Whenever violations of labour laws come to notice, either on the basis of complaints or at the time of periodical inspections made by the enforcement sphere, action is taken by the appropriate Government concerned as per provisions of the respective enactments!Hence funds contributed jointly by the employees prior to this 9 th bipartite viz from 7 th ,8 th bipartite settlements toward the pension corpus are utilised to cater to the Pension optees alone!
The present guidelines indicate that employees who have joined in the service of the bank on or after 29-09-1995 are automatically covered under the Pension Scheme. However, employees who were in the serving in the banks up to 28.09.1995 have to opt for Pension!Hence the funds jointly contributed by all the employees toward pension corpus are not avaialble for the PF optees remain in banks waiting for pension option.The subject PF optees are already crossing the age of 50 and such senior people must have been permitted one more option to exercise for the pension!Law gives certain benefits and relaxations to the workers above the age of 40 and it strictly tells that they should not be discriminated also!
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If any one now opts for pension he has to bear the load from the arreas as said above since the management wants to make the fund vaible. Now the question is if any one reverts to PF from Pension, will he be given back the prescribed 2.8 times of the new pay as on 01-11-2007.
ReplyDeleteThe cost of pension at the time 7th settlement was 26.5 percent which was shared fifty fifty in excess of the statutory contribution i.e.10+ 8.25percent by the employees and balance 8.25percent by the Banks. Again at the time of 8th settlement cost of 30.5 percent was shared by the employees and the bank i.e 10+9.25 percent by the employees and 11.25percent by the bank. And the cost of pension in the 9th settlement was arrived @36.0percent which was to be shared 10+13+13 by the employees and the banks in 50:50 proportion in excess of 10Percent
ReplyDeleteIt is strange that in the previous two settlement all employees irrespective of the option had contributed towards cost of pension but in the 9th bipartite settlement only those who had earlier opted for PF are to bear the cost of Pension which is unfair, unjust and inequitable
To add insult to the injury the pension fund shortfall was determined as on 01-04-2008 based on the acturial valuation of the staff and fund position as on 31-03-2008.The pension has been made effective from 27-11-2009.All PF optees ' contribution which they are supposed to forego on exercise of pension option should reduce the shortfall determined as on 31-03-2008 as they all have to sacrifice PF of 20 months extra.
Can anyone explain the logic for this discriminatory and unjust approach towards PF optees. Another point 56 factor for contribution towards Pension irrespective of the date of retirement needs a logical answer
The decision to ask the pf optees to pay for their pension from amounts like Rs 75000 to Rs 1 lac is mere abuse of power by the trade unions and they are acting unreasonably!
ReplyDeleteLokanath Samal says : "In my view the highly acclaimed historic settlement in giving birth to much fought 2nd Option of Pension for PF Optees subject to contribution of 2.8 times of revised pay as on 01.11.2007 is a sheer case of legal infirmity from the following points of law.
ReplyDelete1. Infringement of doctrine of equality by PF optees fully without being shared by Pension optees, when the PF Optees had shared the contribution to pension fund by way of allocation for pension fund from the total agreed load of wage revision in earlier wage settlements after 1995.
2. The agreed upon terms for 2nd option for pension is ultra vires as it creates two classes of members/employees under the same Pension Regulations.
The PF Optees need to be united to fight out illegality in the settlement through judicial review. We are agreeable to share legal expenses.
Please keep me informed about the next course of action to enable me to mobilise a good number of dissatisfied PF Optees to backup the legal fight.