Issue of Pension Updation in Reserve Bank of India
·
In
RBI pension scheme was introduced w.e.f. 1.11.1990.
·
The
Bank had notionally revised the pay
of those who retired between 01.01.86 and 31.10.87 and then fixed their pension
as per recommendations of 4th Pay Commission at the time of
introduction of pension scheme in 1990.
·
This
pay revision was undertaken based on Regulation No.5 of RBI Pension
Regulations, 1990 which is as under –
“In the matter of the application of these
Regulations regard may be had to the corresponding provisions of the Civil
Service Regulations or the Liberalized Pension Rules or the Civil Pensions
(Commutation) Rules or the Family Pension Scheme for Central Government
Employees, as the case may be, of the Government of India in so far as they can
be adapted to the service in the Bank but subject to such exceptions and
modifications as the Bank may from time to time, determine.”
·
Thereafter
Dr. Bimal Jalan, Governor RBI keeping in view recommendations of C.P.C. &
Wage settlements of 1992 & 1997, 2nd
time updated pension of pre-November 1997 retirees in 2003 w.e.f. November 2002
after seeking opinions of senior legal experts.
However, in 2007-2008 Government of India advised that RBI has no powers
to revise pension of its employees without seeking their approval for amending
relevant regulations of Bank’s Pension Regulations. After continuous pressure
of Government to withdraw the updation – the Bank withdrew the circular dt.
01.09.2003 granting updation of pension to pre-November 1997 retirees in
October 2008, when Dr. Y. D. Reddy was Governor of RBI.
·
On
27.04.2009 a writ was filed in Mumbai High Court by three retirees as the
withdrawal of updation done in October 2008 was unjustifiable.
·
The
court after listening to the arguments made by the petitioners advised the
Government to take decision by issuing Speaking
Order. The Government gave its
decision in October 2009 to the
effect that pension updation cannot be given in RBI because –
Ø The Management of RBI is not empowered to grant
pension updation, hence it was necessary to withdraw the circular about pension
updation. However, it is true that there
is inordinate delay in initiating this action.
Ø As Pension Regulations is the exercise of power
conferred by RBI Act 1934 with the previous sanction of the Central Government,
pension updation needs prior approval of Government of India.
Ø There is no provision in Pension Regulations for
updation of pension.
Opinion
of Law Ministry –
RBI
Pension Regulations 1990 are applicable to the employees of RBI hence their
case cannot be compared with the pension paid to Government employees. Since RBI Pension Regulations are according
to RBI Act 1934 any change therein should be made only by legally following the
procedure. Such change cannot be effected by issuing Administrative Order.
Three
retirees aggrieved by above observation of Speaking Order have again knocked
the doors of court on 24.11.2009 and the court has stayed the implementation of
Bank’s circular dt. 10.10.2008 withdrawing the updation already granted to
pre-November 1997 retirees as per interim order dt. 27.04.2009.
RBI has filed affidavit on 11.09.2012 raising two
points –
1)
due process of hearing the petitioners has
already been concluded &
2)
Bank
has forwarded a proposal to Government seeking their approval to amend Pension
Regulations to provide explicitly for updation of pension by the Bank and the
proposal is lying with the Government.
The association filed a rejoinder to the Bank’s
affidavit on 04.10.2012 refuting both the above points. The case was last posted for hearing on
29.10.2012. Thereafter, no action has been taken either by the Government or by
the Bank in the matter and case is lying with the Bombay High Court in suspended animation. The case is not likely to come up for hearing
in next few years and pre-November 1997
pensioners will continue to get updated pension as prayed for in the petition
as per Bank’s circular of September 2003 due to stay granted by the Bombay High
Court.
The effect of all these happenings is that the
Pensioners in RBI who have retired before November 1997 have been getting the
benefit of increased pension w.e.f. November 2002 but the enhancement in
pension due to wage increase in 2002 as per 8th BPS and in 2007 as
per 9th BPS has not been given to them and the retires after 01.11.97 have been totally deprived of
any increase in their pension.
Due to non-revision of pension of past pensioners
those who retired in higher grades are drawing much less pension than those who
retired in lower grades subsequently after wage revision of Pay Scales in
November 2002 and in November 2007 and the disparity in pension amount of Class
IV staff to ED is furnished here-below.
