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Thursday, January 21, 2016

Ex-RBI employees seek FinMin approval for pension updation


Vinson Kurian
Thiruvananthapuram, January 5: 
The Forum of Retired Employees of RBI, Chennai, has requested Finance Minister Arun Jaitley to grant final approval for implementation of pension updation in the apex bank.
Several judgments from the Supreme Court — beginning with the Nakara case — have recognised that wage and pension revisions are inseparable from each other, the forum contended.
Nakara case
The Nakara case of 1982 is considered a landmark in the history of pension rights. Earlier too, another Constitution Bench of the Supreme Court had declared pension a ‘basic right’ of pensioners. But in RBI, the pension updation, following wage revisions in 2002 and 2007, has remained unresolved.
This is even as talks for wage revision in 2012 are reportedly in the pipeline.
The apex bank is still awaiting final approval from the Ministry of Finance, C Rajagopalan, a retired assistant general manager and president of the Forum, said.
The RBI central board is empowered to grant updation in terms of Regulation 5 of the Pension Fund Regulation, 1990, read with Sec 58(2) (j) of the RBI Act, 1934.
Therefore, the bank’s reference to the Centre for approval is unfortunate, pensioners feel.
Own corpus
In contrast, the RBI has its own corpus aggregating Rs. 10,782 crore (as on June 30, 2014), which includes pension updation benefits, Rajagopalan pointed out.
This apart, progressive increase in transfer of working surplus of Rs. 65,896 crore (2014-15) is unprecedented and is unmatched in any public sector institution or the corporate sector.
In view of this, the Finance Minister should convey final approval for pension updation for immediate implementation and with retrospective effect, Rajagopalan said.
(This article was published in the Business Line print edition dated January 6, 2016)