clarification on fitment on retirement

[Anil Verma]

Sir,

           I took VRS from Uco Bank on 31/11/2007 at the age of 53 yrs.(D.O.B.17/04/1954). My basic Pay at that time was Rs.22900/- consequently my Basic pension was fixed at Rs.11760/- PAC was Rs.7840/=On revision of Pay scales under 9th bipartite settlement/joint note dated 27.04.2010 I got revision from 1/11/2007.In terms of guidelines from IBA while getting fitment for revised Basic pension my pay for the purpose of calculation of 10 months average was taken partially under the 8th bipartite settlement/joint note dated 02.06.2005.i.e. for nine months and for one month under 9th bipartite settlement/joint note dated 27.04.2010.At retirement  pay last drawn by me was Rs. 32400/- under 9th settlement. This revised basic contains merged component of DA at 2190 points or so. in terms of joint note dt. 27.04.2010.while old basic contained merged component of DA  as per note dated 02.06.2005.Since I retired after implementation date of 9th settlement which was 01.11.2007 ,   I feel I was denied Merger of DA benefit up to 2190 points.My revised basic pay was arrived at by taking said DA merger effect. So my 10 months average should have been taken as 32400/- or I should have been given DA merger benefit on my old basic of RS.22900/- so that I should not have suffered loss in calculation of Basic Pension on revision.A officer retired on 1/09/2008 having equivalent Basic Pay of Rs32400/- is drawing more Basic pension that me. My revised basic pension is Rs.14860/- and PAC is 9907/- There seems to be an anomalous situation. Any body having knowledge about the same is requested to clarify the position please.

thanking you.

Anil Verma

9816021690

VRS retiree 2007

Uco Bank.

[PM]

Dear Mr.Anil Verma,

                                            You have referred an issue,experienced by a good number of pensioners,whose basic pay falls under two Bi partite settlements.                                           

                                             On this issue,IBA has already issued detailed clarifications on calculation of Basic Pension for retired employees whose last 10 months were partly under both 8th & 9th BPS.It is noted that in your case the last 10 months of service was governed partly under the 8th Bipartite Settlement and partly under the 9th BPS.ie: 9 months under 8^th BPS and 1 month under 9^th BPS.( IBA  circular No. CIR/HR&IR/G2/2010-11/1502 dated 13th October 2010 clarified the method to be adopted in such circumstances.

                                                According to clarification given by IBA in this regard, “Pay” drawn by the concerned retired employee during the last 10 months of his/her service has to be taken as usual; the “Pay” drawn under 8th BPS (out of those last 10 months) has thereafter to be notionally increased by adding DA thereon at 2836 points. The sum total of last 10 Months’ “Pay” thus arrived at (being Pay drawn under the 8th BPS as enhanced by addition of DA at 2836 points PLUS “Pay” drawn under 9th BPS) has to be divided by 10 to arrive at the “Average Pay” for the last 10 months. Basic Pension shall be 50% of the Average Pay.

                                             In your case your 9 months Basic pay would have been taken as Rs.22900 and DA there on and plus one month BP at Rs.32400  and average emoluments would have been arrived on total of above.As such you are not entitled to get  50% of Rs.32400 as you have mentioned.

                                            Also note that in case of person’s salary remained the same at 32400  during past 10 months,as you have compared, it is possible that his/her basic pension would be at 50% of the same (who  retired on 1.9.2008) where as you have retired on 31.11.2007.

                                           As you may be aware,the basic pension of bank retirees vary depending upon date of retirement.And only way and solution to sort out the issue is granting of Pension Updation as and when wage revision takes place in banks as in the case of Govt employees.That is one of our major demands under 10th BPS.

                                         Kindly check up. Still you find the calculations are not made as per IBA guidelines,you can very well take up the case with your Bank.

[Mohandas Rao]

Dear Sri Anil Verma,

Your pension was fixed on the basis of formula explained in the attached IBA circular.

K. MOHANDAS RAO

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[JSOMA SHEKARA]

Thank you PM for clarification. Let us pray for early solution for our demands.

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[Anil Verma]

Dear Sir K.Mohandas Rao,

                   Thanks a lot for guiding me in the matter and the sending me the relevant circular issued by the IBA. Sir, I am also aware of the same but my apprehensions are on the clarification issued by IBA. Which says "The calculation of average emoluments and basic pension in respect  of the employees retired between 1.11.2007 & 31.7.2008 is given in annexure A. This adjustment is required as the employees who retired from service on or after 1.11.2007, the dearness relief they will be getting along with basic pension shall be the dearness relief payable over and above 2836 points in the all India CPI 1960=100" and in annexure A while calculating DA it again says "Dearness allowance payable @ 0.18%for every slab of 4 points over and above the index numbers 2288 points and up to 2836 points in all India CPI 1960=100" and in calculation column after calculating DA on given Basic pay it has been multiplied with relevant months of service prior to 1.11.2007. here you will agree with me that retirees will get their pension on Basic pay with merger of DA at 2836 points as per joint note signed. In annexure the DA has been calculated for service prior to 1.11.2007 on monthly basis with out giving the merger of DA effect at 2836 points. I feel if the said DA calculations had been done on monthly basis and merger of DA effect given on monthly basis by adding the same in Basic pay since DA stands merged up to 2836 points, perhaps said anomaly would have been avoided and the effected pensioners had not  suffered the loss and should not have to wait for pension updation. Sir, your view point on my doubts is needed. The IBA has very cleverly interpreted the above in their favor subjecting the  effected pensioners to loss/harassment.

Thanks once again.

Anil Verma.

[Anil Verma]

Dear PM Sir,

 Thanks a lot for guiding me in the matter. Sir,  my apprehensions are on the clarification issued by IBA in the matter. Which says "The calculation of average emoluments and basic pension in respect  of the employees retired between 1.11.2007 & 31.7.2008 is given in annexure A. This adjustment is required as the employees who retired from service on or after 1.11.2007, the dearness relief they will be getting along with basic pension shall be the dearness relief payable over and above 2836 points in the all India CPI 1960=100" and in annexure A while calculating DA it again says "Dearness allowance payable @ 0.18%for every slab of 4 points over and above the index numbers 2288 points and up to 2836 points in all India CPI 1960=100" and in calculation column after calculating DA on given Basic pay it has been multiplied with relevant months of service prior to 1.11.2007. here you will agree with me that retirees will get their pension on Basic pay with merger of DA at 2836 points as per joint note signed. In annexure the DA has been calculated for service prior to 1.11.2007 on monthly basis with out giving the merger of DA effect at 2836 points. I feel if the said DA calculations had been done on monthly basis and merger of DA effect given on monthly basis by adding the same in Basic pay since DA stands merged up to 2836 points, perhaps said anomaly would have been avoided and the effected pensioners had not  suffered the loss and should not have to wait for pension updation. Sir, your view point on my doubts is needed. The IBA has very cleverly interpreted the above in their favor subjecting the  effected pensioners to loss/harassment.

Thanks once again.

Anil Verma.

[PM]

Dear Mr.Anil Verma,

                                       IBA's circular and examples are self explanatory.In your case as in the case of retirees in similar situation  as  Basic Pension  cannot be arrived without incorporating the effect of DA merger(to Basic Pay) under 9th BPS. Please note that while taking last 10 months average pay for arriving Basic Pension whose pay falls under  two BPS,the impact of DA merger to erstwhile Basic Pay has to be taken into account.Under 8th BPS CPI was merged at 2288 points and when 2836 points are merged with Basic Pay under 10th BPS that benefit has to be added to your Basic pension.Notionally increasing your average  Basic Pay to that extend and Basic pension is arrived giving effect to that increase. 

                                   

As you may be aware it does not pertain to 9th BPS or  merger of  2836 CPI points alone.Under each bi partite settlements certain portion of CPI was merged with Basic Pay in the case of serving employees.As a result a single rate of DA is paid to employees now.

                                    In the case of pensioners since the DA merger is not affected  under Basic Pension,as in the case of serving employees  the effect of merger is done under DA portion only and that is continued hitherto.As a result different DA rates are effected based on date retirement of each one.

                                   Monthly adjustment of increase in consumer price index towards DA will not alter the position of retirees except increase or decrease in DA which will not substitute pension up dation.( That is also a demand this time)

                                   This issue can be resolved only on Updation of pension as and when wage revision takes place at industry level and that is why retirees demand for the same.If it is not done under 10th BPS also ,one more category of pensioners will be added as  those who retired w.e.f 1.11.2012 with DA rates above on CPI figure of  4440 points.