The "Magic" Behind the Numbers.
Sanjay J
Dear Friends,
How ₹830 Becomes ₹38,000
The question on how a small Basic Pension of ₹830 (from 1987) reaches the figure of ₹38,815 in the AIBPARC chart is vital. It looks too good to be true, but the math is solid. The "Formula" isn't a secret—it is based on the RBI Formula of Successive Mergers.
We cannot jump directly from 1987 to 2024. We must walk up the stairs, one settlement at a time. At each step, the formula does two things:
- Merges DA: It combines the old Basic + DA into a new higher Basic (just like serving employees get).
- Loads 10%: It adds a 10% increase to that new total to fix the "Inflation Gap."
Here is the step-by-step journey of that ₹830:
The Calculation Table (Clerk Retired in 1987)
|
Settlement Period |
What Happens? (The Formula) |
Approx. Multiplying Factor |
Revised Basic Pension (Approx) |
|
5th BPS (Start) |
Starting Basic Pension |
1.0 |
₹ 830 |
|
6th BPS (1992) |
Merger (at 1148 pts) + 10% Load |
x 2.11 |
₹ 1,751 |
|
7th BPS (1998) |
Merger (at 1684 pts) + 10% Load |
x 1.61 |
₹ 2,819 |
|
8th BPS (2002) |
Merger (at 2288 pts) + 10% Load |
x 1.49 |
₹ 4,200 |
|
9th BPS (2007) |
Merger (at 2836 pts) + 10% Load |
x 1.37 |
₹ 5,754 |
|
10th BPS (2012) |
Merger (at 4440 pts) + 10% Load |
x 1.72 |
₹ 9,896 |
|
11th BPS (2017) |
Merger (at 6352 pts) + 10% Load |
x 1.57 |
₹ 15,536 |
|
12th BPS (2022) |
Merger (at 8088 pts) + 10% Load |
x 1.40 |
₹ 21,750 |
The Final Total
By the time we reach the 12th BPS (Nov 2022), the Basic Pension has grown from ₹830 to approximately ₹21,750.
- New Basic Pension: ~₹ 21,750
- Add: Dearness Allowance (DA): As of late 2023/2024 (calculated on the new 8088 index), the DA adds another significant chunk (approx. 60-80% depending on the exact index point used in the chart).
- Estimated Gross Total: ₹ 35,000 – ₹ 39,000
(Note: The factor of "28.25" mentioned is simply the cumulative result of multiplying all the factors together: 2.11 \times 1.61 \times 1.49 \dots \approx 28.)
The Key Takeaway
The figure of ₹38,815 is not an exaggeration. It represents 35 years of denied parity. The reason it looks "high" is that for three decades, our pension was frozen while serving employees' salaries grew through this exact compounding process.
Let us not doubt the math; let us fight for the Right to apply it. The chart essentially asks the Court: "Give us the same growth curve you gave the serving employees."
IBA itself uses this exact compounding math for serving employees every five years. The only thing the pensioners are asking for is to be allowed on the same staircase.
The Bottom Line:
We should not get lost in "arithmetic anxiety." The IBA wants us to argue over decimals so we lose sight of the Regulation 35(1) mandate. The "Updated Amount" in the chart is a destination; the Court’s job is to give us the "Vehicle" (the Legal Right) to get there.
Let’s keep our focus on the Legal Mandate. Once the "Right to Update" is restored, the math will have to follow the law—not the other way around.
With warm regards,
Harish Midha
From: Sanjay J <sanjay...@gmail.com>
Date: Fri, 3 Apr, 2026, 11:39
Subject: Fwd: The "Magic" Behind the Numbers.
To:
Satyanarayana Rao
This scientific, method of pension updation has to be ensured to all retirees uniformly.
The decades old injustice perpetually forced on us by by IBA and UFBU and DFS combine shall be removed by the learned judges of Supreme court by giving historic favourable verdict and direct the defendants to implement the same order on the principles natural justice and fair play and equity as gaurenteed under article 14 and16 and 21 of the constitution of India as implemented in RBI and Nambard retirees which is approved by the government DFS..
Let us wait for the final verdict which is going to be in our favour.
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kushal mukhoti
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Visit our blog site http:://bankpensioner.blogspot.com
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Satyanarayana Rao
This scientific, method of pension updation has to be ensured to all retirees uniformly.
The decades old injustice perpetually forced on us by by IBA and UFBU and DFS combine shall be removed by the learned judges of Supreme court by giving historic favourable verdict and direct the defendants to implement the same order on the principles natural justice and fair play and equity as gaurenteed under article 14 and16 and 21 of the constitution of India as implemented in RBI and Nambard retirees which is approved by the government DFS..
Let us wait for the final verdict which is going to be in our favour.
On Mon, 6 Apr 2026 at 10:07, Harish Midha<harish...@gmail.com> wrote:
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Sanjay J
To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAKGV8OwgiNX31O54HBfNOKHqJWNWndASq7psGE2aNZPq1urw3Q%40mail.gmail.com.