Monday, January 25, 2010

DISPARITY IN ONGC POST RETIREMENT BENEFIT SCHEME

I, while heartily congratulating the Chairman-cum-Managing Director of Oil and Natural Gas Corporation Limited (ONGC) for conferring the status of MAHARATNA upon ONGC by the Nation, appreciates his calibre, ability, integrity and professional competence, express confidence that the great justice would be done to elderly - senior citizens in the matter of pension under its Post Retirement Benefit Scheme as no one is satisfied. Rather, the ex-ONGCians who served the Organisation for decades under hazardous and ordous hostile environ till their super-annuation and brought it at this level, feel cheated.
In this connection it is submitted for due consideration of ONGC management:
a. that entire class of Pre-31st April, 2007, pensioners have undergone a substantial loss because of modification in the Scheme made effective w.e.f. 1st April 2007 in the name of so-called New Pension Scheme . (In effect, the New Pension Scheme (NPA) is of the of the Government which has also exended to PSUs/Public Enterprises to whom Pension Fund Development Regularity Authority (PFDRA) has duly issued instructions. NALCO is the first to implement the same and BHEL, NTC, DVC etc. next in line. SBI has assured to complete the 100 membership for NPA ny 1st April, 2010. This has no relation with PRBS of ONGC and this to be implemente by ONGC in addition to existing (PRBS).
2. The said modified PRBS Scheme has given rise to paradoxiallllll situation where a post-1st April, 2007, retiring from lower post/grade will draw higher pension than pre-1st April, 2007 pensioner retired from the higher post in the immediate past. This unfortunate class is already sufferer because of switching over the PRBS from initial pension based to corpus based.
3.that any cut-off date for extension of Agrani Samman, pensionionery benefits under PRBS etc to all retirees has no rational or ordered in case ofall simarly situate. In one of its important orders dated 25-7-07, Hon'ble High Court f Madras strike down the "cut-off" date 1.11.97 and held all retired emloyees irrespective of their dates of retirement are eligible for pension (Pettition N Easwaran and N Natrajan)
4. that our Hon'ble Sureme Court has catogorically stated in several cases that pension is neither bounty nor a matter of grace depending upon the sweet will of the employer but is a payment of past service rendered, leave aside the PRBS which is contributory.
5. that difference in prvision of identical cases separated by a line pre and post provision gives rise to a class within a lass in disregard of Article 14 of the Constitution of India. Thus, question was conclussively settled by a Cnstitution Bench of Supreme Court of India in the case of D.S. Nakara (1983) where in no uncertain terms thrughout its judgement it was observed that the date of retirement of an employee cannot form all valid criterion for classification based on cut-off date has been held to be contray and unprinciplled which does not stand the test of Artcle 14 of the Constitution of India.
6. In view above I crave the active indulgence of ONGC's CMD in restoring justice to a large number of not only Pre-1at April 07 pensioners who are made to suffer because of modified parity, but also to go for a well-considered viable PRBS Scheme keeping in view the following broad factors:
a. that a link be stored between the MINIMUM of the pension and MINIMUM of the scale of the post from which one retired and in this regard the recommendation of 6th Pay Commission as initially accepted by the Govt be referred to.
b. in the matter of pension under PRBS, principle 'ONE RANK ONE PENSION" be adopted.
c. Dearness Relief (DR) is paid to be pensioners/family pensioners to compensate them for the rise in cost of living. Thus, whether it is Agrani Samman, PRBS, Pension or Ex-gratia, provision of Dearness Relief is must.
d. Ex-gratia/Pension Schemes are already in operation in SBI, other Banks and various Public Sectors etc. and the same have rather been improve susequent to the 6th Pay Commission's recommendation and bi-partite settlements. Need is to chose the best one as a model scheme for ONGC which is Number-One Company of the country.
e. Study be got conducted through some professional agency of repute under a time bound programme.
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Definition of Pension : Post retirement benefit that an employee might receive from some employer.
A pension is essentially a compensation received by the employee after he/she retires.

18 comments:

  1. PRBS SCHEME IN ONGC , PURELY CHEATED SCHEME WHEREIN MOST OF THE UNION LEADERS IN ONGC AND ASTO LEADERS UPTO 2003 WERE INVOLVED FOR CORRUPTION.
    GOVERNMENT OF INDIA AND PETROLEUM MINISTRY HAVE NOT GIVEN ANY RECOGNITION TO PRBS.
    iF YOU ARE INTERESTED , THEN TAKE UP WITH YOUR GUJARAT CHIEF MINISTER. AND ASK HIM TO FORWARD TO C.B.I FOR INVESTIGATION.

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  2. Dear Mr Vasandi

    Can you please throw some light on the status of the whole issue of New Pension Scheme pending before the management as well as awaiting the court decisions at Mumbai. Thanks
    o d singh , baroda

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  3. Yes, Mr Sigh, I fully agree with your view. It is regretted that our unions and ASTO never remain sincere to emloyees. They also lack knowldge on such issues.

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  4. Dear Mr.Singh,

    Actually New Pension Scheme (NPA) as has a mention in the VI Pay Commission Report is some thing else. Ours present issue is the profit sharing which has no connection with Agrani Samman or PRBS I feel it would be a good amount.

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  5. Dear Mr Vasandi

    Thx for attending my enquiry. The CMD at least mentioned briefly in his 14th august speech that management is working out a proposal for the pension.I agree, if it's on profit sharing,nobody will have any grudge. Based on some formula the pension amount will be calculated.

    o d singh

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  6. board of ongc is aware of its limitation which exceeds retired employees expectations. u can equate this situation with a wealthy son wants to lookafter the aged parents gracefully but the daughter in law has her calculations in a different direction. MAY GOD BLESS THESE PEOPLE IN POWER INCLUDING IN GOVT. TO BE GENEROUS TOWARDS THOSE WHOSE LABOURS FRUITS THEY ARE NURSING UPON.......CONCERNED BUT BONDED

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  7. Dear Mr Vasandi

    The year 2010 is going to end. Enough must have happened at the ONGC management level by now regarding our pension plans.Don't you think, it's time for you to give us the present status.I hope the package for retirees may come as a new year gift as it could not be the independence day gift this year.

    LONG LIVE RETIREES

    o d singh, Baroda

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  8. Dear Vasandi,
    I have with this matter of pension for ongc ex - employee also discuss with NHRC (national human right commission) but they refused and said this is not their concern case. So if u have any update news on ONGC Retired employees pension do please let me know.
    (ONGC RETIRED EMPLOYEES MUST BE HONOURED WITH SOME HANDSOME AMOUNT OF PENSION)

    Ram Singh
    Ex- Manager (M.M.) Ahmedabad Assest
    utkarshsamiti@gmail.com

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  9. Dear Vasandi,
    PLEASE UPDATES YOUR BLOG WITH LATEST UPDATES ABOUT 0NGC PENSION CASE
    THANKS

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  10. Dear Vasandi, you deserve appreciation for the right cause.
    ongc delved this PRBS presumably for extending some financial security cover to the retirees (which is self contributory).To cite an example one with Rs 400000+ corpus is getting only RS 2000+ PRBS per month which is far below the monthly bank interest one otherwise earns. Hope ONGC do not get any solace by curving such situation. We have great respect and pride for ONGC which has proved itself as a worthy leader in the past.We believe a judicious deal by ONGC authority st the earliest. M.S Biswas retired DGM Finance. msbiswas@hotmail.com

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  11. Hello Mr.Basandi,

    May I know what is the latest status in the PRBS matter?

    The present one is a bogus scheme, not even facilitating bank interest rates against the annuities purchased. The small departments having just 0.01% networth, as compared to ONGC, are paying handsome pension with DA link to offset inflationary trends to their employees.ONGC employees are well to do, when they are in active services but after service they are demoralized in terms of pensionary benefits.Feel shame to disclose their pension, what a tragedy to an employee of Maharatna company.

    Shall be glad to hear latest status in the PRBS matter, as you appear spearheading the movement.

    Thanks.

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  12. Hello Mr. Vasandi,

    Here is SK Kaushal and gone through your blog and posting of comments by different ex-ONGCians.

    What is the latest position in this matter?
    God bless you.

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  13. Hi VASANDI

    How are you?
    Wonderful forum for ex-ONGCians. PRBS is a cheating scheme no doubt.

    Shall be glad to know what is the latest position?

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  14. Hello Dr. Vasandi,

    Just seen this blog and queries of our fellow colleagues. How are you passing your second inning.
    Any development in PRBS matter?

    God bless you.

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  15. Hi Mr.Vasandi,

    What is the use of this blog, when no update with regard to the queries is given?

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  16. Vasandi is a nuissance creator, without any serious thought to any cause. He was busy with all non productive items when in ONGC, always boasting high, but practically useless and negative person. His contribution to the cost to the company expenditure was hardly not more than 5%.hE IS MANIPULATOR AND GOOD FOR NOTHING.

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  17. Yes you are right. He was always devoting in non productive things and definitely a nuissance creator.

    I know him personally, boaster and manopulator to gain cheap popularity.

    He created a lot of problems to me and other innocent persons who were concerned to their job assignments only.

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  18. Basandi was a cheater, shirk worker and notorious person, always appreciating himself.

    Dishonesty, loose character were his a few personality traits.

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