Bank Retirees Express Dissatisfaction Over Ex-gratia Provision in 12th BPS

The All Kerala Bank Retirees Forum (AKBRF) has recently written a stern letter to the United Forum of Bank Unions (UFBU), expressing their dissatisfaction with the provision of ex-gratia to pensioners and family pensioners. This provision was agreed upon by the Indian Banks Association (IBA) and UFBU as part of the 12th Bipartite Settlement (BPS). The retirees’ forum has been consistently opposing the inclusion of the ex-gratia clause since its inception in the Memorandum of Understanding of the 12th BPS.

AKBRF highlights two major concerns in their communication. Firstly, they criticize the practice of permanently excluding a substantial portion of the salary from the scope of superannuation benefits. This limitation prevents increases in monthly payments from reflecting in pension benefits after retirement. Secondly, the forum laments the sidelining of the long-pending demand for pension revision in the 12th BPS.

Allocation of Funds and Disregard for Pensioners’ Aspirations

The retirees’ forum argues that the allocation for ex-gratia payments neglects the genuine aspirations of pensioners and undermines their rightful demand for pension revision. They believe that the pension corpus fund is substantial enough to accommodate pension revisions in line with wage revisions. They also point out the disproportionate allocation and utilization of funds by managements, which they find concerning.

Urgent Need for Reevaluation and Agitational Program

AKBRF stresses the necessity for revisiting the matter and suggests the formulation of an agitational program with active participation from pensioners to achieve the long-overdue demand for pension revision. They propose aligning pension revisions with those implemented in institutions such as the Reserve Bank of India. Additionally, they emphasize the need to address the exclusion of special allowances for superannuation benefits.

Prioritizing the Welfare of Retirees in the Banking Sector

The letter from AKBRF underscores the urgency and importance of prioritizing the welfare of retirees within the banking sector. It calls for a reevaluation of current policies and a concerted effort to ensure equitable treatment for pensioners, aligning with the principles of fairness and justice.

Response from UFBU and the Way Forward

As of now, the UFBU is yet to respond to the concerns raised by the retirees’ forum. However, the letter serves as a reminder of the pressing need to address the grievances of pensioners and uphold their rights within the banking industry. It is hoped that the UFBU will give due consideration to these concerns and take appropriate measures to address them.