Thursday, May 29, 2014

Survey for gauging quantum of increase in the satisfaction level of Pensioners

All BPS  affiliates & Members are requested to fill up following Survey Form & directly Send to
Ms Tripti Ghosh Director (P) DOP &PW 3rd floor; Lok Nayak Bhawan, Khan Market, New Delhi-110003. Acopy may also be endorsed to Sri M. Chandramowli, Secretary.

https://docs.google.com/file/d/0B2yvRIAZj-k7a3V3a1o1LW5LY0U/edit







Suggestions made by Postal Officers’ Pensioners’ Association, Hyderabad Memorandum Paras (To add or amend Please) On 28th May 2014

 Para 3.3 Full Pension is now allowed for 10 years of service of qualifying service. For Grameen Dak Sewa Employees in Department of Posts who retired in Tamilnadu, it was decided by the Hon’ble Supreme Court to extend the benefit of pension taking short fall period of qualifying service from the regular service, if any, put in by the petitioner earlier while coming on promotion to departmental status.   This benefit may be extended by the 7th CPC to all such employees as explained in para 8.2

 Para 3.17 The NDA Govt. allowed 50% of DA merged into Pay called DP and merged in Last Drawn Emoluments under FR 33 for fixation of basic pension.  The 6th CPC diluted this and those who retired between 1.2.2004 and 1.1.2005 may be shown some dispensation while refixing the revised consolidated pension, this was not honoured.  All such pensioner should also be given notional fixation as the DP once merged into Emoluments cannot be truncated.  

Para 5.3 For eligibility of family pension, family members under sub-para (iii) should also include – Widowed / Divorced Daughters-in-Law who are actually dependent upon the pensioner equally along with a Daughter to avoid discrimination in the same gender AND ALSO to help those dependents whose parents are not Pensioners and not holding any Vocation to get the minimum family pension. 

Para 5(f) to add – Grant of Certain Percentage of Pension / Family Pension in favour of physically and mentally disabled children who are eligible for family pension according to their turn till the parents cease to support towards hostel subsidy or conveyance charges.  Severe disabled children/adults are to be admitted for their Care/Welfare in reputed Welfare & Rehabilitation Institutions at a considerable amount of fees towards lodging and boarding also.  This is necessary till they get family pension according to their turn and to mitigate the existing economical hardship of such parents who are undergoing miseries.  

Para 7.6 to add – Still there are 33 Postal Dispensaries to merge in the nearby CGHS head quarters.  There will not be any administrative difficulty when the GOI is having Information Technology with e-Governance.  The proposal for upgrading the Dispensary at Visakhapatnam is kept hanging in air since so many years even though the proposal was taken up in SCOVA and through local Hon’ble MP.  The pensioners are suffering from the denial of Indoor Medical Treatment facility as explained in the knowledge of CS (MA) Rules 1944 (framed in Pre-Independence). 

Para 8.7 to add – At present 20 years of qualifying service is needed for Voluntary Retirement.  With the reduction of maximum 33 years of qualifying service, the same may be reduced to 13 years proportionately.  

Para 8.11 Pension Adalats The present stipulation permitting the Pensioners Associations to take up and assist only those pensioners / family pensioners who are illiterates etc. should be withdrawn by the Pension Ministry.

Thursday, May 22, 2014

Contempt Petition - Orders of CAT 1.11.2011 High Court 29.4.2013 are going to be implemented within 3 months

            The SC decided favourably for 1.1.1986 cases for revision of pension.  This should be in an order form on regular basis.
            While the Hon'ble CAT Delhi Bench decided the case favourably on 1.11.2011 and on appeal the High Court on 29.4.2013, orders are now expected to be received for payment of arrears w.e.f 1.1.2006 only on Modified Parity basis.  We have to request the 7th C.P.C to implement after re-determining the revised pay/pension notionally right from 6th C.P.C.  This is urgent.

Wednesday, May 14, 2014

SEVENTH CENTRAL PAY COMMISSION SITE

The Seventh Central Pay Commission (7CPC)has been constituted by the Government on 28 February 2014. To keep you informed, theNational Portal of India has designed a special website for the Seventh Central Pay Commission. Please visit the new site for the following information:

Monday, May 5, 2014

FLASH NEWS



IN THE SUPREME COURT OF INDIA

CURATIVE PETITION (C) NO. 126 OF 2014 IN REVIEW PETITION (C) NO. 2492 OF 2013 IN SPECIAL LEAVE PETITION (C) NO. 23055 OF 2013

UNION OF INDIA AND ANOTHER PETITIONER(s) VERSUS CENTRAL GOVT. SAG (S-29) AND ANOTHER RESPONDENT(s)
                                                               ORDER
Application for oral hearing is rejected. We have gone through the curative petition and the relevant documents. In our opinion, no case is made out within the parameters indicated in the decision of this Court in Rupa Ashok Hurra Vs. Ashok Hurra & Anr., reported in 2002
(4) SCC 388. Hence, the Curative Petition is dismissed.

.CJI. (R.M. LODHA) ..J. (H.L. DATTU) ..J. (DR. B.S. CHAUHAN)
.J. (SURINDER SINGH NIJJAR) J. (FAKKIR MOHAMED IBRAHIM KALIFULLA) NEW DELHI; ..... APRIL 30, 2014.

CURATIVE PETITION SECTION XIV SUPREMECOURTOFINDIA
                                RECORD OF PROCEEDINGS

CURATIVE PETITION (CIVIL) NO. 126 OF 2014 IN
REVIEW PETITION (CIVIL) NO. 2492 OF 2013 IN
SPECIAL LEAVE PETITION (C) NO. 23055 OF 2013
UNION OF INDIA AND ANOTHER Petitioner(s) VERSUS
CENTRAL GOVT. SAG (S-29) AND ANOTHER Respondent(s)
(appln. for oral hearing and office report) Date: 30/04/2014
This Petition was circulated today
                                               CORAM :
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE H.L. DATTU
HON'BLE DR. JUSTICE B.S. CHAUHAN
HON'BLE MR. JUSTICE SURINDER SINGH NIJJAR
HON'BLE MR. JUSTICE FAKKIR MOHAMED IBRAHIM KALIFULL                                                                                          By Circulation
UPON perusing papers the Court made the following ORDER
Curative Petition is dismissed in terms of signed order.

(Pardeep Kumar) (Renu Diwan)
AR-cum-PS Court Master
[SIGNED ORDER IS PLACED ON THE FILE] 

SC junks govt plea against pension
arrears to pre-2006 retirees

Bhartesh Singh Thakur, Hindustan Times Chandigarh, May 02, 2014
First Published: 10:19 IST(2/5/2014) | Last Updated: 10:20 IST (2/5/2014)

In relief to lakhs of central government employees and soldiers, the Supreme Court has rejected a curative petition filed by the government against an order of granting benefits to pre-2006 retirees with effect from January 1, 2006. The government wanted to give the arrears of the benefits from September 24, 2012.
The matter had originated after the court had ordered fixing of pension based on minimum pay for each rank in the respective pay band. Earlier, there were anomalies in pension of pre-2006 central government retirees that had come to light after the implementation of the Sixth Pay Commission. The issue was whether pension was to be calculated based on the minimum of each rank within the newly introduced pay bands, or on the minimum of the pay band itself.
The Central Administrative Tribunal (CAT) and Armed Forces Tribunal (AFT) then corrected it and ruled that the pension would be calculated on the basis of minimum of each rank within a particular pay band.
The central government then itself removed the anomaly but granted the benefits from September 24, 2012, rather than January 1, 2006, when the anomaly had started. But the Delhi high court later ruled that the arrears have to flow from 2006. The government moved the Supreme Court against that, but the SC dismissed its special leave petition in July 2013. A review petition, too, was dismissed four months later.
The government did not stop there and filed the curative petition. A five-judge bench, comprising chief justice of India RM Lodha and justices HL Dattu, BS Chauhan, Surinder Singh Nijjar and Fakkir Mohamed Ibrahim Kalifulla, dismissed that on Wednesday.
“A curative petition is not an ordinary remedy, and is usually meant to cure
„gross miscarriage of justice‟. It is unfortunate that for the government, the grant of correct pension to its pensioners is „miscarriage of justice‟,” said Major Navdeep Singh, a Punjab and Haryana high court advocate.

Thursday, May 1, 2014

SUGGESTIONS FOR 7TH CPC QUESTIONNAIRE FROM SRI M CHANDRAMOWLI

                                                 
Q. No
7th CPC Questionnaire
Suggestions for Proposed Reply to 7th CPC
Questionnaire
1
1. Salaries
1.1 The considerations on which the
minimum salary in case of the lowest
Group „C functionary and the maximum
salary in case of a Secretary level officer
may be determined and what should be
the reasonable ratio between the two.
1.2 What should be the considerations
for determining salary for various levels
of functions falling between the highest
level and the lowest level functionaries?
9:1 as already decided Operations, Executions, Speedy Monitoring, Quick
Decision Making, Delivering Goods in Best Manner, Honesty & Integrity, Providing Welfare Measurers, Right to Health, Pension, Property, e-Governance, Prompt
Settlement of Grievances, Managerial Methods, Teaching Capacity, accomplishment of Targets, Welfare of
Subordinates, Counselling all Levels of hierarchy, Dignified Living while in service and after retirement.
2
2. Comparisons
2.1 Should there be any
comparison/parity between pay scales
and perquisites between Government and
the private sector? If so, why? If not, why not?
This comparison should be equal in respect of Lower and Higher Hierarchy since Livelihood will be same. Perks can be provided for Higher Level to retain their
Talent to the minimum extent as is required without very much gap.

2.2 Should there at all be any
comparison/parity between pay scales
and perquisites between Government and
the public sector? If so, why? If not, why not?
Repeated as above

2.3 The concept of variable pay has been
introduced in Central Public Sector
Enterprises by the Second Pay Revision
Committee. In the case of the
Government is there merit in introducing
a variable component of pay? Can such
variable pay be linked to performance?
Employees Associations / Unions as suggest
3
3. Attracting Talent
3.1 Does the present compensation
package attract suitable talent in the All
India Services & Group A Services? What
are your observations and suggestions in
this regard?

All India Services Associations to Respond

3.2 To what extent should government
compensation be structured to attract
special talent?

4
4. Pay Scales
4.1 The 6th Central Pay Commission
introduced the system of Pay Bands and
Grade Pay as against the system of
specific pay scales attached to various
posts.
What has been the impact of running pay
bands post implementation of 6th CPC
recommendations?
Running Pay Band system has done away with granting One Increment in existing Cadre on promotion to Higher
Cadre. (2) The concept of giving increments making it nearest to Rs.10/- is not correct (3) The Grade Pay system with the introduction of MACP, in some cases, the controlling authority and the subordinates are drawing same rate of Grade Pay. This is not correct. (4) With this, Even the Modified parity also did not helpful to many. Fitment Tables are to be used for Refixation of Basic Pay
adding Grade Pay according to each cadre.

4.2 Is there any need to bring about any
change?
Definitely a change must be done. For instance, the pay scale of Gazetted Officers in Class II or Group B in various Departments is not equal and varies

4.3 Did the pay bands recommended by
the Sixth CPC help in arresting exodus
and attract talent towards the
Government?
Yes to some extent

4.4 Successive Pay Commissions have
reduced the number of pay scales by
merging one or two pay scales together.
Is there a case for the number of pay
scales/ pay band to be rationalized and if
so in what manner?
Vide Para 8.72 of 4th CPC (Part I June 1986) the No. of scales from 153 to 36 were reduced (Group D scales from 17 to 3 and Group B & C scales from 89 to 18, Group A scales from 44 to 15 Scales. Existing No. of so far as each cadre Fitment Tables concerned with upgraded scales of Pay may be retained.

4.5 Is the “grade pay” concept working? If
not, what are your alternative
suggestions?
No. This is due to different grade pays being allowed to identical cadres in different departments of GOI. Efforts should be made to achieve Parity. No discrimination
should be made.
5
5. Increment
5.1 Whether the present system of
annual increment on 1st July of every
year uniformly in case of all employees
has served its purpose or not? Whether
any changes are required?
Those who are retiring on 1st July  (Large in Number ) are denied of having retired from service from the previous working day afternoon. The Bharat Pensioners Samaj has sent a proposal long back for amending the F.Rs. This should be expedited. A few Pensioners have also been denied of 6th CPCs benefits having retired on 1st Jan. This is a grave injustice that needs to be set right as the officials those who have earned increments by putting in requisite service, are denied the fruits of their labour.

5.2 What should be the reasonable
quantum of annual increment?
By Employees Associations / Unions as suggest

5.3 Whether there should be a provision
of variable increments at a rate higher
than the normal annual increment in case
of high achievers? If so, what should be
transparent and objective parameters to
assess high achievement, which could be
uniformly applied across Central
Government?
-do- as above against 5.2 This is a good proposal. Good achievers must be rewarded handsomely as proposed by Service Associations/Unions.

5.4 Under the MACP scheme three
financial up-gradations are allowed on
completion of 10, 20, 30 years of regular
service, counted from the direct entry
grade. What are the strengths and
weaknesses of the scheme? Is there a
perception that a scheme of this nature,
in some Departments, actually
incentivizes people who do not wish to
take the more arduous route of qualifying
departmental examinations/ or those
obtaining professional degrees?
Does not concern to Pensioners
6
Performance
What kind of incentives would you
suggest to recognize and reward good
performance?
As at 5.4
7
7. Impact on other organizations
Salary structures in the Central and State
Governments are broadly similar. The
recommendations of the Pay Commission
are likely to lead to similar demands from
employees of State Governments,
municipal bodies, panchayati raj
institutions & autonomous institutions.
To what extent should their paying
capacity be considered in devising a
reasonable remuneration package for
Central Govt. employees?
As it is, most of the State Governments are allowing C.G. Scales, while some of the State Govts like A.P. are allowing much improved and higher pay scales. If C.G. scales are allowed, there will be no adverse impact on financial aspects. The Paying Capacity of State Governments and Public Bodies may be left to those organisations. To retain the Talent only one should take into these for Central Government Organisations. Moreover, State Govt. Pay Bodies are being appointed in every 5 years while it is Not so with the Central Government. The Central Govt. also should allow the Revision of Pay Scales in every 5 years in as much as the Central Govt. Pay Scales /Salaries / Pensions / Family Pensions are found to be LESS THAN what the Central Government is affording taking into economical viability. Reasonable and much Higher remuneration package is needed for Central Govt. organisations.
8
8. Defence Forces
8.1 What should be the considerations for
fixing salary in case of Defence personnel
and in what manner does the parity with
civil services need to be evolved, keeping
in view their respective job profiles?
Both the Defence Forces & Civilian-defence Forces should have same salary structure. However, special package may be given for Defence Forces for most and vulnerable / arduous nature of work performance. All the Welfare Measures must also be equally be extended without any discrimination.

8.2 In what manner should the
concessions and facilities, both in cash
and kind, be taken into account for
determining salary structure in case of
Defence Forces personnel.
do- as above. However, Employees Associations /Unions as suggested. It is only a suggestion

8.3 As per the November 2008 orders of
the Ministry of Defence, there are a total
of 45 types of allowances for Personnel
Below Officer Rank and 39 types of
allowances for Officers. Does a case exist
for rationalization/ streamlining of the
current variety of allowances?
As reported by the concerned Defence Establishments

8.4 What are the options available for
addressing the increasing expenditure on
defence pensions?
Does not relate to Associations

8.5 As a measure of special recognition,
is there a case to review the present
benefits provided to war widows?
Better Benefits under Welfare may be provided in the case of War Widows.

8.6 As a measure of special recognition,
is there a case to review the present
benefits provided to disabled soldiers,
commensurate to the nature of their
disability?

Defence / Civilian Pensioners Association as suggest
9
9. Allowances
9.1 Whether the existing allowances need
to be retained or rationalized in such a
manner as to ensure that salary structure
takes care not only of the job profile but
the situational factors as well, so that the number of allowances could be at a
realistic level?
Allowances need to be rationalised realistically duly taking into account all other important factors. It should always be realistic looking into the cost of living and not necessarily on financial constraints. By looking into paying capacity, the Supervisory/Executive Personnel and above were given less wages which resulted now in getting drop in pension when their same cadre pensioners now getting higher rates of pension. Earlier Pay Commission have inflicted financial crunch.
7th CPC should set right the misery.

9.2 What should be the principles to
determine payment of House Rent
Allowance?
Pension should also be supplemented with H.R.A. for Pensioners since many of the Pensioners/Family Pensioners may not have earning children to have some shelter. Suitable HRA to some extent be given.
10
10. Pension
10.1 The retirement benefits of all Central
Government employees appointed on or
after 1.1.2004 a re covered by the New
Pension Scheme (NPS). What has been
the experience of the NPS in the last
decade?
As suggested by Secretary General B.P.S.

10.2 As far as pre-1.1.2004 appointees are
concerned, what should be the principles
that govern the structure of pension and
other retirement benefits?
As suggested by the Secretary General BPS. It is additionally suggested that a 25% increase of proposed pension be allowed (especially Pre-1996 pensioners who are surviving) having undergone Drop In Pension during the periods of 2nd 3rd and 4th CPC recommendations to compensate the loss of pension (Points circulated by POPA in Managing Committee held on 23.2.2014) Modified Parity with Minimum of the  Revised Pay causing great loss. Revised Basic Pay at the Minimum will never be fixed for Employees unless utmost fitment is given. Only new recruits will be in Minimum Pay. Last Pay Drawn being the Emoluments under FR 33 should be the criteria for Revision of Basic/Revised Pension and NOT with reference to existing Pension. This will end Junior getting Higher Pension than Senior by comparing length of service.
11
11. Strengthening the public governance
system
11.1 The 6th CPC recommended
upgrading the skills of the Group D
employees and placing them in Group C
over a period of time. What has been the
experience in this regard?
Employees Associations / Unions as suggest

11.2 In what way can Central Government
organizations functioning be improved to
make them more efficient, accountable
and responsible? Please give specific
suggestions with respect to:
a) Rationalisation of staff strength and
more productive deployment of available
staff;
b) Rationalisation of processes and
reduction of paper work; and
c) Economy in expenditure.
Constant revision of establishment, redeployment of posts as per the need whether shot-gap or on regular basis of positions held. Reduction of Paper work only will hasten the efficiency and transparency with better e-Governance. Service before Self must be the motto for good governance. Economy is for Self. How can it be conjoined one should ponder over
12
12. Training/ building competence
12.1 How would you interpret the concept
of “competency based framework”?
Employees Associations / Unions as suggest

12.2 One of the terms of reference
suggests that the Commission recommend appropriate training and capacity building through a competency based framework.

a) Is the present level of training at
various stages of a person's career
considered adequate? Are there gaps that
need to be filled, and if so, where? b)
Should it be made compulsory that each
civil service officer should in his career
span acquire a professional qualification?
If so, can the nature of the study, time
intervals and the Institution(s) whose
qualification are acceptable, all be
stipulated? c) What other indicators can
best measure training and capacity
building for personnel in your
organization? Please suggest ways
through which capacity building can be
further strengthened?

Relates to Organisational Heads
13
13. Outsourcing
13.1 What has been the experience of
outsourcing at various levels of
Government and is there a case for
streamlining it?

13.2 Is there a clear identification of jobs
that can be outsourced?


Same as above
14
14. Regulatory Bodies
14.1 Kindly list out the Regulators set up
under Acts of Parliament, related to your
Ministry/ Department. The total number of
personnel on rolls (Chairperson and
members + support personnel) may be
indicated.

14.2 Regulators that may not qualify in
terms of being set up under Acts of
Parliament but perform regulatory
functions may also be listed. The scale of
pay for Chairperson /Members and other
personnel of such bodies may be indicated

14.3 Across the Government there are a
host of Regulatory bodies set up for
various purposes. What are your
suggestions regarding emoluments
structure for Regulatory bodies
Heads of Departments
15
15. Payment of Bonus
One of the terms of reference of the 7th
Pay Commission is to examine the
existing schemes of payment of bonus.
What are your suggestions and
observations in this regard?
Bonus is in the case of ex-gratia. Same benefit may also
be extended to Pensioners

 Proposed by: Chandramowli Mullapudi
Designation: Secretary, Postal Officers Pensioners Association, Hyderabad & Secretary BPS Delhi
Address: Quarter No.M-23 P&T Quarters, Ashoknagar, Musheerabad P.O., Hyderabad 500 020
Contact No: 9441072434 Land Line 040-2400 2244

Email ID: chandramowlim@yahoo.co.in and Chandramowli65@gmail.com

BHARAT PENSIONERS' SAMAJ SUGGESTIONS TO 7th CPC


No. BPS/SG/2014/7CPC/2                                                                  Dated : 26.04.2014

Ms Meena Agarwal,
Secretary  GOI Seventh Central Pay Commission
 New Delhi

Through : Joint Secretary GOI M/O Personnel,PG & Pensions-DOP &PW

Madam,
Subject: 7th CPC Questionnaire
Reference: D.O. No 7cpc/15/questionnaire dated 9th April 2014
‘Bharat Pensioners Samaj’. One of the identified Pensioners’ Federation by GOI  M/O Personnel,  PG & Pensions-DOP& PW and a stake holder. In its capacity as one of the oldest & largest Pensioners Organization with over 550 Affiliated Associations, submits hereunder its reply to the questionnaire issued vide your D.O. No 7cpc/15/questionnaire dated 9th April 2014.
As Pension is not independent of Salary. Salary structure also, is a matter of concern to pensioners. However, Bharat Pensioners Samaj limits its answers to Question Nos 1.1, 1.2, 10.1 & 10.1.2 under the heads ‘Salary’ & ‘Pension’ .

Q.1.1 The consideration on which the minimum and maximum salary in case of the lowest group ‘C’ functionary and the maximum salary in case of a secretary level officer may be determined and what should be the ratio between the two.

 Ans. Socialistic structure of the country, constitutional provisions for equality & reduction of vast inequality in income & wealth between highest and lowest paid should be the main consideration for fixing maximum & minimum Salary. Rectifyin the inequality created by different multiplication factors  adopted by 6th CPC  for arriving at  Pay Bands & Pay Scales .The ratio between minimum & maximum of Salary be brought down to 1: 9. Ensuring uniformly equal % rise in Salary of all employees by adopting a common multiplication factor.

4th CPC had determined the ratio between minimum & maximum of salary to be 10.7(Chapter 41 & 43). In accordance with  the basic fiber of a Socialistic State this ratio should have gone reducing Pay Commission after Pay Commission. Even in capitalist countries like America & Britain this ratio is 1: 3.3 &1:5 respectively   In  countries with weaker economy like Philippines this is 1: 9.5. VI CPC adopted conversion factor of  1.86 to arrive at the minimum of lowest pay Band, where as it adopted a factor of  3.37 for arriving at the highest scale. This shredded the very basic fiber of the Constitution of Indian Socialistic State by raising  the  ratio  between minimum & maximum of Salary to 1: 12.85. This negative and socially regressive effect of the 6th Central Pay Commission has had the effect of worsening wealth and income inequality not only between pre-and post-2006 retirees, but even within pre-2006 retirees wherein higher-ups got full parity in Pension (Through modified parity).

Adoption of  a ratio of 1:9 between minimum & maximum paid will  rectify to some extent the injustice done so far.

Defence Employee: As far as Armed forces are concerned they do the supreme sacrifice for the country & must be the highest paid. For them the ratio between lowest & highest paid must not be more than 1:5.

Q.1.2  What should be the consideration for determining salary for various levels of functions between the highest level and the lowest level functionaries?

Ans. Equal % rise in Salary of all employees should be the main consideration. Revise the highest salary first by adding to existing salary, full DA+IR if any+ 50% fitment benefit . To meet talent attraction/retention requirement the revised Salary so arrived should be stepped up if required, to reasonably compare with Private and Public sectors. However, while drawing a comparison, job security, powers enjoyed, retirement benefits, facilities and Perks be taken into account. Divide the revised maximum Salary by 9 to arrive at the revised minimum Salary. Divide the revised minimum salary by the existing salary. The factor so arrived may be adopted as common multiplication factor  subject to the condition that the revised  salary of any employee is in no case will be less than existing basic pay + full DA+IR if any + 50% fitment benefit.

Q. No 10.1 New pension Scheme i.e The retirement benefits of all Central Government employees appointed on or after 1.1.2004 are covered by the New Pension Scheme (NPS). What has been the experience of the NPS in the last decade?
Ans. Withdraw New Pension Scheme for Govt. employees: for following reasons:
       (i) Pension of Govt. employees is a deferred and its absolute entitlement has been confirmed by               Hon. Supreme Court while disposing of D.S.Nakara case.
           
(ii) wage paid out to them during the course of work tenure is kept low by design, to cater for pension.
(iii) He /She forgoes with interest 8.33% of govt. matching contribution to PF.
(iv) Pension is a social security measure & cannot be subjected in anyway to Market risks.
(v) It does not guarantee minimum return & thus lacks the basic fiber of Social Security Scheme
(vi) It is in no way better than the existing Pension  Scheme.
       (vii) It does not provide guaranteed Family Pension to dependents & disabled siblings which exist in present scheme, even in case of spouse & dependent parents where death of the employee occur in early years of service there is no adequate social security.

Q. 10.1.2  i.e.  As for as pre 2004 appointees are concerned, what should be the principles that govern the structure of pension and retirement benefits?

Ans.  1. Keeping in view the Socialistic structure of the country, constitutional provisions & to reduce vast inequality between have & have lots, it is proposed:  The Ratio between maximum & minimum of Pension be brought down to 9:1, ensuring uniformly equal rise in Pension of all pensioners, irrespective of pre- retiral status. By adopting a common multiplication factor for revision of Pension. Subject to the condition that revised Pension shall not in any case be less than 65% & family Pension 45% of the last Pay in Pay Band i.e. Pay in Pay Band+ GP  /Pay scale or of average of last 10 months emoluments (Whichever is more beneficial). Raising of the ratio between minimum & maximum pension to 1:12.85 by 6th CPC, instead of reducing it, was unconstitutional.
7th pay commission is requested to first workout the top most revised pension, divide it by 9 to arrive at the minimum revised pension & then derive a uniform multiplication factor by dividing minimum revised Pension by minimum pre-revised Pension, with the condition that Pension shall not in any case be less than 65% & family Pension 45% of the last Pay in Pay Band i.e. Pay in Pay Band+ GP  /Pay scale or of average of last 10 months emoluments (Whichever is more beneficial) as was worked out & recommended by TECS (Tata Economic Consultancy Services) consultant to Vth CPC (Para 127.9 Vol III 5th CPC report). Also exactly same fitment benefit  & revision formula as given to working employees is allowed to pensioners .

2. One Rank one pension i.e persons retired from same rank, same seniority & equal length of service should get equal pension irrespective of date of retirement = full parity : ‘Justice must be equal for all’, otherwise, it breeds contempt, discontentment, inefficiency, corruption & finally the insurgency. We have seen it happening in Tribal areas of N.E, Chhatishgarh, Jharkand, Orisa, MP etc.
Vast inequality of income and wealth between lowest & the highest paid, violation of Article 14 has already induced contempt, discontent, inefficiency & corruption, in Civil services.
Govt. granted One Rank One Pension (OROP) to Armed forces, Judges granted it to themselves. Even a period of private practice of lawyer judges, to be counted towards qualifying service. Higher Bureaucracy got it through modified parity. All other Central Govt. Pensioners are definitely not the 2nd grade citizens!  One Rank One Pension to all retirees is now a constitutional requirement to ensure equality.

3. Defence Pensioners:  As far as defence pensioners are concerned they do the supreme sacrifice for the country. For them the ratio between highest & lowest paid must not be more than 1:5 and instead of being thrown out at an early age they must be transferred to Paramilitary/Police force after active tenure in armed forces. Otherwise, if these retired army personnel trained in all sort of weaponry are left uncared, they may fall prey to undesirable anti -national outfits. In their case it is also essential that retirees from uniformed cadre & civilian defence Pensioners are treated at Par for all purpose.Civilian in Defence Services’ belongs to Defence Forces and as such their case should be considered under Para 2(b) of the terms of reference of 7th CPC along-with other personnel of the Defence Forces.

4. Dearness relief : 100% neutralization with automatic merger with Pension whenever it goes to 50% : 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. DR does not adequately take care of inflation at this level. 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 automatically merged with Pension whenever it goes to 50%.

5. Additional old age Pension : 5% upward enhancement in pension be granted every five years’  after the age of 60 years & upto 80 years & thereafter as per existing dispensation. As in the present scenario of climatic changes, incidence of pesticides and rising pollution, old age disabilities/diseases set in by the time an employee retires and go on manifesting very fast, needing additional finances to take care of these disabilities and diseases, especially as the cost of health care has gone very high.

6. Pension to be net of Income Tax : The purchase value of pension gets reduced day by day due to continuously high inflation and steep rise in cost of food items and medical facilities. Retired persons/Senior citizens do not enjoy fully public goods and services provided by Government for citizens due to lack of mobility and many other factors. Their ability to pay tax gets reduced from year to year after retirement due to ever-increasing expenditure on food, medicines and other incidentals. Their net worth at year end gets reduced considerably as compared to the beginning of the year. Inflation, for a pensioner is much more than any tax. It erodes the major part of the already inadequate pension. To enable pensioners, at the far end of their lives, to live in minimum comfort and to cater for ever rising cost of living, they may be spared from paying Income Tax.

7. Restoration of commuted value of Pension in 12 years: Commutation value in respect of employee superannuating at the age of 60 years between 1.1.1996 and 31.12.2005 and commuting a portion of pension within a period of one year would be equal to 9.81 years Purchase. After adding thereto a further period of two years for recovery of interest, in terms of observation of Supreme Court in their judgment in writ petitions No 395-61 of 1983 decided in December 1986, it would be reasonable to restore commuted portion of pension in 12 years instead of present 15 years. In case of persons superannuating at the age of 60 years after 31.12.2005 and seeking commutation within a year, numbers of purchase years have been further reduced to 8.194. Also, the mortality rate of 60 plus Indians has considerably reduced ever since Supreme Court judgment in 1986; the life expectancy stands at 76 years now. Therefore, restoration of commuted value of Pension after 12 years is fully justified.

8. The 6th Central Pay Commission’s improved/new benefits, like full pension for 20 years of service/10yrs service etc  have been limited only to post-1.1.2006 retirees.  This is in violation of the letter and spirit of Hon’ble Apex Court judgment in Nakara Case.
We appeal to the 7th CPC to extend the above benefits to all pre-1.1.2006 retirees with monetary benefit from 1.1.2006 to do them equal justice. And that new/improved benefits which 7th CPC may recommend, too be made equally applicable to present & past pensioners

9. Medical facilities: “Health is not a luxury” and “not be the sole possession of a privileged few”. It is a Fundamental Right of all present & past Employees!
To ensure hassle free health care facility to Pensioners/family pensioners, Smart Cards be issued irrespective of departments to all Pensioners and their Dependents for cashless medical facilities across the country. These smart cards should be valid in
• all Govt. hospitals
• all NABH accredited Multi Super Specialty hospitals across the country which have been allotted land at concessional rate or given any aid or concession by the Central or the State govt.
• all CGHS, RELHS & ECHS empanelled hospitals across the country.
• Medical attendants. For reimbursement of bills for treatment & for hospitalization. No referral should be insisted in case of medical emergencies. For the purpose of reference for hospitalization & reimbursement of expenditure thereon in other than emergency cases Doctors/Medical officers working in different Central/State Govt. department dispensaries/health units should be recognized as Authorized medical attendant.
The enjoyment of the highest attainable standard of health is recognized as a fundamental right of all workers in terms of Article 21 read with Article 39 for a 41, 43, 48A and all related Articles as pronounced by the Supreme Court in Consumer Education and Research Center & Others vs Union of India (AIR 1995 Supreme Court 922) The Supreme court has held that the right to health to a worker is an integral facet of meaningful right to life to have not only a meaningful existence but also robust health and vigor. Therefore, the right to health, medical aid to protect the health and vigour of a worker while in service or post retirement is a fundamental right-to make life of a worker meaningful and purposeful with dignity of person. Thus health care is not only a welfare measure but is a Fundamental Right.
We suggest that, all the pensioners, irrespective of pre-retiral class and status, be treated as same category of citizens and the same homogenous group. There should be no class or category based discrimination and all must be provided Health care services at par .

10. Hospital Regulatory Authority: To ensure that the hospitals do not avoid providing reasonable care to smart card holders and other poor citizens. A Hospital Regulatory Authority should be created to bring all NABH-accredited hospitals and NABL-accredited diagnostic Labs under its constant monitoring of quality, rates for different procedures & timely bill payments by Govt. agencies and Insurance companies. CGHS rates may be revised keeping in mind the workability as per market conditions.

11. Fixed Medical allowance (FMA): As is recorded in Para 5 of the minutes of Committee of Secretaries (COS) held on 15.04.2010 (Reference Cabinet Secretariat, Rashtrapati Bhavan No 502/2/3/2010-C.A.V Doc No. CD (C.A.V) 42/2010 Minutes of COS meeting dated 15.4.2010) which discussed enhancement of FMA. “CGHS card estimates for serving Personnel: Since estimates are not available separately for pensioners M/O Health & Family Welfare had assessed the total cost per card p.a. in 2007-2008 = Rs 16435 i.e. Rs.1369 per month for OPD”. Adding to it inflation, the figure today is well over Rs 2000/- PM. Ministry of Labour & Employment, Govt. of India vide its letter no. G-25012/2/2011-SSI dated 07.06.2013 has already enhanced FMA to Rs 2000/- PM for EPFO beneficiaries. Thus, to help elderly pensioners to look after their health, adequate raise in FMA will encourage a good number of pensioners to opt out of OPD facility which will reduce overcrowding in hospitals. OPD through Insurance will cost much more to the Govt. As such the proposal for raising Fixed Medical allowance to Pensioners is fully justified and is financially viable.
We suggest that FMA for all C.G. Pensioners be raised to at least Rs 2000/- PM without any distance restriction linking it to Dearness Relief for automatic further increase. We further suggest that FMA be exempted from INCOME TAX. Fixed Medical Allowance (FMA) is a compensatory allowance to reimburse the medical expenses. As Medical Reimbursement is not taxable, FMA should also be exempted from Income Tax.

12.Grievance redressal Mechanism: Pensioners/Family Pensioners are exploited, harassed and humiliated by their own counterparts in chair, who at the sight of an old person adopt a wooden face and indifferent attitude. Pensioners do not have representation even in Forums & Committees wherein pension policies and connected matters are discussed. The forum of Pension Adalat too is not of much avail as it meets only once a year which is too long a period for an elderly nearer to his end. Moreover, these Adalats deal with settlement claims only. SCOVA too meets only twice a year for about 3 hours at each occasion. Moreover, the scope of SCOVA is limited to feedback on Government policies. DOP&PW is perceived as a toothless authority which lacks direct Service Delivery Capability. It has been striving over the years to redress the Pensioners’ grievances through the ‘Sevottam’ model of the Department of Administrative Reforms & Public grievances; in the absence of strict timeline with punitive clause it is, however, proving to be a failure. Grievances are either not resolved for years or closed arbitrarily without resolving correctly.
We therefore, appeal that for resolving Pensioners complaints ,
 A strict time line with punitive clause be introduced in “Sevottam model”
(ii) Grievances are not allowed to be closed without resolving.
(iii) SCOVA be upgraded to JCM level covering all Pensioners by introducing suitable legislative amendment if required.

 13. Representations in various committees : As recommended vide Vth CPC report Vol III para 141.30 Pensioners’ representatives should be included in various committees & other For a of Govt where issues relating to the welfare of pensioners are likely to be discussed &debated :
Discussing, debating and deciding the matters / Policies relating to Pensioners, with representatives other than those of pensioners, is unfair & against the Rules of ‘Natural Justice’. At present various Committees like National Anomaly Committee (NAC) and JCM (on Pensioner matters), are there, wherein matters / policies relating to pensioners’ welfare are discussed and decided, but they do not have pensioners’ representatives with the result their viewpoints, hardships & anomalies are not properly represented. As pensioners are a homogeneous class, there is an urgent need to constitute separate Committees for pensioners wherein matters / policies / anomalies relating to pensioners of all Groups, categories &departments may be discussed.

14. Govt. should not indirectly pressurize courts by appealing again & again to get judgments reversed in its  favor & must implement all court  judgments  in  case of all similarly placed persons. V CPC recommended in para 126.5 that any Court Judgment involving  a common policy matter of pay/pension to a group of employees/pensioners, should be extended automatically to similarly placed employees/pensioners without driving every affected individual to the Courts of law. This recommendation is never followed by GOI, with the result Pensioners in the evening of their life, are forced to approach the legal forums, seeking  the same relief. This in turn, bulges court dockets. VII CPC to look into this matter once again and to issue suitable guidelines as deem fit and necessary.
With regards

Truly Yours,
sd/
ER..S.C.Maheshwari,
 Secy.Genl.
Bharat Pensioners Samaj

Mob:9868488199