DA - 100% Neutralization & Pension Updation

[sudershan pal kharbanda]

Dear friends

I hope the following will clarify all doubts about 100% neutralization of DA as well as about updation.

A> AS REGARDS DA CALCULATION, before signing of 8th BPS, all bank staff / pensioners were given DA as per slab system. 

This slab system was continued for bank staff upo 31-1-2005 - for eg, under BPS VIII, working staff were paid DA as per following slabs For the period from 01-11-2002 to 31-1-2005.

For every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index(General) Base 1960=100 at the following rates:-

 (i)     0.18% of ‘pay’ upto Rs.9,650/- plus

 (ii)    0.15% of ‘pay’ above Rs.9,650/- and upto Rs.15,350/- plus

 (iii)    0.09% of ‘pay’ above Rs.15,350/- and upto Rs.16,350/-plus

 (iv)    0.04% of ‘pay’ above Rs.16,350/-.

AND from 1st Feb, 2005 onwards,  DA being paid for every rise or fall of 4 points over 2288 CPI base at 0.18% of pay.

However, for Pre-Nov 2002 pensioners, 

  i> Basic pension has been calculated, based on merger at CPI 1684.

 ii> DA continues to be paid as per VIIth BPS's slab system,  with 0.24% / 0.20% / 0.12%/0.06 % ON DIFFERENT SLABS of pay for rise/fall of 4 pts over 1684 CPI. 

Now, as implemented in RBI, if demand for 100% DA neutralization is accepted by IBA, then they will too have only one slab  (i.e. 0.24% of pay) in place of earlier 4 slabs for DA calculation.

AND this will effect both Pre-2002 pension optee's (who may get the benefit from 01-03-2005 as per RBI's DA formula*) as well as to 2nd pension optee's (who may get the benefit from 26-11-2009/date of start of their pension*).

                                                                       * or from date as per the IBA guidelines.  

B> UPDATION OF PENSION : As indicated above, the benefit of merger of DA on a/c of 8th & 9th BPS has not been extended to Pre 2002-retiree pensioners - their pension still remains fixed based on merger at CPI 1684 (BPS VII) as against DA merger at CPI 2288 and CPI 2836 extended to post Nov2002/Nov2007 retiree's. In other words, DA merger benefits, agreed upon in the BPS, are not being extended to PENSIONERS - this is termed as UPDATION of pension. 

As on date, all Pre-Nov2002 pensioners are fitted as per BPS VII (deprived benefit of BPS VIII & IX), Post Nov2002 - Pre Nov2007 retiree's are fitted as per BPS VIII (deprived benefit of BPS IX) & Post Nov2007 retiree's are fitted as per BPS IX  but they too will be deprived with the benefit of BPS X as & when settled - the process will continue for all future pensioners.

THUS, ULTIMATELY all pensioners are going to be effected by this - the impact has already started. But, unfortunately,  Unions have started realising this very recently OTHERWISE, to begin with, THEY COULD HAVE, AT LEAST,TAKEN UP THE MATTERS RELATING TO PRE Nov2002 PENSIONERS with IBA, ALONG WITH BPS VIII TALKS ITSELF, ESPECIALLY WHEN RBI HAS ALREADY ISSUED ORDERS FOR PAYMENT OF 100% DA NEUTRALIZATION TO ITS PRE Nov2002 PENSIONERS VIDE ITS LETTER DT 01-03-2008 itself.

with wishes.

Sudershan Pal - CB SVRS

spal
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