* CHRONICLE - PENSIONERS CONVERGE HERE, DISCUSS ISSUES OF THEIR CHOICE * CHRONICLE - WHERE EVEN THE CHAT COLUMN PRODUCES GREAT DISCUSSIONS * CHRONICLE - WHERE THE MUSIC IS RISING IN CRESCENDO !

               
                                   

Friday, May 22, 2015

Damocles' sword of reduction in pension of post 1.11.2012 bank retirees

Dear Editor,

Referring to above post under your blog a sample calculation is furnished here under as desired  on reduction in net Pension payable to pre 1.11.2012 Bank Pensioners under latest Bank Wage Revision Settlement ( 10th Bipartite settlement between Bank Unions and IBA/7th Joint Note for officers.)

Pay scales of Bank Officers and employees under 10th Bi partite wage revision/Joint Note  have already been agreed between United Forum of Bank Unions(UFBU) and Indian Banks Association(IBA) and final settlement will be signed on 25th May at Mumbai.

As per agreed terms DA at CPI level of 4440 points will be merged with existing Basic Pay and further load of 2 % on above with DA there on will be added to  arrive new Basic Pay under 10th BPS. 

Thus the existing Basic Pay of an officer with Rs.20100  may go up to Rs 32850 on latest wage revision.

The following illustration will give a broad idea on this negative impact on Net Pension under 10th BPS to pensioners those who retire after 1.11.2012.Though there is slight increase in gross pension,net pension will be reduced as shown below , due to increase in commuted portion based on revised higher basic pay.

Though total load factor is agreed at 15% under 10th BPS only 2% is added to Basic Pay and remaining goes under allowances.








Mohan.P 

(Bank Pensioner)