I want to know Facts of Pension Fund of Banks

"Accepting the settlement in its present form would result in miscarriage of justice."
Justice in fact already miscarried on Historic Day for bankers i.e. 27th April 2010, now actually passing through washing operation in hope of getting justice.

Banks already deducted at source not only TDS on entire arrear (including the amount which is deposited in pension fund), it already recovered 2.8 times from PF optees but it willfully ignored offering pension letter in fear of Writ filed at Madras High Court.

It appears to IBA as if Madras High court had stayed pension offer and allowed recovery from PF optees. Please verify from contents of court order. Please re look into wording of order given by learned Judge whether stay was on pension or on recovery.

Pension is social security, Mr. Ashok Goel rightly admits it and he has true apprehension in his mind that Banks may not offer pension option if recovery is stopped by learned court. He along with Sri Pradip Kumar learned advocate of Supreme Court is truly and rightly worried of pain of PF optees retiring in coming days if they are not given second option of pension.

Sir I like to add one line here that heaven is not going to fall even if pension offer is not given, PF optees will survive with his head high and with dignity. God will give them adequate food at least better than our Union leaders who signed the said “Historic Agreement” because their own conscience will curse them.

Banks are giving pension out of fund created by PF contribution (Bank’s portion) refunded to them. Has any bank spent any amount from expenditure account in the past as central government use to do for their employees every year?

I raise some questions and hope anyone who knows about the same will reveal the clear picture.

What is total accumulated fund in pension account?

What amount is deposited every month by bank in pension fund on behalf of pension optees?

Or whether it may be confirmed that banks are actually crediting bank’s contributory share in pension fund for each pension opees each month (as in the case of PF opees )? I doubt banks are doing so.

What amount is actually paid by a bank every year to it’s retire employees? And what amount is refunded to retirees every month on an average?

Can anyone mathematically assess the clear picture of anyone bank to ascertain and forcefully confirm that in future banks will face crisis if fresh recovery is not made from PF optees?

Had our learned leaders not agreed for sharing in 7th and 8th Bipartite, bank employees could get higher salary and higher PF contribution. In fact , it appears to me that IBA reduced wage hike during 7th and 8th Bipartite Settlement but did not make actual credit in pension fund what they saved on account of lesser wage hike.

Can anyone confirm that banks are maintaining two separate funds, one for PF optees and another for pension optees? If not, how IBA or UFBU came to conclusion that banks will face crisis of fund if they agreed for second option of pension?

And if there are two separate funds in each bank, can anyone say what is the real balance accumulated in pension fund , what they are likely to get from PF fund if they offer pension offer and what monthly accretion will happen in pension fund keeping in view bank’s contribution of 10% and monthly interest?

Whether pension fund is prudently and wisely managed to earn profit or used as a tool to inflate bank’s operational profit or deposit?

Whether it is not true that banks are parking PF/Pension fund in fixed deposit and earning less interest compared to what they use to pay to employees?

Can anyone confirm that there are no avoidable expenditure from such funds?

Whether Banks are using profitably the amount which is accumulated out of employee’s share in PF of 10% and withheld with bank with PF Trustees? This fund is in hundreds of crores of rupees with each bank and banks need to invest the fund to earn maximum profit and give dividend to employees and not simply park them idly.

Above mentioned questions will help in knowing the probable burden to each bank if all PF optees switch over to pension. These facts are necessary because an employee suffers and lives in crisis for 30 to 40 years when he serves the bank only to make his residual life of hardly 10 years painless and pain free.

As an individual everyone who is afraid of not getting pension offer should ponder over following questions

1. How much amount he is going to sacrifice (Bank’s contribution in PF) on his date of retirement keeping in view fresh addition and interest accrual. (In other words when will he retire and by that time what will be the expected growth and what will be the final accumulated amount when he or she retires.)
2. How many years he or she will then survive, a rough estimate
3. Whether the amount he will get (if he does not get pension offer) will not be adequate to give him pension at Bank's rate of pension till he survives or his family survives to get pension offer. Please be practical
4. Finally say whether banks will gain or you will gain.
5. How much banks are expected to gain if we take into consideration the average age of bank employees, especially bank officers.

Now say whether mountain is going to fall if pension offer is denied to PF optees.
Yes mountain may fall on family if one dies during the serving period or you say in case of premature death. Out of three lac PF optees in bank for whom entire dispute has come on the floor in banking industry, there will be hardly a few thousand cases of premature death and in whose cases banks will have to pay pension for a longer period though with lesser amount of pension. For this one or two thousand of death cases banks is worried so much they are bent upon giving worries to entire banking community. I think Insurance companies in such cases may give better return if the same amount (which is deposited by banks in PF fund every month) is given to them.

Now everyone will perhaps agree to protest disputed recovery from PF optees and prefer justice instead of blindly purchasing pension offer in the name of social justice.

IBA and UFBU are jointly trying to impose injustice in the name of social justice.