Up to 9th BPS around 10 to 13% increase/load was given after merger of old Basic Pay and D.A.
It was changed in the 10th BPS to 2% only at the last minute of signing the settlement.
Effect of this is to curtail post retirement benefit. i.e. Pension for life time, computation, Gratuity for seniors and NPS corpus fund of new employees.
This method of reducing retirement benefit is not implemented in any of the salary class employees viz.Central Govt., State Government , LIC, GIC , BSNL etc.,
Only Bank employees are cheated/betrayed in this aspect.
O.k.a blunder done by UFBU in 10th BPS.
There was a demand raised in Charter of Demand for 11th BPS, i.e.to reverse the Special Allowance of 7.75% and add to Basic Pay.
What is the result?
The mistake is not corrected, rather the same blunder is continued in 11th BPS also.
What will the loss to employees?
Those employees who retired in 10 th BPS lost 7.75% of retirement benefit in Pension for life time, computation and Gratuity.
Those who are retiring in 11th BPS will lose 7.75+7.25=15% in retirement benefit.
If we calculate the loss in rupee terms it will mind blowing.
Please note that Employees under NPS also affected in the same way but through accumulation of NPS corpus,
as monthly contribution to NPS fund by employer will be less by 15%.
(I have posted many charts about the loss at the time of 10th BPS. available in my blog)
There is reduction of Pension in every settlement and also there would not be any updating of Pension on subsequent wage settlements.
Why Bank employees alone face this pathetic situation?
Will UFBU answer?