News Details

Pension related statement in AGM meeting of IBA


RESPECTED SMT NIRMALA SITARAMAN, HON'BLE FINANCE MINISTER , MINISTRY OF FINANCE, NEW DELHI 110001 I invite your kind attention to my above letter (hard copy of which was delivered to your office on 3rd December 2020) and pleased to inform you as under, From the pension related extract of minutes of IBA meeting with working employees union as on 10th December 2020 speaks of how badly pensioners have been cheated by UFBU,IBA ETC . It is regrettable that IBA again wants fresh actuarial report from all banks which is nothing but deferment of this demand of pensioners for indefinite period though I have submitted vide my above letter to Yourself,Prime minister, Secretary dfs, Chairman IBA ,CEO IBA and MDAND CEO OF BANK OF BARODA AND GOVERNOR RBI , WHEREIN I have given fair value of funds as per AS15 in balance sheet (rupees in crores)for the years 2016-2017,2017-2018,2018-2019,2019-2020.the figures are taken from PUBLISHED ANNUAL REPORTS OF SBI AND PUBLIC SECTOR BANK ) FROM this table I have also brought to your attention as under "In the AS15 pension liability includes all pensioners and remaining working staff who opted for existing pension scheme with ongoing updation with every BPS. The number of pensioners approximately as on march 2019 was pre 2002 batch as 75056, between 2002 to 2007as 15087, between 2007to 2012 as 83977 and between 2012to 2017 as 160068. The actuarial estimates are based on the total number 753000 which includes regular pensioners approximately 378765 along with family pensioners of 91000 and the working staff opted for the existing pension scheme as 283363. THIS DOES NOT GIVE CORRECT PICTURE OF ADDITIONAL LOAD ON PENSION UPDATION . Moreover there are no uniform guidelines for AS 15 disclosure norms which results in varying estimates of parameters by actuaries and auditors . 'from the cash flow it is observed that every year about 90%of pension payment is covered by income from pension funds only and bank contribution is hardly used.This results in pension fund growth of about 8 to 10% every year. If the weighted average rise of pension is about RS 6000 per month for each of about 1.70 lakh pensioners annual cash out go increases by about RS 1200 CRORES as per RESERVE BANK OF INDIA PATTERNS" In view of the about information why IBA again wants fresh actuarial report from all banks is a big question and which needs to be questioned by your office , and further if IBA WANTED FRESH ACTUARIAL REPORT THEY SHOULD HAVE CALLED FOR NO SOONER YOU TALKED TO SBI CHAIRMAN,IBA CHAIRMAN,,SECRETARY FINANCE ,DFS, SOME TIME IN OCTOBER 2020. ALL this clearly shows delaying tactics on the part of IBA which needs to be investigate by your office immediately., In view of the above I sincerely request your intervention to decide the matter of pension updation to bank retirees without any further delay Thanking you with respectful regards, S. RAMACHANDRAN FORMER GENL.MNGR.BK.OF BARODA, (SUPER SENIOR CITIZEN) PUNE MOBILE 8600064195