DA NEUTRALISATION

[J SOMASEKARA]

DEAR P.MOHAN

I have retired during 2001 under SVRS Scheme. I am drawing pension since 2001.

Can you elaborate what is 100% DA NEUTRALISATION.

I have gone through the order copy of judge in LIC case. The DA neutralization

As  I understand is same slab of DA percentage as awarded to existing employees.

I furnish herebelow chart as approved by single bench judge.

“Comparative Chart”

Pay upto                           Rate of DA/DR          Pension

Upto 4800                         0.35% of pay           Upto 2400

From 4801 to 7700             0.29% of pay           From 2401 to 3850

From 7701 to 8200             0.17% of pay            From 3851 to 4100

Above 8200                       0.09% of pay           Above 4100

LIC pensioners had prayed for DA slabs as per first coloumn and which have been granted.

Is this the same what has been given to a section of retirees.

I am attaching a copy of judgement for your reference.

CAN YOU ENLIGHTEN US IN DETAIL

[PM]

Dear Mr.Somasekhara,

Since you have retired in 2001 and drawing pension now,
hope the discrimination in payment of DA is known to you very well,
and need no explanation.

I.Coming to your point:

01.As you are aware,whenever salary revision takes place under each Bi-
partite settlements,in banks, certain portion of CPI points are
merged along with basic pay to arrive new scale of pay.
From 6th BPS to 9th BPS the merger of points were 1148, 1684, 2288
and 2836,respectively .

02.DA is calculated based on increase/decrease in average CPI
every quarter for serving employees and half yearly to pensioners.
(Feb & Aug)In terms of Sec 37 of Bank employees' Pension Regulations
DA relief will be given on every rise or fall of 4 points over merged
points in the quarterly average of the All India Average Working Class
Consumer Price Index(General) Base 1960=100( DA is arrived as
follows: Those who retired on or after 1.11.2002 -470 points (over
2288) x 0.18% and for retirees after1.11.2007 –(333 points over
2836) x0.15%)

03.But,the same guidelines are not applied to pensioners retired prior
to.1.11.2002.Unfortunately all pensioners in banks are not drawing
uniform DA as in the case of Govt.employees.Hence the the question
of 100% DA neutralisation comes.
We have different category of pensioners with different DA rates on
different slabs of Basic Pension, without any basis at tappered rate.
In the case of pensioners those who have retired during 6th and 7th
BPS period,they are drawing DA now, without 100% neutralisation.

04.However,100% DA neutralisation was introduced under 8th BPS,on
1.2.2005(w.e.f 1.11.2002) and extended the same to serving employees
as well as pensioners at same per centage of neutralisation similar
to govt.sector.

II.Coming to LIC retirees case:
In nutshell,In the case of LIC retirees also, discrimination amongst
existing pensioners existed, as in the case of Bank Pensioners prior
to 1.11.2002. Hence single bench of HC,observed that LIC cannot
provide different criteria for grant of dearness allowance to the
existing pensioners based on cut off date i.e. 31.7.1997.
The court directed benefit arising out of above would, however, be
considered by LIC so that every retired employee may get the same
benefit.
Here another pertinent point is LIC's Board has already rectified
the anomaly through passing a resolution way back in 24.11.2001 by
removing the discrimination in granting DA .( Bank Management has not
thought about it even today!)

Question before single bench, here was whether the aforesaid
resolution would require approval of the Central Government?as LIC
management put forth. There cannot be a cut off date for existing
pensioners for providing benefits, and to cure the aforesaid mistake,
the Board’s resolution should have been given effect
Therefore Division Bench found that appeals filed by the L.I.C. of
India have no merit and the same stand dismissed.
In case of Bank Retirees prior to 1.11.2002 also there is
dicrimination without any base and 100% neutralisation of DA should be
allowed without delay.

>  Legal - The Official website of IOB Retirees Association – Indian Overseas Bank Veterans.htm
> 83KViewDownload

[PARASURAMAN K R]

Dear Somasekhara, 

Your DA or DR (Dearness Relief for pensioners) from feb 2011 to july 2011 is as follows

Retired After 01-04-1998 upto 31-10-2002 - 621 Slabs over 1684 points
     Upto 3550    3551-5650    5651-6010    Abv 6010    
     149.04%       124.20%       74.52%         37.26%  

You may notice that da% gets tapered after Rs.3551 whereas under da neutralisation there is no tapering and you are eligible for 149.04% DA on your full basic pay. Suppose your basic is Rs 6500/- you should get149.04% for the full amount under 100% DA neutralisation which would be Rs9687.60 whereas now you may get only Rs8349.96 which means you are losing Rs1337.64 per month.

Parasuraman.K.R

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[J SOMASEKARA]

Thank you Parusharaman for your information

[sailendra kr de]

My basic pension  Rs12885/= retired on 31st March ,2012. under 9th Bipartite settlement, commutation value Rs.4295/= What will be my  present  Basic after neutralization of hundred percent DA ?

[sailendra kr de]

On Monday, February 7, 2011 at 6:43:40 PM UTC+5:30 J SOMASEKARA wrote:

[MOHAN P]

Mr.Saikendra,

Payment of 100% DA neutralisation pertains to Pre November 2002 pensioners only.

In short,they were receiving DR on tapered formula, with lesser rates to certain level of Basic Pension, till the same is allowed recently.

From 8th BPS  onwards, pensioners are getting 100% DR (full)and so in your case it is not applicable.

For your information: More over it is related to DR payable only, and nothing to do with Basic Pension.

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[kds nair]

Basic pension will remain same.Only DA will increase.

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[ravi jain]

Same

Thanks

Ravi kumar jain

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