Monday, January 30, 2012

ONGC PRBS - IMPORTANT QUESTIONS FOR SEMINAR ON 1.10.2011 - BY NARAYAN SINGH RATHRE

Questions for seminar on 1.10.11
By Narayan Singh Rathore in EX-ONGCIANS

IMPORTANT QUESTIONS FOR SEMINAR ON 1.10.2011

(ONGC PRBS)

1. Sir, when PRBS was introduced on 29.4.1990, it was stipulated that: -

“The rate of contribution as may be applicable as per age bracket above at the time of admission to the scheme shall remain unaltered through out the service period of the member.”

Q.1. Was it not a binding pledge for ONGC ?

1.1. Factual Position: ONGC reduced contribution for age below 30 years and increased by 0.5% for newly carved age group ‘above 48 & upto 50 years, in 1990 itself.

2. Benefit: Formula professed: -

“44/33 x Reckonable Service = % of Last Salary Drawn as Pension”

Q.2. Was it not a binding pledge for ONGC ?

2.1. Factual Position: ONGC changed this Formula several times: -

(a). 275th meeting of Commission on 5.11.1990: -

“40/33 x Reckonable Service = % of Last Salary Drawn as Pension”

(b). MOU of 3.2.1998/Cir. PRBS-40 of 18.6.1998: -

(i). Past service pension on salary drawn on 31.12.1991.

(ii). Future service pension Pre-revised Pay notionally escalated w.e.f. 1.1.1996. (iii) Future service pension on Revised Pay of 16.11.1995 notionally escalated.

(iv). Defined Corpus (Balyan Device): Pension was not worked out by PRBS Trust but decided by LIC during January 1996 to 31.3.2007. This secret device was not made public. It became known through inadvertent exposure by E.O. PRBS in 2008.

(v). Dubious regularization of “Defined Corpus” under MOU of 9.4.2007 in indirect method:

“1. PRBS benefit will be extended in term of MOUs dated 03.02.1998 and 19.07.1998 as “Defined Pension Scheme”.

“ONGC and the employees are committed to provide necessary support to the “Trust” to ensure pensionery benefits to all the beneficiaries as per “Defined Pension Scheme” as modified vide this MOU”.

“12. The revised scheme shall be applicable to all employees based on this MOU. This MOU shall be rendered null & void if any of the clauses are modified at a later date without taking ASTO into confidence.”

(vi). Secret re-conversion of Defined Corpus into Defined Pension Scheme was also achieved under Para 2.1. (b) (v) above.

Friends, is it not a Criminal Conspiracy of cheating employees who placed their faith in the Managing Trustee(s) ?

3. Managing Trustee of PRBS Trust has furnished Affidavits, on oath, that PRBS Trust is a Private Trust and that this Trust was neither a State nor an Instrumentality of State. Such affidavits are filed on behalf of CMD, ONGC.

Q.3. Did the CMD of ONGC ever approve of such contention ?

3.1. Factual Position: Hon’ble Courts have held that ONGC is controlled by the Govt. and all Trustees are employees of ONGC. Hence ONGC PRBS Trust is a State. Court did not take cognigence of Misleading Information to punish the concerned executive.

4. Para 32 of Rules-1991 provides “Power to Amend the Rules” but there is no Provision to amend the Scheme. Para 31.2. of Rules provides that if there is contradiction between Rules and the Scheme, Provisions of the Scheme will prevail. Trust ignored this.

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