AIIPA CENTRAL COMMITTEE MEETING - HISTORIC DECISIONS (Part II)

Circular No : 21/2017 Date : 18th September 2017 

Dear Comrades,

AIIPA CENTRAL COMMITTEE MEETING - HISTORIC DECISIONS (Part II)

In our earlier circular, we had delineated on the happenings in the legal front. After giving 

rapt attention to the points made out on Court Cases, the Central Committee had the advantage of 

listening to the leaders from AIIEA.

The Central Committee had the privilege of presence of leaders of AIIEA, Com. Amanulla Khan, President, Com.V.Ramesh, General Secretary, Com.K.V.V.S.N.Raju, Vice President and Com.B.S.Ravi, Treasurer and Com.Clement Xavier Das, General Secretary,SCZIEF .

During the debate, Com.Amanulla Khan intervened to highlight the political and social scenario, the challenges for the industry, the tasks before the working class and perception for the future.Com. Amanulla Khan said the situation in the country was nebulous and there were attempts to divide the society on the basis of caste and religion, to stifle the voices of dissent, moves for disinvestment of public sector general insurance, moves to stem the growth of the insurance industry with higher rate of GST that was a discouragement for New Business Growth and the 

backbone of Indian economy, Agriculture was in distress. 

Focussing on the industry, Com.Amanulla Khan said, though Premium Income of LIC was 

on a high, much of these had come from Group Insurance and Annuity policies and there was perceptible stagnation in number of policies with New Business and Outgoes being almost equal and in General Insurance, the market share was just about 50%.

Talking about the Pension Scheme, he told that, with increased longevity and lower interest 

rates, Annuity Purchase Price was going up, that major chunk of the Pension Fund belonged to the 

in-service pension optees, numbering about 88,000. Speaking about the implications of the 

judgement, Com.Amanulla Khan said rejection of argument on violation of Article (21) had a 

political overtone with the judgement decreeing that Pension of Rs.13,000 was not deemed to be violation, as there were many with lesser income. He said, while the Supreme Court had expanded 

the scope of Article (21) to include right to livelihood, right to dignity, right to health, right to education etc., such a verdict has been given by Delhi High Court.

While dealing with a recent case decided by the Apex Court, he said while the Government tried to project right to privacy was not a fundamental right, the unanimous judgement of the nine Judge Bench has upheld it to be a fundamental right and that was wenlcome development.

Dwelling on the Parliamentary Committee Report on RBI Pension Regulations, Com.Amanulla Khan stated that the Government has not accepted the Recommendations and it by was not uncommon. He cited the cases of non-release of Ex-Gratia in LIC for two years and non-

implementation of Five- day week, though both the LIC Board and Government had approved before the offer was made. 

The President of AIIEA exhorted the Pensioners that even as the social atmosphere appeared to be gruesome, there was no need to lose heart, as united struggles against the policies were also gaining momentum, with more and more employees in struggle demanding rollback of N.P.S. The huge spontaneous response "I AM GAURI" demanding justice for the journalist Gauri Lankesh and people taking to streets against growing job losses were bright horizons in the otherwise dark sky.

Com.Amanulla Khan said the need of the moment was greater unity and struggle and AIIEA has decided on joining forces against privatisation/joblessness, against growing unemployment against the burden of GST on insurance services affecting growth and against looking at issues through the prism of religion, caste etc., and desires pensioners to make common cause.

Com.V.Ramesh, General Secretary, AIIEA, dealt with agrarian crisis and referred to agitation of Tamil Nadu farmers in Delhi and said nothing was done to redress their 

grievances.Speaking about the movement against GST in Insurance, he said 45 lakhs signatures have been collected so far and the movement will become stronger.

On fresh option for Pension, Com.Ramesh said AIIEA was following it up with LIC, urging 

them to pursue with the Government but there were others who had gone to the Government. He said AIIEA was not for taking up with the Government at this juncture as it will shut the doors for following up with LIC. AIIEA was engaged in a joint front with Class I and Class II Officers of LIC to project common issues.

An oral Report on three issues, mundane to the interests of insurance pensioners was placed 

before the Central Committee.

In Canara Bank, a Single Judge Bench of Madras High Court had allowed the plea of the Pensioners for grant of equivalent Dearness Relief to pre-November 2002 Pensioners and on appeal by the Bank, the Division Bench reversed the Decision. When the aggrieved Pensioners filed an SLP in Hon'ble Supreme Court, it was not entertained and the Review Petition was also not considered. However when an appeal by the United Bank Of India,against the verdict of Division Bench of the Kolkatta H.C.that had granted the benefit of increased Dearness Relief, was being heard, the Hon'ble Bench has decided to recall its earlier judgement in Canara Bank

case. The process is on and a decision after further Hearing can be expected.

A Parliamentary Committee on Subordinate Legislation went into working of RBI Pension 

Regulations, had ruled the Central Government Communication of February 2002, barring grant 

of fresh options under the Pension Regulation was not legally binding on RBI, as it was only a letter from the government and not a direction under RBI Act and RBI could grant option to join the Scheme, to all those who were on rolls when the last option in the year 2000 was given, even though some of them might have retired and or died. The Report of the Committee has been placed in the Parliament on 10th Aug.2017.

In State Bank of India, since Pension was an additional benefit besides Gratuity and contributory PF, there were certain restrictions on quantum of pensionary benefits.During the course of legal proceedings against the restrictions, a Committee to go into the issues was formed. 

The Report of the Committee, it seems, has been accepted and SBI has released 90% of the arrears.

According to the Report, Pensioners who retired between 1987 to 1992, will be entitled to a higher ceiling of Rs.3775 from Rs.2400 for pension at 50% of salary. In relation to Pensioners who had retired between 1992 to 1997, they will continue with prescribed level of Rs.4250 but will be entitled to the benefit from November 1992 or July 1993 instead of from November 1993 as originally granted. The 50% ceiling will be increased to Rs.7120 from Rs.4250 for all pensioners 

retired between 1997 and 2002. As regards retirements after October 2002, the demand for grant 

of benefit from November 2002 instead of from May 2005 has not been accepted. It may be noted 

that though the ceiling has been raised, the number of Dearness Relief Slabs they are entitled to 

will come down as ceiling has been raised to higher index level.

In the C.C. meeting, the Office Bearers and Central Committee Members placed their views and there was cohesion, unanimity and purposefulness in the viewpoints expressed.

Besides the core issue of pension, the issue of Monthly Cash Medical Allowance to all LIC Pensioners and such allowance in GIC also with particular reference to denial even to pre-1986 retirees was raised and it was assured that these will be assiduously followed up.Com.T.K.Chakraborty, General Secretary, while summing up the discussions, thanked for the effective and forceful presentation of views. In his speech, he referred to the campaign slogans of the Government, cited how opinions against the Government were viewed, how there was disparity in distribution of wealth, with top 1% cornering 23% of the wealth, how voices of people like Dhabolkar Pansare, Kulburgi, Gauri Lankesh were silenced. Com.Chakraborty talked of agricultural sector and how working people were being deprived of their rights.

The General Secretary said it was time for insurance pensioners to join the mainstream and 

fight against the divisive policies, and anti-people economic policies and anti-working class policies as suggested by AIIEA.

To focus on issues both at the National Level and Industry Level, he announced a decision 

to observe Pensioners' Day on December 17, 2017 as Demands day and hold a Dharna in all major 

centres. As 17th December 2017 happens to be Sunday, the programme can be observed on 18th December 2017. Efforts to be made to co-ordinate with all other Pensioners' Organisations for 

joint observance of the day. Wide publicity should be given to the programme.

Taking note of certain observations on functioning of the Organisation, he said, a mechanism will be developed to identify and take up issues of General Insurance pensioners at proper time and proper forum and said even now adequate attention was being paid to these issues.

He assured that AIIPA will take all measures to fight the case effectively and stressed on 

strengthening the Organisation and appealed to augment the legal fund to meet the high costs of 

litigation.

The General Secretary said, as decided earlier, the Seventh General Conference of AIIPA 

will be held at Nagpur on February 11, 12 and 13, 2018, and preparations, therefore have already started. As the conduct of the Conference was a major responsibility and task, he called upon the members to ensure the collection drive of Rs.200 per member of the units is successfully completed at the shortest time, while assuring Vidarbha Region Insurance Pensioners' Association, Nagpur 

will do everything to make the Conference a memorable occasion with a sense of purpose.

Insurance Corporation Retired Employees' Association, Hyderabad and General Insurance 

Pensioners' Association, Hyderabad Region, had readily agreed to host and organise the Central Committee meeting and had well planned and nicely executed the arrangements, which enabled the participants to attend the meeting with devoted attention.

The culmination, was a meeting of Pensioners on 14th Sept. 2017, where decisions of the Central Committee and developments in Court, were explained. Com.M.L.Setiya,Com.T.K.Chakraborty, Com.K.Natarajan of AIIPA and Com. K.V.V.S.N.Raju of AIIEA, 

addressed the pensioners.

The Meeting of the Central Committee has its own significance, as it has laid down the path for the future, to protect the rights and benefits of the pensioners and further them in the days to come.

With Greetings,

Comradely Yours,

 

 (T.K.CHAKRABORTY)

 GENERAL SECRETARY