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    This document outlines the RBI pension updation formula applied to public sector banks. It provides the multiplying factors used to calculate updated basic pension amounts as of November 1st, 2017 for retirees from the 6th to 11th Bipartite Settlement periods. It also demonstrates how to use the multiplying factors and current DA rate to calculate the total updated pension amount for August 2021, including an example. Key details include multiplying factors ranging from 1.63 to 5.92 times original basic pension, depending on retirement date. The current DA rate for August 2021 is provided as 27.79%.

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    This document outlines the RBI pension updation formula applied to public sector banks. It provides the multiplying factors used to calculate updated basic pension amounts as of November 1st, 2017 for retirees from the 6th to 11th Bipartite Settlement periods. It also demonstrates how to use the multiplying factors and current DA rate to calculate the total updated pension amount for August 2021, including an example. Key details include multiplying factors ranging from 1.63 to 5.92 times original basic pension, depending on retirement date. The current DA rate for August 2021 is provided as 27.79%.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    6 views2 pages

    RBIFormula

    Uploaded by

    srinivasangsrinivasa
    This document outlines the RBI pension updation formula applied to public sector banks. It provides the multiplying factors used to calculate updated basic pension amounts as of November 1st, 2017 for retirees from the 6th to 11th Bipartite Settlement periods. It also demonstrates how to use the multiplying factors and current DA rate to calculate the total updated pension amount for August 2021, including an example. Key details include multiplying factors ranging from 1.63 to 5.92 times original basic pension, depending on retirement date. The current DA rate for August 2021 is provided as 27.79%.

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    © All Rights Reserved
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    RBI Formula for Pension Updation - G. O.

    March 2019 - Applied to PSBs


    PENSION BASIC - MULTIPLYING FACTOR (MF) - FOR UPDATION AS ON 1.11.2017
    6th BPS 7th BPS 8th BPS 9th BPS 10th BPS 11th BPS
    BPS Periods 1.11.1992 to 1.11.1997 to 1.11.2002 to 1.11.2007 to 1.11.2012 to 1.11.2017 to
    31.10.1997 31.10.2002 31.10.2007 31.10.2012 1.11.2017 31.10.2022
    1 Consumer Price Index (CPI) 1148 1684 2288 2836 4440 6352
    2 Less CPI Merger to BP -600 -1148 -1684 -2288 -2836 -4440
    3 Bal CPI for DA (1-2) 548 536 604 548 1604 1912
    4 No. of DA Slabs @4 pts (3/Four) 137 134 151 137 401 478
    5 DA % Rate per Slab - Previous BPS 0.67% 0.35% 0.24% 0.18% 0.15% 0.10%
    6 Add DA for BP Re.1 (4 x 5) 0.9179 0.4690 0.3624 0.2466 0.6015 0.4780
    7 Basic Pay 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
    8 BP+DA (6+7) 1.9179 1.4690 1.3624 1.2466 1.6015 1.4780
    9 Add 10% Increase on 8 (Formula) 0.1918 0.1469 0.1362 0.1247 0.1602 0.1478
    10 Updated BP M F (8+9) 2.1097 1.6159 1.4986 1.3713 1.7617 1.6258
    11 Updation MF (2 decimals) Ref 10 2.1100 1.6200 1.5000 1.3700 1.7600 1.6300
    12 Pension Basic M F As On → 1.11.1997 1.11.2002 1.11.2007 1.11.2012 1.11.2017
    13 PENSION BASIC M F for Retirees 1.00 x 1.50 1.50 x 1.37 2.06 x 1.76 3.63 x 1.63
    before 1.11.2002 - 7 BPS Ref - 11 above 1.00 1.50 2.06 3.63 5.92
    14 PENSION BASIC M F for Retirees 1.37 X 1.76 2.41 x 1.63
    before 1.11.2007 - 8 BPS Ref - 11 above NA NA 1.37 2.41 3.93
    15 PENSION BASIC M F for Retirees 1.76 x 1.63
    before 1.11.2012 - 9 BPS Ref 11 above NA NA NA 1.76 2.87

    16 PENSION BASIC M F for Retirees


    before 1.11.2017 - 10 BPS Ref 11 above NA NA NA NA 1.63
    How to Calculate updated Pension as on 1.11.2017 onwards on the Basis of above MFs

    17 For Retirees Retired Before → 1.11.2002 1.11.2007 1.11.2012 1.11.2017

    18 Old Pension Basic Pay - Example 1000 1000 1000 1000


    19 MF for Re.1 BP as on 1.11.2017 - Ref 13 above 5.92
    20 MF for Re.1 BP as on 1.11.2017 - Ref 14 above 3.93
    21 MF for Re.1 BP as on 1.11.2017 - Ref 15 above 2.87
    22 MF for Re.1 BP as on 1.11.2017 - Ref 16 above 1.63
    23 Updated Pension B P as on 1.11.2017 5920 3930 2870 1630
    24 DA for Aug 2021 - Example
    25 Consumer Price Index (CPI) for Aug 2021 7941 7941 7941 7941
    26 Less DA Merger in 11 BPS -6352 -6352 -6352 -6352
    27 Balance of CPI for DA Aug 2021 (25 - 26) 1589 1589 1589 1589
    28 No. of DA Slabs @ 4 points (1589/4) 397 387 397 397
    29 Rate of DA % per Slab - as per 11 BPS 0.07% 0.07% 0.07% 0.07%
    30 DA % for Aug 2021 - (397 x 0.07%) 27.79% 27.79% 27.79% 27.79%
    31 DA for BP (as per 23) x 27.79% 1645 1092 798 453
    32 Total Pension for Aug 2021 (23 + 31) 7565 5022 3668 2083

    Please Note the following :-


    1. This compilation is based on RBI Formula applied to PSBs subject to approval of competant authorities.
    1. RBI Formula is given upto 1.11.2012 in March 2019 when 11 BPS was pending.
    2. Same Formula is applied to derive updation as on 1.11.2017 VIZ., after 11 BPS.
    3. DA is compiled here @ 100%. DA for old basic is not accounted here.
    4. Pre Nov 2002 - 100% DA is a separate issue.
    5. MF works out to 5.92 as on 1.11.2017 for pre Nov 2002 retirees but invarious letters it is stated as 5.82.
    Please note the correction.

    E&OE. 11-Aug-21

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