DISPARITY IN PENSION FIXATION FOR PRE-2006 PENSIONERS-VIEWS & CMMENTS ARE INVITED ON THE FOLLOWING DRAFT REPRESENTAION_BY SH> NSR

                                 DISPARITY  IN PENSION FIXATION FOR PRE-2006 PENSIONERS

        The 6^th CPC like previous Central Pay Commissions made separate recommendations for  Revision of pension of the past pensioners without linking it with the pension that would be admissible to a Govt. servant of the corresponding level, vide its Report submitted on 24.3.2008.

        The significant features of 6^th CPC includes introduction of concept of clubbing of all the 32 pre-revised  pay scales in pay bands called 1S, PB-1, PB-2, PB-3 and PB-4, mainly to avoid any scale based anomaly.

        The remaining (apex) scales S-33 and Scale S-34 were not part of any pay band, and persons entitled to such scales were recommended to be given Rs.80,000/- (fixed) per month and Rs.90,000/- (fixed) per month, respectively.

         The Dept. of Expenditure while accepting the recommendations subject to certain modifications  vide Resolution dated 29.8.2008 and one of the modification is improved and modified Pay Bands PB-1, PB-2 and PB-4.   The pay scales S-24, S-25, S-26 and S-27 which were recommended to be clubbed in the pay band-3 were kept by Govt. in Pay Band-4.  Hence, the pay scales from S-24 to S-30 were kept in PB-4.  (Modification -1)

        Similarly, in addition to the clubbing and merger of pay scales in the pay bands, 6^th CPC has also recommended a fixed grade pay for each of the pay scale, but some of the grade pays so recommended were later undergone modification by the Govt. of India vide Resolution dated 29.08.2008  (Modification-2)

       The grade pay corresponding to   scales upto S-20 amounts to 40% of maximum of respective pre-revised scale and, for grade pay corresponding to scales  S-21 onwards, it was 45% of maximum of respective pre-revised scale.

      Further, while accepting the 6^th CPC recommendations, as against inclusion of pre-revised S-31 and S-32 pay scales in the Pay Band-4, the said scales   were given separate revised pay scale of Rs.75500-80000. Accordingly, the grade pay attached to those scales became null and void. (Modification-3).

      Even beyond the recommendations of 6^th CPC and accepted, notified recommendation through Resolution dated 29.8.2008 regarding placement of S-30 in Pay Band-4, vide subsequent Notification dated 16.7.2009 amending the CCS (RP) Rules, 2008, the pre-revised S-30 pay scale was given a separate pay scale of Rs.67000-79000. (Modification-4).

      Though the aforesaid modifications may have its own right justification, in the case of pre-2006 pensioners retired from S-4 onwards upto S-29, the manner and methodology followed while revising the basic pension of pre-2006 pensioners w.e.f. 1.1.2006. were not uniform, and thereby  disparity in fixation of basic pension amount took place.

      As there  there are   separate recommendations for  Revision of pension of the past pensioners without linking it with the pension that would be admissible to a Govt. servant of the corresponding level, the pre-2006 pensioners were treated as a single homogenous class as far as revision of their basic pension vide DOP&PW O.M. dated 1.9.2008.  The said O.M. vide para 4.1 prescribed a uniform multiplication factor of 2.26 over the pre-revised basic pension w.e.f. 1.1.2006.

       Further, in line with the principles of modified parity as envisaged in para 5.1.47 of 6^th CPC Report, the DOP&PW vide para 4.2 of OM dated 1.9.2008 prescribed that the revised pension under para 4.1, shall in no case be lesser than 50% of minimum of the pay in the pay band and grade pay corresponding to pre-revised scale from which the pensioner had retired.  The subsequent OM dated 28.1.2013 also has reiterated that in case the revised pension under para 4.1 and 4.2 of OM dated 1.9.2008 is lesser than the sum of the 50% of the minimum of the pay in the pay band and grade pay corresponding to pre-revised scale from which the pensioner had retired, then the same will be stepped upto such sum.

       Though the revision of pay from 1.1.2006 pertains to serving employees as on 1.1.2006 or afterwards, by virtue of para 4.2 of OM dated 1.9.2008, the minimum of the pay in the pay band has a role to play to the extent of its 50%, and with 50% of Grade Pay both  constitutes guaranteed revised pension w.e.f. 1.1.2006. 

       While prescribing Pay in the Pay Band corresponding to pre-revised scale bottom, application of varying multiplication factors were kept involved, (so the 50% of the said minimum of the pay in the pay band too will have the impact thereof) as shown in the attachment which is self-explanatory.  Similarly, the scale based revision involved application of 3/3+ Multiplication factor over 50% of bottom stage of pre-revised scale from which the pensioner had retired.

       While the Govt. has modified the recommendations of 6^th CPC on various stages while implementing, it has failed to ensure that the manner and methodology to derive guaranteed basic pension for pre-2006 pensioners, while prescribing minimum of the pay in the pay band corresponding to pre-revised scale  w.e.f. 1.1.2006 for all the pre-2006 retirees uniformly through single multiplication factor, as has been in the case of revision of pension under para 4.1 of OM dated 1.9.2008 (involvement of MF of 2.26 for all pre-2006 pensioners).  The said Act is against Article 14 of the Constitution and in variation from the D.S. Nakara case spirit.

       In order to ensure uniform treatment among single homogenous class of pre-2006 pensioners w.e.f. 1.1.2006 during revision of pension, it is requested that on par with the scale based retirees, (i.e. those retired from S-30, S-31, S-32 prior to 1.1.2006), a uniform multiplication factor of at least 3 may get applied over 50% of bottom stage of pre-revised scale from which the pensioner had retired, for deriving guaranteed revised pension w.e.f. 1.1.2006.