PARTIAL OR FULL UPDATING OF PENSION ????

 PARTIAL OR FULL UPDATING OF PENSION

While UFBU and IBA are preparing for the 12thBipartite Talks, some residual issues including Updating of Pensions are now a debating subject. IBA has asked the Unions to come up with a concrete proposal for the improvement in pensions. The Unions asked IBA for some statistics like the number of Pensioners belonging to the various Bipartite Periods. The cost factor is to be worked out later. It is a long process. Some are for a full updating, while due to funds constraints, for a part for the earlier periods. Why for the earlier periods first? Their DA formula does not allow them the 100% DA neutralisation for an increase in Consumer Price Index [CPI]. The DA slabs are dependent on CPI. Whenever there is an increase the corresponding DA for them does not increase accordingly and the monthly loss goes on increasing every half-year.

Retirees belonging to the 5th, 6thand the 7th Bipartite Periods are either dead or super senior citizens. A larger number is there in the 7th Bipartite Period are a little more because of the 2001 Voluntary Retirees. Hence, their average is around 75 years. Hence, there is a view that at least they should be considered first if there are funds constraints for a full updating. If we insist on it for all, nothing may move. It is as if asking for arrears from the date of retirement!

In this background, a case study of a VR 2001 retiree is attempted in the attached Excel File [Cells not editable. They are Locked so as to avoid damage during transmission]. The retiree is a Scale II Officer. In this sample calculation, the present basic pension [which underwent a few changes from the date of retirement for various reasons] of Rs.7,955 is taken and a notional pension drawn by him and the DA loss is calculated.

As on May 2005, the monthly DA loss was Rs.1,069/- and now as on Feb 2023 it is Rs.8,377/-. Accumulated loss up to May 2023 is Rs.9,56,481/-. Therefore these pensioners would not be happy with a steep rise in the DA slabs, as the compensation they get would be not enough for the inflation. Finds had to maintain a decent life. They need immediate relief for this drawback. While the banks are able to make provisions for the DA hike with 100% neutralisation of the post-2002 retirees, why not for us, they ask.