Government patronage and Institutional apathy for the Senior
Citizens run parallelly
B. Yerram Raju*
I am 80 years old and retired from the country’s biggest
Bank, State Bank of India as a Regional Manager in 1994. I read with great
interest the story put out by the Economic Times today from the horse’s mouth –
the Minister.
The synopsis of the story in Economic Times of 11th
June 2022 attracted me most. India has 8.6 percent of the globally aged and
such population is likely to move to 19 percent by the end of 2050.
Despite Article 38(1), 39 (e), 41 and 46 making it incumbent
on the states to provide public assistance at the old age, mysteriously, lot
many cases are hibernating in different Courts of justice, with Supreme Court,
no exception.
Nearly ten thousand senior citizens who retired between 1991
and 1997 from the SBI, that include the Chief General Managers to Assistant
General Managers, draw a measly pension of around Rs.28,000 per month,
including Dearness allowance. With inflation now, their savings are getting
negative returns. A few facts need public attention.
1. Government appointed a Committee
with Murmur as Chairman, and its report is still not implemented. Murmur
Committee had recommended that the basic pension of Rs.4250/- has to be
converted to Rs.7120/-. The eighth Bipartite retirees were paid pension on pay
scale of eighth Bipartite from 01.05.2005; that is, those who retired between
01.11.2002 to 30.04.2005 were paid pension on old scale of Rs.4250/- whereas
earlier seventh Bipartite Retirees were already paid pension of Rs.7120/-. This
anomaly arose because of the policy of discrimination followed by the SBI and
IBA while settling the issue of pensioners of earlier era.
2. D.A. Formula – In the old Scheme
D.A. on Pension was paid on Structured basis. With eighth Bipartite Salary
Structure the System of 100% neutralization was introduced. Only 5th, 6th &
7th Bipartite Retirees are paid Structured D.A. The Federation submitted that
when 100% neutralization has been accepted and introduced why deprive old
Pensioners from this benefit? A small number of such retirees have survived,
and it is not going to cost huge expenditure to the Bank.
3. Commutation factor in SBI: The SBI
retirees suffer double loss. The factor which is available in other Banks at
the age of 70 is offered to SBI Retirees at the age of 60. As it is all the
official get 40% pension. They, therefore, suffer double loss. We emphasized
that Ministry should issue directives to provide commutation as per Industry
Level norms to SBI Retirees.
Every effort made by the Federation of SBI Pensioners’
Association and even some individuals could not resolve the issue of the rise
of basic pension from Rs.4,250 per month to the level obtaining in 2005 even
after a wide range of discussions with the Indian Banks’ Association, SBI, and
Department of Financial Services, Government of India. SBI has huge pension
fund balances. Resources are not the issue for resolution.
Two questions become prominent here: 1. Despite SBI, a
statutory institution set up under the SBI Act, having enough resources to
raise the pension to such group, why should the bank look to the approval of
DFS, GoI? 2. Why the DFS could not take the route of arbitration and
conciliation instead of procrastinating the issue in the name and style of
‘matter is sub-judice’ when they were requested for approval, on the ground
that a few individuals, seeing no easy solution raised the case with the Courts?
We not merely look forward to a peaceful and healthy life
but also a life of dignity and honour. Government of India should bring in the
issues of old age and pensions of statutory institutions under the ambit of the
Department of Administrative Reforms, Pensions, and Pensioners’ Welfare to
direct the institutions concerned to settle such matters through its
arbitration not withstanding the cases in the Courts. Courts, to my knowledge
and understanding, will be too happy if the parties come to a compromise and
withdraw the cases.
National Policy for Older Persons (NP0P) should encompass
all the older persons irrespective of the affiliation to a PSU and Atul Vayo
Abhudaya Yojana that acts as umbrella for all government-aided schemes for the
elderly, and SAGE would be meaningful instruments when their applicability is
universal.
Department of Financial Services, GoI should confront a
problem head-on and should have timelines for resolving the cases relating to
pensions in PSBs and SBI lest many aspirants of justice get resolution only
when they reach the grave. Let these hapless old age citizens – in the age
group of 75-90 years, get relief sooner than later.
The views are personal.
Published on 11.6.2022
