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    (1115 Slabs over 1684 points)

Upto 3550    3551-5650    5651-6010    Abv 6010
267.60%          223%         133.80%          66.90%

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 267.60% DA on full basic pay. Suppose pensioner's basic is Rs 6200/- he should get 267.60% for the full amount under 100% DA neutralisation which would be Rs 16591.20, whereas now pensioner gets only Rs 14791.59, which means pensioner is losing Rs 1799.61 per month. Monthly loss of pension increases with increase in basic i.e. more the basic pension loss is more. For example a General Manager retired in March 2001, who is having basic pension Rs. 10680 is losing Rs.10797.70 per month due to non neutralization of D.A.

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 12000. One can view the  basic , present D.A, D.A after 100% neutralzation, Monthly loss due to non -neutralization. Table can be viewed / downloaded by clicking on the following link.
Table showing loss due to non-neutralization of D.A. 
For more precise calculation of loss due to non neutralization of D.A. an online calculator is provided . Pensioners  retired after 01-04-1998 upto 31-10-2002 can enter their exact basic pension (before commutation) in the calculator and get exact difference figure.
Click here for on line calculator for loss due to non neutralization of D.A