Rollout of New Pension Scheme in SBI challenged
Kerala High Court admits petition filed by staff union; hearing next month
THIRUVANANTHAPURAM, FEB. 27:
The High Court of Kerala has admitted a writ petition filed by State Banks’ Staff Union (Kerala) to quash implementation of the New Pension Scheme (NPS) in State Bank of India.
The writ also prayed for directions to revert those recruited on or after August 1, 2010, back to existing pension scheme.
HEARING POSTED
Justice P. N. Ravindran has posted the case for further hearing after a month.
The interim order directed that amounts contributed by employees towards the pension fund be kept in a separate account and maintained with the trustee bank.
The case was filed by A. Jayakumar, General Secretary of State Banks’ Staff Union, Kerala Circle.
The petitioner recalled that NPS was implemented as part of the industry-level 9{+t}{+h} bipartite wage settlement.
As per this, Defined Contribution Pension Scheme (DCPS)/NPS would apply to those joining services on or after April 1, 2010.
But this settlement between Indian Banks’ Association and unions of other banks would not apply to SBI, the petitioner contended. This is because the bank was not party to this settlement insofar as pension-related matters were concerned.
But central board of SBI on November 8, 2010, decided that all employees joining in permanent scale on or after August 1, 2010, shall be offered only the benefit of DCPS.
The SBI Act did not empower the central board to amend pension fund rules, and that too with retrospective effect, it was contended.
PARLIAMENT NOD
The SBI Act also makes it clear that any regulation framed in this manner will have to be laid before Parliament.
It will take effect in the existing or modified form as decided by both the Houses of Parliament only.
In the present case, the central board has taken a unilateral decision to modify the pension scheme.
Legal recourse was also being sought on grounds that the pension scheme once framed cannot be modified without issuing notice.
Rollout of New Pension Scheme in SBI challenged
HEARING POSTED
Justice P. N. Ravindran has posted the case for further hearing after a month.
The interim order directed that amounts contributed by employees towards the pension fund be kept in a separate account and maintained with the trustee bank.
The case was filed by A. Jayakumar, General Secretary of State Banks’ Staff Union, Kerala Circle.
The petitioner recalled that NPS was implemented as part of the industry-level 9{+t}{+h} bipartite wage settlement.
As per this, Defined Contribution Pension Scheme (DCPS)/NPS would apply to those joining services on or after April 1, 2010.
But this settlement between Indian Banks’ Association and unions of other banks would not apply to SBI, the petitioner contended. This is because the bank was not party to this settlement insofar as pension-related matters were concerned.
But central board of SBI on November 8, 2010, decided that all employees joining in permanent scale on or after August 1, 2010, shall be offered only the benefit of DCPS.
The SBI Act did not empower the central board to amend pension fund rules, and that too with retrospective effect, it was contended.
PARLIAMENT NOD
The SBI Act also makes it clear that any regulation framed in this manner will have to be laid before Parliament.
It will take effect in the existing or modified form as decided by both the Houses of Parliament only.
In the present case, the central board has taken a unilateral decision to modify the pension scheme.
Legal recourse was also being sought on grounds that the pension scheme once framed cannot be modified without issuing notice.
SBI approves revision in pension schemes
The Central Board of SBI has accorded approval for revision of family pension and minimum pension with retrospective effect from November 1, 2007.
A decision to this effect was taken at a meeting of the board held last week, according to banking sources.
BASIC PENSION
For those in the scale of pay up to Rs 7,090, 30 per cent of the pay shall constitute the basic family pension. Thirty per cent of allowances which are counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension.
The aggregate of basic and additional family pension shall not be less than Rs1,779 a month.
For those in the Rs 7,091- 14,180 scale, 20 per cent of pay shall be the basic family pension. Twenty per cent of allowances which are counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension.
The aggregate of basic and additional family pension shall not be less than Rs 2,186 a month.
For those with a pay of Rs 14,181 and above, 15 per cent of the pay shall be the basic family pension.
Fifteen per cent of allowance which are counted for making contributions to Provident Fund but not for dearness allowance shall be the additional family pension.
The aggregate of basic and additional family pension shall not be less than Rs 2,841 a month and more than Rs 5,930 a month.
In the case of part-time employees, the minimum amount of family pension and the maximum amount of family pension shall be in proportion to the rate of scale wages drawn by the employee.
In respect of employees other than part-time employees who retired on or after November 1, 2007, the amount of minimum pension shall be Rs 1,779 a month.
In respect of part-time employees who retired on or after that date, the minimum pension payable shall be Rs 595 a month in respect of part-time employees drawing 1/3rd scale wages; Rs 892 a month in respect of part-time employees drawing 1/2 scale wages; and Rs 1,330 a month in respect of part-time employees drawing 3/4th scale wages.
the sbi union and association went on indefinite strike fro implementation of pension in the recent past and clinched the same. when why is it that they are taking to litigation rather than organization direct actions ? is it because they had secret understanding while settling special pay issue after 9 biaprtitie for the sbi employees . or is it new pension that it affects only new recruits
ReplyDeletethese recruits are future the union. membership have right to know why no organizational direct action
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