Sunday, December 14, 2008

ESM: The road AHEAD is stretching your PENSION

Dear Friend,

Some of my friends have asked me as to why their aggregate arrears during the year 2007 are at a lower rate than the figures for the year 2006. They have probably not noticed that the new DA formula is far more conservative than the one prescribed by the Fifth CPC. For those who like quantified analysis, just pick up your calculator and compare your total pension (including the commuted portion) on 1.1.2008 with the amount which you received on 1.1.2006. You will find that during those two years, the nett increase was 18.54%. As opposed to this the four instalments of DA granted during the same period amount to 12%. This means that the current neutralization is about two-thirds of the previous quantum.

This has been achieved by modifying the basket of goods which constitute the basis for calculating the 'Consumer Price Index' . And, indeed the formula is equally applicable to all government employees; both serving and retired. So let us be aware of the fact that the future instalments of DA are going to be less liberal than the ones which we have been receiving so far. And so, "Ladies and gentlemen, please tighten your belts and learn to stretch your pension as far as you can!"

Maj Gen Surjit Singh (Retd)

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