Proposed 7th CPC Pay Scale by INDWF
INDIAN NATIONAL DEFENCE WORKERS FEDERATION
ESTD 1959 (Recognised by Govt. of India)
R. Srinivasan
General Secretary
INDWF/Circular/016/2015
Date 01/04/2015
To
All Office Bearers,
Working Committee Members, & All Affiliated Unions of INDWF.
Sub: Oral evidence submitted by National Council(JCM) Standing committee and the VII CPC on 23.03.2015, 24.03.2015 and on 31.03.2015 respectively.
Dear affiliates,
After the VII CPC was appointed by Government of India vide notification no.54 Dated 28.02.2014 under the chairmanship of Justice Ashok Kumar Mathur with terms of reference.
The VII Central Pay Commission initially issued a questionnaire and invited replies from all the Federations, Unions, Associations and Government departments. Further invited the memorandum from the respective organisations, Federations and Unions/Associations. Accordingly, the JCM(NC), JCM Constitutents including INDWF jointly prepared the memorandum on pay Structure, Pay determination, Allowances, leave, women issues, LTC, TA/DA and Retirement benefits etc., on 30.06.2014. Similarly, on behalf of INDWF, we have submitted matters relating to Defence Civilian Employees on service matters on 28.07.2014.
On 25.02.2015 on behalf of National Council standing committee National Council (JCM) Staff side met the Chairman & Secretary VII Pay commission and requested him to give personal hearing to National Council staff side and also before finalising the report, all the recognised Federations also should be given dates for giving personal hearing with regard to their service matters related to their respective departments. Accordingly, National Council (JCM) Standing Committee Staff side was invited for personal hearing on 23rd and 24th March, 2015 for 2 days.
Subsequently, Defence Federations were invited from 30th to 31st march, 2015. INDWF met the VII CPC on 31.03.2015 in the VII CPC office, New Delhi from 1030 HRs to 1200 HRs.
The issues discussed by the Staff side National Council Staff side Standing Committee (JCM) and by INDWF on the above dates are given below for the information of all our affiliates.
1. DISCUSSION ON PAY, ALLOWANCES & RETIREMENT BENEFITS
Employment under Central Government covering 7 years from 2005-2006 to 2011-2012 had gone down 2409 vacant posts to 12909 which is from 13.57% to 12.8% 1995-96 (for all groups) which stood at 42,15,932 shrunk to 36,84,543 in 2011-2012. The reduction effected through abolition of posts or whole scale conversion of Department into PSU’S was of the order of 53,1389 (12.6%). When it is viewed with reference to the working strength (men in position) the reduction was 8,08,248 (27%). The difference between the sanctioned strength of 1995-96 and working strength of 2011-12 was as huge as 11,31,402. IN other words, the Government was functioning with almost 27% less manpower, even though the manpower requirement in the 16 years between 1995-96 to 2011-12 had enormously increased due to the expansion of Government activities both extensively and intensively. Therefore, it was demanded to consider to recommend for increasing the employees strength without leading to further reduction.
2. MINIMUM WAGES
The need based minimum wage concept to compute pay at the minimum level was worked out on the principles of Dr.Ackroid formula and 15th ILC norms.
PRICES OF THE INGREDIENTS IN THE 15TH ILC TO CALCULATE THE MINIMUM WAGES AS ON 01.01.2014.
Taking into account of the Groceries, eatables clothing etc., in various cities in India were collected on the basis of consumer price index it was worked out to Rs.11344. Housing 7.5% Rs.1174/-, Miscellaneous @ 20% Rs.3129/- Total Rs.15647/- additional @ 25% minimum pay for Group ‘C’ with minimum of above Rs.5214/-. Total all comes to Rs.26075- Rounded off at Rs.2600/- (20% of the net minimum misc charges towards fuel, Electricity, water charges etc. Housing at the rate of 7.5% of net minimum. Addition expenditure towards education, marriage etc of the children, Medical Treatment, recreation, festivals etc as per the Supreme Court decision in 1991). It was submitted that the gap between minimum and maximum should not be 1:8 (at present 1:12).
3. REMOVAL OF GRADE PAY SYSTEM
National Council Staff side unanimously proposed in the memorandum and also while giving oral evidence, it was insisted to do away the Grade Pay system which was introduced by 6th CPC. The Grade Pay system created lot of discreteness/anomalies. Only Pay scale system to be introduced with minimum pay in each grade/level.
4. PROPOSED NEW PAY SCALE MINIMUM
SI. No |
Grade Pay of 6`” CPC |
Minimum of the New pay scale |
1 |
1800 |
26000 |
2 |
1900 |
31000 |
3 |
2000 |
33000 |
4 |
2400 |
41000 |
5 |
2800 |
46000 |
6 |
4200 |
56000 |
7 |
4600 |
66000 |
8 |
4800 |
74000 |
9 |
5400 |
78000 |
10 |
5400 PB-3 |
88000 |
11 |
6600 |
102000 |
12 |
7600 |
120000 |
13 |
8700 |
139000 |
14 |
8900 |
148000 |
15 |
10000 |
162000 |
16 |
12000 |
193000 |
17 |
75000-80000 |
202000 |
18 |
80000 fixed |
213000 |
19 |
90000 fixed |
240000 |
Proposed 7th CPC Pay Scale by INDWF
Proposed new pay scales after removal of existing Grade Pay Rs.1900, Rs.2400, Rs.4600 and Rs.8700 in order to reduction of pay scales from 19 to 14.
PROPOSED NEW PAY SCALES MINIMUM (AFTER MERGER)
SI.No |
Pay Scale No |
Present Pay Band |
PB No |
Grade Pay |
Proposed Minimum of Pay Scale |
1 |
5-1 |
5200-20200 |
PB-1 |
1800 |
26000 |
2 |
S-2 |
5200-20200 |
PB-1 |
2000 |
33000 |
3 |
S-3 |
5200-20200 |
PB-1 |
2800 |
46000 |
4 |
5-4 |
9300-34800 |
PB-2 |
4200 |
56000 |
5 |
S-5 |
9300-34800 |
PB-2 |
4800 |
74000 |
6 |
5-6 |
9300-34800 |
P8-2 |
5400 |
78000 |
7 |
S-7 |
15600-39100 |
PB-3 |
5400 |
80000 |
8 |
5-8 |
15600-39100 |
PB-3 |
6600 |
102000 |
9 |
S-9 |
15600-39100 |
PB-3 |
7600 |
120000 |
10 |
S-10 |
37400-67000 |
PB-4 |
8900 |
148000 |
11 |
S-11 |
37400-67000 |
PB-4 |
10000 |
162000 |
12 |
5-12 |
75500-80000 |
HAG |
0 |
193000 |
13 |
S-13 |
80000(Fixed) |
Apex Scale |
0 |
213000 |
14 |
S-14 |
90000(Fixed) |
Cabinet Secretary |
0 |
240000 |
Proposed-7th pay commission Pay-Scale-after-Merger of Grade by INDWF
5. FITMENT FORMULA
I) It should be 40% Basic Pay as was given by 6th CPC
II) Multiplication Factor (26000/7000-3.7%) may be applied uniformly in all cases to arrive at the revised pay in the new scales pay.
6. FIXATION OF PAY ON PROMOTION
It was suggested that the benefit on Promotion, therefore should be TWO INCREMENTS IN THE FEEDER CADRE.
7. DATE OF EFFECT
It was suggested to 7th CPC to following recommendations to the Government
a. To merge DA and treat the same as pay for all purposes as and when the DA entitlement reaches 50%.
b.To set up the next wage revision body or pay commission sufficiently before expiry of 5 years.
c. To implement their recommendations w.e.f. 01.01.2014 especially in the background that the desirable tenure of the earlier commission’s recommendations expired on 01.01.2011.
8. SPECIAL PAY
Special pay system to be re-introduced in order to reduced number of pay scales.
9. COMMON CATEGORIES OF STAFF AND COMMON CADRES
All the common categories of employees may be granted the pay scales provided for similar personnel in the Central Secretariat Services.
10. CLASSIFICATION OF POSTS.
All Gazetted posts to be classified as Executives.
All non-Gazetted posts to be classified as Non-Executive.
11. ALLOWANCES AND ADVANCES
We suggest, that the existing formula of computation of DA and its payment w.e.f.01.01.20
HOUSE RENT ALLOWANCE
X Classified cities 30% to 60%
Y Classified cities 20% to 40%
Z Classified cities 10% to 20%
COMPENSATORY CITY ALLOWANCE
6TH CPC subsumed CCA with Transport Allowance. Now it was proposed to grant CCA on the following rates
Pay upto Rs.50000/-
10% of pay for X cities
5% for Y cities
Pay of more than Rs.50000/-
X Classified cities 6% of pay subject to a minimum of Rs.5000/-
Y Classified cities 3% of pay subject to a minimum Rs.3000/-
12. TRANSPORT ALLOWANCE
There are several restrictions imposed for the grant of this allowance. One of them stipulates that the Government employees must be at his headquarters for certain number of days in a month to enable him to draw this allowance.
X Classified city Other cities
Rs. 7500 + DA – Rs.3750 + DA
13. TRAVELLING ALLOWANCE
Travelling Allowance porposed to 7th CPC
14. CHILDREN EDUCATION ALLOWANCE
Doubling the allowance and increasing the same by 50% whenever DA reached 50% insistence of Reciept for each and every expense to claim the allowance is a cumbersome procedure to avoid this, employees may be asked to give affidavit to the effect the child/children were bonafide student of the school.
Similarly for Hostel subsidy the procedure of self certification is to be accepted.
Education Allowance presently taken from Banks. This may be sanctioned by the Government with interest rate less than 5%.
CEA may be paid for graduation and professional courses.
15. OVERTIME ALLOWANCE
Govt continued to pay Overtime Allowance calculated on the basis of Notional Pay in the pre revised basic pay of IVth Central pay commission. The matter was referred to the Board o Arbitration in CA Reference No. 2 of 2004 on 6-9-2005. The award was given favour of employees to the effect that Overtime Allowance shall be calculated on the basis of Actual Pay in the V th CPC Revised Pay Scales. This award has not been implemented so for. The result is that Rs.15.85 Per Hour which is 10 Times lesser than the rate fixed in Railways and Defence is being Paid in Postal and other Departments.
Proposal : It is Proposed that Overtime Allowance should continue to be paid and calculated on the basis of actual pay, DA and Transport Allowance from Time to Time. The rate of Overtime should be refixed as and when the DA is increased and there shall be no ceiling on amount of overtime allowance which become payable.
We have therefore suggested that overtime allowance must be granted to all Personnel, if he/she is asked to work beyond working hours, irrespective of limitation of emoluments.
16. Night Duty Allowance
It was demanded to VIIth CPC to recommend rates of NDA for all should be completed on the basis of revised Pay recommended by VI CPC and it should be revised annually in order to include the DA admissible.
17. Patient care/Hospital care Allowance
Patient care/Hospital care Allowance is presently ranted as lumpsum amount. The lumpsum amount to doubled and rates made uniform in respect of all allowance of all central govt Hospitals and Dispensaries. NDA is denied when the Patient care Allowance is granted. Therefore NDA also be granted to those who are getting Patient/Hospital Care
18. House Building Advance
House Building Advance encourages the employees to own a house at a fairly early stage of their employment. This will also reduce the demand for residential accommodation. We have noticed certain difficulties encountered by the employees in obtaining the advance. The prescribed procedure requires amendments so as to enable the employees to comply with it properly. We make the following suggestion to improve the present procedure,
1. To simplify the procedure
2. To exempt the stamp duty when the property is required to be mortgaged and de-mortgaged.
3. To increase the advance to 50times of the salary (Pay + DA)
4. Since the repayment of the advance is to be made in a span of not more than 20 years, the employees must be made entitled to the advance on completion of 5 years, which is presently 10 years.
5. In the case of employee, who do not have the service period of 10 years for repayment, in order to compute the advance and the repaying capacity, the entire gratuity due and become payable to him may be taken into account.
6. The maximum ceiling limits to be raised appropriately on the basis of the new pay scales.
7. To reduce the rate of interest not more than 5%
8. To make the Government employees entitled for the advance for purchasing second hand or used houses.
9. Advance may also be sanctioned for the purpose of making extension to the existing accommodation.
19. Scheme For Appointment On Compassionate Ground
Proposed to consider by 7th CPC to lift the existing ceiling limit of 5% to provide appointments to the derving candidates.
20. Career Progression: Grant of 5 Promotions in the service Career
For the efficient functioning of institution, the primary pre-requisite is to have a contended workforce. It is not only the emoluments, perks, and privileges that motivate an employee to give his best. They are no doubt important. But what is more important is to provide them a systematic career progression. The present system of career progression vailable in the All India Services and the organised Group A Civil services attracts large number of young, talented and educated persons to compete in the All India Civil Service Examination. No different was the career progression scheme available in the subordinate services in the past. Persons who were recruited to subordinate services were able to climb to Managerial Positions over a period of time. The situation underwent vast changes in the last two decades. In most of the departments, stagnation has come to stay. It takes decades to be promoted to the higher grade in the hierarchy. It was the recognition of the lack of Promotional Avenue in the subordinate services that made the 5th CPC to recommend a time bound two career progression schemes. The three time bound scheme of MACP instead of improving the situation has been found less beneficial and has therefore not gone to address the inherent problem of de motivation that has crept in due to the high level of stagnation. In most of the departments, the exercise of cadre review which was considered important was not carried out. Any attempt in this regard was restricted to group A Services. The discontent amongst the employees in the matter is of high magnitude today. The VII CPC therefore should recommend that the cadre reviews are undertaken wherever not done to ensure five hierarchical promotions to all employees in their career on the pattern obtaining for Group A officers.
21. Leave Entitlement, Holidays and Working Hours
Holidays
Presently the holidays are determined for each year by the DOPT, However they permit the high power welfare committee of each state to finalise, taking into account the local conditions, three among the listed holidays. We suggest that this may be recommended to be increased to six. This apart, we may bring to the notice of the commission that only Government of India has refused to recognise the importance of May Day. May Day is not a Holiday for the Central Govt Employees. We request the commission to recommend for the declaration of May day as a Holiday.
Casual Leave
Casual Leave to be increased from 8-12 for the Central Govt Employees. For the industrial Establishments the CL to be increased to 15 per years.
Special Disability Leave : At present special disability Leave is sanctioned for treatment in the case of an employee who gets injured in an accident. The Govt has imposed a ceiling on this leave, a minimum of 24 Months. During the Leave Period he will be entitled for full salary for 128 Days and rest at Half Pay Rate. Our suggestion in the matter is that such leave must not have any restriction on the number of Days. The number of Days a person has to be on such Leave should be Purely on the advice of the concerned Doctor and whatever he has suggested should be granted
Earned Leave
At present Govt Employees are entitled for 30 days EL on an average every year. Superannuation age is 60 years. Generally Govt Employees are in service for 35 years and more. In their total service, total EL that goes into the credit of the employees is of the order of 1050 days 50% of which comes of 525 days. IN that background, the ceiling limit of 300 days can be reasonably raised to 450 days. Also the Govt Employees may be permitted to encash part of such accumulated Leave Salary 50% to meet certain finiancial exegencies if he has put in 20 years of service or more.
Also suggested that in extreme circumstances, either his spouse or his colleagues may be permitted to gift certain number of leave at his credit to suffering employees.
Half Pay Leave
It is suggested that the half Pay Leave at the credit of an employee may be allowed to be encashed at the time of superannuation/retirement.
Maternity/Paternity Leave
The entitlement may be increased to 240 Days in the case of maternity Leave and 30 Days for Paternity Leave.
Child Care Leave
We request to convert the child care Leave as Family care Leave. The women employee must be entitled to avoid the Leave to take care of Problems and difficulties of her family members. Accordingly we have suggested that.
`a) No restrictions on the maximum number of spell in a year.
b) No Restriction be imposed on age of the child for grant of the Leave especially in the case of children with mental or physical disabilities or on prolonged illness.
c) She must be allowed to avail Leave for her own biological disorders.
d) In the case of death of the women employees, her spouse, the widower may be permitted to avail the child care leave.
Leave Travel Concession
The LTC facility provides him/her with an opportunity to be away from the monotonous daily routine and be with his family members without tension of the official duties. Following suggestions were proposed
1. Permission for Air Journey for all categories of employees to and from NE Region
2. Permission for personnel posted in NE Region for a Journey within NE Region
3. To increase the periodicity of the LTC to once in two years
4. Explore the possibility of allowing an employee to undertake tour outside India, once in his/her service career in lieu of the LTC.
Assured Career Progression/MACP
ACP Scheme was replaced by Modified ACP Scheme on the recommendation of the 6th CPC in which three financial upgradations viz after 10,20,30 years have been provided for. DOPT while issuing the order stipulated that the said MACP will operate on grade pay hierarchy and not the Promotional.
The existing principle of Cadre review once in 5 years has not been implement in many central Govt Departments. It is proposed that Periodical Cadre review on the lines it had been done in Railways, by creating 5 Levels of Pay Scale may be recommended. According VII CPC may kindly consider our proposals and devise appropriate schemes to ensure five financial up gradations as per Promotional hierarchy.
Income Tax on Salary
All Allowance including DA should be exempted from Income tax. Income Tax provision of section 16(1) to be re introduced to grant exemption of Allowance from Income Tax
Women Employees
. Introduction of Flexi time and Flexi Place work schedules even on experimental basis in some offices
. Serving women be given option to work schedules even on experimental basis in some offices
. Serving women be given option to work half time for a maximum of six years in a career
. Identification of certain professions to be manned only by women employees.
. Enhancing age of recruitment to 35 years
. Construction of more single women’s hostels
. Creation of earned leave bank so that wife could avail EL at her husband’s credit etc.
. Guideliness for posting husband and wife in the same station are not being observed n case of Group ‘C’ employees it must be ensured
. A large number of women employees are facing problems like removal of uteruses etc (Hysterectomy) after attaining the age of 40 years or more which requires special rest. The women employees may be granted one month special leave for such purposes.
BONUS
Presently the PLB and adhoc bonus are calculated on the deemed provision that one’s total emoluments is only Rs.3500/-. This is an absolutely irrational stipulation and must be removed. WE have requested the commission to recommend to the Government to remove the said stipulation and grant the bonus on the basis of the actual emoluments of the employees.
Transfer policy
Government employees by virtue of the terms and conditions of employment are liable to be posted anywhere in India. The Group ‘C’ employees in larger organisations have the facility of such transfer being restricted to a pre-defined area or region or zone. But in smaller departments, they are transferred from one corner of the country to another. Transfer, though inevitable, especially when one is promoted from one grade/cadre to another, is painful for it involves dislocation of the family with concomitant difficulties. The departments with public dealings has to transfer personnel periodically to maintain objectivity and impartiality in the decision making process. While transfer is unavoidable in civil service, it can be regulated with certain set of rules, procedure, principle and guidelines. Such guidelines will enable the employees to initially prepare him for the eventuality as also to prepare his family to face the difficulties. It is common knowledge that higher authorities often invoke the power to
Transfer as a potent weapon to punish their subordinates or to mentally harass them with the threat of transfer. Since the transfers are said to be made in “Public Interest” a phrase with wider purport, the malafide transfers cannot be questioned with success even in courts. The 5th CPC’s recommendation on this issue was worth considering. But the Government did not act upon the suggestion. We reiterate some of the suggestion made by the Commission as under.
a) The Group ‘C’ & D employees, taking into account the fact that their emoluments do not even enable them to make the both ends meet, should not be transferred at all except on their request/compassionate grounds.
b) If transfer becomes necessary on promotion, or due to other administrative exigencies, the same should be subjected to a policy evolved in the Departmental councils. Every department should therefore, evolve a transfer policy on mutual agreement being reached at the respective Department Council or through bilateral discussions. The Official side in the Counsel side in the Counsel will place an item for discussion in the counsel on transfer guidelines.
c) No transfer be permitted, which is violative of such an agreement or in the absence of such an agreement having reached in the council. If such transfers are made sans such an agreement, it shall be instantly cancelled by the Head of Department of Secretary to the Ministry concerned on receipt of representation for the concerned employees.
d) In case, no agreement is reached in the Department
Council, the same should be referred to the Standing committee of the National Council, JCM, whose decision is to be treated as final.
e) In respect of other category of officials, the Department of Personnel must be asked to issue instruction in clear terms as per the above quoted recommendation of the 5th CPC.
We request the 7th CPC that the above suggestions made by the 5th CPC in the matter may please be recommend to the Government.
SECRETARIAT & FIELD OFFICES
According to us the only reason the secretariat Staff were placed at the higher pedestal was that they were in the ‘Sanctum Sanctorum’. This is proved from the fact that whenever the parity was extended to certain posts like senior Auditors/Senior Accountants etc., with Assistants, the Department of Personnel and Training further upgraded the pay scales of Assistants of CSS retrospectively and even during the pendency of VI CPC, Assistants were granted pay scale at par with the pay scale of section officer which was a promotion by merging pay scales Rs. 5000-8000, 5500-9000 into 6500-10500 granting Grade Pay of Rs.4200 has been again disturbed by upgrading the pay scales of Assistants of Central Secretariat in PBZ by granting Grade Pay of Rs. 4600/-
We, therefore propose that VII CPC may take note the above developments to ensure that the parity of pay structure obtaining in the secretariat and the field offices is maintained and it is extended to all pay scales beyond that of the Assistants upto the level of under secretary. Corollary of this would be that pay structure evolved by the VII CPC would apply for various cadres of both of the Secretariat as also the field offices.
EQUAL PAY FOR EQUAL WORK:
The pay of Group ‘D’ employees (now Group ‘C’) in Lok Sabha/Rajya Sabha secretariats is higher than that of Group ‘D’ employees (now Group ‘C’) Job profiles of his personnel is the same, the only difference which is visible is that generally a Group ‘D’ employees wears a very shabby uniform. Group ‘D’ employees of Supreme Court are very colourful and regal in look. This has happened at the expense of another constitutional principle of equal pay for equal work upheld several times by the Supreme Court.
We propose that the VII CPC may devise a mechanism under which these wages determining Authorities do coordinate and ensure that the principle of equal pay for equal work is kept in view and ensured.
ANOMOLIES RELATING TO VI CPC WAGE STRUCTURE
National and Departmental Anomalies have been constituted soon after the recommendation of the VI CPC were implemented. It was agreed that Staff side would submit the list and details of these anomalies within 6 months and thereafter these committiees would consider and settle these anomalies within a further period of six months. It was also agreed that unresolved anomalies would be referred to an Arbitrator appointed by the Government.
Most of these anomalies still remain unsettled or rejected by the Official side. However, the next step to refer these unsettled/rejected anomalies for Arbitration has not taken place. Referring these anomalies to the VI CPC on the same lines as was done on previous occasions i.e., V or VI CPCs would also be in fructuous. The V CPC declined to consider the IV CPC anomalies treating them out of their purview and the VI CPC said that whichever anomalies referred to them has been resolved in the form of upgrading the affected pay scales. They however stated that the revised pay scales would be applicable only with effect from 01.01.2006 and not from 01.01.1996. WE therefore request the VII CPC to ask Government through an Interim Report to refer to all the unresolved anomalies for Arbitration for resolution within a period of next six months.
NEW PENSION SCHEME
It is quite surprising to note that the Government was in an unholy haste to introduce New Pension Scheme (NPS) despite the recommendations of a committee heated by Sri Bhattacharya, the then Chief Secretary of Karnataka State to the effect that the Government should consider introducing a hybrid system by which employees will have either a defined benefit scheme or a contributory scheme.
India is a young country and the expenditure on statutory pension has remained over a long period at not more that 5% of GDP which the country/Government can afford to spend. The scrapping of PFRDA Act is required for the following solid reasons:
a) The new Pension scheme is going to make social security in old age uncertain and dependent on market forces.
b) The Scheme has been compulsory imposed on a section of employees and hence it is discriminatory.
c) Such scheme had been a failure in many countries including chile, UK and even USA. In USA entire pension wealth has been wiped out leaving pensioners with no pension. IN Argentina the contributory scheme which was introduced at the instance of IMF was replaced with the defined benefit pension scheme.
d) The PFRDA Act has provisions emplowering the Government and the Authority to cover employees now left out and to amend the existing entitlements of pension benefits.
e) In majority of the countries, ‘Pay as you go: is the system of pension.
f) The contributory scheme does not give any guarantee for a minimum pension of 50% of hte pay drawn at the time of retirement of the employee. Nor does it provide for the protection of his family members in the form of family pension in the event of death.
The Supreme Court had declared pension as a one of the fundamental justifys. The government should therefore retrace from its avowed position, which is detrimental to the interest of the employees recruited after 01.01.2004 is covered by the existing situation defined benefit scheme and scrap the PFRDA Act.
The recent decision of the Cabinet to allow FDI in pension fund operations has made the real intent of the PFRDA Act clear. The FDI will facilitate the mutual fund operators to invest the funds outside India thereby making Indian Savings available for development of a foreign country. It is now clear that the decision behind the contributory pension scheme was the pressure imposed by IMF.
The VII CPC is requested to review the NPS in the light of the observations made above and recommend scrapping NPS and the PFRDA Act.
SPECIAL AMENITIES FOR WOMEN EMPLOYEES AT THE WORK PLACE
We reiterate our earlier Suggestion in the matter to provide, crèche round the clock dress changing room, rest room, dining room and such other facilities at the workspot.
NATIONAL HOLIDAY COMPENSATION
In operational organisations, it become necessary in the national interest to deploy personnel on duty on National holidays. The system of providing the compensatory off on some other days has become unworkable. We, therefore, suggest that they must be compensated for their work on National holidays by a day’s salary and made entitled for all personnel irrespective of the status and emoluments.
INSURANCE COVERAGE FOR PERSONNEL POSTED IN HAZARDOUS PLACES
The Government employees are deployed to work in remote areas, inhospitable areas, extremist infested areas and disturbed areas. These areas do not remain as such for a very long period, though exceptions are there. We suggest that the employees who are deployed to function from these may be provided with the insurance coverage.
PENSION ENTITLEMENT EMOLUMENTS FOR PENSION
The entire income in form of basic pay, special pay or personal pay if any, deputation duty allowance etc are the elements of pay proper and therefore confining the emoluments to the basic pay as recommended by the IV and V CPCs is arbitrary and therefore, is only on addition to pay. In many countries there is not system of DA. Periodically the Pay is revised/Indexed taking into account the rise in the cost of living. Here also there is a system of merging the DA as DP for purposes of pensionary benefits. In respect of gratuity already the DA is being included with Pay and therefore, there is no reason for excluding the DA from the emoluments. We therefore, suggest that the emoluments for the calculation of pension should include:
a) Basic Pay
b) Any special pay or personal pay, or deputation duty allowance.
c) Dearness Allowance
d) Non-practicing allowance in respect of Doctors
e) 75% of the running allowance in respect of Railway Running Staff retired after 04.12.1998.
There are persons who retire after having served for full year since their last increment. The next increment which has already accrued to them is however not added to their emoluments for purposes of computing pension and other pensionary benefits. It is therefore submitted that the Commission may kindly consider and recommend that if a person retire on the day he has completed 12 months of service since his last increment, the increment accrued to him may be added notionally to his basic pay and then the pension computed.
The VI CPC has already recommended that the ten monthly average emoluments or the last pay drawn, whichever is more beneficial, should be the basis of computation of pension. WE have therefore no further suggestion to place before the commission on this issue.
QUALIFYING SERVICE FOR PENSION:
Casual Labour/Contingent Paid Employees: At present Casual Labourers/Contingency paid employees are allowed to count their service towards pension @ 50% of the total period falling between acquiring the temporary status and regularisation and full service thereafter. The above benefit is also subject to further condition that such employees should be regularised and absorbed against a regular post. The operation of this condition is so harsh that there are many cases in which the entire service rendered non pensionable because the employee may be retired/retrenched/die before such regularisation. WE, therefore, propose that the 50% of service before acquiring temporary status and full service after acquiring temporary status irrespective of whether he/she was regularised or not should count towards pension. Similarly these employees have to remain for long duration without any regularisation and are deprived many amenities which a regular employee gets. Not to treat their service pensionable for a considerable period leaves them with very meagre pension and in some cases with no pension. This is against the principle of social justice and therefore, our above suggestion should be considered by the 7th CPC.
Pensionable service of Casual and GDS: Recent judicial pronouncements have directed the Government to take into account the date of entry in the service as a casual labourer or a temporary status mazdoors etc into criterion and not the date of regularisation to determine as to whether he or she is to be brought under the CCS(Pension) Rules, 1972 or under the NPS. Therefore, we propose that all casual labourers, Gramin Dak Sewaks in the Department of Posts etc are to be brought under the Defined Benefit Pension Scheme under the CCS (Pension) Rules, 1972 for grant of pension on their regularisation in the services, even though they are getting regularisation after 01.01.2004 because they should be treated as having entered the services before 01.01.2004 as per the judgement of Court. WE therefore, propose that entire service rendered as a casual labour irrespective of the fact whether he was granted temporary status or ultimately regularised should be treated as pensionable service and the service rendered as GDS in Department of Posts also should be treated in the similar fashion.
Interruption causing forfeiture of service for pension: The existing provisions defining interruptions in service causing forfeiture of past service for purposes of pension are quite antiquated, unnecessary and unreasonable harsh, which should be removed from the statue book. In formative years when the British Authorities were recruiting Indians in their Administrative Services, it was noticed that during sowing and harvesting seasons, a large number of employees used to go back to the fields without any regular leave etc. As a deterrent, the rules regarding interruption in service had been legislated then. Since most of the employees have now lost their rural roots, such frequent and recurring interruptions are not longer there. Interruption as and when rarely caused is due to reason mostly beyond the control of a forfeiture of past service for pensions, it should be dealt with under CCA Rules. The Provision causing forfeiture of service for pension purpose on account of interruption may, therefore, be deleted.
Resignation as retirement: Resignation is tendered by a Government Servant in varying circumstances. It is felt; therefore. That resignation need not always result in forfeiture of past service (Rule 26 of Pension Rules) and denial of Pension. An objective view is required to be taken by the appointing authority in the case of all those who tender resignation after completion of 20 years of service. Such resignation may be treated as voluntary retirement and benefits extended accordingly. In this connection we may cite the following decisions of the Judiciary:
a) CAT Mumbai full bench OA No. 1384/1985 decided on 08.07.1997
b) CAT Ahmedabad OA No. 498/2002 decided on 18.03.2004
c) CAT Jabalpur O.S.No.623/1991 decided on 13.10.1995
d) Bombay High Court WP No.615/1996 and WP No.2586/1997 decided on 28.02.2002
Even 5th CPC in Para 133.79 had recommended that terminal gratuity at different rates be paid to those who resign after putting in certain years of service and resignation after 20 years of service may be treated as voluntary retirement and pension may be paid accordingly. WE, therefore, request the 7th CPC that the above recommendation may be reiterated.
There are certain employees who are in the CPF scheme but could not opt for the pension Scheme in the year 1986. These are mostly women employees employed in Atomic Energy commission etc who could not make up their mind as to whether they could render the requisite number of service necessary for grant of full pension. In certain autonomous bodies while options for Pension scheme have been obtained, this is not being granted. They may now be allowed to revise their option. Our suggestion is that CPF/SRPF retirees may be granted Minimum pension.
The VI CPC has done away with the requirement of 33 years of qualifying service for full pension. They have said that full pension may be granted to those who have the qualifying service of 20 years. Therefore we have no further suggestion to place before the Commission on this issue.
Rate of Pension:
We should keep in mind the observation of the Apex Court that the Pension scheme must provide so much that the pensioner should be able to live:
i. Free from want, with decency, Independence and self-respect and
ii. AT a standard equivalent at the pre-retirement level.
(The Court had further observed that we owe it to the pensioners that they live; not merely exist)
Therefore, taking into account that on superannuation an employee is left with a two unit family generally and therefore, if he is to be enabled to maintain a standard equivalent to the pre-retirement level, the rate of pension should be 67% of the last pay drawn. We therefore suggest that full pension should be at the rate of 67% of last Pay Drawn or 10 months average emoluments, whichever is more beneficial.
It is pertinent to point out that several countries in the world pay higher rate of pension to their civilian pensioners. France is paying 75% of last six months average emoluments as pension; Belgium is paying 75% of last five years average as pension; Cyprus is paying 67% of final salary as pension; Malta is paying 80% of average of best 15 years wage as pension; Our neighbour Srlanka which is also in the lowere middle income group of countries like India in South Asia, is having a scheme called “Public Servants Pension Schemes (Defined Benefit Scheme) established in 1901, as a mandatory scheme financed by the Government budget is paying 85% to 90% (for 30 years of service) of last one year annual salary at retirement as pension (Source:Srilakns pension department circular NO.3/2004 dated 16.01.2004); The life expectancy in Sri Lanka at 60 is 20.2% which is 3.5% higher than India.
In Pakistan which is another neighbour and remains in the same lower middle income group of countries is calculating pension on the following formula;
(Number of years of service X Last Basic Pay X 7 and divided by 300. If an employee has served 35 years of service and received last basic pay as Rs.10,000/- then that employee shall get a pension of 8,167/-(i.e.,81.67%)
In Bangladesh the retirement age is 57. The life expectancy at 60 in Bangladesh is 17.9 which is same as in India. This country also remains in lower middle income group of countries like India. But Bangladesh pays 80% of last pay as pension. In the war devasted country of Afghanistan, pension is calculated on last 36 months average, for each year it is 2% and a maximum of 80% is given as pension in that country.
From the above comparison with some of the world countries of both European as well as our own South Asian Countries, it is clear that all those countries are paying better percentage of pay as pension to their Civilian employees. India appears to be one of the less pension paying country despite its image of one of the faster developing economies in the world. We therefore, suggest that the basic pension to be determined should be 67% atleast on the basis of the last pay drawn or the 10 months average emoluments, whichever is more beneficial to the employee subject to the condition that the pension so determined shall not be less than the minimum of the pay scale of the post held by him at the time of his retirement.
Additional Pension
It has already been well recognised that as the age after superannuation further advances, not only the pensioner becomes weak in limbs but also becomes more susceptible to various geriatric diseases. He will have to incur additional expenses for his upkeep. There are also the social obligations and increased expenses on medical treatment etc.
The Government of India has accepted and implemented the 6th CPC recommendation of age-related additional pension beyond the age of 80. However the 6th CPC did not recommend any addition to the pension for a period of 20 years after superannuation at the age of 60. Their argument was that every pensioner gets increase in his/her pension after 15 years when the commutated portion of his pension is restored. This is not at all a valid ground. Even during these 15 years the Dearness Relief is calculated on his gross pension and not on hi net pension after commutation and he earns interest on commuted value of pension. Therefore there is not increase in pension on account of restoration of commuted pension after 15 years.
In our opinion this needs certain revision. According to SSO survey (2007-08) 7.5% population only is above the age of 60. Naturally this may reflect among the pensioners also. Life expectancy at 60 is only 17.9 and at 70 it is only 11.8(Source: Sample Registration System O/o the Registrar General India). This means a Government servant is receiving pension for 18 to 22 years. In the age group of 60 to 79, in Rural areas 5% and in the Urban areas 5.5% is confined to bed. In the same age group 22.4% in Rural areas and 20.2% in Urban areas is confined to home due to physical immobility (source: National Sample Survey, 60th Round, 2004). After retirement, their income from pensionis nearly 1/3rd of their gross salary at the time of retirement. But they have to spend more on medical care. This age group therefore also needs some relief by way of additional pension. Incidentally Afghanistan which is on fo the low income countries in Asia, is having a retirement age of 65 with a formula of grant of additional pension at the rate of 3% for each year after 65 years of age and maximum 80% additional pension is paid.
Therefore we seek 7th CPC to consider addition to the pension after granting 67% of last pay drawn(LPD)/Average of emoluments as full pension on superannuation oat 60 years of age as under, because of prevailing life expectancy of Indian citizen age is 69.6 (Assessed during the year 2011-15) and the old pensioner who is also considered to be senior citizen has to wait for a period of twenty years on his retirement to get an increase at his age of 80 maintaining his health from disease burden.
On attaining Age of Pension admissible
65 years 70% of LPD
70 years 75% of LPD
75 years 80% of LPD
80 years 85% of LPD
85 years 90% of LPD
90 years 100% of LPD
Note: LPD = Last Pay drawn or ten monthly average of the pay drawn whichever is more beneficial.
Minimum Pension
Though the concept of minimum pension and the method of computing it have not been explained by any of the pay commissions or the Government, it is clear that the Minimum Pension is 50% of the Minimum Wage. The rationale behind the percentage has nowhere been explained. We however think that in order to ensure that it is adequate, 100% of the minimum wage should be the Minimum Pension. The very concept of Need Based Minimum Wage is that this is a level of wage should be the Minimum Pension. The very concept of Need Based Minimum Wage is that this is a level of wage below which a worker’s family cannot subsist / survive and remain capable to perform. That being the concept of minimum wage, it should also apply in the case of Minimum Pension on the premise that any pension lower than the Minimum pay is insufficient to enable a pensioner / family pensioner to live or survive.
Dearness Compensation
We have no suggestions for improvement of this issue except that Pensioners may be paid the same dearness compensation viz., at the same rate as it is being paid to the serving employees. It should be periodically merged with the basic pension so that deficiency in the 100% neutralization in the cost of living is partially compensated.
Merger of Dearness Relief with Basic Pension
As on 01.01.2014, the Dearness Relief compensation stands at 100%. The suggestion for merger of DR to partially compensate the erosion in the real pension was first suggested by the Gadgil Committee in the post 2nd Central Pay Commission period. The 3rd CPC had recommended such merger when the cost of Living Index crossed over 272 points i.e. 72 points over and above the basis index adopted for the pension revision. In other words, the recommendation of 3rd CPC was to merge the Dearness Relief when it crossed 36%. The Government in the National Council JCM at the time of negotiation initially agreed to merge 60% Dearness Relief and later the whole of the DR before the 4th CPC was set up. The 5th CPC merged 98% of
DR with pension.
The methodology adopted for compensating the erosion in the real value of pension in the interregnum period had always been through the mechanism of merger of a portion of Dearness Relief. The 5th CPC had recommended that the Dearness Relief must be merged with basic pension as and when the percentage of Dearness compensation exceeds 50% accordingly even before the setting up the 6th CPC the Dearness Relief to the extent of 50% was merged with pension.
It was totally ironic to note that deviating from all other Pay Commissions, the 6th CPC had made a reversal and recommended that no Dearness Allowance / Dearness Relief should be merged with the Basic Pay of employees / Basic Pension of Pensioners. The recommendation had dealt a severe blow the belt as this recommendation denied everyone from having any cushion against the erosion caused in the real value of pension in between two pay commissions. Had the recommendation of V VPV recommended such a merger automatically whenever the dearness relief index crosses 50% mark.
The Central Government also taking undue advantage out of the recommendations in the name of 6th CPC has been stiffly denying any such merger of DA/ DR. This issue requires course correction and we suggest that the 7th CPC should recommend for automatic merger of DA / DR as and when the index crosses the 50 % mark and before setting up another Pay Commission entire DA should be merged with pay as was done by the V-CPC.
The submission made in Staff Side Memorandum on this issue are reiterated with a request that the commission may submit a interim report recommending that 100% of DR may be merged with the basic pay w.e.f. 1.1.2014
Grant of Interim Relief
In Memorandum submitted by and on behalf of Staff Side of National Council (JCM) on the above issue, 25% of basic pension as Interim Relief for Pensioners and G D S of Postal Department has been demanded. VII CPC may consider this demand and give an Interim Report to the Government recommending that 25% of basic pension may be granted to all pensioners w.e.f. September 2013 when the Government had announced the seting up of 7th Central Pay Commssion.
Periodical Revision of Pensionery benefits
We submit that there should be a system of periodical revision of pay / pension structure in Public Sector. It takes place after every five years. Pay and Pension structure of Central Government employees should also be revised after every five years. Present wage structure is based upon minimum which is lower than Need based Minimum only through periodical revision it may be attaining the fair wage and finally to living wage standard. Under Article 43 of the Constitution, State has no endeavour to secure living wage to all workers. And this is possible over a period of time. It is on these considerations that revision of wage / pension has to be done every five year till the living wage standard is achieved.
Parity Between Past And Future Pensioners
The Government have recently announced that “One Rank One Pension” shall be implemented in respect of Armed Forces so that the glaring disparity between the persons of equivalent rank and status do not draw vastly unequal pensions if they retire at different point of time, is undone. Already there is a complete parity in pension among the Judges of Supreme Court, High Court and the Comptroller and Auditor General of India, irrespective of the date of their retirement.
In so far as the Civilian Employees are concerned the principle of parity in pension between the past and the future pensioners was implemented by the Government as had been recommended by the V CPC. The V CPC recommended that “as a follow up of our basic objective of parity we would recommend that the pension of all pre-1986 retirees may be updated by notional fixation of pay as on 1.1.1986 by adopting the same formula (Revised Pay Rules) as far as the serving employees. This step would bring all the past pensioners to a common platform on to the 4th CPC pay scales as on 1.1.1986. Thereafter, all pensioners who have been brought on the 4th CPC pay scales by notional fixation of pay and those who have retired on or after 1.1.1986 can be treated alike in regard to consolidation of their pension as on 1.1.1996 by allowing the same fitment weightage as may be allowed to the serving employees”. They further recommended that “the consolidated pension shall not be less than 50% of the minimum pay of the post as revised by the CPC held by the pensioner at the time of retirement”. The V CPC further said that “this attainment of reasonable parity needs to be continued so as to achieve complete parity over a period of time”. However the VI CPC totally ignored these recommendations of the V CPC and has reintroduced the element of disparity by not adopting the same formula for post 1996 retirees, and by not recommending the same fitment benefit and other recommendations liberalising the pension rules in respect of pre-2006 retirees. Thus a huge disparity between pre-2006 and post-2006 retirees has been created by the VI CPC.
We therefore urge that pay of every pre-2014 retiree should be notionally redetermined (corresponding to the post from which he or she retired and not corresponding to the scale from which he or she retired) as if he or she is not retired and then the pension be computed under the revised liberalised rules which are to be applicable to the post-2014 retirees under the same rules which would be applicable to employees in service as on 1.1.2014.
Family Pension
At present the family pension is given at the rate of 30% of Pay last drawn. However, family pension shall be equal to 50% (67% as proposed by us) of pay last drawn or twice the rates given above, whichever is less and the amount so admissible shall be payable from the date following the date of death of the Government Servant for period of 7 years or for a period up to the date on which the deceased Government Servant would have attained the age of 67 years had he survived / 10 years in case of death in harness. The family pension is not less than Minimum Pension.
The prescribed period for which the family pension is payable is as under,
(i) In the case of a widow or widower, up to the date of death or remarriage whichever is earlier.
(ii) In the case of a Son until he attains the age of 25 years.
(iii) The unmarried / widowed / divorced daughter.
(iv) The disabled mentally retarded child of the Government Servant.
We suggest as under,
(a)The VI CPC recommended enhanced family pension for ten years in the case of death in harness only stating that a special dispensation is justified for them( Para-5.1.42) and the government accepted /implemented the same, thereby dividing a single class of Family Pensioners. Earlier the enhanced family pension was for 7 years subject to ceiling of 58+7=65, / 60+7=67 years. The enhanced Family Pension on the death of the Head of the family is intended for the family to stabilize the sudden drop in the take home pay/pension. The distress due to loss of bread winner whether it is the death in harness or pensioner’s death, is one and the same. Making an artificial distinction is unwarranted. There is, therefore, no need to differentiate between the two ‘distress situations’ The Commission is requested to recommend removal of this disparity to enable grant of enhanced family pension uniformly in both the cases for 10 years keeping in view the principle of social justice, equity and fair play.
(b) The quantum of family pension for the period of 10 years should be equal to the pension of the Government Servant was entitled as per Rules.
(c) After the expiry of the above 10 years period, the family pension may be reduced to 50% of last pay drawn.
(d) The concession extended to a disabled mentally retarded child to receive family pension until his / her death is subject to the condition that the said disability should have manifested before the death of Government employee. We suggest that this condition may be removed.
(e) The family pension is also to be extended to widowed daughter-in-law.
(f) In case of a Son, the family pension may be allowed up to the age of 28 years. This is suggested because the recruitment age has been raised in certain cases to 28 year
A Government Servant retired on medical invalidation after rendering less than 10 years of service ( 5 years as per our proposal) gets no pension. We suggest that he should be granted full notional pension (i.e., 67% of his emoluments / Minimum pension, whichever is higher. On death of such a Government Servant his family should get’
(a) Full notional pension / Minimum pension during first 10 years after his death.
(b) 75% of last pay drawn or Minimum pension, whichever is higher thereafter.
Additional Pension:
In the case of family pensioners also taking into account their solitude and inability to earn and the ever rising cost of living etc we request for the enhancement of the family pension at the following rates:
On attaining age of Additional Quantum of Family Pension
65 Years 5% of Family pension
70 Years 5% of Family pension
75 Years 5% of Family pension
80 Years 5% of Family pension
85 Years 10% of Family pension
90 Years 20% of Family pension
Extra Ordinary Pension
The 5th CPC in Para 135.17 of its Report has recommended that regulation of compensation or disabilities categorized under (b) and (c) should be:
“II – Cases of disability (100%) resulting in discharge from service”
“Normal pension and gratuity admissible under CCS (Pension) Rules, 1972, without insisting on the requirement of minimum service of ten years plus Disability Pension equal to the normal Family Pension, i.e., 30% (as per our proposal 50%) of the basic pay”.
The Department of Pension & Pensioners Welfare, while issuing orders on acceptance of the recommendation vide OM No. 45/22/97-P&PW(C) dated 3.2.2000 (incorporated in Appendix-3 of Swamy”s Pension Compilation) the well-meaning recommendation has been altered as follows:
“III _ Disability Pension – for cases covered under categories ,, B” and ,, C”
“(1) Normal pension and gratuity admissible under the CCS (Pension) Rules, 1972 plus – Disability Pension equal to 30% of basic pay for 100% disability. “This has resulted in a Group ,, D” employee with 6 years” service, who has been invalidated (with 45% disability) and boarded out of service not getting the minimum pension towards “Service element”. This injustice is required to be set justify.
Extension of Family Pension Under CCS (Pension) rule, 1972 to CPSU absorbees who were compulsorily covered by the “Employees Family Pension Scheme, 1971 on their absorption in Central Public Sector undertaking and to those absorbees who were not eligible for family pension since they were drawing more pay than the prescribed limit for eligibility under the scheme.
Central Government employees who were on deputation to Central Public Sector Undertaking / Autonomous Bodies (AB) and who were subsequently permanently absorbed in the CPSU / AB were compulsorily covered by the “Employees Family Pension Scheme, 1971 framed under the Employees Provident Funds and Miscellaneous Provisions Act. 1952 (Administered by the Provident fund Commissioners), if the said scheme was in operation in the CPSU / AB in which the Central Government employees was absorbed. And such of those absorbees who were drawing more pay then the prescribed limit under the scheme not for family pension under EFPS – 1971.
Government of India, Department of Pension & Pensioners Welfare vide its O.M No. 1-18-86-P&PW (D) dated January, 1990 accepting the request of the Staff Side in the 29th ordinary meeting of the National Council (JCM), revised the family pension entitlement of the absorbed employees and allowed them an option to choose either Family Pension Scheme of the Central Government (i.e. CCS (Pension) Rules) or by that of the CPSUs / Abs (ie Employees Family Pension Scheme, 1971). These modifications to family pension entitlements of absorbees were given effect to from the date of issue of the O.M. ie 22.1.1990 and were extended to only such of those absorbed employees who were in service on the said date and who were permanent and had a qualifying service of not less than 10 years in the Government all other absorbees were compulsorily covered by the Employees Family Pension Scheme, 1971.
The Central Government Employees who were permanently absorbed in CPSUs / Abs and who satisfied the conditions of qualifying service in the Government, but had retired before 22nd January, 1990 could not opt to come over to the Central Family Pension Scheme (CCS (Pension) rules, 1972) and were compulsorily covered by the Employees Family Pension Scheme, 1971.)
As a result of the above, there are now 3 categories of retired CPSU Absorbees. (1) Absorbees eligible for family pension under Employees family pension scheme, 1971, (2) Absorbees who are eligible for family pension under CCS (Pension Rules, 1972 and (3) Absorbees who are not eligible for family pension under any Scheme.
The VII Central Pay Commission is requested to recommend removed of the disparity existing between the 3 categories of CPSU Absorbees stated above by extending the provisions of CCS (Pension) Rules, 1972 to all the Absorbees uniformly making them eligible for family pension.
Gratuity And Commutation Of Pension Gratuity
Retirement Gratuity is paid at ¼ of basic pay for each completed six monthly period of qualifying service subject to a maximum of 16.5 times of the emoluments. There is also a monetary ceiling of 10 lakhs. This is applicable to all Government Servants who retire on completion of 5 years of service. However, if a person dies in harness his family is granted the gratuity at certain prescribed rates:
We suggest that the gratuity may be calculated on the basis of 25 effective days as against 30 days in a month. We make this suggestion because the Government Servant should not be paid at a rate lesser than what is admissible under the Gratuity Act.
The ceiling of 16.5 times and the quantum limit of Rs. 10 lakhs should also be removed. This is because under existing rules gratuity is reduced in the case of a Government Servant who has put in less than 33 years of service. In the banking industry there is no such ceiling of 16.5 months” salary but the retiring bank employees are getting at the rate of ½ a month salary for every year of service even over and above 33 years of service. Therefore, it is but logical that for a service span exceeding 33 years, the gratuity should be higher and the above ceiling be withdrawn.
Commutation of Pension and its Restoration
Central Government employees are permitted to commute up to 40% of their basic pension. We have no suggestion to make in this regard.
In the light of Supreme Court decision, commuted value of pension is restored on completion of 15 years or on reaching 75 years of age whichever is later. Most of the State Governments are restoring full pension after 12 years or on reaching 70 years of age. We, therefore, propose that full pension be restored after 12 years, or on reaching the age of 72 years, whichever is earlier. From the table given below it will be seen that the entire commuted value gets repaid to the Government by the Pensioners within 12 years.
Sl.No Details Age next birth day = 61 years
1 Commutation factor 9.81
2 Amount commuted Rs. 100
3 Commuted value received Rs. 11,772
4 Amount recovered in 12 years Rs. 14,400
5 Amount recovered in 15 years Rs. 18,000
6 Excess recovered in 12 years Rs. 2,628
7 Excess recovered in 15 years Rs. 6,228
Now when the commutation factor has been reduced and is applicable after 2008, the restoration of commuted pension should be after 10 years. It will be seen that entire commuted value gets repaid within 10 years as could be clear from the table given below.
Sl.No Details Age next birth day = 61 years
1 Commutation factor 8.194
2 Amount commuted Rs. 100
3 Commuted value received Rs.9,833
4 Amount recovered in 10 years Rs.12,000
5 Amount recovered in 15 years Rs.18,000
6 Excess recovered in 10 years Rs.2,167
7 Excess recovered in 15 years Rs.8,167
Taking all these factors into account, we suggest that the commuted pension may be restored on completion of 10 years or reaching the age of 70 years, whichever is earlier.
FURTHER WE HAVE SUGGESTED THE FOLLOWING SCALES TO BE MERGED FOR INDUSTRIAL EMPLOYEES LDCs, SKs, AND SIMILAR GRADES
1. Direct Entry – Rs.2000/- Grade Pay (Training Scale)
2. Abolition of Rs.1800/- Grade Pay
3. Merger of Rs.2400 and Rs.2800/- Grade Pay and retaining Rs.2800 Grade Pay only.
4. Merger of Rs.4600/- with Rs.4800/- Grade Pay abolition of Rs.4600/- Grade Pay
PROPOSED INDUSTRIAL RATIO FOR DEFENCE
Existing Ratio / Proposed Ratio
1. Skilled – 45% / Skilled – 20%
2. Highly Skilled Grade II – 20.5% / Highly Skilled Grade II – 20%
3. Highly Skilled Grade I – 20.5% / Highly Skilled Grade I – 44%
4. Master Craftsman – 14% / MCM – 16%
PROPOSED RATIO FOR FIREMAN
Fireman Rs.2000/-*
Leading Fireman Rs. 2800/-
Station Officer Rs. 4200/-
Asst. Divisional Fire Officer Rs. 4800/-
Deputy Divisional Fire Officer Rs. 5400/-
PROPOSED PAY SCALES FOR DURWANS
Durwan Rs. 2000/- Grade Pay
Subedar Durwan Rs. 2800/- Grade Pay
Jamedar Durwan Rs. 4200/- Grade Pay with specific ratio
Labourers working in Industrial Establishments should be directly recruited in Rs. 1900/- Grade Pay
Incentive to Quality Assurance employees on specific percentage to motivate and ensure quality
Risk Allowance in Defence: Increased to 4 times + DA.
Family Planning Allowance: Minimum should be Rs. 500/- and should be linked with Basic Pay.
Armoured Welding Allowance to be doubled and MCM should be granted separately. The VII CPC report should include in their report.
Ammunition Mechanics be granted Industrial Ratio.
Lab Attendants in Air Force having Diploma / Degree as entry qualification should be awarded Rs. 4200/- Grade Pay equivalent.
In Air Force Civilians obtained Air worthiness certificate should be granted Special Allowance at par with service personnel.
Motor Transport Drivers working in Defence (IAF, R&D) operating special vehicles with 20-24 wheels should be granted special grade higher than the present Grade of Rs.4200/- Grade Pay.
sd/-
(R.Srinivasan)
General Secretary
Source: INDWF
Leave a Reply