follows.

1) De linking of 33 years of service for full pension by  introduction of 50% Pension for 20 years( VRS) and above, 50 % Pension for 10 years and above in case of Superannuation Pension. The Pro rate Calculation is done away with.

2)  Minimum Basic Pension & minimum basic family Pension as per CCS Pension rule as on date is Rs 9000 & The rate Of family pension is 30% flat on last drawn basic pay where as in GIC Pension Scheme the minimum Pension varies from Rs 375 to 3010 only between wage revision carried out so far.

3) The rate of Commutation is 45% against our 33%  

Why the need for Pension updation & Is there any provision for Updation in our scheme 

The Non Updating of above three core values in GIC pension rules 1995 has made it redundant & static Scheme compared to our Mother Scheme CCS Pension rules 1995.

There is no mention of revision of pension in CCS Pension rules 1972 but still Central Govt Pension is getting updated along with every Wage revision. Consequently the CCS Pension rules 1972 get amended with every Pension revision due to implementation W.E.F. 5^th CPC to 7^th CPC.

Employees with a  a huge amount to their credit  as employers contribution to their Provident fund have surrendered & joined the GIC Pension Scheme 1995 relying on the mother CCS Pension Rules 1972  which is getting amended time to time as per  Pension revision  as envisaged   in Para 55 of GIC Pension rule Scheme1995.

The rationale behind every Pay/ pension revision is the erosion of money value due to unforeseen contingencies  like inflation & price rise which cannot be compensated by the Dearness allowance which is granted from time to time the purpose.

The family Pensioners are the most affected lot due to this non updating of changes in core value of CCS Pension rules in GIC Pension rule1995.

In order to allow 30% of last drawn pay as family pension Pro rata calculation is to be ceased forth with otherwise the spouse of Late employees retired on superannuation having less than 20 will draw family Pension more than her late retired employee.

In short employee may be preferred to die to allow her spouse to draw more pension than he is drawing presently.

This Problem can be explained as given below.

Last drawn Basic pay of employee= Rs 44000

Basic Pension for 33 years  = 22000

Pro rata Pension for employee retiring on

Superannuation having 18 years = 22000x18/33  

                                                          = 12000 (A)

Family Pension 30% flat on Basic Pay = 44000

         Family Pension as per this         = 13200 ( B)

Family Pension B is more than the retired employee Pension A.

The RBI Which is also under Department of Financial Services has removed Pro rata Pension Prior to sanction of 30% flat family Pension on last drawn basic Pay.

 

ADJOURNMENT OF SLPS AT WHOSE BEHEST ?

OUR CASES ADJOURNED TO 19.02.2020
Diary No.- 21826 - 2017
ALL INDIA INSURANCE PENSIONERS ASSOCIATION THR. ITS PRESIDENT vs. UNION OF INDIA
Case Details
Diary No 21826/2017 Filed on 21-07-2017 05:25 PM
PENDING
    [SECTION: XIV]
Case No. SLP(C) No. 019799 - / 2017  Registered on 04-08-2017
(Verified On 04-08-2017)
Present/Last Listed On05-02-2020 [HON'BLE MR. JUSTICE S. ABDUL NAZEER and HON'BLE MR. JUSTICE HEMANT GUPTA] [CL.NO. : 7]Status/StagePending - (Motion Hearing
[DISPOSAL/FINAL DISPOSAL AT ADMISSION STAGE - CIVIL CASES]) List On (Date) (19-02-2020)-Ord dt:05-02-2020Tentatively case may be
 listed on (likely to be listed on)19-02-2020 (Computer generated
Our case in SC today
Our case adjourned to 19th February 2020 as LIC sought it on technical grounds. The bench will hear on main issue of SLP only on the next date... No more on DA/DR issue

ADJOURNMENT OF SLPS AT WHOSE BEHEST ?

Mr KML Asthana had sent a letter on 30 th January 2020 seeking adjournment due to ill health and the letter was received in the S.C. Registry on 4/2/2020.The LIC counsel took the plea that the request for adjournment was not circulated to them and hence service was not complete.It was a technical ground taken by LIC Counsel for adjournment.

There is no point on fixing blame on anybody.This is in the nature of the legal system in our country.

But one thing we can be happy about is that main arguments on SLPs will be taken up on 19 th February.

C H Mahadevan

RTI REGARDING PARA 54B OF GIC PENSION SCHEME

Online RTI Request Form Details

RTI Request Details :-

RTI Request Registration number	TNIAC/R/E/20/00036
Public Authority	The New India Assurance Company Ltd.

Personal Details of RTI Applicant:-

Name	M B C
Gender	Male
Address	xxxx
Pincode	682019
Country	India
State	Kerala
Status	Urban
Educational Status	Literate
	Above Graduate
Phone Number	+91-
Mobile Number	+91-
Email-ID	vinodvihar31[at]gmail[dot]com

Request Details :-

Citizenship	Indian
Is the Requester Below Poverty Line ?	No
(Description of Information sought (upto 500 characters)
Description of Information Sought
Dear Sir, The Method of calculation of pension of Employees covered under Para 54B is not explained in GIC Employees pension scheme 1995.Tow categories of employees have been created by inserting this Para 54B in GIC Pension rules 1995, the calculation for other than those covered under Para 54B IS explained in Para 34 of GIC Pension Scheme1995.The Calculation for those are covered under Para 54B is not explained in GIC Pension Scheme & it is beyond my comprehension, Hence I request the CPIO to furnish me the following information under RTI act. 1) Whether the mode calculation of pension of employees covered under Para 54B of GIC Pension Scheme 1995 having less than 33 years of service is Calculated as per Para 34 (6) (a) of GIC Pension rules or any other Method if so give details. 2) Whether the mode calculation of pension of employees covered under Para 54B calculated as 50% of the average of last drawn ten months basic pay as per Para 37 of the GIC pension Scheme 1995 or any other method. Yours Faithfully, M B CHANDRAN Retired Employee SR.NO. 29340.
Concerned CPIO	Nodal Officer
Supporting document (only pdf upto 1 MB)

PARA 54B OF THE GIC PENSION SCHEME 1995 CREATS UNEQUAL AMONG EQUALS

The appointment of CMD is on contract basis for a specific period.CMD can be appointed from the employees as well as from outside the industry. In order to count his service during the period of engagement as CMD for terminal benefits, if he is an employee prior to his appointment as CMD, amendment to GIC employees Pension scheme 1995 vide gazette notification S.O 475(E) dated 3^rd July 1996 is resorted were by a proviso to clause k of Para to was inserted to include CMD in the definition of employee. Thus CMD is made one among the equal (among all the employees)

Thus by this amendment, he is again brought to the status of an employee during his tennure as CMD & he is made one among the equals.

 A gain in the year of 2001 by a subsequent amendment to GIC Pension scheme 1995, Para 54B is inserted vide S.O. 775(E) dated 13^th Aug 2001 where in all amendment to CCS pension rules 1972 from time to time was made applicable to CMD only with retrospective effect from 01/01/1996 without allowing the same to all other employees. This is arbitrary, unilateral & against the spirit of article 14 of the constitution of India.

Thus this amendment with retrospective effect has created unequal among equals & should either be made applicable to all or should be struck down.

Amendment is made in CCS pension rules 1972 after every periodic Pay & Pension revision due to the implementation of Central Pay commissions by the central govt. GIC Pension rule 1995 was drafted according to the CCS Pension rules as updated up to 4^th Pay commission. At present CCS Pension rules stands amended up to 7^th Pay commission, Consequently GIC pension rule 1972 has been reduced to an out dated scheme. Provisions in the Para 55 of GIC Pension scheme 1995 have not been invoked in general to incorporate the basic changes of CCS Pension rules in GIC Pension scheme. The major basic changes in the incorporated in the CCS Pension rule is removal of linkage of 33 service for 50% pension, uniform rate of 30 % Family pension & increase in quantum of minimum pension.

The CCS Pension rules 1972 do not have any provision for periodic revision of pension, still it is revised after every Pay revision. Employees have joined the scheme surrendering their Provident Fund Contribution by the company to their credit till 1995 on the good faith that the pension will be updated with the future changes of CCS Pension rules by invoking the provisions under Para 55 of the scheme & will be revised along with every wage revision in industry.

Unilateral insertion clauses to original scheme in a manner detrimental to the interest of a section of the employees are arbitrary unconstitutional & against the spirit of article 14 of the constitution of India.

For the reason stated above and for the reasons to be argued at the time of hearing it is here by prayed that this Hon’ble  court may be pleased to:

1)    Declare that the order exhibit-P2 (S.O 775 (E))  to the extent it restrict the benefits of changes of CCS Pension rules 1972 to Chairman & managing Director is null & void and quash exhibit P-2 to that extent by issuing a writ of certiorari or  other appropriate writ, order of direction.

2)    Issue a writ of mandamus or other appropriate writ, order or direction directing the respondents to revise the basic pension/ family pension/ minimum pension  of petitioners after every wage revision & after every amendment to CCS Pension rules 1972  in accordance with   exhibit P-1(Para 55)

3)    Issue Direction to the Respondents to grand an interim payment of 10 % of  basic pension to petitioners.

4)    Grant such other reliefs as may be prayed for and the court may deem fit to grant, and

5)    Grant the Cost of this original Petition.

SPECIMEN CACULATION SHEET FOR LIC/GIC NEW PENSION OPTEES

SPECIMEN  CALCULATION  SHEET FOR PROVISIONAL CALCULATION OF AMOUNT TO BE DEPOSITED 

NAME OF OPTEE  ------  XXXXXXXX

SR NO-------                 99999

AMOUNT OF NON REFUNDABLE WITHDRAWAL FROM CCPF ( IF ANY) ON  14/05/2014 =200000

DATE OF RETIREMENT/SETTLEMENT—17/04/2019

DURATION FOR WHICH INTEREST TO BE CALCULATED=4 Yr 11 Mts

BALANCE CCPF  PAID  ON  RETIREMENT =1100000

AVERAGE OF LAST 10 MONTHS BASIC PAY DRAWN + FPA = 60000

50% ABOVE LPD     FOR 33 YEARS SREVICE = 30000

ELIGIBLE BASIC PENSION    = 30000 

M F FOR AGE 29/09/1954) NEXT BIRTH DAY 61 = 9.81

COMMUTABLE PORTION OF BASIC PENSION = 1/3 OF 30000 = 10000

 COMMUTATION AMOUNT = 10000 X 9.81 X12 = 1177200

COMMUTATION AMOUNT RECEVABLE= 11177200

RESUDUAL BASIC PENSION    = 30000- 10000 = 20000

54.40 % DA ON ELIGIBLE BASIC PENSION (30000)   =16320

                                        

TOTAL PENSION (RESUDUAL BASIC 20000 + DA 16320) = 36320

NRW  IF ANY  FOR 4 YEARS  & 11 MONTHS = 200000 X 1.41 =  282000  X 1.082 = 305124

CCPF  AMOUNT RECEIVED + NRW  ALONG WITH  INTEREST  = 1100000  + 305124  =1405124

 LOADING ON THE ABOVE =1405124 X 1.3 =1826661

COMMUTATIO RECEIVABLE =1177200

BALANCE AMOUNT TO BE RETURNED = 1826661 – 1177200 = 649461

CMD is governed by CCS Pension rules is a wrong statement given by LIC & GIC A Mith to be revealed

One of the CMD of New India Assurance co who have not opted for our pension scheme 1995 has now opted for pension when OMOP notified recently,I am having his name & employee number.if he was governed by CCS pension rule, he should have bee granted pension under CCS pension rules & no need of any option.This point may be included in you ongoing case in HSC.
Para 55B of LIC Pension rules 1995 is ditto of para 54B of GIC Pension rule 1995.CMD post is contractual appointment & persons other than from our industry also can be appointed as CMD or MD.If such person is an employee of our company before being appointed as CMD/MD he ceases to be an employee of the company on his above appointment.Inorder to count his service during his above tenure,he has again brought to the status of an employee through this 55B.Any amendment to CCS Pension rules which is made applicable to our scheme as provided in para 56 of LIC pension rule 1995(para55of GIC) is also made applicable to him.It is to be noted that para 55B was not there in original scheme, it is added later by a notification.
This Mith stands  Challenged this in the High court of Kerala in WP(C) 4357/2019 & case admitted,waiting for UOI to file the counter.

ALLAHABAD BANK RETIREES WELFARE SOCIETY FILED PENSION UPDATION CASE IN SUPREME COURT

ALLAHABAD BANK RETIREES WELFARE SOCIETY

 vs. 

UNION OF INDIA

Diary No.	10021/2019 Filed on 15-03-2019 PENDING    [SECTION: X]
Case No.	W.P.(C) No. 000429 - / 2019  Registered on 03-04-2019 (Verified On 04-04-2019)
Present/Last Listed On	08-04-2019 [HON'BLE MR. JUSTICE SANJAY KISHAN KAUL and HON'BLE MS. JUSTICE INDIRA BANERJEE] [CL.NO. : 20]
Status/Stage	PENDING (Motion Hearing [FRESH (FOR ADMISSION) - CIVIL CASES])
Tentatively case may be listed on (likely to be listed on)	08-04-2019 (Computer generated)
Category	0601-Service Matters : Retiral benefits
Act
Petitioner(s)	1 ALLAHABAD BANK RETIREES WELFARE SOCIETY   SECRETARY 130-B, RAJAT VIHAR COLONY, HOSHANGABAD ROAD , DISTRICT: BHOPAL ,BHOPAL , MADHYA PRADESH
Respondent(s)	1 UNION OF INDIA   SECRETARY JEEVAN DEEP BUILDING, PARLIAMENT STREET , DISTRICT: NEW DELHI ,NEW DELHI , DELHI   2 INDIAN BANKS ASSOCIATION   through chairman WORLD TRADE CENTER, BUILDING NO. 1, 6TH FLOOR, CUFFE PARADE, COLABA MUMBAI , DISTRICT: MUMBAI ,MUMBAI , MAHARASHTRA   3 ALLAHABAD BANK   through managing director HEAD OFFICE 2, NETAJI SUBHAS ROAD, KOLKATA , DISTRICT: KOLKATA ,KOLKATA , WEST BENGAL
Pet. Advocate(s)	ANURAG KISHORE
Resp. Advocate(s)
U/Section

BANK EMPLOYEES FILE PETITION IN SUPREME COURT FOR PENSION UPDATION

We are pleased to inform you that the Society has filed Writ Petition in Hon’ble Supreme Court on 15.03.2019, under Article -32 of Constitution of India with prayer to direct Union of India to sanction updating pension and improvement in family pensions. The brief on the matter is as under - Why directly in Supreme Court? We have approached directly to Hon’ble Supreme Court under Article 32 of the Constitution for justice for the reasons -

a. The members of petitioner society are old pensioners from all over the country. They are in average age of nearing 75 years. Many of the pensioners have already expired.

b. The petitioners have knocked the doors of the authorities, Ministry, Associations etc but all the doors were found to close for the petitioners and moreover Indian Bank’s Association (IBA) has disowned the pensioners of Nationalised Banks.

c. The members of petitioner society are from different part of the country, it will be not feasible to approach different High Courts as the grievances and the prayer of the pensioners are the same.

d. Further being of old age poor pensioners, the petitioners cannot afford the time spent and the cost in the litigation before different forums.

e. Moreover the issue involved in the present case is direct violation of the Fundamental rights of the petitioners as guaranteed under Article 21 of Constitution of India, which is amenable to the Writ jurisdiction of this Hon’ble Court under Article 32 of the Constitution.

f. Many old aged pensioners are in the stage of starvation, therefore the present petition is being filed with a prayer to issue necessary suitable direction to the Government of India, for sanction of updating pension for pensioners of Nationalized Banks/Petitioners.

g. The above described pitiable condition of Bank pensioners is for the only reason, that their pensions have never been updated and the pensioners are being given Pension based on the Pay last drawn by them at the time of their retirements.

h. The amount thus being paid by Nationalised Banks to the pensioners / families (widows/widowers) of retired employees is not sufficient to meet even ones’ survival needs and, it is violation of Constitutional Right to Live, with dignity Guaranteed under Article -21 of Constitution of India.

The Grievances and Reasons for filing the Present writ:

1. Disparity with Central Govt. Employees Pensions Regulations -1995 flow from the Central Civil Services (Pension) Rules, 1972, and neither of these Pension Rules have explicit provision for Updating Pensions. The Regulation No-56 of Pension Regulations, 1995 for Banks, stipulates to refer the C. C. S. Rules, 1972 in case of any doubt. Govt has updated Pensions for its pensioners, but not for Bank Pensioners. Therefore compliance of intent and spirit of Reg-56 is not done, which has resulted in disparity.

2. Petitioners disowned by IBA and other organizations By Record Note dated 25.5.2015, the Pensioners have been disowned by both the parties signed that Record Note, which says that no Contractual Relationship Exists Between Banks and Pensioners.

3. Pension of the petitioners are less than Pre-86 retiree Pre-86 retirees were sanctioned ex-gratia as Social Security measure only, and the Bank of Baroda has started paying them additional Rs.8000/- effective from 1.3.2018.Thus many pensioners under Reg-1995 are getting lower amounts of Pensions as compared with pre-86 retirees of BOB. Pension Reg-1995 have become less beneficial, although were better in terms as compared to ex-gratia payments. 4. Pension even less than minimum wages as per ILO The 15th ILO Conference fixed norms of minimum wages, which have been adopted by 7th Pay Commission and in compliance of those norms of minimum wages; the Central Govt had given Basic Family Pension at minimum of Rs.9000/ at CPI of 1.1.2016. Thousands of Banks Pensioners and Family Pensioners were paid less than the minimum for the month of January 2019.

5. The Pension not even sufficient for Medical Insurance The Medical Insurance Scheme agreed and implemented in 2015 for retirees of Banks. The insurance premiums have increased approx Four Times and had become unaffordable to thousands of old aged pensioners, who need the insurance more. The “Ayushman Yojya” implemented by Govt of India for medical insurance of Rs.5 lac for Crores of Indian Families, is not covering these poor Bank Pensioners, because they cannot be included in deprivation criteria of the Scheme. Thus pensioners in age of average 75 plus have no insurance cover.

6. The omission by Respondents, against the Directive Principles The decisions to be taken by the Government are to be in line with Directive Principle embodied in Constitution of India. These directive principles aim at achieving the Social and Economic Democracy in the Country, by the decisions and actions taken or to be taken by the Government. To follow the directive principles of social and financial security in old age; Govt. have adopted concepts of savings for dignified life in old age in form of PF, improved to CPF, and then Gratuity, irrespective of the employees in Govt., Public Sector or Private Sector. The Pension was the most effective social and financial security measure implemented by the decision of Govt- first for Govt Employees in 1972 , extended to RBI in 1990 and then in Public Sector Undertakings in 1995. The Updating of Pensions had been done twice in last 20 years, aiming to neutralize the eroding impact of inflations for Govt. Pensioners. The inflations affect all pensioners equally in same proportions. The spirit of bringing economic democracy at least within the same limited class called pensioners in Banks has been ignored and the Bank Pensioners have been omitted against Directive Principles. Hope the petition will be admitted by the Hon’ble Supreme Court.

Sincerely Yours

(S.K.Mishra)
Secretary
ALLAHABAD BANK RETIREES’ WELFARE SOCIETY 130-B , Rajat Vihar Colony, Hoshangabad Road,