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30% SAB –The Rightful Dues Of BSNL RECRUITEES

Whether BSNL recruited employees are eligible for Pension ?

If YES , How much ? Are we getting the complete Dues ?
If Not, who are the culprits ?
Lets go with a fact sheet on this ( we request the legacy association leaders also to
have a read on this so that they can explain to their members and to management )
BSNL was formed in the year 01.10.2000 as a GoI PSU.During the formation GoI /
the Ministry of Personnel, Public Grievances and Pensions notified the amended rule
37 of CCS pension Rules 1972 in 30th September 2000. It is named as Rule 37 A.

The sub rule 23 clearly mentioned as.

(23) The arrangements ( read govt pension ) under sub-rule (22) shall be applicable to the existing
pensionersand to the employees who are deemed to have retired from the Government servicefor
absorption in Bharat Sanchar Nigam Limited and shall not applytothe employeesdirectly
recruited by the Bharat Sanchar Nigam Limited,for whom it shall devise itsown pension
scheme and make arrangements for funding and disbursing thepensionary benefits.
Which means BSNL should have started its own pension Scheme for directly
recruited TTAs/JTOs/DGMs etc & But BSNL has not formed any pension scheme
till 05.05.2016.

From the date of inception BSNL was providing / contributing For DOT absorbed
employees Family pension (14% to 23 % of the Upper band of the Pay scale) +
Gratuity (4.8%) +3.3 % Retirement medical facility (BSNL MRS /CGHS) towards
Retiral benefits . In the same line, to make the Cost to Company equal to the
employees , entire BSNL recruited employees also would have been given with equal
share of retiral benefits from their date of joining. From the first PRC in 1997itself
many PSUs were giving Super Annuation Benefits to theiremployees, although
it was neither uniform nor streamlined. In other PSUs like BHEL, NLC, Coal India
and NTPC given up to 30% SAB and ONGC and HPCL they have given even 39% SAB
to directly recruited employees. But For BSNL recruits were only provided with
12% EPF+ 4.8 % gratuity, total 16.8%.Here we can see that the legacy
associations were not at all interested in getting SAB for BSNL recruited employees,
but they are busy with their envisaged actual pension scheme. In the mean time
they were preaching that EPF is BSNL recruits Pension scheme.

‘EPF is not a pension scheme’. EPF is a statutory requirement that is to be

complied with employers. During early stages ,If anyemployer is having more than 20
employees in an establishment then the employer has to pay contribute for EPF and
it is now EPF stipulation is there for employers to start EPF for 10 or more employees
( best example is now BSNL external contractor if have more than 10 employee , then
he have to contribute for EPF ) .In the early years BSNL has deducted only 12% of
the Basic pay as EPF contribution up to august 2005. After continuous struggle and
court litigations by AIGETOA - BSNL started contributing 12% of Basic +DA. The
EPF -1995 scheme has an option for Higher pension and for the same also AIGETOA
is leading from the front for ensuring the same. We have already won the eligibility
for BSNL recruits at Hon HC , Ernakulam and AIGETOA is all efforts are on for
ensuring the same for all over india BSNL recruits.
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The gratuity of BSNL recruited employees and DOT absorbed employees are different,
please refer BSNL gratuity trust rules dated 15 May 2008 point -4.

In second PRC recommendations with effect from 1-1-2007 , the Super annuation
benefits were made astatutory contribution and streamlined to 30% of Basic +
DA.Hence Before giving any perks / allowances, the PSU has to give SAB.

Even though BSNL was earning ten thousands crores of profit in 2007-08 and
with more than 40000 crore reserve fund , the full SAB scheme could have
easily done at that time. But in BSNL Bonus and Perks were implemented
without implementing SAB. The legacy associations were busy to ensure the
pension protection of 100% (which was 40:60/DoT:BSNL) and some back dated
promotion favours ,but neither they raised any word for implementing SAB nor they
supported AIGETOAs endeavours for ensuring the 30% from date of joining . We
continued our organisation efforts and almost al the meeting minutes with
management and AIGETOA published from 2009 onwards you can see the demand
of 30% SAB for BRs . The dues for BSNL recruits were 13.2 % of Basic + DA ( 30%
-12%- 4.8% = 13.2% ) .

National wide movement was organised by AIGETOA for implementingthe full SAB
and the result was on 12/07/2013 the management first agreed for starting the
super annuationpension scheme with 2% Basic + DA .

Letter to AIGETOA GS on 12/07/2013

But due to the back stabbing of so called self proclaimed association, it was
derailed. They were even mentioning directly in their websites with regard to
financial viability versus BRs full SAB while all the DoT absorbed employees
were given with all retiral benefits dues.
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Again AIGETOA had to work on with scratch and struggled a lot for getting SAB
to the BSNL recruitees. Due to our continuance persuation and organisational
actions BSNL management agreed to implement SAB 3% on 05/05/2016 and later
on it increased to 2% on 01/04/2017.

We are still with shortage of 8.2 %& considering the fact of 3rd PRC on anvil ,
AIGETOA already filed a case in Ernakulam CAT for getting full SAB from date
of joining of each BSNL recruit.BSNL replied that due to bad financial condition of
company it is not implemented fully
&Legal fight is going on and We are having the hope that we will obtain favourable
orders for achieving full 30% SAB with organisational and legal efforts.

PRMB Fund ( Post Retiral Medical Fund )

SAB is defined Contribution Schemenot defined benift Scheme -which measn the
contributions should be made to a fund like EPFO or LIC trust ( gratuity deposit /
pension scheme ). Advocating of actuarial analysison PRMB of retired DOT
Absorbeeemployees Which is a defined Benift Scheme is awrong interpretation. BSNL
Not formed any PRMB Trust for BSNL Recruited Employees till now.But The Legacy
Assosiations have no concerns over it it as this no way affects them or their core
members

PRC Recommendation

We request to each BR employeesto be aware and emlighten all that, there has to
be an end to these misery and losses on BSNL Recruits. Even though clear irections
were there for Pension and other statutory benefits we are still deprived off the same
to the tune lakhs and lakhs of rupees and increasing the loss day by day. This is
happening in addition to the pay losses to BRs to the tune again lakhs . Have you
ever heard such a loss to any DoT absorbed employee ? This will automatically
anwer who is /who and who is for what

We Appeal to each BR Executive to unite under AIGETOA platform and help All india
graduate engineers and Teclecom officers association to come out as Majority
recognised Association in the coming EMV on 18th august 2020. 30% SAB dues is a
matter that can be settled well within BSNL Board itself and we just need recognised
Representative BSNL recruit to ask for it, who would speak up to the Management
on behalf of BRs and settle the issue in BRs Favour for ever.

AIGETOA assures each BR that being elected as the recognised Majority association,
we will commit ourselves to settle the dues in the 30% SAB to BRs
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Tabulated below is the approximate Cumulative loss borne by BR executive on

account of SAB from his/ her Year of Joining.

ELIGIBLE TOTAL
SAB AMOUNT ACTUAL
ELIGIBLE TOTAL WITH 30% SAB ACCUMULATED
DATE OF SAB AMOUNT FROM DATE OF SAB AMOUNT
JOINING WITH 30% SAB JOINING (W.E.F FROM DATE OF
AS FROM DATE OF 2ND PRC i.e 01-01- JOINING WITH
JTO/JAO JOINING ** LOSSES 2007) ** LOSSES REDUCED SAB **
2002 5939799 2319663 5492088 1871952 3620136
2003 5300942 2069404 4957178 1725641 3231538
2004 4951982 1923660 4703665 1675342 3028323
2005 4621751 1786059 4460916 1625225 2835691
2006 4419769 1697682 4341547 1619460 2722087
2007 4213016 1608883 4213016 1608883 2604133
2008 3841448 1453324 3841448 1453324 2388124
2009 2908851 1089198 2908851 1089198 1819653
2010 2256307 834143 2256307 834143 1422164
2011 2002777 728280 2002777 728280 1274497
2012 1758796 626419 1758796 626419 1132377
2013 1528629 529946 1528629 529946 998683
2014 1296928 433068 1296928 433068 863860
2015 1074827 340239 1074827 340239 734588
2016 863355 251973 863355 251973 611383
2017 656430 179424 656430 179424 477006
2018 481631 131646 481631 131646 349985
2019 317359 86745 317359 86745 230615

** We tried to make maximum correctness on Basic + DA still , it is advised that

Figures may be taken as an approximate indicator to show losses.

Tabulated view for JEs 2003 & JEs 2008/09