SUPREME COURT VERDICT IN FAVOUR OF AFFECTED RETIREES BETWEEN 1.4.1998 AND 31.10.2002

The bank retiree who retired between April 1998 to Oct 2002 were fitted for pension by merging DA upto 1616 points in the old scale. Whereas, retirees were getting salary at 1684 points. As per existing regulations the retirees were to get 50 percent of last 10 months average pay. The pension so calculated was approximately 41 to 42 %. The position was set right from 1st May 2005 by rectification of pension at 50% but no arrears were paid upto 30-04-2005.  The writs were filed and final hearing in the honourable Supreme Court has been concluded in favour of the retirees and BANK have been advised to pay the arrears with in 4 months.

The case pertains to VII Bipartite Settlement, where for the purpose of Salary Revision,  merger of DA was at 1684 points and for the purpose of pension,  merger of DA was 1616 points. The VII Bipartite settlement was given effect from 01.04.1998. This was an anomaly. This anomaly was set right by signing a Joint Note on 02.06.2005 and the benefits were extended to the affected retirees w.e.f 01.05.2005. But arrears were not paid to the retirees who retired from  01.04.1998 to 31-10-2002, from their date of retirement upto 30.04.2005. The aggrieved Retirees  had approached the Court which was decided in their favour in Karnataka High Court and the Managements of respective Banks had gone in Appeal against the order of the High Court. Now the Hon’ble Supreme Court has dismissed the Appeals of the Banks and upheld the contentions of the aggrieved Retirees. The affected Retirees will now have the effect of the revised basic pension with merger of 1684 points of DA from their date of retirement. That is, Arrears will be paid for the period from 01.04.1998 or their date of retirement whichever is later to 30.04.2005.