LIC Pensioner – Pension Illustration
Pension revision in RBI
We are happy to inform that the Ministry of Finance by their Letter dated 5th March 2019 have granted approval for up¬dating pension to the pensioners in RBI with a notional in¬crease of 10% in pension plus DA with wage agreements done in 2002, 2007 and 2012. This results in overall increase in basic pension by factors as given below against each cat¬egory of retirees.
A) for those retired prior to 1.11.2002 – BP factor 3.63
B) for those retired from 1.11.2002 to 31.10.2007-BP factor 2.44
C) for those retired from 1.11.2007 to 31.10.2012 -BP factor 1.76
Dearness relief for all categories of retirees shall be 61.10% as applicable to scales with CPI =4440
if existing BP of category A retiree is “8738” his revised BP will be 8738*3.63 =31719 DR = 31719*61.10%=19380
new pension = 31719+19380=51099 minus value of commuted pension if not restored (8738/3 in the given case.) The example is illustrative only.
For category *B’ and ‘C’ retirees the calculating factors will be 2.44 and 1.76 respectively.
- As per HRMD letter dated 7th March 2019 issued to all offices, the revision will be effective from March 19.
- Actual Benefits shall be prospective i.e. there shall be “No Arrears” on account of revision in BP.
- For future revision of pay scales due from 1-11-2017 and thereafter, for updating pension, the Bank has to seek prior approval of Central Government regarding quantum and terms.
Hearty congratulation to all the retirees, members, supporters and all those who stood with the cause and participated despite all odds and age related problems in the more than a decade old struggle. We also thank all the associa- tions/organisations in RBI for leading the struggle and achieving the result in the circumstances that were not conducive.
AIRBIOPF also pays a humble tribute to all those who were inseparable part of the struggle and yet are no more with us to enjoy the fruits. Maybe they blessed us from the heavens above for our success!
We also thank the Governor for his active role in getting the things done. Thanks also to DGs, EDs and officials of HRMD who put in their best efforts and followed up the case relentlessly with the ministry.
However, we regret the decision of the ministry not to approve the switch over of about 2500 CPF optees for Pension. We appeal to the Government to recon¬sider their decision and grant OMOP to the CPF optees as has been done in case of insurance companies. We stand by them.
With best wishes!