The Formula.
Sanjay J
Dear Prasad ji (and Members),
Kindly ignore my previous mail, as some calculation errors had occurred in the tables. I have corrected those in this final mail.
I am deeply grateful to Shri J. Somashekara ji for his kind words and for acknowledging and appreciating our grassroots efforts. Since our names have been directly drawn into this exchange, I feel honour-bound to answer as follows:
The Formula and Quantum
You asked what the increase would be for a basic pension of ₹7,500 for a retiree of 31.03.2002 under Regulation 35(1). Here is the answer — which is the same RBI formula on which our demand is based.
A retiree of 31.03.2002 falls under the 7th Bipartite Settlement (Batch 3 in the AIBPARC formula). The cumulative updation factor for this batch, extended to the current 12th BPS level of 8088 points, is 8.32.
Formula: Updated Basic Pension = Current Basic Pension × Updation Factor (RBI method).
|
Component |
Calculation |
Amount |
|
Basic Pension |
Given |
₹7,500 |
|
Updation Factor (AIBPARC/RBI Formula) |
Batch 3 @8088 points |
8.32 |
|
Updated Basic Pension |
₹7,500 × 8.32 |
₹62,400 |
|
Updated DR @ 25% (12th BPS rate) |
₹62,400 × 25% |
₹15,600 |
|
Updated Total Pension |
Updated Basic + Updated DR |
₹78,000 |
|
Current Total Pension |
₹7,500 + ₹36,198 (Basic + DR today) |
₹43,698 |
|
NET MONTHLY GAIN |
Updated Total − Current Total |
₹34,302 |
|
Annual Gain: ₹4,11,624 | Over 10 years: ₹41,16,240 |
||
This is not a ‘marginal benefit.’ It is ₹34,302 every single month — or over ₹4 lakhs every year — for one retiree with a modest basic pension of ₹7,500.
The Full Picture — Every BPS Category (5th to 11th)
The same formula, applied consistently across all BPS categories, reveals the following. The 7th BPS row (marked ★) corresponds directly to your specific query. All factors extended to the 12th BPS level of 8088 points.
|
BPS |
Retirement Period |
Factor @8088 |
Example Basic Pension |
Current DR |
Current Total Pension |
Updated Basic Pension |
Updated DR @ 25% |
Updated Total Pension |
NET MONTHLY GAIN |
|
5th BPS & earlier |
Before 01.11.1992 |
28.26 |
₹2,500 |
₹38,224 |
₹40,724 |
₹70,650 |
₹17,663 |
₹88,313 |
₹47,589 |
|
6th BPS |
01.11.1992–31.10.1997 |
13.38 |
₹4,000 |
₹30,030 |
₹34,030 |
₹53,520 |
₹13,380 |
₹66,900 |
₹32,870 |
|
7th BPS ★ |
01.11.1997–31.10.2002 |
8.32 |
₹7,500 |
₹36,198 |
₹43,698 |
₹62,400 |
₹15,600 |
₹78,000 |
₹34,302 |
|
8th BPS |
01.11.2002–31.10.2007 |
6.28 |
₹10,000 |
₹33,480 |
₹43,480 |
₹62,800 |
₹15,700 |
₹78,500 |
₹35,020 |
|
9th BPS |
01.11.2007–31.10.2012 |
4.08 |
₹16,000 |
₹41,352 |
₹57,352 |
₹65,280 |
₹16,320 |
₹81,600 |
₹24,248 |
|
10th BPS |
01.11.2012–31.10.2017 |
2.32 |
₹28,000 |
₹37,016 |
₹65,016 |
₹64,960 |
₹16,240 |
₹81,200 |
₹16,184 |
|
11th BPS |
01.11.2017–31.10.2022 |
1.43 |
₹42,000 |
₹24,814 |
₹66,814 |
₹60,060 |
₹15,015 |
₹75,075 |
₹8,261 |
Key observations from this table:
|
1. The updation factors are derived from the official AIBPARC/RBI formula — batch-wise incremental DA merger with 10% loading — as communicated by AIBPARC vide Circular No. 90-20 dated 07.10.2020. |
|
2. NOT A SINGLE BPS CATEGORY is unaffected. Every pre-November 2022 retiree stands to gain substantially — from ₹8,261 (11th BPS) to ₹47,588 (5th BPS & earlier) per month. |
|
3. The 7th BPS retiree with a basic pension of ₹7,500 gains ₹34,302 per month — or ₹4,11,624 every year. This is not a marginal benefit. |
|
4. The highest gains accrue to the oldest retirees — 5th and 6th BPS — who have waited the longest and whose purchasing power has been eroded the most severely. |
|
5. This is what justice, if delivered by the Supreme Court in CA 7993/2023, would mean to every single pensioner — personally, monthly, and permanently. |
On ‘Damaging the Cause’
You suggested that AIBPARC’s arguments may ‘damage your cause.’ With respect, this position deserves scrutiny. AIBPARC has placed the pensioners’ case before the highest court in the land. The Supreme Court is now seized of the matter. Whatever the outcome, the attempt itself is honourable and necessary.
“I can accept failure; everyone fails at something. But I cannot accept not trying.” – Michael Jordan.
The pensioners in their seventies and eighties who are waiting for this verdict have neither the luxury of time nor the comfort of alternatives.
If there is a better formula or a stronger argument, we would welcome it with open arms. The cause belongs to all pensioners.
Regards,
Sanjay J.
Logu Kuppan
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Sanjay J
No. The calculations presented do not include Special Allowance in the basic pension figure. For 10th and 11th BPS retirees, our figures are actually conservative — if Special Allowance is eventually included in pensionable pay, the updated pension and the monthly gain figures would be higher than what the calculator currently shows.
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