100% Dearness Relief (DR) Neutralization to pre-2002 bank retirees: Ministry of Finance, Department of Financial Services letter dated 5th October 2023 addressed to the Chief Executive of the Indian Banks’ Association in Mumbai. In summary, the letter states the following key points:
The letter refers to a previous communication from the Indian Banks’ Association dated 14th August 2023 on the same subject.
The Government has given its “No Objection” to the Indian Banks’ Association to advise Public Sector Banks to implement the following changes effective from 1st October 2023, pending amendments to the respective Bank Employees’ Pension Regulations:
(i) Implement Dearness Relief (DR) at a uniform rate applicable to the lowest slab of basic pension in the existing DR frameworks for all pre-1/11/2002 retirees, ensuring 100% neutralization of tapered DR.
(ii) Provide an ex-gratia amount of Rs. 800.00 per month to pensioners/family pensioners falling under the 1st slab of basic pension and drawing the highest DR. Additionally, an ex-gratia amount of Rs. 450.00 per month is to be given to pensioners/family pensioners falling under the 2nd slab of basic pension, attracting the second-highest DR in the present framework. It’s clarified that these ex-gratia amounts will not attract any DR and will be absorbed in future changes in the pension structure if any.
(iii) No arrears will be payable for periods falling prior to the effective date of these changes.
eF. No. 4/1/1/2022-IR
Government of India
Ministry of Finance
Department of Financial Services
Jeevan Deep Building, 3rd floor
Parliament Street, New Delhi – 110 001
Dated 5th October 2023
To:
Chief Executive
Indian Banks’ Association
World Trade Centre Complex
Centre 1, 6th floor, Cuffe Parade
Mumbai — 400 005
Subject: 100% Dearness Relief (DR) Neutralization to pre-2002 bank retirees.
Sir,
Please refer to Indian Banks’ Association’s letter No. HR&IR / GOVT/BPS, dated 14.8.2023, on the above subject.
2. In this connection, the undersigned is directed to convey ‘No Objection’ of the Government to Indian Banks’ Association, for advising Public Sector Banks, pending amendments to respective Bank Employees’ Pension Regulations, to pay w.e.f. 1st October, 2023: —
(i) DR at uniform rate as applicable to the lowest slab of basic pension in the existing DR frameworks, to all pre- 1/11/2002 retirees (100% neutralization of tapered DR);
(ii) Rs. 800.00 and Rs. 450.00 per month as ex-gratia amount, as a standalone Benefit, which will not attract any DR, to pensioners/family pensioners falling under 1st slab of basic pension and drawing highest DR, and 2nd slab of basic pension attracting second highest DR in the present framework, respectively. The ex-gratia amount shall be absorbed in future changes in pension structure, if any; and
(iii) No arrears shall be payable for the periods falling prior to the effective date.
Yours faithfully,
(Vijay Sharikar Tiwari)
Under Secretary to the Government of India
Tel: 011- 23362349
Email: ir[at]nic.in
[Source: Bankkumar Blog]
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