DK 62 dated 12th May 21. Gen.Secretary circular on REVISION COVERING PENSIONERS RETIRED AFTER 1.8.17

 E circular No.DK/62                                                          12-05-2021

Friends,

Reg: Matters of Wage-Revision covering  Pensioners Retired after 1-08-2017

The main purpose here is to inform you that we have taken up with the Central Office, matters that are of importance to pensioners amongst us, who Retired after the Effective Date of the recent Wage Revision, 1-08-2017. While the in-service employees have been paid their Arrears on account of Revision, there is as yet no idea, of when the Pensioners’ dues would be disbursed. We take it, that the Attendance in Offices would be thin, and the CO would take their time in completing the roll out of the Benefits, due to the pensioners.

There are two aspects to the Benefits for Pensioners here. One is the Arrears of Salaries due to Revision, and the other relates to Re-fixing the Pension at Retirement. Since the Revision involves Merger of DA with the new Basic, there is a wee bit of a possibility, that after Re-fixing the Pension, the total Pension drawn as at the point of change, might suffer a short- period dip.

          In the Bank- Revisions that took place a couple of months back, this factor did surface, and for a moment, cause some apprehension in the minds of the Pensioners involved. But then the Bank Management, quite artfully, offered option to all pensioners, as to whether they would go for the incremental increase in Commutation value, due to the Revision, or not. The embedded point was that, those who decided to forego the incremental Commuted amount, would avoid the drop in Pension, due to lower deductions on the Commuted value.

          But, as it turned out, most of them opted to take the incremental amount of Commuted Value, arising out of the Revision, as they felt that a lump sum in hand, opened possibilities for investments,  whose Returns could off-set the drop in Pension. It also happened, that the DA rise in the 3year interregnum, after the effective date of Revision, virtually neutralized the drop in pension, as they were actually facing the change-over currently.

I am including here my two letters to the ED E&OS, sent today and also copy of the Option Letter, devised by one of the Banks, for the incremental Commutation value. In the letter written to Smt Uma Rao,  the new ED E&OS, I have once again referred to the Pension on the 1^st of the month matter.

With warm greetings

 D.Krishnan.

Encl:

1.     DK-62 Attach - letter to Nadkarni  ED-E & OS - 12-05-21 

2.     DK-62 Attach -letter  to New ED-E &  OS -Uma Rao - 12-05-21    

3.     DK-62 Attach -Bk of Baroda - Option for commutation new   basic