Automatic Merger of Dearness relief with Pension :
The Pension of Central Government Pensioners undergo revision only once in 10 years during which period the pension structure gets seriously dis-aligned; 50% increase in price takes place even in less than 5 years. This results in considerable erosion of the financial position of the pensioner with otherwise inadequate Pension. As admitted by Shri Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, in his statement to PTI on 27.2.2008, DA does not adequately take care of inflation. Working employees are getting automatic relief by way of 25% increase in their allowances with every 50% rise in Dearness Allowance. As pensioners do not get any allowances, they feel discriminated against. In order to strike a balance, DR may be merged with Pension whenever it goes beyond 50% as recommended by 5th Central Pay Commission.
We demand automatic merger of DR with pension, whenever it goes above 50%