In amplification of the Dearness Relief Chart for the period
August, 2014 to January, 2015.
100% neutralisation in DA/DR ; updation of pension
- A case study for clarification
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Shri Ramanmurthy retired in February, 1997. Five- six months before August, 1997. His pension has not been updated along with revision of pay scales in 1997, 2002 and 2007. He being a pre August 1997 retiree / pensioner , he isn't yet entitled for full - 100 % neutralisation in dearness relief. The hundred percent neutralisation in DA/DR is (supposed to) to neutralise / to make ineffective the price rise, the cost of living, the inflation( ever increasing- exceptions like May to July 2014 quarter - reduced percentage of DA for serving employees - are very rare ). But, 100 % neutralisation in DA/DR alone does not compensate
the (real) cost of living in the disproportionately high anomaly, disparity in the basic pension of a retiree, it works well only when periodic updating of pension takes place.
Shri Ramanmurthy's commuted pension has been restored in 2012. His basic pension is Rs.3557/-.
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Shri Ramanmurthy's commuted pension has been restored in 2012. His basic pension is Rs.3557/-.
The rate of percentage of DR for Feb. 2014 to July 2014 was 380.80 % when the number slabs were 1088. If and when he (and all others retired on or before 31 st July, 1997 ) gets 100 % neutralisation, he would get the advantage of full 380.80 % DR on his basic.
As he gets DR on reducing percentage basis ( In short : for those retired between 01-08-1992 and 31-07-1997 : up to Basic Rs.2400/- : 380.80 %; Between Rs.2401/- to Rs.3850 /- : Rs.9139.20 + 315.52%....) .DR eligibility has been therefore, pegged to Dearness Relief Factor for easy assimilation. In his case, it is 11.7553 per slab (of increase / decrease). There has been 17 slabs increase. Total : 1105 (1008 + 17). Shri Ramanmurthy's DR for August 2014 would be 1105 x 11.7553 = Rs.12989.61 plus basic pension - Rs 3557.00. His total pension will be Rs.16546.61. Had there been 100 % neutralisation, he would have drawn Rs.17313/- ( Rs.3557.00 + Rs.13756.69 DR @ 386.75 % on Rs.3557/- A meagre benefit/ increase of Rs.767.08 ! Khiss khushikeliye : not withstanding the saying that something is better than nothing. No, no compromise : mere ( maska ) of 100 % DR neutralisation does not meet the end justice.
Shri Ramanmurthy may see once again the Pension Anomaly Chart by Shri C.H. Mahadevan posted in LICPC on 31-07-2014. Come next September, Shri Ramanmurthy should get a total pension of about Rs.25313/- - and not Rs.17313/-, a paltry increase of Rs767.08 as stated above.
SN ( a 1992 pensioner )