Kerala High Court admits petition filed by staff union; hearing next month
The High Court of Kerala has admitted a writ petition filed by State Banks’ Staff Union (Kerala) to quash implementation of the New Pension Scheme (NPS) in State Bank of India.
The writ also prayed for directions to revert those recruited on or after August 1, 2010, back to existing pension scheme.
HEARING POSTED
Justice P. N. Ravindran has posted the case for further hearing after a month.
The interim order directed that amounts contributed by employees towards the pension fund be kept in a separate account and maintained with the trustee bank.
The case was filed by A. Jayakumar, General Secretary of State Banks’ Staff Union, Kerala Circle.
The petitioner recalled that NPS was implemented as part of the industry-level 9{+t}{+h} bipartite wage settlement.
As per this, Defined Contribution Pension Scheme (DCPS)/NPS would apply to those joining services on or after April 1, 2010.
But this settlement between Indian Banks’ Association and unions of other banks would not apply to SBI, the petitioner contended. This is because the bank was not party to this settlement insofar as pension-related matters were concerned.
But central board of SBI on November 8, 2010, decided that all employees joining in permanent scale on or after August 1, 2010, shall be offered only the benefit of DCPS.
The SBI Act did not empower the central board to amend pension fund rules, and that too with retrospective effect, it was contended.
PARLIAMENT NOD
The SBI Act also makes it clear that any regulation framed in this manner will have to be laid before Parliament.
It will take effect in the existing or modified form as decided by both the Houses of Parliament only.
In the present case, the central board has taken a unilateral decision to modify the pension scheme.
Legal recourse was also being sought on grounds that the pension scheme once framed cannot be modified without issuing notice.
Keywords: High Court of Kerala, writ petition, State Banks’ Staff Union, implementation, New Pension Scheme
Comments:
While the Hon’ble court will go into the merits of the prayer limited to application of NPS to employees joining SBI on or after August 1, 2010, it would be prudent for GOI and employees in government (including state governments), public sector organisations and statutory bodies who have been brought under NPS from various dates from January1, 2004 to revisit the pros and cons of introduction of NPS without waiting for the court verdict. Issues like the legality of commitment taken by IBA from employees’ organisations on introduction of NPS to a category of employees yet to join service and the enforceability of 9th bipartite wage settlement on SBI employees joining service long after the settlement should be gone into by the stakeholders, independent of the present court case.
Very happy to see that there are still media people who have their eyes
wide open to the hue and cry of the general public in these dark days of
dirty political-corporate-media-judicial axis! Long Live Vinson Kurian!
Congrats Mr VINSON KURIAN and The Hindu Business Line for such a
fantastic work......
nice to see that such an issue of working class get space in a business
newspaper like businessline, unlike other newspapers and media. NPS is
really a core matter of using working men funds to nurture corporates.
So its to be addressed and focused. Anyway congratz to businessline and
personally mr Vinson kurien for following our case and made it a news
before pan indian readers. Expecting proper follow up of the news.
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