ON MERGER OF CPI 8088 POINTS AND CHANGE OF BASE YEAR TO 2016=100

[MOHAN P]

Dear Friends,

01.As per MOU signed on 7^th Dec 2023, by IBA-UFBU,pensioners become eligible for an Ex-gratia amount along with monthly pension w.e.f 1.11.2022 during current BPS period, as follows:

“5. Without prejudice to the demand of unions/associations for updation of pension for all retirees, it is also agreed that as a one-time measure applicable for the current bipartite/ Joint Note period, monthly ex-gratia amount will be considered along with pension by PSBs to pensioners and family pensioners, who were drawing pension as on 31/10/2022. The applicability of the said ex-gratia for the retirees of the current settlement period will be discussed further. The said ex-gratia amount will not attract any other allowance including dearness allowance”

What would be the quantum? and when the same would be released? etc is not disclosed so far officially and what is in the air,now,  is only expectations/assumptions of few.

It can also be said that this Ex-gratia in not an Adhoc payment or Interim relief till updation of pension is allowed,as few advocates.No official communication is before us to substantiate the aforesaid  claim.

One thing is certain that Updation of Pension may not happen right now.

02.Another thing too may happen under 12th BPS /JN period as per MOU.

“3. The new pay scales will be constructed after merging Dearness Allowance corresponding to 8088 points (average Index point as applicable for the Quarter of July, August and September, 2021) to the basic pay as on 31.10.2022, and adding thereon a loading of 3%, amounting to Rs 1795 crore”

This is a process taking place at every BPS and not a new thing.( CPI points 600 to 6352 have already been merged with B.Pay till 11^th BPS/8th JN.Corresponding effect may be reflected in basic pension of retirees retired under each settlement period.Hence we are having seven segments of pensioners as of  now,with different DA rates ranging from 1427.77% (5^th BPS) to 48.51%(11^th BPS)

Under every BPS process we might have seen a demand under COD to extend this(eg;CPI 4440/6352) to all pensioners too to bring them under uniform DR rate.Same has not happened.Consequent upon allowing 100% DR to pre Nov 2002 retirees, all are drawing DR on same level,and this time, merger of CPI 8088 may be extended to all pensioners (12th BPS level)as indicated in earlier circulars of unions.

More over this has become as an  inevitable process this time due to proposed change of Base Year from 1960=100 to 2016=100.Earlier same base year was  followed as defined under BEPR,1995.

03.What would be the impact on such a change to pensioners?

The first and foremost impact is, that same process will bring all pensioners on a uniform platform with a revised Notional Basic Pension.

Second one is that all pensioners may have only one single rate of DR as in the case of employees.There by the existing slab system(1slab for four points) and rate per slab may have to be discarded.(ie:0.67 to 0.07)

As per indication, made by leaders of unions,revised DR may be at @ of 1% for rise/fall of each one  point under AICPIN 2016=100.Since merger point is 8088,the equivalent index number  under 2016=100 series  is 123.03. (8088/4.93*4.63*2.88)

This is just for an understanding of the intricacies of the proposed process and wait for final settlement. 

For current average CPI  index of 9122 new rate  may come to 138.8( eg: DR rate on proposed series may be 138.8-123.03=15.77%(at current level)

It may be noted that the above rate can only be applied to revised higher Notional Basic Pension.So proposed merger of CPI 8088 points and change of base year to 2016=100 may become simultaneously.Though this process may not bring much benefit to us,all pensioners may come to a single platform thereafter.

Let us wait and watch.

 

 

 

 

 

[Sadhan Bhattacharyya]

Thank you for your mail.

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[Shankar]

Thank you Mohan for the update.

[aiyana rao]

Very informative 

[JSOMA SHEKARA]

Bringing all pensioners under the same DA level@8088 points is good for pensioners. This is also a long pending demand. Unions number of times mentioned this but it did not happen. Better late than never. Since 100% DA anomaly removed and DA also will be merged, updation will be smooth though it may not happen at present.

On Sun, 4 Feb 2024, 09:07 MOHAN P, <moha...@gmail.com> wrote:

[Srinivasan Badri]

Thank you for your mail giving detailed clarification. But delay is causing unnecessary speculative informations and adding 🫦 expectations . 

When the mou has been already accepted on 7th December, delay of signing is very undesirable.As it is there is no stay order or any such thing.

The recent communication by com CH. Venkatachalam of AIBEA  indicated early signing.

In Sanskrit there is a saying

" Subhasya Seegram" 

Let us pray

Srinivasan B 

 

On Sun, 4 Feb, 2024, 9:07 am MOHAN P, <moha...@gmail.com> wrote:

[Ramani Konnayar]

Thanks for your detailed presentation. 

However, what is causing disenchantment amongst the pensioners is that whether there is going to be shifting of base year and DA merger for them too is also kept as a guarded secret. 

On Sun, 4 Feb, 2024, 9:07 am MOHAN P, <moha...@gmail.com> wrote:

[Raghavan s]

Well explained 

On Sun, 4 Feb, 2024, 9:07 am MOHAN P, <moha...@gmail.com> wrote:

[MOHAN P]

There need not have any apprehensions on this subject.

As I have already clarified , it is an inevitable process this time.

Reason being:

1.There may not( or cannot)be  two separate base year,one  for serving employees and another for pensioners.

The very purpose of change may be thus defeated.

2.When base year is changed from 1960=100 to 2016=100 series  pattern of  DR rate too may change,with a reduced DR rate.

3.Naturally when DR rate goes down, your Basic pension should be brought to higher level to protect your current pension drawn.( If updation of pension is taking place

this aspect is automatically corrected)

Therefore merger of a uniform CPI points towards basic pension become an essential part of above process.(here the proposed CPI points agreed is 8088)

eg.For a 7th BPS retiree current DR rate is at 446.40%.Say, for a basic pension of Rs.7880,to take his/her gross pension to ₹43056.

On change of base year to 2016,

as of now, rate of DR may come down to around 15.77% ( exact depends on factor of 0.05 or 0.06)

So a notional increase  in basic pension at ₹38158 is necessitated,to bring the  revised gross pension to existing level.

So both process may be extended to pensioners this time.

At least pensioners may come under one platform with a single DR rate as in the case of employees.

Let us wait 

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[Ramani Konnayar]

Thanks for your reply. Your contention

that this time it is inevitable to bring all the different bipartite groups of pensioners on the same platform as that of serving employees in respect of DA is based on sound argument/valid points. Let us hope it becomes a reality. 

To view this discussion on the web visit https://groups.google.com/d/msgid/bankpensioner/CAMCbyDTEcJmFRoFdrUBWJeEvFOSfZq59qdFwcf_cdgCL_u5RgQ%40mail.gmail.com.

[Chandrasekaran V]

May be for you the proposed 'ex-gratia' is 'subhasya' and hence you wish 'seegram'.    From the  hurry in which you are, it appears that you were placed in Officer Cadre and, that too, in MMGS-II or III atleast.

Have you thought of  Subordinate Cadre or Clerical Cadre or JMGS-I who may be benefitted by a pittance.   Just calculate the middle of the scale in the said cadres  and  see for yourself.  Or, will those placed in MMGS-II and above  will accept 'ex-gratia' and agree for 'updation' for Subordinate/Clerical/JMGS-I ?  

To view this discussion on the web visit https://groups.google.com/d/msgid/bankpensioner/CAG-kmoNJ5diaO75PrNWN4D3mPJrjMZvC_9qhbsE_%3DSzSAkutYQ%40mail.gmail.com.

[Ramani Konnayar]

Sir, 

When 100% DA neutralisation was recently extended to the pre2002 retirees after a long wait of 18+ years, those in that group who were either not at all affected by the earlier tapering formula or affected only to a negligible extent by virtue of their basic pensions being low, 

were also given some monetary benefit by way ex-gratia (₹450/800)as a gesture of goodwill. 

I think, likewise, the unions will ensure that the proposed ex-gratia to all pensioners pending updation is subject to a decent minimum so that the categories mentioned by you don't get just a 'pittance' by way of it. 

After all, something is better than nothing, as the saying goes. 

Regards. 

K N Ramani

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[Chandrasekaran V]

Yes, the matter was pending for long and not purused strongly by the employees and were more contended with  the 'goodwill' of any increase and revision in pay  and arrears thereof INSTEAD OF FOCUSSING ON KNITTY GRITTTY DETAILS OF SETTLEMENT.  It is such an ignorance and lack of well-read and sincere people either in the Unions or amongst employees,   which has caused disparity in the  MoU on Pension and the Regulations enacted  .  Only after the SC verdict in 'addition to qualifying service' in respect of EVRS-2001 pensioners, employees/pensioners and Unions woke up and realised how they have been cheated by the IBA and Bank Managements. 

 Now, talk of 'goodwll'   

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[sailendra kr de]

It was a blatant  violation of agreement of IBA with bank retirees  not to merge  100% DA  on  8088 points price index  that was committed by them  before  signing 12Th Bipartite Settlement in order to maintain  the Uniform DA in banking Industry, irrespective of Existings and Retirees  with a further calculation of DA taking  the  base year of 2016=100., .At present The Authourity , IBA , always  trying to bypass the incident by making a cock  and bull story some times by saying insufficient balance in pension fund or sometimes by saying sinking fund. At prasent the balance amount in  pension Fnd is more tham four lakhs crore and gradually it is being increased by the  contribution of existing employees  and side by side  claim is gradually being decreased due  to  death of old ages retirees . At this stage if the Interest component of the existing  balance in  pension fund is paid as arrear to tne bank retirees , retired between 1st Nov , 2002 to 31St ,October. 2022, that will be enough to cope up  the situation . IBA's whimical decision made the entire banking industry confused especially when Our Central Government already  declared uniform DA in  case of Central Government employees . Does the The Authourity , IBA think , the pension fund is his patrimony  so that he can do whatever he likes. ? The pund was accumulated  by employees  bit by bit .

[Sridhar Mandyam]

When we talk of pension fund and demand updation just because there is huge amount lying there is not correct as pensioners contribution to the fund is ZERO. The contributors to the pension fund should get full benefits both interest and principal. It is not prudent to link pension updation to pension fund.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/2dcda9a6-51ed-47c7-bcdb-1a9f588376f1n%40googlegroups.com.

[JSOMA SHEKARA]

Sir, irrespective of pension funds Banks can implement at least merger of DA which involves minimal cost.

IBA  will protect the interests of the Banks and always give reason, fund shortage. Funds will always be short but IBA and UFBU must discuss and find out a solution  and formulate an affordable scheme of updation.

15 years back in reply to the speaking order IBA quoted Rs.1000 crores as updations cost. But Banks could not afford  Rs.1000 crore.

So cost will always be more

But court orders are passed as in 2018, 2009, by SC  Banks  arranged funds with arrears without any problem,

From 2006-2018 Banks did not have funds or gave such a reason but implemented 100% DA after Delhi High court order which AIBEA is taking undue credit.

Main reason is UFBU is not negotiating and bargaining but just forwarding replies of iBA to pensioners through circulars.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAEVYxa-joNF1NqJaPH63zzingp4wvHMhnbMKbVdgAaCGzfpBaQ%40mail.gmail.com.

[kushal mukhoti]

Banks, not pensioners, bear the responsibility of ensuring pension payments are made according to the rules, regardless of the pension fund's balance. Just as employee salaries are paid by debiting "Working Expenses - Salary and allowances" (or a similarly named expense account), which ultimately affects the Profit and Loss (P/L) account, the pension fund is financed by debiting "Working Expenses - pension/bank's contribution to provident fund."

Therefore, linking the sufficiency of the pension fund to the possibility of a pension revision is inappropriate. Ultimately, the decision for a pension revision depends entirely on the discretion of the management and the present leadership of UFBU/AIBEA. 

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAEVYxa-joNF1NqJaPH63zzingp4wvHMhnbMKbVdgAaCGzfpBaQ%40mail.gmail.com.

[JSOMA SHEKARA]

Mr.Kushal what you have said is perfectly right.

1. There is no provision for  updation in pension regulations

2. Pension updation cost is huge.

Above two reasons  may  come in handy for IBA to argue in courts. 

Both IBA and UFBU have authority to discuss, agree and amend pension regulations. So they cannot give reason No. 1 mentioned  above in the BPS meeting.

Updation Cost will never come down and it will remain huge till all pensioners die.

So it is the right time UFBU/IBA stop giving this excuse and find a solution .

Pensioners also should  stop finding resources for updation and should leave it to the Banks.

In case  UFBU is not willing to pursue updation or unable to bargain they should exit from residual issues and leave it to DFS. DFS may form a committee and resolve issues.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAKGV8OxNfQXi3aT%3DkuqduBEimBoRMg09iWQPinsjka7yUdQnag%40mail.gmail.com.

[kushal mukhoti]

“We all know that the nexus between the current leadership of the Employees’ Union and the Management Union is preventing pension updation. We should be content with whatever little we have received so far as a result of the persuasion of the Central Government. It is a widely held belief, a conviction shared by many stakeholders, that the prevailing impasse regarding the crucial matter of pension updation is directly attributable to the close-knit and arguably problematic relationship between the current leadership of the Employees' Union and the Management Union. This perceived alliance is seen as the primary impediment, actively working to prevent or indefinitely delay the necessary and long-overdue revision of pension benefits.

Given this entrenched opposition and the lack of meaningful progress through traditional negotiation channels, pensioners should temper their expectations. We are urged to adopt a stance of pragmatic acceptance and be content with whatever little we have received so far. This limited relief or benefit is understood to have been secured not through the successful efforts of the representative body, but rather at the behest of the Central Government. This framing implies that any positive development has been the result of external intervention from the highest political level, rather than a concession won through collective bargaining, further underscoring the perceived failure or complicity of the leadership.”

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAM%3DeiW0WNHab%3D2tB5FwWUJcF79ddzECG_17huVs5k2oHoC2wUA%40mail.gmail.com.

[JSOMA SHEKARA]

We are aware that due to lack of interest on the part of the  unions and adamant attitude of iBA it is impossible to get an updation scheme in the next 5 years or so. It is very clear UFBU will push residual issues to 13th BPS as usual. Pre 2002 pensioners cannot wait that long and unions should find out an alternative viable solution.

The only alternative available is enhancing Ex gratia  for next 5 years.

I have requested total expenditure of Ex gratia incurred during  the previous financial year from my Bank. I am not sure whether they will provide data as requested.

However approximately present Ex gratia paid

1. I have taken average Ex gratia as Rs.4000 per month(though this may be higher amount) 

paid to 750000 pensioners.

750000 X 4000 = 300 crores per month and 3600 crores annually.

Enhancing Ex Gratia 2,5 times

4000 x 2,5=10000

750000 x 10000pm = 750 crorespm

9000 crores annually

There is no need for provision

Pending court case is not an impediment.

This amounts to Rs.750 crores annual expenditure per bank.

Regular Updation cost Rs.50000 -75000 crores.

Even after Regular updation we will get the same amount but due to provisional cost overall expenditure is huge.

As Pre 2002 pensioners are aged, getting pension enhancement is essential now whether it is regular updation or Ex gratia.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAKGV8OyK73NnGzmnSUprnBThXnxio1KE0dhFE7o0tPg07X2RVg%40mail.gmail.com.

[Niranjan Cn]

Sir,

Certainly Exgratia - will be increased , at the same time, blame game also increases - questioning 'granties', alms, etc.

Niranjan

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAM%3DeiW1O_mC_xBq9_vz8Su-939u5nN99hWSQ1aV6aQCXkDa9HA%40mail.gmail.com.

[Ramani Konnayar]

Dear Sri Niranjan,

One thing that is beyond our understanding and comprehension is why the pre-2002 pensioners continue to be paid ex-gratia based on the Pension with tapered DA received by them in Oct 2022 even though they started getting 100% DA from October 2023. Removal of this anomaly, at least from the above month, will result in an increase of 

around ₹600 to 700 p.m.

It appears this issue has been abandoned by UFBU for reasons unknown to us.

K N RAMANI 

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAAX%2BdWHdAVUwAkzT3X1bSnYgnT9FYr852VJzsECTW7Mw-EHi6g%40mail.gmail.com.

[JSOMA SHEKARA]

Mr.Niranjan

It depends. Ex gratia increase should be substantial and reasonable. Pensioners are also aware of roadblocks. However if UFBU agrees for Rs500-1000 increase when Updation is being implemented in RBI andLIC it is definitely alms.

LIC management agreed for Updation on 2001. now it may become reality. RBI also implemented updation twice.

But I am not sure even UFBU will succeed in getting an increase in Ex gratia.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAAX%2BdWHdAVUwAkzT3X1bSnYgnT9FYr852VJzsECTW7Mw-EHi6g%40mail.gmail.com.

[Niranjan Cn]

Sir, I am/we are not privy to the reasons.  It not correct  to left out from uniformity.

One of the reasons may be load - it is a wild guess only.

Niranjan 

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAKcPo_wfD_dHovRe-cMS0Hah3xVgLDG%2B2xsDuea%2BtL%2BX4eygiA%40mail.gmail.com.

[ramesh.n. Iyya]

On Sun, 4 Feb, 2024, 9:07 am MOHAN P, <moha...@gmail.com> wrote:

[Saibabu Madiraju]

If a handful of pensioners take lead and plan to mobilize around 7lakh pensioners, then we can sit before supreme Court one day,  then the sc will finalize the singlacase otherwise pensioners can forget updation. Now or never, all should decide

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAMOs_TYRJtbn8yukcGyAzNZXHfrJL7hXGh4UxLOXKMwDracTRw%40mail.gmail.com.

[Chinnasamy Rajagopalan]

DA merger at 8088 points was agreed by IBA .True.It is not implemented.The parties to the settlement can raise an industrial dispute.Is any one of them is ready for this?

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CACHBP1gM0ZA5PYmF8SjnZdhSG%2BZkNnaDxKUQK6PU-6HkqXqD3Q%40mail.gmail.com.

[JSOMA SHEKARA]

Unlike RBI and LIC there is a peculiar situation in the banking Industry. There are 12 Public sector Banks owned by the Government of India. Managements of these 12 Banks instead of negotiating directly with Employees and Pensioners form a private Body called IBA ro negotiate issues with Employees. MDs and Chairmen of  a PSU banks are  covered under RTI Act but the same MDs and CEOs sitting in iBA offices as members of the Managing committee are not covered under RTI. Though these MDs are Pension disbursing authorities for PSU bank Pensioners as members of the managing committee of iBA will not communicate or negotiate with retirees.

If you request MD of a PSU bank for information he will direct you to IBA. and  it is possible the same MD who directed you to iBA, as amember of the managing committee  may refuse information claiming not covered under RTI. LIC and RBI managements are negotiating directly with employees

and retirees. Due to this though with delay RBI pensioners got updation twice and in LIC updation may become a reality within next few weeks.

UFBU which should have been a link between management/iBA and retirees also does not communicate with retirees.

In. this peculiar situation Retirees association do not have any platforms to take up retiree issues with management or UFBU but simply wasting the members money and time  day by day by conducting useless Dharnas/Action Programs.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CACHBP1gM0ZA5PYmF8SjnZdhSG%2BZkNnaDxKUQK6PU-6HkqXqD3Q%40mail.gmail.com.

[Rajender Sharma]

Sir,

You have rightly observed  that unlike LIC and RBI,the managements of PSB's are not inclined to 

talk to the retirees or their organisations.

Even United Forum does not communicate directly with us though they claim to take up and negotiate

our issues with the IBA.

This is a very paradoxical situation and the retirees have been left in the lurch.

R K Sharma

[JSOMA SHEKARA]

IBA twice asked UFBU to submit a proposal regarding Merger of DA@8088 points.  UFBU has not responded.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAPBKNJR-%3DQyHV1o%3DZ4pbsuH5o6cCv8GVhKYy3eByZ42%2BPbindA%40mail.gmail.com.

[Ramani Konnayar]

As rightly pointed out by you, LIC and RBI

being single entities, the managements

directly deal with unions whereas in respect of Public Sector Banks, they are different entities and have to be necessarily represented by an Association of theirs viz., IBA to negotiate with an association of Unions viz., UFBU. While any updation of pension has to be uniform amongst the pensioners of all PSBs, the financial strengths of the individual banks are different and this is said to be a hindrance on account of the huge provisions required to be made in their Pension Funds under AS-15 norms.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAPBKNJR-%3DQyHV1o%3DZ4pbsuH5o6cCv8GVhKYy3eByZ42%2BPbindA%40mail.gmail.com.

[Ramani Konnayar]

It is true that IBA asked UFBU to submit a proposal for merger of DR with basic pension at 8088 points.  But, it was with a rider that it should be 'cost neutral'. How can this be possible as the DR merger will definitely involve some cost as in the case of employees? Unless, IBA changes its mindset towards pensioners that they too deserve some improvement in pension, akin to government and RBI pensioners, nothing will happen to benefit the bank pensioners monetarily.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAM%3DeiW07%2BOnOQSz-DEPb6dx%3DfhCoD-nQfq0DfjrRFnvr7a-3fw%40mail.gmail.com.

[krishna Moorthy]

Has the merger of CPI 8088 points and change of base year to 2016=100 agreed by all parties? IBA and other Unions?

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAKcPo_zHLEi%2BS4yQsjoaQBCekRFTbUjDbhzGMOE4aywM6YnZHg%40mail.gmail.com.

[kushal mukhoti]

Mr. Ramani Konnayar,

You have highlighted a key point of contention in the ongoing negotiations between the IBA and the UFBU.

The Core Issue: DA Merger and the 'Cost Neutral' Rider

It is learnt that the IBA did indeed request the UFBU to submit a comprehensive proposal regarding the merger of Dearness Relief (DR) with the basic pension for pensioners, pegged at the 8088 points index level. This move aims to benefit bank pensioners by integrating a significant component of their relief into the basic pension structure.

However, the major hurdle lies in the condition attached to this request: the demand for a 'cost-neutral' solution. This rider fundamentally challenges the feasibility of the proposal.

The Paradox of 'Cost Neutrality'

The proposal to merge Dearness Relief with the basic pension is inherently an exercise that involves an increased financial outlay. How can this be possible to avoid the additional expenditure, as the DR merger will definitely involve some additional cost, as happened in the case of in-service employees?

• Precedent with Employees: When Dearness Allowance (DA) is merged with the basic pay for serving bank employees, it inevitably leads to an increase in various cost heads, including the basic pay itself, and consequently, a rise in benefits calculated as a percentage of basic pay (like House Rent Allowance, Provident Fund contributions, etc.).

• The Pensioner's Analogy: The situation for pensioners is analogous. Merging DR with basic pension would result in a higher 'basic pension' amount. All future relief and additional benefits calculated on this new, higher basic pension would naturally be higher than the current figures, leading to an undeniable increase in the overall pension liability for the banks.

• The IBA's Demand: The IBA's demand for 'cost neutrality' is, therefore, seen by the unions as a practical paradox. It asks the UFBU to devise a mechanism that grants the benefit of DR merger without incurring any additional expenditure for the management—a condition that appears financially contradictory given the nature of the merger.

The Challenge for UFBU: Finding the 'Magic Formula'

The situation presents a significant mathematical and negotiating challenge for the UFBU. UFBU can try out the following mathematical analogy to solve the problem.

• The common mathematical concept states that 0.9 (zero point nine) is less than 1.

• However, the repeating decimal 0.9 dot (zero point nine recurring) is mathematically equivalent to 1.

The analogy suggests that the IBA is asking the UFBU to find a formula where, in the context of the merger, the higher cost must somehow be made equal to or less than the current cost (equivalent to <=1). The challenge is to achieve a substantial, real benefit (the merger) while presenting a balance sheet figure that suggests no change in expenditure.

The UFBU is tasked with the seemingly impossible: to find a "suitable formula" to satisfy the IBA's condition, essentially requiring them to make < 1 = 1 in the cost calculation without increasing the actual benefit delivered to the pensioners.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAKcPo_zHLEi%2BS4yQsjoaQBCekRFTbUjDbhzGMOE4aywM6YnZHg%40mail.gmail.com.

[JSOMA SHEKARA]

Nothing comes free and neutral cost does not necessarily mean cost of exact Zero. Merger of DA without load factor involves negligible costs. But  Merger of DA is the first step for updation. Real problem is as updation cases are pending in various courts IBA will not take any step  in this direction unless AIBPARC affiliated union and ABOA withdraw their cases. Now it is upto the AIBEA (Because AIBOC is dead long back for pensioners) to prepare a proposal and convince IBA to discuss and implement it.

On Mon, Nov 17, 2025 at 10:15 AM Ramani Konnayar <knra...@gmail.com> wrote:

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[MOHAN P]

Not yet agreed.

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[Ramani Konnayar]

As pointed out by you, normally, the DA merger with basic pay done at the time of wage revisions will only increase the total (basic+DA) marginally as the neutralisation factor will also be reduced correspondingly. However, in the last BPS, apart from merging DA with basic pay, the series for calculating DA has also been shifted from 1960=100 to 2016=100. This has resulted in a substantial increase for employees and so also will be the case for pensioners.

Incidentally, it may be noted that this shifting of series has taken place for the first ever time since introduction of DA with quarterly revisions based on Consumer Price Index, for bank employees, around 60 years ago.

I think, it is also worth mentioning here, that the loss presently incurred by those retired before 1/11/2022 during the past 3 years due to continuing in the 1960=100 series on account of non merger of DR with basic pension will, however, pale into insignificance, when compared with the loss suffered by those retired prior to 1/11/2002 due to tapered DR for 18+ years. Tragically, many of them passed away before the sanction of 100% DR prospectively with effect from October 2023.

K N Ramani 

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[JSOMA SHEKARA]

Mr.Kushal Mukhoti 

Sir, Can you please provide an excel sheet showing how much increase a pensioner will get if DA is merged@8088 points. I remember earlier you have uploaded such data. 

IBA is denying everything, IBA refused 1616-1684 arrears, 5 years benefit, 100% DA, Second pension option, revision of Ex gratia. Obligation is on the UFBU to discuss and find a way. If UFBU could not negotiate Merger of DA, how will they achieve Updation?

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[JSOMA SHEKARA]

Major demands of Pre 2002 pensioners retired 25 years back 

1. 100% DA  2. Merger of DA 3. Updation.

IBA and UFBU for the last 15 years simply postponed discussions on these issues citing reasons not affordable.

Meanwhile RBI has achieved updation twice. LIC pensioners updation case is also fast progressing and may conclude before March 26. If Mr.Raman and Kushal could calculate cost why not IBA and UFBU.

IBA and UFBU should discuss these issues, find out the cost and find some way to  implement it.

How long can this continue? Even demand for Insurance cover to every pensioner upto Rs.2 lakhs also buried.

Revision of Ex gratia also not done.  It is not the cost, it is the mindset  of IBA and UFBU. 

Instead of negotiating with IBA, one of the constituents of UFBU itself filing another case for updation is absurd and their intention is very clear.

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[Ramani Konnayar]

In view of what you have stated in the  last 2 paras of your letter, I think, it is not worthwhile to have any further discussions on the subject. UFBU will do well to express their inability in the matter rather than prolonging it and thereby keeping our hopes alive.

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[kushal mukhoti]

Mr J Soma Sekhar, 

I am sorry for not responding to you sooner. The reason is that I had to retrieve the XL file from my abandoned old computer.  I don't think there is any need for this file, as I don't expect anything positive to happen in this matter. However, I am attaching the old modified file as you requested. 

Thanks. 

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[JSOMA SHEKARA]

Secretary DFS , Finance  ministry has called for a meeting with UFBU

 on 27th Nov Thursday. We will inform outcome thereafter. Chv GS AIBEA

On Mon, Nov 24, 2025 at 11:19 AM JSOMA SHEKARA <jsomase...@gmail.com> wrote:

Thank you very much Kushal Sir.

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[JSOMA SHEKARA]

Thank you very much Kushal Sir.

On Mon, 24 Nov 2025, 09:38 kushal mukhoti, <kush...@gmail.com> wrote:

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