Pension updation – a view

7 Oct

Several mails / messages  are being shared  on the social media about the various pronouncements/judgements of courts favouring pensioners, including   SUPREME COURT DECISION DATED 1.07.15 IN CIVIL APPEAL NO 1123 of 2015. Some of those who are advancing the mails are seeking answers as to why the Government/ IBA/ RBI / Bank managements etc. are not taking action  in terms of these judgements which are  also favourable to the bank pensioners. Some others  feel that such pro-pensioners  judgements,  once brought to the notice of the managements,  are bound to result in action favourable to pensioners. We wish it were so!

Needless to say, in our system, judicial decisions pronounced even by the apex court are made applicable to only those who approach the court for remedy. Executive-Central/ State governments/ and others  that fall into the meaning of  ‘state’ as defined by courts- never issues remedial executive orders for implementation to  such ‘others’ (wronged  persons/ institutions etc.) although the ‘others’ may be  suffering the same unfairness or discrimination. The various supreme  court  judgements – right from Nakara’s  case in 1982 to  the present   DECISION DATED 1.07.15 IN CIVIL APPEAL NO 1123 , can only  be used as supportive citations, in case, someone amongst the Bank Pensioners moves the court, the possibility of which in RBI seems remote. In this regard,  a suitable response has been given by AIBRF in their post dated 11-9-15

 It is evident in the above  case that Supreme court has decided the correct interpretation of updation formula given in 6th Pay Commission ; whereas,  RBI retirees pension is based on RBI pension regulations 1990 and PSBs pension is based on Pension Regulations 0f 1995. It is a part of history that none of these regulations contain a specific regulation  regarding ‘updation of pension with every wage revision.’ Even LIC’s Pension regulations / rules do not contain such a regulation. How the framers of the regulations omitted such a vital regulation at the time of introduction of pension is inexplicable, whatever may have been the circumstances.  AIBRF claims in their post dated 11-09-2015 that  “updation clause was the part of settlement of 1993 as well as part of the details worked out by the sub-committee. However, the updation clause did not find any mention or place in the Pension Regulations 0f 1995 and were dropped from the regulations on the objection taken by the government.(may be  as it did not exist in RBI pension regulations 1990).”  

Some veterans often quote RBI’s circular issued after the introduction of the scheme in 1990 that assures the pension optees that as per the scheme the pension would be updated on every wage revision. A reference is also  cited to  Regulation 5(2) of RBI pension regulations which – as per legal opinion (yet to be tested)- enables  the Bank to grant pension updation of its own. But, here we should not overlook the fact that reliance on bank’s circular or Regulation 5(2) would have become redundant had  there been a specific regulation  regarding updation of pension.

Those who opt for legal recourse should not pass over or evade  the historical fact.
Moreover, Supreme Court Bar Associations offer relates to OROP and to derive that the offer is extendable to bank retirees seems farfetched.

Meanwhile, the email from Shri Donde is self-explanatory about the fate of pension updation in RBI.

Let us make our own guess till 19th November 2015-the day   UFRBO&E may strike (call for Full day’s Mass casual leave)!-view circular



12 Responses to “Pension updation – a view”

  1. rajan ps 07/10/2015 at 8:02 am #

    Dear Sir 

    Is it time for us to move court for Pension issues. 


    Sent from Yahoo Mail on Android

    From:”all india rbi oers pensioners forum” Date:Wed, 7 Oct, 2015 at 0:11 Subject:[New post] Pension updation – a view

    wdtom posted: “Several mails / messages  are being shared  on the social media about the various pronouncements/judgements of courts favouring pensioners, including   SUPREME COURT DECISION DATED 1.07.15 IN CIVIL APPEAL NO 1123 of 2015. Some of those who are advancing t”


    • S.B.C.Karunakaran 07/10/2015 at 8:35 pm #

      PSB Pension Regulations in Reg. 35 (1) provides for updation of pension as per formula given in Appendix 1. The only batch of pensioners who required updation when pension was introduced in 1995 were those who retired between 1/1/1986 and 31/10/1987 and the updation formula provided to update their pension was the very same formula used for Government Employees in 1986 as per IV Pay Commission. Every one knows that the pension of this batch of pensioners was not 50% of their actual pay but of the updated pay as per the formula given. So it is not correct to say the PSB Pension Regulations do not provide. Unfortunately this Reg. 35(1) was not implemented by providing updation formula for subsequent settlements. Anybody saying the contrary is not helping the cause of pensioners.

      Like PSBs, LIC too has a strong case because their Pension Rules ( Rule 56) says Matters relating to pension and other benefits in respect of which no express provision has been made in these rules shall be governed by the corresponding provisions contained in the Central Civil Services (Pension) Rules, 1972 or the Central Civil Services (Commutation of Pension) Rules, 1981 applicable for Central Government employees. So the Pension Rules gives power to LIC Board to implement the benefits that are obtaining for Central Govt. pensioners. So LIC’s Board passed a resolution for pension updation but the Govt, as they intervened in RBI’s case intervened here too preventing LIC from implementing the resolution. So LIC pensioners challenged it in Rajashthan High Court and they won the case in original Writ and in Appeal. Now LIC’s appeal is pending before Supreme Court.
      As regards RBI, it amended the Pension Regulations to enable RBI update pension and as the amendment was carried without the prior approval of Govt as required by RBI Act, the government objected to the amendment forcing RBI to withdraw in 2008 pension updaton given from 2003. It is also under challenge before Bombay High Court. Cental Govt, filed an affidavit saying they are not against RBI giving pension updation but their objection is only that they have not followed the procedure for amending the Pension Regulations. Hence RBI sought permission from Central govt for amendment of the Pension Regulations which is pending with the govt. for years. This is the level of honest of the govt be it UPA or NDA.

      It is high time all of us in financial sector (LIC, PSBs & RBI) came together and fought our issues together as each of us has a legally valid case and a common legitimacy.



      • pdvi 11/10/2015 at 4:45 pm #

        reflect why 35(1) not implemented and for the last 2 decades what has been done for its execution. have ever specific regulations that define Dr/BP/ etc. ever unimplemented? a specific regulation is always better.
        No doubt we have a legally valid case- but yet to be tested.
        the legally valid case arose because of absence of any specific regulation about pension updation in 1990 that were accepted at that time for the reasons unknown till date- as the then government did not want it; which is mentioned in AIRBF’s post. How the then leaders overlooked this omission? Or were they taken for a ride.?
        a specific regulation would have made 35(1) needless.

        why a governor Jalan approves updation and why another Reddy withdraws it. It is by virtue of courts intervention that the pre 1997 pensioners are surviving, We can not support Pensioners cause by overlooking the facts.


      • S.B.C.Karunakaran 12/10/2015 at 11:12 am #

        Nationalized banks’ Pension Regulations specifically provide for pension updation in Reg.35(1). It states, ” Basic pension and additional pension shall be updated where ever applicable as per formula given in appendix 1.” Why unions are keeping quiet or IBA ignoring it is another matter. But the fact remains that there is a specific regulation for pension updation in banks. I am from Indian Overseas Bank and two of the members of our retirees’ organization (ARISE affiliated to AIBPARC) has filed a case before Delhi High Court and the Government did not file any counter to their petition and IBA was very vague in their reply about Reg.35(1). It is sad that AIBRF maintains like some serving employees union that there is no provision in banks for updation in spite of Reg.35(1).

        It is high time all the retirees of the financial sector (RBI,LIC & Banks) came together to launch a massive agitation. If only we get media space the government will be exposed. If RBI regulations does not provide for pension updation, how the government allowed updation of the pension of those who retired between 1/1/86 and 31/10/1987 by merging DA at 600 points as per formula adopted by the government for updating the pension of their employees in 1986? Government objected to the updation given with reference to revision of subsequent settlements and did not question this updation. What is this logic agreeing that RBI regulations enable RBI’s Board to update pension of those who retired between 1/1/1986 and 31/10/1987 with reference to Nov.1987 settlement but the Board has no power thereafter to update pension whereas government employees continue to get updation and now upgradation too ( i.e increased pension as the age advances)? All the three of us have a strong case for pension updation. It is an existing right and it does not require any more approval for the babus. If it rule of law denying an existing right and if pension is not charity but a right as deferred wage, then denying me my wage at the evening of my life is nothing denial of right to life which is violative of Art.21 and in a way is a human right abuse. We should take up this issue with National Human Rights Commission too.


      • R. C. Dàs 12/10/2015 at 12:19 am #

        Karuna is 100% correct. One can fool some people some of the time. But u can’t fool all the retirees all the time. 7 year’s after being chided by the 2 judge bench of Mumbai high court is a long time, to set right the anomalies.
        High time to become a party to the ongoing case
        Or else AMs will get more pension than CGMs in December, 15.

        Procrastination is the thief of time

        R. C.Dàs


    • R.C.Das 18/10/2015 at 9:25 pm #



  2. R.C.Das 07/10/2015 at 3:55 pm #

    All this reveals that 1993 circular issued by RN.MALHOTRA is a lie and can be thrown to waste paper basket.If everything is impossible as per the mails then how a single firing by Bhagwat at Nagpur to Jaitley that ” don’t be tight fisted” forced Arun to open his fist in the case of defence people “


    • pdvi 11/10/2015 at 4:52 pm #

      Neither sainiks nor comrades will ever approach Bhagwat?


  3. VRRao 10/10/2015 at 11:03 pm #

    The Banks’ proposals on Pension revision with MOF will remain in liquid nitrogen for ever.Nothing wiil come from MOF. It will only help Governor to plead helplessness .


  4. ASHOK BHATTACHARYA 14/10/2015 at 5:36 pm #

     GOI had interfered with Gov. Reddy’s decision to update pension, forcing RBI to withdraw it . Whatever judgements the Supreme Court has delivered in favour of pensioners in various cases, the govts, state or central , are only providing it to the affected party who had approached the court.

    So the only credible path for Pensioners of RBI to get their  dues is to approach the Court.

    We do not have the numbers of ex army personnel who could finally make the Govt.submit by agitation. The FM will badger RBI governor to cut rates to assuage the industrial lobby, but when it comes to updation RBI Governor’s pleadings are shoved aside perfunctorily.

    Ashok Bhattacharya

    Sent from Yahoo Mail on Android


  5. R.C.Das 18/10/2015 at 9:28 pm #

    17000+ pensioners of all categories + those who want to get option for pension is a good enough Number,Ashokji…we lack courage and guts for sure.We want somebody to bell the cat & all will stand in queue to take arrears


  6. VRRao 02/04/2016 at 11:47 pm #

    No respite even after the existing employees resorted to one day Mass Casual leave and loosing a day wages of about 32 million rupees.Governor’heart and head won’t melt .It was of no consequence of pensioners are falling .What a stone like stubbornness displayed b the great Governor waiting for Govt.approval for Pension updation and fresh ption for Pension which will never come.


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