Pension regulations will be amended for bank employees who retired before 2002. For this, ‘No Objection’ letter has been issued by the Ministry. After which bank employees will be given the benefit of neutralization of 100% dearness relief.
DR Neutralization, DA Hike, Bank Employees: Big relief has been given to bank employees by the Finance Ministry. Actually, the dearness relief of bank employees will be amended. Along with this, they will be provided 100% neutrality of inflation relief.
In fact, ‘No Objection’ has been given for neutrality of 100% dearness relief for pre-2002 bank retirees. The letter has been issued by the Ministry of Finance, Department of Financial Services on 5 October. The guidelines have been given in the letter addressed to the Chief Executive Officer of the Indian Banks Association.
Amendment in pension regulation implemented!
The letter issued also refers to the previous communication of the Indian Banks Association dated August 14, 2023. The letter said that the government has given no objection letter to the public sector banks advising them to implement the following changes with effect from October 1, 2023. With the Indian Banks Association giving its no objection, the amendment in the pension regulation of the concerned bank employees will be implemented.
100% inflation relief will be ensured
In such a situation, under the rules issued, it has been decided to apply a uniform rate on the lowest slab of basic pension in the existing rate for the employees who retired before November 1, 2002. In such a situation, 100% of tempered dearness relief will be ensured for the employees retired before 2002.
Ex-gratia amount available
Under the rules decided, an ex-gratia amount of Rs 800 per month will be provided to the pensioners and family pensioners falling under the first slab of basic pension and receiving the highest dearness relief.
Whereas pensioners and family pensioners falling under the second slab of basic pension will be paid an additional Rs 450 as ex-gratia amount.
However, it was clarified in the letter that no dearness relief will be applicable on the ex-gratia amount and if any dearness relief is applicable, it will be absorbed in the future changes in the pension structure.
However, employees retired before 2002 have been instructed not to pay any dues for the period falling before the effective date of these changes.
Let us tell you that all the employees of the bank are being given the benefit of 100% DA neutralization but this benefit was not given to the employees who retired before the effective date of 8th settlement. The employees who retired before November 2002 had been agitating and fighting legally on this issue for more than 8 years. After which now they will also be given the benefit of this facility. Orders for this can be issued soon after the ‘No Objection Letter’ from the Finance Ministry.
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