NCBE TO IBA ON MERGER OF CPI 8088 POINTS

[MOHAN P]

NATIONAL CONFEDERATION OF BANK EMPLOYEES

FED/GS/NCBE/20240

24.12.2024

To

Chef Executive

Indian Banks Association

World Trade Centre Complex Centre 1.6 Floor

Cuffie Parade MUMBAI-400005

 

Respected Sir,

 

PAYMENT OF DEARNESS RELIEF CHANGE OF BASE YEAR FROM (1980-100 SERIES TO 2016-100 SERIES

 

It is known that in terms of the 12th Bipartite Settlement / 9th Joint Note dated 08.03.2024 agreed between the Indian Banks' Association (IBA) and Workmen Unions / Officers' organizations, with effect from the 1st November 2022, the Base Year for payment of Dearness allowance has been changed from (1960-100) series to (2016=100) series. Likewise, Bank pensioners, who have retired on and from 01.11.2022 are also paid dearness relief on the basis of CPI (2016=100) series.

2. We are receiving representations from many pensioners, who have retired prior to 01.11.2022 seeking uniform dearness relief on the basis of CPI (2016-100) series, so as to adjust the underpayment of dearness relief on account of errors in conversion of CPI from the present (2016=100) series to (1960=100) series and also on account of higher rounding of slab rate under the above referred Bipartite Agreement / Joint Note.

3. The Dearness Relief for those pensioners, who have retired prior to 01.11.2022, is still paid on the basis of CPI (1960=100) series, despite changes in Base Year of CPI in 1982, 2001 and 2016, by converting the index numbers with the applicable link factors. Such conversion also results in fixation of various Dearness Relief Rates for pensioners in accordance with their dates of retirement / the period of BPS/Joint Note, during which they retired and the process in real terms is cumbersome. Hence, it would be appropriate to change the base year from (1960-100) series to (2016=100) series for payment of Dearness Relief even to those pensioners, who have retired prior to 01.11.2022.

4. In this connection, we furnish hereunder two types of conversion factors

(i.e., (i) by direct method of Simple Merger of D.R. at 8088 points CPI and

 (ii) Simple Merger of D.R. at 8088 points CPI bipartite-wise on cumulative basis),

for computing the notional basic pension of pensioners, by merger of D.R. at 8088 CPI, for payment of Dearness Relief to all Bank Pensioners with the base year (2016-100) series.

*Chart attached below;

5. We are of the view that simple merger bipartite-wise on cumulative basis is justified and can be adopted for the following reasons:

a. The situation of lower benefit to the pensioners retired since long when compared to the recent pensioners can be avoided.

b. It is appropriate and justified benefit to the senior pensioners.

c. The benefit may seem little more, but considering the age and also less number of such senior pensioners, this benefit would be the consolation to those senior pensioners, who are struggling to meet their increasing expenses due to spiraling escalation in cost of essential items.

6. We request you to convene a meeting at the earliest to discuss on the captioned subject towards early resolution of the issue, as already more than 2 years have lapsed since the effective date of conversion of base year to (2016-100) series to all those pensioners who retired/retire on and from 01.11.2022 onwards.

7. Please acknowledge receipt of this communication and advise us the developments in this regard.

With best regards

Yours faithfully,

(L. CHANDRASEKHAR)

GENERAL SECRETARY

[Mahadevan Lakshminarayanan]

How to calculate with basic pay.
Example may shown

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[Ramani Konnayar]

This matter is already included in the list of Residual Issues mentioned in the 12th BPS. However, no discussions appear to have taken place in any of the joint meetings between IBA and UFBU held subsequently during the past 9 months. Even UFBU doesn't seem to show any urgency in the matter, for reasons only known to its leaders.
This makes us feel that IBA is not inclined to extend any monetary benefit of permanent nature to the pensioners. Perhaps, it is for this reason, the ex-gratia payment is limited to October 2027.
Those pensioners who retired on or after 1/11/2022 till the date of signing the BPS got this benefit as it had to be necessarily extended to them  while amending their basic pay in terms of the BPS, similar to what happened in 8th BPS when 100% DA that was introduced prospectively with effect from 1/2/2005 was extended to those who had already retired from 1/11/2002 till 31/1/2005. Otherwise, they too might not have got it. This is the reality.

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[MOHAN P]

Dear Mr.Mahadevan, 

Just multiply your current Basic Pension with factor(simple) provided in the chart. That would be your new notional Basic Pension. In addition revised DR (2016=100)too may added along with.

For example:

Retired under 7th BPS		Current
B. Pension	DR. 451.92%	Gr. Pension
7100	32086	39186
On merger of 8088 points
BP	Factor	Revised notional BP	New DR	Amount
7100	4.8424	34381	17.20%	5914-	40295
Increase					1109

Regards

Mohan. P

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[Srinivasan Badri]

Why building castles in the air. Making calculation etc is just a time pass? Who is prepared to listen to our just demands. UFBU the negotiator And IBA are not interested . We retired Associations have no access to official talks/ negotiation. Court verdict is uncertain and very delayed. 

We have to keep banging UFBU to negotiate and settle pension updation etc

No point in crying in the wilderness. 

Donot have expectations and disappointment later

It will spoil the health. all speculations , are only desired but not assured?

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[Ramachandran Bella]

Mohanji, what is the New DA  rate for 6th BP pensioners when 8088 is merged?

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[MOHAN P]

Let us not spread negativity among senior retirees, though one cannot add any positive notes, optimistic views. 

Bank Retirees are not chasing on illusions

It is a reality that, we could resolve a number long pending issues through legal actions. And many more through bilateral talks and through intervention of Hon. FM in recent years.No need of elaboration. Let us accept the facts. 

Recent one is pension option to resignees. 

Retirees are fighting for resolution of their legitimate demands and one day or other all minor and major issues  may be resolved. 

Lot of retirees are fighting through courts and organisations are trying on their ways too conducting Dharnas in different parts and meetings with DFS and stake holders etc. 

Updation of Pension our major demand too may happen. Need not have any apprehension. 

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[MOHAN P]

Dear Sri Ramachandran, 

Please note that w.e.f, 1.11.2022 , 

 pensioners retired under 12th BPS/JN are drawing DR @17.20%  (Aug'24 -Jan'25) on their revised basic pension. 

Once CPI series of 2016=100 is extended to all past pensioners (5th to 11th BPS )as assured by UFBU and as kept under residual issues, by merger of 8088 points, only one single uniform DR would be applicable to all, there after. (Currently 17.20%) 

Regards, 

Mohan. P

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[Ramani Konnayar]

Dear Shri Mohan ji,

What you have stated is very true and correct. After all, being hopeful and optimistic costs nothing.
However, what is disappointing is, leave alone IBA, even UFBU does not seem to acknowledge any of the numerous communications addressed to it by pensioners' organizations. UFBU can atleast keep the pensioners informed periodically on the developments with regard to their demands. To cite an example, the pre2002 aare still kept in dark about removal of the anomaly in their ex-gratia.

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[Ramachandran Bella]

Thanks a lot ji.

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[krishnan]

Multiply your basic by 7.0725 in direct method or 7.6996 in cumulative method to get revised basic pay.

Then add current da (2016=100) viz 18.27% or so on revised basic pay to get total pension 

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[Ravinder Singh]

Please provide chart again
Thanks

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[MOHAN P]

Mr Ravinder Singh, 

Chart which is part of NCBE letter to IBA is available under this link itself. 

However for your ready reference same is attached here below:

Regards

Mohan. P

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[MOHAN P]

Yes Mr Ramni ji, 

 UFBU -IBA can resolve our minor and major issues. No doubt about it. MOF often clarified the same. 

Unfortunately that is not forthcoming. 

Let us hope that current scenario may change in retirees favour. 

[Ramachandran Bella]

Thank you ji. Now very clear.

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[Ramani Konnayar]

Thank you for your response

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