AICPIN-IW 2016 & 1960 SERIES

[MOHAN P]

Dear Friends,

Consequent upon the unusual delay in releasing AICPIN-IW,2016=100 for months together, by Labour Bureau,GOI,resultant delay was also occured in payment of DA to serving employees for the current quarter, from May'24.

As reported earlier DA for serving employees is arrived based on AICPIN-IW base 2016=100 as follows:

Jan'24-               138.90     

Feb'24-               139.20 

 March'24-         138.90

Average.            139.00

Merged points 123.03 

Increase.              15.97

On merger of CPI 8088 points and adoption of index of 2016=100 instead of 1960 series DA payable too to changed at the rate of 1% for every rise/fall of 1 point,w.e.f 1.11.2022,under 12 th BPS/9^th JN.

Hence DA payable to current quarter for employees, comes to : 15.97%

In case of pensioners,retired up to 31^st Oct’22, DR for next half year will be arrived on index numbers under 1960 series for April,May & June'24.For retiress from 1^st Nov'22 may be under 2016 series,as in the case of serving employees.

April index number ha also been released on 7^th June'24 as follows:

2016=100.                 1960=100

APR'24. 139.4            9163.96

If the index numbers remain on above level in May and June'24, pensioners may have minimum nine slabs increase in next half year.(or more in case number increases)

As UFBU indicated earlier, once pensioners DR too changed to 2016 series, on merger of CPI 8088 points there may have only one uniform rate of DA/DR for employees and pensioners in banking industry.As discussed earlier due to this process we may not have much benefit in DR/gross pension.

 

 

[Ramani Konnayar]

Dear Shri. Mohan ji, 

This has reference to the last sentence of your letter. I do agree that the increase in gross pension resulting out of shifting

the pre 1/11/2022 pensioners to 2016 series of Consumer Price Index on merger of DR at 8088 level will not be very high/substantial. But, I find that the same will not be negligible either (which will, of course, be the case if merger alone is done sans shifting to 2016 series). The following calculations will substantiate my point. 

Basic pension

(6th BPS)                             5100

Present DR at 697.90%   35593

Total        (A)                      40693

Basic after DR merger        

(as per your table 

posted in 2023)                36070

DR at 15.73%                       5674

Total         (B)                     41744

Increase (B) - (A)                 1051

Basic pension

(7th BPS)                               7880

Present DR 446.40%          35176

Total  (A)                              43056

Basic after DR merger       38158

DR at 15.73%                         6002

Total  (B)                              44160

Increase (B) - (A)                   1104

Basic pension

(11th BPS)                           41335

Present DR 48.52%             20052

Total   (A)                              61387

Basic after DR merger        53893

DR at 15.73%                          8477

Total    (B)                             62370

Increase (B) - (A)                      983

As per the above, the increase will be around ₹1000 if the merger along with shifting to 2016 series takes place now. 

Needless to say, this amount will keep on increasing gradually with the DR increases in future, once in 6 months. 

I request you to verify the correctness

of my calculations and inform if you concur with my view. 

Thank you

K N Ramani

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[MOHAN P]

Dear Mr Ramani,

I did'nt state that we may not  get any benefit on such a  process.

While comparing the half yearly DR drawn by pensioners now ,the increase on such  process may be nominal.

As far as pensioners are concerned if  merger of CPI 8088 is  extended to pensioners,icluding change in CPI series to 2016, it may pave way for updation of pension at any later date.(if at all it happens!)

While posting the Chart on impact on merger of DR at 8088 points  by me in 2023 ,here only intention was to make an understanding on the subject,among members.Any way that has already been implemented to employees under 12 th BPS / 9th JN,including pensioners under above period.

Now, let IBA extend the merger of CPI points 8088 with basic pension of retirees as in the case of employees without delay.

We cannot predict on future DR rates.However ,CPI under 2016 series shows past record as follows,which is self explanatory.

April 2021-  120.1

April 2022-  127.7

April 2023-  134.2

April 2024-  139.4

Current DA rate to employees is at 1% for every increase/fall of 1 point.

Based on above, substantial jump in CPI is remote.

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[Ramani Konnayar]

Dear Shri. Mohan, 

Thanks for your detailed response. 

What I want to convey through my letter is 

1. Shifting to 2016 series is definitely advantageous to pensioners, particularly

to those belonging to the pre 2002 groups whose pensions are quite low compared to those of recent retirees. 

So, for them, even an increase of around ₹1000 is a bonanza, notwithstanding that it will only be a small fraction of their total DR. 

2. As for the pattern of increase in the 2016 series, I think, though it is numerically small, the absolute increase in DA will be slightly more than in the 1960 series as pointed out by AIBEA. 

Also, as mentioned by them, the Labour Bureau releases the figures only under one  series, viz., 2016=100

and the corresponding figures under earlier series are obtained by applying the relevant multiplication factor. 

K N  Ramani

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