FSBIPA TO UFBU ON NEED FOR CHANGE ON BASE YEAR TO 2016=100 FROM 1960.

[MOHAN P]

FEDERATION OF SBI PENSIONERS' ASSOCIATION

Regn. No. S/17025 of 1986 Under Societies Registration Act 1860 (De

ADMINISTRATIVE OFFICE, BENGALURU

65, SBI LHO Buildings, St. Mark's Road, Bangalore - 560001

Email: fsb...@gmail.com

(All letters to be addressed to the General Secretary)

 

Ref No. FSBIPA/14/2025

Date: 03-10-2025

TO

ALL CONSTITUENT UNITS OF UFBU

Dear Comrades,

UNIFORM DEARNESS RELIEF FORMULA FOR PENSIONERS CHANGE OF BASE YEAR FROM CPI (1960-100) SERIES TO CPI (2016=100) SERIES

 We are also happy to note that one of the constituent units of UFBU, National Confederation of Bank Employees (NCBE), took up this issue in December 2024, and also wrote to the Hon'ble Finance Minister on 30-09-2025 representing the grievances of the pensioners community, furnishing two types of conversion factors Viz., simple merger of Dearness Relief upto 8088 points of CPI on direct method as well as by cumulative method.

3. We are aggrieved to note the stand of IBA that the issue can be taken up only if it is cost-neutral and would not involve in additional outgo. IBA also sought for suggestions, in this regard, from the unions (as quoted in UFBU Circular No. UFBU/2025/6 dated 25.04.2025). In the recent communication of UFBU vide its Circular No. UFBU/2025/13 dated 26.09.2025, there is just a mention that the issue of Uniform DR Rates for all pensioners at 8088 points was also raised.

4. The neutral cost offer of IBA is just to nullify the increase in Dearness Relief on account of change of base year to (2016-100) series and that can be done only by reducing the multiplication factor proportionately linking the same to the rates of

Dearness Relief paid to the pensioners since 1st November 2022. In other words the Dearness Relief would be merged with the existing basic pension at a lower level as against the agreed level under various Bipartite Settlements/Joint Notes, which is unreasonable.

5. The neutral cost method proposed by IBA would further increase the loss to the pensioners and constituent units of UFBU should not be a part of this illogical and unreasonable proposal of IBA in as much as the cost effectiveness could also be maintained through simple direct merger of Dearness Relief in place of cumulative merger. It is needless to mention here that, dearness relief is given to compensate price rise on account of inflation, which is common for retirees and serving employees. The cost is unavoidable.

6. The following illustration would depict the motive and intention of IBA to deny the just eligible benefit to the pensioners and this position would be the same in respect of all pensioners, who have retired under various bipartite agreement/joint note periods:

*See chart attached below;

7.The neutral cost proposal of IBA would also result in lower dearness relief to the pensioners who retired up to and including 31.10.2022 and those who retire/retired on or after 01.11.2022, which is irrational and totally unwarranted.

8. In this connection, our suggestions are as under:

a. The neutral cost proposal of IBA should not be accepted inasmuch as would create two categories of pensioners, which is against Law;

b. Cost effective proposal might be discussed towards provision of appropriate, justifiable and eligible benefit to all pensioners;

c. The delaying tactics of IBA, particularly on the issues relating pensioners such as affordability, DFS approval, etc., should be contained and the inordinate delay in settlement of the above issue should not result in denia of the said benefit from the eligible date i.e., 01.11.2022

d. The affordability of banks could not be a reason as all public sector banks and State Bank of India are earning huge profits and also considering the meagre increase on account of adopting method of direct simple merger of dearness relief upto 8088 points CPI, UFBU should go all out against the neutral cost proposal of IBA.

We insist on IBA to resolve the issue at the earliest, without any further delay. We further request the constituent units of UFBU to ensure provision of this benefit from the eligible date i.e., 01.11.2002 that would provide uniform Dearness Relief formula for all the pensioners, irrespective of their dates of retirement.

10. We, pensioners, assure that we would be behind any action programm chalked out by UFBU in this regard. We hope and trust that justice would prevail.

With best regards,

Yours comradely,

(G.D. NADAF)

GENERAL SECRETARY