Breaking: 100% DA neutralisation for Bank pensioners/family pensioners retired before 1st November 2002  

Excerpts of minutes of understanding arrived at between IBA and UFBU during the meeting held in Mumbai on 28 July 2023 attached below.

Where the Dearness Allowance Scheme is applicable to employees, officers, and retired up to 31st October 2002 was based on a tapering percentage formula and multiple slab systems and

 Where the Dearness Allowance Scheme applicable to employees, officers, and retired up to 31^st October 2002 was based on a tapering percentage formula and multiple slab systems and

Whereas the Dearness Allowance Scheme applicable to employees and officers retired on and from 1 November 2002 was based on a uniform basis of 100% nutralisation formula with prospective effect from 1st May 2005 and

Whereas the United Forum of Bank unions have been for the pensioners and family pensioners relating to the period prior to 1^st November 2002 also be covered by the 100% nutralisation formula in lieu of tapering percentage formula and multiple slab systems and

Whereas the issue has been under the consideration of IBA, it is hereby agreed as under and to be effective from the month subsequent to receipt of concurrence from DFS. No arrears will be paid for the prior period.

For all pensioners and family pensioners relating to the period prior to 1^st  November 2002:

DA rates will be the uniform basis of 100% neutralisation as in the case of employees, officers/pensioners/family pensioners of the period on and from 1^st November 2002 as provided herein below.

For the pensioners family pensioners of period 1.1.1986 to 31.10.1992,

DR shall be at the uniform rate of 0.67% per slab over 600 points.

For the pensioners family pensioners of period 1.11.1992 to 31.10.1997,

 DR shall be at the uniform rate of 0.35% per slab over 1148 points.

For the pensioners family pensioners of period 1.11.1997 to 31.10.2002,

 DR shall be at the uniform rate of 0.24% per slab over 1684 points.

For the pensioners/family pensioners of the period from 01.01.1986 to 31.10.1992

 For Basic Pension/family pension up to Rs.1250:

For Basic Pension/family pension from Rs.1251 and up to 2000

For the pensioners/family pensioners of the period from 01.11.1992 to 31.10.1997

For Basic Pension/family pension upto Rs.2400:

For Basic Pension/family pension from Rs.2401 and up to 3850:

For the pensioners/family pensioners of the period from 01.11.1997 to 31.10.2002

For Basic Pension/family pension upto Rs.3550:

For Basic Pension/family pension from Rs.3551 and up to 5650:

For all the above cases:

Exgratia of Rs.800 per month

Exgratia of Rs.450 per month

Note:

a) The above provisions of benefits of DA neutralisation are also applicable to pensioners and family pensioners of State Bank Of India for the period prior and up to 31.10.2002

b)In the case of pensioners/family pensioners of State Bank of India prior to 01.01.1986 the Ex-gratia may be paid as per the guidelines issued by IBA vide letter dated 7.02.2023

Source: UFBU