6352 POINT MERGER

[MOHANDAS RAO]

Dear Friends,

DA MERGET AT 6352 POINTS CPI AND UNIFORM 100% SINGLE DA FOR BANK RETIREES

It has been widely shared in Social Media that there is a proposal to merge DA at 6352 points to all the bank retirees so that the 100% would be available for all the retirees with a single DA formula. The details have been shared by our member Sri M. Somasundaram in this forum a few days back. The said proposal may be true or an imagination, I am not sure.

What is the proposal and what would happen, if implemented?

We know, as of now there are SEVEN DA FORMULAS for the bank retirees based on their date of retirement. The Pre-2002 retirees belonging to the 4^th, 5^th, 6^th and 7^th Bipartite Period are getting staggered DA, while those belonging to the next Bipartite Period getting 100% DA neutralisation. For every next Bipartite Retirees, the DA formula and merger points differ as evident from the attached table.

Now, if the proposal is implemented, the present basic pension would undergo an upper revision and the DA component would be reduced in order to bring all under a single DA formula, But, everyone would receive an enhanced gross pension, with the exception of the 11^th Bipartite Retirees. They would not get any increase in this revision, as they are already drawing 100% DA with the 6352 point merger.

Those who retired during the 5^th, 6^th and the 7^th Bipartite are now aged not less than 90, 84 and 80 years, with the exception of the 2001 VR Retirees, who may be younger by some years as some have took VR before attaining the age of superannuation. So, surviving pensions belonging to the 5^th and 6^th are very less. The larger number of retirees belonging to the pre-2002 batch is from the 7^th Bipartite, who would get more increase than the retirees belonging to the rest of the Bipartite Period. However, for the Family Pensioners belonging to the Pre-2002 period would not get a substantial increase, because they are already drawing 100% DA in most of the cases due to their lower basic pension. This is true for the regular pensioners with a lower basic pension for the same reason. The retirees of the next bipartite periods would get a lesser increase as explained by Sri M. Somasundaram in his posting.

A Sample Calculation for the 7^th Bipartite Period:

A sample case of a 7^th Bipartite Period is attached herewith. He is a senior Officer with “Pay” of Rs.15,910/- and a Basic Pension of Rs.7,955/-. The corresponding Family Pension at 30% of “Last Pay” is Rs.4,773/- in the attached Excel calculation sheet. The present increase for the regular pension would be Rs.9,171.83 and the Family Pension is Rs.1,483.45.  Five years’ calculation is provided so as to know who much increase would have been there, if the proposal was to be implements some years back. However, there would not be any past arrears as the effective date would be a future one, and not from a back date, for obvious reasons.

What would the next step?

If the rumour is to be believed, this would be the first step in the improvement of bankers’ pension. The next step would be to revise the pension of the retirees in a batch by batch due to monetary constraints. All these are only speculations and no one knows whether the dream would result in reality or not!

K. MOHANDAS RAO

Encl: Excel File

 

[Anantharaman Tg]

Thanks, Sri Mohandas Rao sir for the information.

When it is from you , it must be authentic.

Regards.

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[JSOMA SHEKARA]

Recently CHV made certain observations regarding EPR 1995 and pension updation.

1. In 1995 pension was the issue.

2. In 2010 Pension option was the issue.

3. Talking about Reg.35. 65. 95 rtc is useless.

4. Everything needs money.

5. Some people are talking rubbish like (as per constitution all are equal. There is a 2015 judgment of SC. Pension updation needs Rs. 200 crores only. I asked them to give details but they have no answer etc etc. Pensioners are making unviable demands like automatic updation in every BPS.

6.  NPS pensioners are not getting any pension.

7.  Some are getting ex gratia

8. IBA said additional funding has to be made.

[Nagaraju Kakani]

Sairam, Thank you.Let us all, that It will turn into a reality soon by 15 th or 26 Sept. May Bhagawan Bless All of Us.

With greetings,

Nagaraju Kakani

Hyderabad 

[JSOMA SHEKARA]

There is an inbuilt mechanism in EOR 1995 to provide for funds whenever required. When 100% DA was introduced for pensioners post 2002  additional fund were required. That has been provided by Banks. For pension funds no shortage, no excess principle is being followed.

Cost depends upon the formula of Updation, No of Pensioners of each BPS surviving, respective cost. The Utmost task before UFBU and IBA is to discuss the issue in detail to arrive at the cost. Then only question of  ways and means arise to funding the cost.

CHV accuses pensioners of claiming illogical figures as cost of updation. But IBA and UFBU claimed additional funding required without specifying how much additional required. It is unfair to ridicule pensioners in every meeting  about their ill knowledge of pension regulations saying they are talking about Reg.35. 65. 95 etc Are not CHV aware that even Retiree associations are approaching courts based on Reg 35/1?

EPR 1995 and draft agreement before was signed by AIBEA and IBA. Since IBA does not respond to pensioners it was the duty of AIBEA as a signatory to come out with a circular clarifying matters like Reg.35/1, Pension as per RBI formula, clause of updation etc. Keeping silent all these years when pensioners are spending lakhs of Rupees  fighting cases in courts now boasting in meetings to get claps is unbecoming of a Trade Union leader.

Whatever be the cost no court, DFS. or Banks have brought stay on discussing updation and arriving at cost which is the  first step for updatiom.

He says Updation cannot be solved in a hurry.

[bhaskara sarma]

Some thing is better than nothing for the old Retirees,who are struggling with inflation.

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[JSOMA SHEKARA]

Pensioners do not have any representation in the negotiating team. UFBU,IBA, Banks do not consult retirees or even correspond with them. Under the circumstances there is no alternative for Pensioners than to accept whatever is thrown at us. As usual retiree organizations will claim whatever settled is because of their efforts.

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[Gopalakrishnan Ramachandran]

If the reports of merger of 6352 points is correct, that will solve 100%DA issue and the net increase may be a little more than the 100%DA. But the positive point is that, there will be parity in DA and our future DA will be fully be neutralised.

In the present circumstances we cannot expect anything more than this. Let us hope at least this happens.

G Ramachandran

CB-SVRS.

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[JSOMA SHEKARA]

It has been reported that on 13.09.2022  IBA has filed an affidavit rejecting Pension updation  claiming there is no provision in Pension Regulations. and also financially not viable.

However IBA cunningly avoided mentioning RBI pension updation anywhere in the affidavit.

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[kushal mukhoti]

Isn't DA merger at 6352 points with 100% DA neutralization ( 0.24% for 7th BPS) DR rate too optimistic? 

[Sridhar Mandyam]

Just merger will not solve 100%DA problem. It just gets postponed. The solution is to remove the tapered DA formula.Then only all get uniform DA

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[Chandrasekaran V]

The same affidavit, as filed by IBA two days back, could have been filed upon first notice itself.  Why they delayed after the case was adjourned for want of affidavit from the other other party ?  The IBA/Banks should be fined by the judiciary for wasting the time of not only the Courts but also unnecessary expenditure for the petitioners and enriching the advocates of IBA/Banks just for appearance for so long.

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[bhaskara sarma]

The game of IBA and UFBU is very clear.They don't accept any right of Retirees. They expect the old Retirees to live on the mercy of INA and UFBU. The story, screen play and direction are done by UFBU behind the screen.IBA and UFBU have to protect each  other due to reasons best known to them.

With regards,

P Bhaskara Sarma.

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[Narendra Maller]

What is the point of publishing all these calculations?. Only a waste of time, nothing will materialize

This is only a game played by IBA and UFBU to hoodwink the retirees.

Even  God will not be able to save us from this unholy nexus.

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[Rajender Sharma]

Sir,

Why blame the IBA or the United Forum? It is the failure of our retiree organisations,

who fell quickly into their trap. Too much reliance on AIBEA and other units of the UFBU

was a blunder. In fact, our leaders are content with writing letters here and there and feel 

that things will be sorted out the way they want. A deceased pensioner took the initiative

to file a case for updating pension in the Supreme Court and our leaders did not support 

this cause in the court..financially or morally. It is shameful.

[Niranjan Cn]

Sir who negotiated Family Pension improvement ?

Niranjan

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[Vvns Varaprasadrao]

UFBU/AIBEA had no objection.  That's why enhancement in family pension became a reality.

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[ganpat dhond]

Dear Shri  M Rao,

Thanks for  working  shown how  6352 points  CPI  merger results in new basic pension taking sample calculation under 7th  bipartite settlement. IT IS VERY INFORMATIVE. Your efforts are APPRECIATED.

I thought to request you to give more information  about formula ( factor ) used for conversion  from present basic pension to new  basic pension if such merger happens . For example in instant  sample calculation case  of present basic pension of Rs 7955  new basic pension is shown at  RS 30236 . So  request to elucidate how it is arrived at. ( what formula is used )

Thanking  you in anticipation of your guidance .

Regards

G J Dhond

[kushal mukhoti]

Mr. Ganpat Dhond,

Net merger (6352-1684)= 4668 pts.

4668/4 = 1167 slabs.

Full neutralized DR rate is 0.24%. 

Present basic pension - 7955/-

DR to be merged - 

7955 x 0.24% x 1167 = 22280.36.

New basic pension - 

7955+22281= 30,236/- 

Hope this helps.

KM. 

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[ganpat dhond]

Dear Shri  KM

Thanks a LOT for excellent clarification . It is clear to me now.

Regards

G J Dhond

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[Ramaswamy S]

Dear Mr Kushal Mukhoti

I furnish hereunder the present pension amount drawn by me and the proposed pension amount likely to be drawn after the proposed merger of 6352 points of DA.

Existing Plensison for August 2022
Basic Pay at the time of voluntary retirement
in April 2001 with 25 years service				15000
For PF/DA				152
Fixation of Basic pension at 25+5 /33 yrs
30/33*7576				6887.273
				6888
Less 1/3 commutation				2296
Net basic pension				4592
DA increae for August 2022
upto	%	Amount
3550	406.32%	14424.36
3551-5650	338.60%	7110.60
5650-6010	203.16%	731.38
6888-6010	101.58%	891.87
Revised DA		23158.21
BP less commutation 2296		4592.00
Revised Gross pension		27750.21
Old gross		26998.00
Net increase		752.2084

From the above, it can be seen that  I am presently drawing a total gross pension amount of Rs  27751/-.               

In the proposed DA points merger plan, based on the workings made out by you, I  have calculated the likely pension amount to be drawn by me, which is appended lbelow.

Proposed Pension after merger of  6352 Points
Net Merger (6352-1684 Points)	4668
4668/4 = 1167 slabs
Full Neutralised DA rate =  0.24%
Present basic pension = Rs 6888
DR to be merged = 6888*0.24%*1167	19291.9104
Rounded off to	Rs 19292.00
New Basic Pension
19292+6888 =  26180

From the above, it can be seen that in the revised scheme of DA merger points, pension amount is getting reduced.  Please clarify where I went wrong or whether my calculations are correct and we have to be content with only the same.  

Your detailed clarification will be highly appreciated.iF ther e is any DA rise after 6352 points, then there may be increase in the revised gross pension amount. 

S.RAMASWAMY

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[mohan p]

Dear Sri Rama swamy,

Your calculation to arrive new basic Pension on merger of CPI 6352 Point is correct.

But please remember,that there may have  remaining CPI points even after merger of 6352 points,since the  average AICPIN(IW) Base Year 2016=100 for current half year w.e.f

Aug '22 is 8456.(8456-6362=2114/4

ie.526)

Thus, DA payable on  remaining point of 526 slabs @36.82% to be added to new BP.

As such:

New Basic Pension.   Rs.26180

Current DA @36.82% Rs.   9640

Total.                            Rs.35820.

Less commutation.    Rs.  2296

(if any)

Net  pension on merger

of 6352 points.            Rs.33524.

What is received now Rs.27750.

Net increase                 Rs. 5774.

( This is in fact on covering 

100% DA)

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[MOHANDAS RAO]

Dear Sri S. Ramaswamy,

The monthly increase for the present would be Rs.5,773/-. Please refer to the attachments.

K. MOHANDAS RAO

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[kushal mukhoti]

Mr Ramaswami S.

Following the calculation of Mr. Mohandas Rao, your total pension will be as under: 

New Basic pension 26180/-

New DR 9640/- (526 slabs x 0.07% x 26180 = 9640/- )

Gross pension 26180+9640=35820/- 

KN

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[MOHANDAS RAO]

Friends,

For the time being, calculating the benefit with a 6352-point merger is just for academic interest and a time-pass. Let us wait for the developments. In the meantime, I have calculated the increase for the sample basic pension quoted there for the Bipartite Settlements from 6th to 10th. Please refer to the attachment.

K. MOHANDAS RAO

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[Ramaswamy S]

Mr Mohandas Rao/Mr P.Mohan/Mr Kushal

Thanks for your immediate response and the lucid clarification furnished by you.  I am extremely thankful to all of you in this regard.

S.RAMASWAMY

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[SBMPC Blore]

Dear Sir,

These charts are incorrect.  Merger at 6352 does not mean calculating DR at a single percentage slab.  One needs to calculate the DR at 6352 points with the present formula.  That's all.

Thanking you,

With regards,

Prasad C N

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[Ramakrishnan S]

Surprisingly,  there was nothing about the 6352 points merger in the recently concluded talks between  iba and ufbu. All tall talks by the these anti retirees leaders of ufbu are only bluffs. We have to presume that by giving false hopes, these insincere people are taking the retirees for a ride. Understand,  none of the retirees issues are solved by these people and only through courts intervention,  we succeeded in getting a couple of legitimate rights. I feel, both iba and ufbu are only fooling the retirees.  The great communist leader and aibea leader chv was running around and loudly telling  that the pre 2002 people are definitely getting some improvement in pension. After the talk of 23rd, where this man hid himself, as nothing happened in the talk for pensioners. Our retirees association like aibrf and abparc should atleast understand about the ufbu and disassociate with them and start functioning  and fighting together. It is nothing but naked truth that only some of the present leaders of the retirees organizations are responsible for the suffering of pre 2002 pensioners, as they only signed joint notes/agreements detrimental to pre 2002 retirees. 

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[kushal mukhoti]

Dear Mr Prasad C N.

You are right. I had indicated this point subtly in my communication the next day Mr Rao posted his chart. 

("Isn't DA merger at 6352 points with 100% DA neutralization ( 0.24% for 7th BPS) DR rate too optimistic?" ) 

And in response to Mr Ramaswami's mail of 23rd instant, I responded as under-

"Following the calculation of Mr Mohandas Rao, your total pension will be as under: 

New Basic pension 26180/-

New DR 9640/- (526 slabs x 0.07% x 26180 = 9640/- )

Gross pension 26180+9640=35820/- "

I am attaching one excel sheet I posted a couple of years back in this blog for your ready reference. 

Thanks and Regards. 

Kushal Mukhoti. 

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[Prasad C N]

Dear Sir, 

Nobody is fooling anybody.  This issue was placed & discussed.  We are going by what some crusaders, warriors and intellectuals say.

We should not forgot that pension option was extended by UFBU only, even after losing cases.

There are certain benefits that can be secured through intervention of the courts and some can be only through negotiation.  

We have organisations which speak about agitation, when issues are being discussed and also fighting in the Court

Thanking you,

With regards,

Prasad C N

Sent from Yahoo Mail on Android

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[Logu Kuppan]

I am missing your messages on bank retirees

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