AIBRF Circular No 042 dated 12-05-2015


We wish to inform you that in order to pursue retirees’ pending issues when the settlement is entering into crucial stage and   is likely to be finalised in coming weeks, Delegation of AIBRF consisting  of  the President Shri S.M.Deshpande, General Secretary, Shri S.C.Jain, Deputy General Secretary, Shri D.P.Gupta & Organising Secretary Shri A.K.Bansal met the FINANCE MINISTER SHRI ARUN JAITLEY ON 12.05.2015 in his office in Parliament House and submitted the enclosed memorandum.

2. The discussions were held in cordial atmosphere and he assured that the issues raised in the memorandum will be examined and sympathetic view will be taken on them.

3.  As you know AIBRF has been taking all possible steps for resolution of issues in this settlement. In case in coming days   if the situation warrant , we may have to give organisational call to ensure that IBA/ Government approves our demands and ask unions not to sign the settlement without sanction of retiree  demands. Our cadre should be ready to respond the call instantly.

Memorandum No 039 dated 12-05-2015 submitted to Hon’bleFinance Minister Shri.Arun Jaitly

MEMORANDUM : Pending Demands/ Issues of Bank Retirees

We feel honoured and privileged to get opportunity to meet you to draw your kind attention on long pending issues of bank retirees and convey our thanks and gratitude for sparing valuable  time for us out of your very busy schedule.

2. All India Bank Retirees’ Federation ( AIBRF ) is all India body of bank retirees at the apex level. It was formed about 20 years back in the year 1995. Present membership of our organisation is more than 1, 25,000  coming from 45 bank wise federations of retirees which include 22 public sector banks, 11 private sector banks, 2 foreign banks and 14 state bodies. Aim and object of our organisation is to work for welfare of bank retirees and to protect their interest in pension related issues.

3. At present we have 4 MAJOR LONG PENDING DEMANDS which are logical and rational and which we want, should be settled in the ongoing wage settlement. They are as under

(i) UNIFORM DEARNESS ALLOWANCE TO ALL PENSIONERS : At present the pensioners who retired before November 2002 get tapered DA which is substantially lower compared to the DA payable to post- November 2002 retirees. The similar position obtaining earlier in government sector & RBI have already been corrected and all pensioners in these sectors get uniform DA. However in banking sector this discrimination and anomaly is persisting for last 10 years. We want that the demand of uniform DA should be approved immediately.

(ii) IMPROVEMENT IN FAMILY PENSION: Family pension in banking sector is very low and comes down to 1/3 after the death of the pensioner. In RBI & Government sector family pension rate is double the rate payable in banking sector. Improvement in family pension on the lines of RBI is absolutely justified to give dignified and respectfully life to the family.

(iii) PENSION UPDATION :  Basic pension of past retirees has not been revised in last 28 years since its inception w.e.f 1.01.86 despite 10 times increase in inflation and 5 wage revisions approved in the banking industry during this period creating huge gap between basic pension of those who retired 28 years back and those retiring now. This exercise needs to be carried out urgently to bring rationality in basic pension of all categories of retirees.

(iv) UNIFORM MEDICAL SCHEME: Presently no medical facility is available to the bank retirees except some support coming in a few banks out of welfare funds. Health management is most challenging task to the retirees at the advancing age. We want that uniform group mediclaim scheme should be made available to the bank retirees at the industry level.

4. We have submitted several representations and memoranda to IBA in last 5 years to discuss the above demands and some other pending matters with the representatives of our organisation. We enclose copy of the last memoranda submitted to IBA. However, IBA is not showing any inclination to give  appointment to us to place our views and data on above issues despite even after DFS asking IBA almost one year back to do so. Now wage settlement in the banking is at the final stage and may be signed on any day. We therefore want that IBA must immediately call us for at least consultation purpose before signing the wage settlement with the unions.

5. Normal standard argument comes against approving our above demands is financial constraint and paucity of funds in pension corpus. We have collected  data on pension funds of all public sector banks as on 31.03.2014 which are given in the enclosed sheet. This statement indicates that pension funds have shown healthy positive growth year after year and aggregate figure is robust Rs 1 lakh crores plus. Therefore to reject demands of retirees summarily on this count is not at all logical and rational. It calls for dissection with us when we can give much more inputs to support our stand.

6. We shall feel highly obliged and grateful to you if you will instruct the concerned authorities to look into our above demands sympathetically and approve them  before signing the settlement. IBA should also be asked to hold discussion with us  immediately.

AIBRF Circular No 072 Dated 13.05.2015

Developments in Today’s Efforts’

As you are aware that the undersigned and the President Shri S.M. Deshpande  are camping at Delhi for last two days to accelerate our last minutes efforts to achieve our demands in the ensuing settlement. We had to take decision to make accelerated level of efforts in view of the recent development that UFBU has decided to sign final settlement  on 22.05.015 without waiting for crystallising and finalisation of retirees’ demands though in the past it was repeatedly promised by UFBU that the settlement would not be signed by them unless retirees’ issues are addressed satisfactorily. On our approaching union leaders in last 2 days for postponing singing of settlement for a few days and make efforts to  carry out study on retiree issues and thereafter crystallise them, they are not agreeable on it.

2. Today we met some leaders of opposition and MPs in deputation and discussed with them our pending issues and impressed upon them the need for urgent action on them before the settlement is signed on 22.05.2015. All of them have promised to give favourable note on our demands to the FM in person today itself as far as possible.

3. We have also met the Economic Advisor, DFS, Shri Subarao in his office and explained our issues in detail. He was highly sympathetic on our issues in particular on 100 percent DA to pre-2002 retirees and he promised to move suitable note for required clearance on very urgent basis.

4. Comrades we have been requesting UFBU leaders for last  one and half years to at least arrange one meeting of retirees with IBA on retiree issues, but we find that they are either  unable to create enough pressure on IBA officials  in this regard or for any other reasons best known them. It looks highly surprising that we could get audience from Finance Minister of the country at very short notice but IBA officials are totally closed in meeting retiree representatives despite our follow up for last 5 years in the matter and mighty organisation like UFBU  reportedly making all out efforts for it for fairly long time. We are getting information that some insiders having vested interest are blocking the meeting.

5. In view of these developments of last few days and UFBU taking decision to sign settlement on 22.05.2015 ignoring retiree issues completely, the environment has become tough and hostile for us.

6. But Comrades we assure all of you that in next 10 days we shall take all possible steps including very strong organisational action to achieve our demands with or without support of UFBU . We call upon our membership to be in readiness to respond our calls without getting influenced by outsiders.7.


A.I.B.R.F letter No 040  dated 12.05.2015  addressed to Convenor UFBU

10th Bipartite Settlement

We have come to know   that unions are now in readiness to sign the 10th Bipartite Settlement on 22rd May 2015 to meet the deadline fixed in the MOU signed in this regard earlier. We further learn that UFBU is signing the settlement without addressing any of the major demands of past retirees like uniform DA to all, pension updation, improvement in family pension etc.

2. If it is true, we are shocked and hugely disappointed and in fact even if we put in the mildest word we feel BETRAYED. In this regard we would like to draw your kind attention that it was conscious and well deliberated decision of UFBU and all its constituents to include demands of past retirees in their charter of demands submitted to IBA for the current settlement and thereafter unions decided to handle them exclusively and directly with IBA and the government and not considered necessary to involve apex level retiree organisations directly or indirectly in the process of negotiation with IBA. Further , Senior union leaders of UFBU  on various occasions and platform given repeated assurances to thousands of past retirees that retiree demands will be taken on priority, treated at par with the demands of employees and the settlement will not be signed this time till past retiree demands are sanctioned by IBA. This is undisputable record. As you are aware,  Lakhs of past retirees took the assurance seriously and started nurturing the hope that this time issues of past retirees will be resolved with the support of UFBU. We have no hesitation in accepting that at AIBRF we further contributed in cementing and strengthening hopes of lakhs of retirees believing strongly on these assurances.

3.But today we find that as soon as the  understanding was arrived on employees demands,  UFBU and its constituents have conveniently dumped  past retirees’ demands without any solution. The news filtering and coming to us indicate that the issues of past retirees were not examined in detail, discussed with seriousness in last two and half years and now we are being informed that no sufficient time  is  available for carry out  cost study on retiree issues because deadline for signing the settlement is approaching very fast. They will at best  be  taken up in future.

4. We also feel highly hurt to find that UFBU has not even considered it necessary to inform us about signing of settlement without meeting past retiree demands. Further at  no stage UFBU leadership had considered necessary to share   about the periodical developments,  data/ information and their strategy to achieve demands of past retirees with us and  maintained total non -transparency. At best some information filtered to us on one sided enquiries from our side. We can also blame ourselves for showing too much dependence on the support of UFBU and its constituents which is proving to be costly for us. We  had approached  to you several times in past two and half years with the request to hold periodical meetings between UFBU and retiree representatives for better coordination and to understand the limitation of UFBU if any in achieving demands of past retiree saving us from last minute shock.

5. We would like to draw your attention on the fact  that each and every past retiree  was loyal and disciplined soldier of one constituent or another of UFBU one time or another. It cannot be denied that these past retirees of present have contributed in building concept of UFBU, bipartite mechanism and union set up in the banking industry. Therefore, in all fairness past retirees and their aspiration deserve better treatment than the present feudal lord approach. We request you to see the models adopted by Unions in government sector and RBI showing more magnanimity and accommodative approach towards past retirees. Because of this today pension of past retirees in these sectors are periodically updated and improved. You must have seen that in RBI unions and retiree organisations  fight for demands of past retirees shoulder to shoulder. There is need to replicate this model in the banking industry for better culture and bondage. You will agree that  retirement is a process  and not the punishment. Today’ employee is tomorrow’s retiree and today’s retiree is tomorrow’s past retiree. Therefore there is need to take care of interest of one another  as per the situation under which one is placed to create cordiality and fraternity rather than creating conflicting situation by branding past retirees as litigants and obstacle in smooth settlement for employees.

6. We have no hesitation to place on record that   because of approach of UFBU and its constituents towards demands of past retirees with ‘accepting 100 percent  responsibility for past retirees and with zero percent  accountability towards stakeholders model” ,  we have been placed in very awkward and tight position. Time left is very  limited to us and further we have limited resources. We are left hardly with 10 days within which we have to act decisively. Though we know we are soft target and ultimately we may have to accept the defeat on the major issues with virtually no fault of ours. But we would like to caution UFBU leaders that outburst and anger of lakhs of retirees will be furious and unimaginable which possibly neither we nor you are  able to comprehend at this stage. Today retirees are organised. They have solid platform. They have powerful voice and sufficient time to agitate. It will definitely burst. Because we closely know their mind set and emotion and if they outburst they are hindered percent correct.

8. We are also at complete loss to understand that mighty organisation like UFBU could not  persuade IBA in last 3 years to give one audience to the retiree organisations. Is it because of adamant attitude of IBA or something more than this which necked eyes cannot read. Some times we wonder when we can meet senior bureaucrats ,members of parliaments, even ministers at short notice but UFBU is unable to convenience IBA in the matter.

7. Here it would not be out of place to mention that  AIBRF has been working for last  a few years to develop culture of organisational efforts to resolve retiree issues and discourage litigation.  But if we fail to achieve any of major demands through our persistent organisational efforts of last 5 years, the belief of retirees in litigation will increase many fold and the banking industry whether you believe or not will be flooded with court cases

3. In view of this situation we make humble appeal to you and to leaders of each constituent of UFBU through you  that please understand gravity and seriousness of situation and accept our following requests

(1) 100 percent dearness allowance to pre-2002 retirees is settled issues as per your communications and understanding reached between IBA and UFBU. You must prevail upon IBA that it should be implemented immediately.

(2) If any further study ,discussion needed on other issues like improvement in family pension, pension updation. Uniform medical facility should be completed immediately before signing the settlement.

(3) If it is not possible within available time, signing of settlement should be deferred by a few days till the issues of retirees are fully examined and concrete offer comes from IBA. Settlement is delayed by record period of two and half years this time, further delay of one month or so is not going to harm employees interest adversely. The date of benefit is already crystallised.  Therefore they are not going to suffer any financial loss because of some more delay. We expect that unions can show this much gestures towards their past colloquies and set a very healthy trend for future.

(4) AIBRF should be taken in to confidence by UFBU and IBA on demands of retirees.

(5) We would like to have one meeting with UFBU representatives before signing of the settlement

We expect immediate response in the matter. Lakhs of retirees are keenly waiting for it. Your response will create history. All Constituents of UFBU: With the appeal to give passionate though on our above submission.

A.I.B.E.A. letter dated 14-5-2015 addressed to G.S. AIBRF

We are in receipt of your letter dt. 12-5-2015 addressed to the Convener of UFBU with copy to us.

On behalf of AIBEA and even UFBU, we would like to say that the contents of the letter are unwarrantedly provocative and not based on full facts.  The demands relating to Retirees were included in the charter of demands not at the behest of anyone but out of our own conviction that these issues have to be taken up for resolution.

The following 4 important demands have been taken up by us with the IBA and Government.

  • Medical Scheme for the retirees
  • Improvement in family pension
  • 100% DA for pre-Nov. 2002 retirees
  • Periodical updation of pension

Due to the consistent efforts of UFBU, for the first time in the industry-level bipartite service condition, IBA has agreed and the proposed medical scheme would provide for continuation of the benefits even after the retirement of an employee or officer.  This is a major achievement of the UFBU.

Further, it has been agreed that the same scheme would be made applicable to all the past retirees also.  This is by no means an ordinary achievement.

Regarding improvement in Family pension, we have repeatedly informed everyone that IBA and the Government are very sympathetic to this issue and the cost implications have to be worked out before a final decision is taken.  UFBU has informed IBA that the improvements in Family pension should apply not only for the existing employees but for the retirees as well.  In view of AS15-R, the cost implications of funding the additional fund required cannot not lost sight of.   The demand has not been negatived but under serious consideration.  From AIBEA we have even offered to negotiate the cost to find an amicable solution.


Regarding 100% DA for past cases, the IBA and the Government were willing to consider the same.  But of late we find that they feel that the matter is subjudice for discussions as some court cases are pending before Supreme Court for which we are not responsible.  Yesterday only you informed us that the court cases can be withdrawn to pave the way for a solution to this issue.

On the issue of updation of pension, IBA has very serious reservations in view of the cost implications which is very high according to them. So we have asked for the details of number of pensioners, present pension, etc. so that we can work out the cost and fund required for the same and then pursue the matter further.  It is a very important issue but also a difficult one to tackle.  Even in RBI this issue has not been resolved despite cost not being a problem.

All these developments have been periodically informed to you but still you have chosen to be oblivious to all the efforts and constraints of the unions.

If your letter is to request for further efforts, it would be viewed accordingly.  If  otherwise, we will take it on our strides.

All of us know that when various issues and demands are placed before the management, all of them do not get settled fully and in one go.  You are not unaware of the same.  But then to accuse that UFBU has betrayed, it is too much of a comment.

Please by assured that AIBEA and UFBU are doing what is best possible in the matter.

Letter No 041 Dated 15.05.2015 addressed to Convenor UFBU

10th Bipartite Settlement

With due respect to UFBU, its constituents and the leadership, on behalf of lakhs of bank retirees we place the following submission for your consideration and appropriate action.

(1) We understand that bank unions are going to sign the settlement on 22nd May 2015 or in near future thereafter. As per the communications issued, UFBU has been able to secure increase of 15 percent on payslip components amounting to about Rs. 4500 crores per annum for the employees effective from 1.11.2012 in the ongoing settlement. Further, efforts are going on for improvement in other allowances and facilities resulting into additional benefits to the employees with effect from 1.11.2012. Therefore it is expected that employees will get monetary benefit of Rs. 12000 crores approximately in on go by of arrear and annual benefit of Rs 4500 crores and more with increasing trend in coming years.

(2) Against the above backdrop, we have come to know that IBA/ Government is not ready to approve any of the demands like uniform dearness allowance, pension updation and improvement in family pension before signing the settlement. Further we have come to know that IBA is only ready to extend group mediclaim policies to the past retirees in this settlement. Here also, we have come to know that funding of the insurance premium for retiree is going to be left to the individual banks who will decide as to how much to be charged to the retirees and how much to come from staff welfare funds. Therefore if the position taken by IBA on retiree demands is accepted by UFBU for signing the settlement, there will be  ZERO ALLOCATION for the past retirees in this settlement. With this background, we would like to know whether position of ZERO ALLOCATION is acceptable to the UFBU leadership. If not, what is the strategy of unions to put enough pressure on IBA/ Government through organisational calls like agitational programme. Lighting strike call etc  as done in case of employees to improve the offer from 5 percent to 15 percent spending two and half years, we may kindly be informed for which we will be grateful to you. We would also like you to share the information/ documents exchanged on retirees issues between IBA and UFBU and which has convinced UFBU leadership not to press above retiree demands before signing the settlement. We feel that it is absolutely  necessary for confidence building in view of charter of demands of unions on retiree issues for this settlement and subsequent assurances given from time to time as well as for long term relationship between retirees and unions in the banking industry which is going to witness movement of more than 2 employees towards retiree camp in next 2/3 years. We feel this issue needs serious introspection al all levels.

(3) we request you to secure allocation of specific funds say Rs. 1000 crores per annum to be exclusively used for improving pension scheme for past retirees  and same should be incorporated in the settlement to be signed if it is not possible to work out details for past retirees immediately.

(4) One of the main reasons being given for not considering any improvement for past retirees is shortage of funds and banks’ weak financial position to bear additional cost. While it is open fact that entire financial burden of the benefits to employees will be on profit and loss of banks directly, any benefit considered to past retirees will be out of pension funds and not  from profit and loss of banks directly. If you see financial position of pension funds you will find it is healthy and improving year after year. We below give combined balance sheet data of pension funds of public sector banks as on 31.03.2014 on the basis of information collected by us.

Aggregate Pension Fund Corpus as on 31.03.13

(excluding SBI Group )                                      91336.78 crores

Add annual contribution in lieu of PF

From banks during the year                                   6412.02 crores

Add annual interest income on Investment          7619.47 crores

Less Out go by way of monthly payment to

Pensioners, Family pensioners and

Commutation                                                        6574.91 crores

Net Pension Funds  as on 31.03.2014               101919.56 crores

From the above the following may be observed for the year 2013-2014

(a) Corpus has increased from 91336 crores to 101919 crores registering annual growth of more than 12 percent after meeting all pension liability during the year

(b) Interest income of Rs. 7619.47 crores is greater than pension liability Rs. 6574.91 crores during the year leaving surplus of more than Rs 1100 crores plus in the year from interest income alone.

(c) Interest yield on pension fund investment during the year is coming out is 8.34 percent approximately which is less than tax free interest yield of 8.9 percent of PPF accounts. Improvement of 50 basis point  in yield on Rs 1 lakh crores plus fund can easily generate additional income of Rs. 500 crores.

(d ) Corpus is basically provisions for pension liability and their ownership belongs to banks. Pensioners have right on committed monthly payments. In view of this Banks are likely to be comfortable and will be left with sizable surplus  at the end of the scheme after 30- 40 years or so.

(e) Number of active pensioners will start reducing after toping in 2017 in view of settlement of 2009.

(f) The above increasing trend is not only in 2013-14 but the positive trend has been noticed year after year since its inception without any exception.

(g) Basic Pension of future retirees will increase 62 percent approx.  and consequent increase in commutation amount after this settlement. We feel that banks will make additional contribution to the fund to meet this liability and therefore further increase in pension fund corpus.

Our analysis is based on the data available to us. However if you have some different/ more data and analysis we request you to share them with us to understand and appreciate them. We hope you will find logic in our submission and arrange the joint meeting urgently.

AIBRF  Memorandum : 2015/187 Dated: 21.05.15 submitted to Chairman IBA on 25-05-15


We have come to know that IBA is going to sign the wage settlement with unions effective from 1-11-2012 on 25th May, 2015.

2. One of the important  issues which was to be discussed in this settlement was pension related issues of past retires which have remained pending for more than one decade and in some cases more than one and half decades. The retirees have direct interest in these issues. Further as you know and we would like to reiterate for your kind information that UFBU and its constituents with whom you are negotiating do not represent the retirees. Retirees have organised themselves independently in last 10 years to handle pension related issues and protect interest of retiree members. Our organisation, AIBRF is apex body of bank retirees with present membership of more than 1,25,000 coming from 45 public sector, private sector and foreign banks.


3. We had submitted Charter of Demands to IBA listing pension related issues of past retirees for discussion/negotiation at the beginning of the negotiation in 2013 itself. Further we find that UFBU and its constituents had also included pension related demands of  retirees and brought for discussion in the rounds of discussion from time to time as per the minutes/ communications issued by them at the end of each round of negotiation.

4.Besides above, during the entire period of negotiation we had submitted several representations to IBA as well as to the Department of Financial Services (DFS), Members of Parliament and last being to the Finance Minister, Government of India on 12th May,2015 in delegation with the request that pension related issues of past retirees should be discussed and negotiated with our organisation as we represent the retirees and not the unions of working employees. Many times UFBU representatives also informed  us during the negotiation period of last two and half years that they were convinced about the need of IBA holding discussion with retirees on their issues and   they  would ensure meeting of the retirees with IBA  before finalisation of the negotiation. Government of India, Department of Financial Services has advised IBA vide letter No. 10/30/G/120/2013/IR dated 11.06.2013 to hold discussion with our organisation. We had also submitted memorandum to the Parliamentary Committee on Public Grievance on our issues in the month of December, 2014. The Committee had forwarded the same to IBA with the direction for necessary action. We would like to mention for your information that it is established practice in government/ RBI to consult retiree representatives on issues concerning to them at the time of wage settlements. But we find that ignoring all the above points/ developments and government direction, you have decided for the reasons best known to you to proceed for taking final decision on the pension related issues of past retirees and sign the settlement with the unions without holding discussion with our organisation and without taking us into confidence. We lodge STRONG PROTEST against this arbitrary and  legally untenable attitude of IBA and its officials. Besides the merit of the case, our organisation which represent senior citizens deserve respect and dignity instead of IBA showing reluctance and hostility towards  us.

5. Our demands/ issues have been comprehensively spelt out and represented to you in the CHARTER OF DEMANDS submitted to you and also in the representation dated 19.01.2015 ( copy enclosed for ready reference). We below again list our main demands which need immediate solution

i)100 percent  Dearness Allowance to pre-2002 retirees with effect from 1.5.2005 as given in RBI.

(ii) Improvement in Family Pension on the lines of RBI

(iii) Updation of basic pension of all past retirees on the lines of       6th Pay Commission

(iv) Uniform medical scheme to the retirees at industry level

(v) Pension option to all left over retirees including compulsory retiree employees and resignees

(vi) Establishment of permanent Grievance Redressal Mechanism at the industry level

(vii) Representation of retirees in Pension Trust where retirees are also stakeholder.

6. We have come to know from reliable sources that in the settlement to be signed on 25th, no improvement has been considered on any of our above issues and there is ZERO ALLOCATION on issues of past retirees If it is true, We lodge STRONG PROTEST FOR THIS POSITION ALSO. Further, we shall submit representation giving our reaction on the issues after going through the contents/ details of the settlement.

7. We are getting several representations from our members who retired after 1.11.2012 that their pension amount will get reduced after implementation of certain provisions of the settlement. If it is true it is cause of concern for us as it affects large number of our members who have joined our organisation leaving working class unions on retirement. We shall submit detailed representation after studying the relevant clause of the settlement

8  More than One Lakh Twenty Five Thousand Members of our organisation in particular and retiree community in general are shocked and disappointed on humiliating  attitude of IBA towards retirees and  on their demands. We lodge STRONG PROTEST for this and request you to immediately hold discussion with us on our issues  and sanction them after negotiation with us independently.

AIBRF Circular No 184 dated 25.05.15 PROTEST DAY ON 25-05-2015

As per the decision taken, PROTEST DAY was observed and demonstration was organised at Azad Maiden, Mumbai on 25th May, 2015 in view of Zero Allocation for retirees in the settlement signed  and non- fulfilment of any of the promises in the settlement  made by unions for retirees.

2. It was attended by more than 200 retirees from Mumbai, Pune, Hyderabad etc despite very hot weather and very short notice for the programme The memorandum to be submitted to IBA registering protest against raw deal given in the settlement to the retirees was approved unanimously and signed by the retirees present in the rally.

3. In the afternoon the memorandum was handed over to the Chairman, IBA , Shri T.M.Bhasin in the presence of  other members of  managing committee. The Chairman asked CEO ,IBA to look into the memorandum. The delegation of AIBRF who submitted the memorandum was consisting of the President, Shri S.M.Deshpande, Vice Presidents, Shri D.A.Masdekar and Ashok Patil General Secretary, Shri S.C.Jain and Dy. Gen. Secy. Shri R.S.Desai

4. Thereafter, We held preliminary discussion with the CEO who assured that after going through the memorandum  the next meeting would be held with our representatives after some time.

AIBRF Letter No 015 dated 26.02.2015 toShri M.V.Murli Convenor, UFBU

Signing of MOU for Wage Settlement  Retiree Issues

We wish to convey our heartiest congratulations to you, entire leadership of UFBU and entire working force in banking industry for successfully steering the struggle from humiliating offer of 5 percent initially to respectful agreement of 15 percent finally and signing MOU with IBA to this effect.

2. We find from contents of the MOU signed that other pending issues will be discussed and negotiated in next 90 days for final settlement. Pending issues, of course, will include employees’ related issues, but we believe that most prominent issues to be discussed and finalised will be pension related and other superannuation benefits issues, This time UFBU has been focussing and raising pension related issues in various rounds of negotiation  right from the beginning. Therefore it goes without saying that they will come for discussion in prominent manner in coming days. In fact, we wished that in the recently signed MOU, there should have been specific mention about discussion on pension related issues to show gesture and reflect sentiments of the retiree movement.

3. We request you to consider the following points while negotiating the pension related issues

(i) Retirees have organised themselves in large number in the banking industry and have been agitating and struggling for resolution of their long pending demands in the ensuing wage settlement. We request UFBU that retirees’ sentiments are effectively placed before the negotiating team of IBA.

(ii) We would also request you to take AIBRF in to confidence before taking final view on pension related issues in particular those affecting the past retirees. In this direction, we want you to hold joint meeting with the representatives of AIBRF   on the lines of  one held at Chennai in July 2013 to understand and appreciate the stand of one another.

(iii) We have been informed by officials in DFS during our meeting with them that they have already given direction to IBA to hold discussion with the representatives of AIBRF  on the issues concerning to retirees. Despite such  clear direction, IBA seems to be reluctant to invite us for discussion for the best reasons known to them. In this regard we request you to refer letter no  FOR:13: 2015 dated 6.02.2015 written to you by AIBOA, General Secretary Shri S. Nagrajan. We may further mention that recently Chairman of Parliamentary Committee on Public Grievances has directed DFS vide their memo no RS17/ 1/ 2015 – P & L dated 23rd February 2015  to hold discussion with the representatives of AIBRF on their pending issues. In view of the above we shall be grateful to you if you will impress upon IBA authorities to shed all inhabitation and reluctance and immediately hold meaningful dialogue with us before signing any settlement on pension related issues. We are sure you will agree with us that this absolutely necessary for controversy free and litigation free settlement. We humbly request you also not to sign the settlement  unless  AIBRF representatives are called for discussion and are taken into confidence.

( iv) Many times we come across the propaganda that the reason for not holding discussion with the retirees is the existence of large number of retiree organisations and therefore authorities are confused as who represent the retirees and with whom discussion should be held. Such unwarranted propaganda  being spread by vested interest is mischievous and far from truth. As a matter of fact, there are only 3/ 4 retiree organisations in the banking industry at the apex level and they represent more than 90 percent of bank retirees. Further when DFS/ other government authorities do  not find any difficulty in holding periodical discussion with AIBRF we are unable to understand in IBA avoiding  discussion with us. We shall be obliged if you will place this aspect before IBA authorities.

(V) We are grateful to you and all leaders of UFBU for raising our issues quite effectively and are confident that with your good offices and efforts they will be resolved in the settlement. However we would like to place many relevant data and information to you as well as before IBA when we meet to show that our demands are reasonable, logical and manageable  within the affordable financial limit.

AIBRF Letter No 006 dated 23.01.2015 addressed to  The Chairman IBA


We wish to invite your attention on  our letter no 2014/ 109 dated 11.09.14 requesting you to extent one more pension option to the compulsory  retired employees as per the provisions of the settlement of 2010 in view of the Supreme Court decision in SLP no 35389/2013 and 35449/2013 dismissing appeal of Andhra Bank Management against the order of Andhra Pradesh High Court.

2. Despite strong merit in the judgment of the Supreme Court. Andhra Bank Management as compulsive litigant attitude filed review petition no 2889 & 2994/2014 against the order. We understand that the Supreme Court has now dismissed  review petition of Andhra Bank management vide order dated 15.01.2015.

3. While delivering the judgement by the Supreme Court  on SLP of the bank management, the court has  given the ruling that as per the provisions of the pension regulations adopted by member banks in terms of settlement of 1993 “ Retirement “ term also include “ Compulsory Retirement “ for the purpose of eligibility. One more pension option offered to the employees who were in service prior to 25.09.1995 and retired after and prior to the 27.04.2010 as per the Settlement dated  27.04.2010 also include compulsory retired employees covered under the above period.

4. In view of the above position, the Supreme Court has ruled that it was erroneous on the part of IBA and the member banks managements to issue administrative instruction to exclude  compulsory retired employees from pension options in terms of settlement of 2010.

5. We once again request you to issue the necessary instruction to the member banks to give pension option to the eligible compulsory retired employees  in terms of provisions of the settlement  of 2010 in view of final order of the Supreme Court immediately without further delay and unnecessarily dragging the retirees in to further litigation and correspondence

6. At this stage we would like IBA authorities to introspect their present approach and attitude towards retirees, retiree organisations, their representatives and retiree movement. Retiree movement in the banking industry is taking big momentum and it is becoming strong force. Further it will grow leap and bound in the coming years. IBA as model organisation of bank employers should accept this ground reality and immediately review their existing HR policies towards retirees.. We hope to have better relationship with IBA and IBA attitude towards retirees and retirees issues in the on going settlement will be true testimony and will determine future course of action.

AIBRF Letter No 007 dated 26.01.2015 addressed to  The Chairman IBA

Benefit of notional service to voluntary retired Employees under special VRS who completed more than 19 and half years service( Supreme Court Decision)

As you are aware that while implementing Supreme Court judgement in the case of Bank of India V/s Mohandas and Others on the advice of IBA , banks wrongly denied the benefit of notional service in terms of pension regulations no 29  to those completed more than nineteen and half years but less than 20 years service taking very strict , narrow and technical interpretation of the judgment  without connecting it (judgement) logically with the relevant provisions of the pension regulations.

2. In view of this position taken by banks on this issue, the matter  again landed  in the Supreme Court in Civil Appeal No.172/ 2010 ( State Bank of Patiala v/s Pritam Singh Bedi & others ) wherein the Court has delivered the judgement confirming the decision of Punjab and Haryana High Court and directing the bank to extent benefit of notional service to those voluntary retired employees who completed more than nineteen and half years service too. Further, now Supreme Court has dismissed review petition filed  by Sate Bank of Patiala vide its order dated 3.12.2014 and the judgement has become final.

3. Considering the above developments , it is our humble request to you to advice member banks to implement Supreme  Court judgement in the case of State Bank of Patiala v/s Pritam Singh Bedi & Others extending the benefits to all affected pensioners immediately without dragging further the retirees in unnecessary litigation which  is very unfortunate phenomena noticed in this matter where some bank managements like Allahabad Bank ,Vijaya Bank had unsuccessfully dragged the retirees in litigation ignoring the advice of IBA/ Government and provisions of National Litigation Policy.

AIBRF Circular No 020 Dated 08.03.2015

Kolkata High Court Decision on 100 percent DA

As you are aware, Kolkata High Court  has recently delivered judgment on the writ petition filed by United Bank of India Retirees Welfare Association Kolkata & Others in the matter of  100 percent Dearness Allowance to pre-November 2002 retirees.

2.The court has directed Board of Directors of United Bank of India to take reasoned decision in consultation with Government of India & Reserve Bank of India  in the light of findings and observation given in the judgement  regarding payment of 100 percent Dearness Allowance to pre-2002 retirees by 30th June,2015.

3. While delivering the judgement, the court has observed that policy and service conditions of the respondent bank for payment of dearness allowance to pre-2002 retirees is arbitrary and discriminatory. The court has further observed that United Bank of India being under the control of Reserve Bank of India it was incumbent  on it to follow RBI policy with regard to payment of dearness allowance  because  regulations of RBI has been accepted by the respondent bank in 1993 regulations and 1995 regulation did not expressly repeal this principle. The respondent bank has all the more reasons to follow RBI circulars granting 100 percent dearness relief to pre-November 2002 retirees with retrospective effect from February, 2005.

4. It may be state that in 1993  Unions and IBA had entered into settlement  wherein under clause 6 it was stated that dearness relief  to pensioners will be granted at such rate as may be determined from time to time in line with dearness formula in operation in RBI. IBA was ignoring and refusing to implement this clause of  the settlement. Now Kolkata High Court  has given fresh legal sanctity to this clause of the settlement.

5. We wish to convey our heartiest congratulations to our affiliate, United Bank of India Retirees’ Welfare Association and its leadership for this successful legal fight.

6.  We understand that UBI Retirees’ Welfare Association is issuing necessary legal notice to the Bank Management, Government of India and Reserve Bank of India  to pass necessary order  to grant 100 percent dearness allowance to pre-November 2002 retirees as per the relevant circulars of RBI in the light of observations made by the high court  before 30th June, 2015, the last date fixed by the court for this purpose.

7.  We are keeping close watch on the developments in the matter and take necessary action at the appropriate time at our end.

AIBRF  Memorandum 21 Dated 18-03-2015 submitted to Convenor UFBU


We understand that UFBU has reached to the broad understanding with IBA to provide Group Mediclaim Insurance Policy to the employees and their families to cover health risk in lieu of existing medical facilities available to them. We consider it as significant and historical change in the present dynamic world and win- win situation for both parties. While employees will get much higher coverage and better medical facilities, bank management will be able to know and determine its financial liability under this head in advance.

2. We have come to know that the draft proposal in this regard has already been circulated and is now ready for final adoption. One of the provisions in the draft proposal is that Group Mediclaim Insurance Policy will be available to the employees after the retirement. In other words future retirees will get this benefit.


AIBRF has identified one of the core demands to be achieved in the ongoing settlement is UNIFORM MEDICAL FACILITY FOR THE RETIREES AT THE INDUSTRY LEVEL  and has been working for it in coordination with UFBU. We are happy to find that UFBU and its constituents not any agree with this demand but has been making efforts to achieve it.

Towards achieving this demand we now want that Group Mediclaim Insurance Cover should be made available to the past retirees. We have come to know that IBA is favourably inclined to examine the scheme for the existing retirees.

While discussing and finalising such scheme for the past retirees, we request UFBU leadership to consider the following suggestions.


(1) Insurance cover should be same as being offered to the employees i.e. Rs 4 lakhs for the retired officer and Rs. 3 lakhs for the retired award staff.

(2) The retiree should have option to take higher insurance cover on payment of additional premium from own pocket.

(3) All past retirees should be extended insurance cover irrespective of age at the entry level.

(4) The scheme should be made available to all categories of retirees, superannuated or VRS Optees, pensioner or non-pensioner and all family pensioners.

(5) It should be made available to pre-1986 retirees also.

(8) Cover of the floater policy should include the retiree, his/her spouse and dependent children.

(9) Pre-existing decease should be covered in the policy without any waiting period.

(10) Any portion of the premium to be borne by the retiree should be recovered by the bank in 12 equal instalments from the monthly pension payment.

(11) There should be provision for shifting existing mediclaim policy holder to the floater policy.

(12) There should be provision in the policy to have cashless treatment in hospitals.

(13) All formalities/ documentation required to be completed by the retiree should be done at the concerned pension paying branch.

(14) LIC is offering mediclaim insurance to its retirees under floater policy. Main features of this scheme in respect of  risk cover should be made available to the retirees.

We request UFBU leadership to hold discussion with us before taking any final decision on the scheme for past retirees.

AIBRF letter034 dated 19-04-2015 addressed to Shri K.Unnikrishnan  Deputy Chief Executive Officer IBA

AIBRF letter 035 dated 19-04-2015 addressed toShri.Rajan Kumar, Economic Advisor Department of Financial Services ( Banking Division )


We request you to refer our Representation on the retiree issues registered under the above reference number.

2. You will kindly observe from our above representation that we have raised important pending issues of bank retirees affecting large number of persons at all India basis and which are likely to be decided and final view will be taken on them in the ongoing wage settlement in the banking industry.

3. We shall feel highly obliged if you will give personal hearing to the representatives of our organisation on these issues before the representation is disposed off and the final settlement with the unions is signed.