28 Mar Articles
Update on Superannuation Benefits Case at Hon High Court of Kerala
The cases filed by AIGETOA & Others seeking the implementation of dues of Superannuation Benefits for BSNL recruited employees listed for hearing today 27/03/2025 at Hon High Court, Kerala. The relief sought from applicants (AIGETOA Association side) included
- Allowing the Pension Scheme in line with Rule 37(A) CCS pensions rules for BSNL recruited employees from their respective date of joining
- Enhancement or streamlining of SAB contributions ( EPF , Gratuity, Pension & PRMB) to 30% of Basic+ DA with defined contributions need to be extended from 01/01/2007 in line with 2nd PRC recommendations and DPE/GOI directions
From respondent side, BSNL counsel had submitted that they are providing 25.1% of SAB including 3.3% actuarial analysis of BSNL MRS Scheme. And due to current/ the then financial position, which doesn’t allow the company to go further in earlier days. It was also submitted from respondents that due to the absorption process of DoT employees and connected matters the SAB benefits for BSNL recruited employee could not process clearly.
From Association side our counsel submitted that the justifications submitted by BSNL is not acceptable and the superannuation Pension scheme should have implemented by BSNL wef 1/10/2000 or from the date of joining of each BSNL recruited employee instead of the starting on 05/05/2016. The egregious delay in starting the pension scheme for almost 16 years affected thousands of employees. It was also submitted that mentioning the current financial situation is not justified as the 30% SAB dues was supposed to get implemented wef 01/01/2007 in line with 2nd PRC implementation and the company was in total profit of many thousands of crores from its formation to 2009-2010. The so-called affordability of BSNL is not affected due to the working-class employees. It was also pointed that the step-by-step package implementation as envisaged by 2nd PRC was not followed by BSNL scrupulously.
It was also submitted that the superannuation benefits (its components) are directed as defined/fixed contribution Schemes for ensuring retirement superannuation benefits and the company’s existence/ non-existence has no way connected with the retirement life of the employees. The argument of BSNL with regard to 3.3% actuarial analysis in BSNL MRS also negated by the association counsel by informing that BSNL MRS is only a medical reimbursement scheme for serving and retired employees of BSNL. Its applicability is connected with BSNL Board decisions and contrary to the directions of DPE/GOI, there is no fixed contributions are made for retirement medical benefits for BSNL recruited employees. If BSNL is true to its commitment of 3.3% contribution for retirement medical benefits, they should create and maintain a PRMB trust with fixed contribution against each BSNL recruited employee.
The case is posted for further arguments to a later date.