The two questions of Mr. Niranjan.
Sanjay J
Dear Shri. Niranjanji,
Let me address your two questions as clearly as I can.
QUERY (a) — HOW IS THE UPDATED PENSION OF Rs. 89,234 ARRIVED AT FOR THE GM RETIRED BETWEEN NOV 2002 AND OCT 2007?
The short answer is: Rs. 89,234 = 50% of a notional pay of approximately Rs. 1,78,468, arrived at by the NOTIONAL PAY FIXATION method applied settlement-by-settlement.
The method works as follows:
Step 1 — Starting Point:
The GM retired at the maximum of the 8th BPS Scale VII pay scale, i.e., Basic Pay of Rs. 32,600. Basic Pension = 50% = Rs. 16,300.
Step 2 — Notional Pay Fixation in Each Successive Settlement:
Under Regulation 35(1), pension is to be updated "having regard to the revision of pay scales" in successive bipartite settlements. The updation mechanism used by AIBPARC/ARISE is to notionally fix the pay of the retired employee in each successive pay scale — as though they were still in service — using the fitment formula of that settlement, and then re-compute the pension at 50% of the final notional pay.
Settlement by settlement, the cumulative notional pay fixation (applying fitment percentages of 9th, 10th, 11th, and 12th BPS) works forward from the 8th BPS maximum of Rs. 32,600, arriving at a notional pay of approximately Rs. 1,78,468 in the 12th BPS scale.
Step 3 — Updated Pension:
50% of Rs. 1,78,468 = Rs. 89,234 ✓
A few important observations on this figure:
(i) Rs. 1,78,468 is very close to, but slightly above, the 12th BPS Scale VII base maximum of Rs. 1,73,860. The small difference (approximately Rs. 4,608) likely reflects partial credit for stagnation increments (the 12th BPS provides stagnation increments of Rs. 4,340 each). AIBPARC's exact worksheet applies the fitment at each settlement with precision, which would require the specific IBA fitment tables for Scale VII across all four settlements to verify down to the last rupee.
(ii) Notice that Rs. 89,234 is slightly less than Rs. 91,270, which is 50% of Rs. 1,82,540 (the 12th BPS maximum with two full stagnation increments, as shown in Column 3 of the chart). This is appropriate and correct — a GM who retired in 2002-07 would not be credited with two stagnation increments notionally; their notional pay fixation stops at the scale maximum or one stagnation, not two.
(iii) You will also notice that Column 1 (GM retired 1986-87) shows an updated pension of Rs. 84,955 — also close to Rs. 89,234. This makes logical sense: both pensioners are being notionally fixed to approximately the same 12th BPS pay scale maximum (without full stagnation increments), since both were at the top of their respective scales at retirement. The long interval since retirement makes the multiplier enormous (36.94x for Column 1 vs 5.47x for Column 2), but the destination is broadly the same.
In summary: you cannot arrive at Rs. 89,234 by any simple arithmetic on Rs. 16,300. It requires AIBPARC's full notional pay fixation worksheet with the precise fitment formulae of each settlement applied to Scale VII. If you or any member has access to that worksheet, the figure can be verified step by step.
QUERY (b) — WHERE IS THE REFERENCE TO 10% LOADING PER SETTLEMENT IN REGULATION 35(1)?
The 10% loading is NOT mentioned in Regulation 35(1). It does not appear in the text of the Regulation at all.
Regulation 35(1) of the Bank Employees' Pension Regulations 1995 states only that:
"The amount of pension... shall be updated by the Board from time to time having regard to the revision of pay scales of bank employees."
It prescribes the OBLIGATION to update, but leaves the QUANTUM of updation to be determined by the Board/IBA in consultation with the Government. It does not specify any formula, percentage, or minimum loading.
So where does the 10% demand come from?
It is the pensioner organisations' (AIBPARC/CBPRO) minimum equity demand, based on the following reasoning:
— Each successive bipartite settlement gives serving employees a fitment of 15% to 17% on their total emoluments (basic pay + DA) to arrive at their revised basic pay.
— Pensioners, whose basic pension has been frozen since retirement, are being left behind by precisely this fitment quantum at every settlement.
— Therefore, as a minimum floor of equitable updation, pensioners should receive at least 10% increase in basic pension at every settlement — a figure deliberately kept below the 15-17% fitment given to serving employees, to make it fiscally acceptable to management.
This 10% is thus an advocacy demand rooted in equity and comparative fairness, not a legal entitlement written into the Regulation. The legal entitlement under Regulation 35(1) is to be updated "having regard to pay scale revision" — and what that means in practice is exactly what the Supreme Court is being asked to determine in CA 7993/2023.
The importance of this distinction cannot be overstated: when we argue before a court or in a representation, we must cite Regulation 35(1) as the legal basis for the obligation to update, and the 10% as the minimum equitable standard we are seeking — not as a regulatory provision. Conflating the two could weaken the legal argument.
I hope this clarifies both your queries.
Sanjay J.
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Good Morning,
Congratulations Sanjay Sir, for providing table and excel sheet for calculating revised pension as per Regulation 35(1). The presentation is very good.
Kindly clarify the following :
a) Please find attached the chart submitted to SC by AIBPARC/ARISE with regard to Pension of General Manager retired in 2002-2007 period. In the chart submitted the updated pension shown as Rs.89234/- showing an increase of 16171/-.
I tried different methods, but could not arrive that figure. Kindly clarify how the updated pension figure arrived (as shown in chart submitted).
b) We need minimum loading of 10% for each settlement and your charts also reflects that sentiment. I could not get reference to this 10% loading in Regulation 35(1).
Please through some light on the above two points and oblige.
Niranjan
Ex Canara
21/05/2026
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Niranjan Cn
The 10% loading is NOT mentioned in Regulation 35(1). It does not appear in the text of the Regulation at all.
Regulation 35(1) of the Bank Employees' Pension Regulations 1995 states only that:
"The amount of pension... shall be updated by the Board from time to time having regard to the revision of pay scales of bank employees."
It prescribes the OBLIGATION to update, but leaves the QUANTUM of updation to be determined by the Board/IBA in consultation with the Government. It does not specify any formula, percentage, or minimum loading.
UNQUOTE :
Sir, is it possible to quote where it is stated that "shall be updated by the Board from time to time having regard to the revision ofpay scales of bank employees." ? I am not able to get these wordings anywhere in the official records of the Bank. Have extracted from any of the judgements ? IF so please share the same.
With regards
Niranjan
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Niranjan Cn
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