IMPACT ON MERGER OF CPI 8088 POINTS

[mohan p]

Dear Friends,.

It seems , that few Retirees have  confusion on this point.

At the outset let me clarify that merger of certain CPI points with basic Pension is neither  Updation of Pension as we demand, nor improvement in pension we receive now.

No monetary benefit is derived to pensioners on this exercise except notional increase in Basic Pension,and uniform  percentage of DR in future.

As pensioners, we are drawing pension fixed at the time of one’s retirement,  with same rate of Dearness Allowance applicable to that period,in terms of BPER,1995, with half yearly increase/decrease in AICPIN-IW,published by GOI,monthly.

Serving employees salary is revised once in five years with;

a) merger of certain CPI points with their basic pay,at each BPS/JN.

b)and adding certain load factor &

c) Spl.allowances( which may not count for pension!) and revised DA.

Unless Updation of pension is  implemented, as and when wage revision takes place at industry level, there may not be any parity in pension between 5^th BPS pensioner and 12 the BPS pensioner.

For eg:An employee under 5^th BPS period with a basic Pay at Rs.5200 would have been continued in service till 11^th BPS period in same scale he would have  drawn Rs.82670 as his Basic pay on retirement.And consequently a sum of Rs 41335. as his Basic Pension,too.

I have enclosed an illustration for reference,  on impact of merger of CPI points 8088 on pensioners under different category.

As I have stated earlier, merger of CPI 8088 points with basic pension of retirees may pave way for Updation of Pension in future, on the lines  of RBI pensioners or Central Govt pensioners,with suitable formula.

Let it happen.

[RANGARAJAN M R]

Will there be such exercises in regard to pension at the time of each BPS every 4 years ? Is it not possible to evolve a good formula for pensioners ensuring that they get updation periodically ? A deep understanding of the subject and appropriate action is necessary from all stake holders.

M.R.RANGARAJAN

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[Balakrishnan P.P.]

Thank you for your clear clarification, hitherto I had no idea of impact on merger of CPI points.

Balakrishnan,

Canara Bank retiree.

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[sastry n s]

Very good clarification. It is the factual position.

[Narayanan Venkateshwaran]

DA merger with basic will ensure marginal rise in DA over and above the regular rise arising out of next index change

CVNarayanan 

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