BANK'S PENSION IS A CONTRIBUTORY PENSION

BANK’S PENSION IS A CONTRIBUTORY PENSION

It is a well known fact that the Nationalised Banks including State Bank of India are having Contributory Pension Scheme (CPF) to its employees.  This pension scheme was started in 1995, therefore the name given as “Indian Bank Employees Pension Scheme 1995”, “Canara Bank Employees Pension Scheme 1995”, “Bank of India Employees Pension Scheme 1995” etc., etc..The State Bank of India is also having similar scheme. 

Incidentally, the Employees Provident Fund Organisation improved its existing scheme in 1995 and scrapped its old FPS 1971 scheme subsequently and named the new improved scheme as EPF 1995 Scheme.

Since the EPF 1995 is limited to a monthly salary of Rs.6,500 and covering unorganized labourers, the Bank employees sought a separate scheme with higher salary and management of its funds by its own Trustees.

In both the schemes, the Employer contributes a sum to the employee for the pension fund.  In principle both the EPF 1995 and the Banks Pension Schemes 1995 are one and the same.  While the EPF 1995 pensioners are allowed to draw two family pensions, why similarly placed bank family pensioners are not allowed two family pensions.

This point has been emphasized in a number of judgments that a Banks’ pension is given from a separate fund and the government should not have any objection for payment.  But still the government, specially the MINISTRY OF DEFENCE AND THE RESPECTIVE RECORD OFFICES AND CDA ALLAHABAD  continues to reject many family pension requests from the widows of the re-employed ex-servicemen from banks.

A petition of a widow in the AFT Chennai (OA No.21 of 2010 AFT Regional Bench, Chennai) seeking Defence family pension in addition to the Bank of India’s family pension was cleared by the AFT by the following certificate issued by the Bank.

The certificate issued by the Bank of India dt.24.5.2011 reads as follows:-

            “This is to certify that Mrs.G.Mangammal, W/O A.G.Govindasamy (Ex.Staff of Bank of           

            India) is drawing family pension through SB A/C No.800010110005367.  The pension is         

            Paid out of our own funds as per Bank of India Employees Pension Scheme 1995 in lieu           

            Contributory Pension Fund. (CPF)”

The above certificate issued by the Bank gave way for clearing all disputes and the widow was granted second family pension by the AFT Chennai on 01.07.2011.

The Government should consider giving second family pension at least to the Bank’s family pensioners, without dragging them to the court.

DUAL FAMILY PENSION

DUAL FAMILY PENSION

A number of claims for dual family pension by the widows of the re-employed ex-servicemen has been rejected by various re-employers and Ministry of Defence by quoting age old pension regulations.  However, all these claims has been allowed through various High courts and Armed Forces Tribunals.

It has been proved by a number of judgments that the refusal to grant second family pension is not justified.  Yet the Government is not reviewing the age old pension regulations and continue to reject the dual family pension claims.

It is not good on the part of the Government, specially Ministry of Defence which is recruiting thousands and thousands of youngsters into the Armed Forces and throw them out at their middle age without assuring a second career.  If someone by change get a second career, their re-employed benefits are curtailed without having any regard to his past military service.  This is a gross injustice.

It is high time that the Government should review the policy of re-employment of ex-servicemen and remove all anomalies and get them justice without any legal proceedings.

All the recognized Ex-servicemen Welfare Associations should take up the matter with the Government and get them justice.  A clean administration reduces legal proceedings.  Will the top administrators review the issue without any delay ?

WIDOW OF A RE-EMPLOYED EX-SERVICEMEN ENTITLED FOR DUAL FAMILY PENSION

 Widow of soldier entitled to dual pension

ARMED FORCES TRIBUNAL, KOCHI.

Express News Service

First Published : 23 Jul 2010 03:38:23 AM IST

Last Updated : 23 Jul 2010 11:28:44 AM IST

KOCHI: The Regional Bench of the Armed Forces Tribunal (AFT) in Kochi on Wednesday ordered that the widow of a reemployed soldier is entitled to dual family pension.

Disposing of a petition filed by Sobhanakumari of Malappuram, wife of the late Sergeant Sivasankaran Nair, the AFT comprising Justice K Padmanabhan Nair and Lt General Thomas Mathew pronounced the Ministry of Defence's stand against the petitioner's entitlement to get two family pensions simultaneously as "illegal and unsustainable". 

The petitioner's husband, after being discharged from Indian Air Force, got reemployment in Canara Bank and died in harness while serving in the bank. Till the date of his death, he was getting the Air Force pension.

But, after her husband's death, when the petitioner claimed family pension, the Air Force rejected it on the grounds that she was getting pension from the bank. 

In her petition before the Tribunal, Santhakumari pointed out that there is no provision which disentitles her from getting two family pensions at a time and that the pension from the Canara Bank is not paid out of the consolidated fund of India. 

The MoD took the stand that she was not entitled to get two pensions based on Regulation 195 (a) of Pension Regulations of Air Force 1961 according to a legal heir shall be eligible for family pension from Air Force only if he or she is not in receipt of another pension from the government. 

Pointing out that Canara Bank is a statutory body incorporated under the provisions of the Banking Regulation Act and that its funds are not part of the government funds, the AFT made it clear that the pension from Canara Bank cannot be treated as pension from the government. Hence there is no justification in denying family pension to the petitioner on the grounds that she has been already receiving pension from the bank

The tribunal directed the MoD to disburse the pension within three months, failing which with interest at the rate of 9 percent a year.

CREDIT: VETERAN BV RAO & militaryveterans@yahoogroups.com