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| Dr. Indira Rajaraman, Director, Central Board of the Reserve Bank of India |
Respected Madam,
We are extremely thankful to you for raising forcefully the issue of updation of pension of hapless RBI pensioners in the RBI Board meeting, held at Kolkata in Dec.2012. In this regard we wish to place following genuine facts for your kind consideration.
+ The RBI Pension Regulations, 1990 were introduced with GOI approval in 1990.
+ The scheme of RBI Pension Regulations, 1990 is patterned on the Central Govt. Pension Scheme for GOI retirees.
+ The pension for GOI retirees is invariably revised on the basis of the Recommendations of successive Pay Commissions without making any amendments to relevant provisions of the CCS(Pension Rules).
+ RBI has also made a specific provision in original Rule 5 of its Pension Regulations, inter-alia, to have regards to the corresponding provisions of GOI Civil Service Regulations or the Liberalised Pension Rules or the Civil Pensions (commutation) Rules or the Family Pension Scheme for Central Government employees, as the case may be so far as they can be adapted to the service in the Bank subject to such exceptions and modifications as the Bank may, from time to time determine. This provision has been approved by GOI without any rider or fetters. The scope and intent of Regulation 5 were fully known to the Govt. while approving the Scheme. The memorandum submitted to the RBI Board in 1990, at formative stage, also specifically mentioned that “in government, the pension amount gets updated after every pay revision. We may, therefore, have to update pension after every future pay revision in the Bank”.
The Bank in its letter to the Govt, also made it clear that the Bank will go by GOI Rules in similar circumstances.
+ At the time of introduction of the Bank’s pension scheme in 1990 itself the Bank first time had notionally revised the pay of those who retired from 1-1-1986 to 31 Oct 1987 and then fixed their pension accordingly in 1990. The Bank had done this obviously to fall in line with recommendations of Fourth Central Pay Commission. This was the first updation of pension in RBI.
+ At the time of introduction of the pension scheme in 1990 the good chunk of employees had not opted for the pension. To attract them the Bank in its circular of March 1992 assured and highlighted, amongst others, that updation of pension is a special feature of the Bank’s Scheme .
+ Honouring its promise and by taking recourse to Rule 5, as also keeping in view updation of pension by the GOI in terms of Fifth Central Pay Commission, RBI for the second time, in 2003, revised the basic pension of those retired between 1986 and 1997.
+ The Ministry of Finance questioned the decision of RBI and exerted pressure on it to withdraw the second revision granted in 2003. This withdrawal, however, has been since stayed by Bombay High Court.
+ Considering the strong in-principle stand taken by the Central Board of the Bank about its authority to revise the pension, MoF advised RBI to forward to them the Central Board resolution on amendment to RBI Pension Regulations, amongst others, for effecting pension revision at periodical intervals.
+ RBI has since forwarded the Board resolution amending pension regulations to MoF vide its letter dated 11th October 2011.
+Despite the lapse of about one and half years, MoF has not responded yet though two successive MoF Secretaries, who are the decision makers in MoF and who being CENTRAL BOARD members, are fully aware of the case.
+The Supreme Court in Nakara case held that pension should be revised, fixed not dissimilar to the salaries granted to serving employees.
+ The Apex Court also held in the case of All India Reserve Retired Officers Association that "it is necessary to revise pension periodically to take care of ever rising prices of commodities and continuous fall in rupee value which necessitates adjustment in pension amount."
+ No direction has been issued by GOI under Sec. 7 of RBI Act nor could such direction be issued as per Bombay High Court.
We have ventured to place the above facts before you for such action as you may deem fit/necessary to meet ends of justice
Thanking you
Yours faithfully
M.B.Talekar
Gen.Secretary
Reserve Bank Retired Employees Association,Mumbai
07-03-2013
Mob.9323205016
