Allege they are being denied due share of pay
Ex-servicemen employed by public sector banks are sore at the alleged discrimination meted out to them by Indian Banks’ Association (IBA) in the fixation of pay in accordance with a new circular issued by the association.
In a complaint to the Finance Ministry, they have alleged that the IBA has misinterpreted and violated not only established policies and existing guidelines in the matter but also the instructions issued by the Ministry.
The IBA has presumed that components not mentioned in the definition of pre-retirement pay in the Ministry of Defence office memorandum (OM) of July 24, 2009, need not be protected. The OM dealt with pay and allowances of retired armed forces officers on re-employment in the armed forces itself.
But pay fixation is a benefit extended only to ‘personnel below officer rank’ on re-employment in Group C and D posts in public sector undertakings.
What the IBA had managed to do was to use part of the said OM for its own benefit and deny ex-servicemen their due share of pay.
It has excluded a number of pay components from re-fixation on the pretext of not being mentioned in the definition of pre-retirement pay.
An aggrieved employee said that the pay is fixed after six months of joining a public sector bank at just above the last drawn pay in the defence forces. But now the IBA has asked for a review of the pay fixation, which will result in removing the major part of the pay so fixed.
The very purpose of re-fixation for the purpose of protection of last drawn pay will be impaired, say aggrieved ex-servicemen. The proposed recovery of the pay for the last three or four years would result in huge financial loss to individuals and imbalance their financial stability.
This also runs contrary to the policy of the new Government which is “determined to do everything to repay the debt of our brave and selfless soldiers.”
Ex-servicemen have urged the Finance Ministry to instruct the IBA to withdraw the circular immediately.