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.
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