Breaches of Bank Employees’ Pension Regulations, 1995 and Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980 by IBA
Most venerable Minister,
IBA and banks have no justification for denying and depriving the employees of the sanctions of the Legislature for the following reasons:-
01. The payment of pension with revision in pension from time to time has no impact on the profits of banks as pension is paid out of specific Pension Fund available for such payment.
02. Pension Fund of all Public Sector Banks (PSBs) are abounding in resources and can foot the arrears of Pension without feeling any pinch.
03. No budgetary allocation on the part of the government is necessary for the purpose.
04. Pension Fund is built up of the deferred statutory wages of the employees which was previously payable as EPF pursuant to EPF and Miscellaneous Provisions Act, 1952 and is hence the money of the employees.
05. The Pension Fund need not service the employees recruited on or after 01st April, 2010 who are covered by PFRDA Scheme operated by the Government.
06. The Pension Fund cannot be utilized for any purpose other than payment of pension/family pension by operation of regulation 5 (2) of the Pension Regulations.
07. The annual growth in Pension Fund of all PSBs limpidly shows the capacity to pay three to four times the present pension to all the pensioners in the industry.
It is senseless on the part of IBA and banks to deny due pension with timely enhancement payable under the Pension Regulations in derogation of law and rules when enough money of employees is available for the purpose. What retired bankers need is no fresh sanction; but release of the payments already sanctioned. They need it not for amassing money; but for a frugal living. They are the people who helped the government implement its financial policies for building up the nation by sacrificing their brain, blood and brawn.
I am sure that as a seasoned lawyer and a Parliamentarian with rich exposure and experience, you will identify the derogation of laws by IBA and banks as taboo and direct IBA and banks to refrain from axing the magnificent Constitution of the nation, tormenting its democratic fabric.
I request you to take expeditious steps to restore righteousness by directing IBA to be compliant with the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980 and the Pension Regulations, which is a subordinate legislation put in place by the Indian Parliament, for upholding its dignity and privilege. I feel that it will a laudable step in consonance with the National Litigation Policy that will mitigate hardships of a number of senior citizens who are pushed into the corridors of various courts in quest of justice and give considerable relief to judiciary that is saddled with vast number of avoidable petitions.
Thanks and Regards,
C N VENUGOPALAN