Thursday, April 12, 2012

Loss due to Non Neutralization of D.A for pensioners retired prior to 31-10-2002

Many bank pensioners  retired prior to 31-10-2002 are not aware of effect of 100% neutralisation of D.A  and how much they are losing per month due to non neutralization of D.A. There are queries from these pensioners regarding effect of 100% neutralization of D.A. on their monthly pension as majority  pensioners do not know / understand the implications of 100% D.A.  neutralisation.

 All pensioners in bank are not drawing uniform D.A. as in the case of Govt. employees. Pensioners retired prior to 31-10-2002 are getting tapered  percentage of D.A. because D.A. is not neutralized to 100%.

 D.A. rates for pensioners retired after 01-04-1998 upto 31-10-2002    (708 Slabs over 1684 points)

Upto 3550    3551-5650    5651-6010    Abv 6010
169.92%       141.60%       84.96%          42.48%

One may notice that D.A.% gets tapered after Rs.3551 whereas under D.A neutralisation there is no tapering and pensioner is eligible for 169.92% DA on full basic pay. Suppose pensioner's basic is Rs 6200/- he should get 169.92% for the full amount under 100% DA neutralisation which would be Rs 10535.04, whereas now pensioner gets only Rs 9392.33, which means pensioner is losing Rs 1142.71 per month. 

Following table gives exact  figure   of monthly  loss corresponding   to  the  basic (before commutation) of  the pensioners retired after 01-04-1998 upto 31-10-2002 . In the following table basic starts from 3550 and is stepped up by 10 upto 10000. One can view the  basic , present D.A, D.A after 100% neutralzation, Monthly loss due to non -neutralization. Table can be viewed by moving scroll bar on right hand side of the table.


  1. I think Union/Associations/IBA/finance ministry are waiting for substantial reduction in the number of bank pensioners prior to nov2002 to extend 100% DA neutralistion in line with the bank pensioners retired on or after 1.11.2002.

  2. yes it is 100% true as the above agencies very well know that at last the govt./IBA will have to extend the 100% DA neutralisation to the bank pensioners as per law/ moral/ as per directions of the courts. They are waiting only to reduce the bank pensioners substantially.