Friday, February 28, 2014

Government approves Rs 1,000 minimum monthly pension under EPS-95 -BPS has been fighting for the cause of EPS 95 Pensioners

NEW DELHI:28.02.2014: Government approved the proposal to ensure Rs 1,000 minimum monthly pension under a scheme of retirement fund body EPFO that would immediately benefit 28 lakh pensioners. 

The decision to provide the entitlement under Employees' Pension Scheme-95, run by the Employees' Provident Fund Organisation, was taken by the Union Cabinet in its meeting held here. 

The move will immediately benefit about 28 lakh pensioners including five lakh widows. There are 44 lakh pensioners. .. 

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.1.2014

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.1.2014
The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2014, in cash, but not before the disbursement of the salary for the month of March 2014 at the rate of 10 percent increase over the existing rate of 90 percent.

Hence, Central Government employees as well as pensioners are entitled for DA/DR at the rate of 100 percent of the basic with effect from 01.01.2014. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs. 11074.80 crore per annum and Rs. 12920.60 crore in the financial year 2014-15 ( i.e. for a period of 14 months from January 2014 to February 2015).



7th Central Pay Commission

7th Central Pay Commission
            The Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC) as follows:-

a)      To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

                         i.                   Central Government employees-industrial and non-industrial;
                       ii.                    Personnel belonging to the All India Services;
                     iii.                    Personnel of the Union Territories;
                     iv.                   Officers  and   employees   of  the   Indian  Audit  and   Accounts Department;
                       v.                   Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and
                     vi.                    Officers and employees of the Supreme Court.

b)      To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c)      To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d)     To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

e)      To review the variety of existing    allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account.

f)       To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g)      To make recommendations on the above, keeping in view:

i.                     the economic conditions in the country  and need for fiscal prudence;
ii.                    the need to ensure that adequate resources are available for developmental expenditures and welfare measures;
iii.                  the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications;
iv.                  the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and
v.                    the best global practices and their adaptability and relevance in Indian conditions.

h)      To recommend the date of effect of its recommendations on all the above.
The Commission will make its recommendations within 18 months of the date of its constitution.  It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission.


            Central Pay Commissions are periodically constituted to go into various issues of emoluments’ structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.


Tuesday, February 25, 2014


50% DA Merger and Interim Relief – Cabinet is likely to clear some of them demands.

This week may bring cheer to central Govt.  Pensioners

Central Govt.  Pensioners are likely to find reasons to celebrate this week. The union cabinet is likely to clear our long awaited demand in its last meeting

Monday, February 17, 2014

Is it really OROP applicable to all pre & post 2006 retirees?

If it is really One Rank One Pension applicable to all pre & post 2006 Pensioners as was being demanded & supported by Bharat Pensioners Samaj- BPS welcomes it! But Prospective implementation & allocation of just 500 crores for 22.5lac defence pensioners throws doubt especially in view of what Wg Cdr ( Retd) V. S. Tomar has to say-Read on:

Para 56 of the Buget speech:
One Rank One Pension

56.       Hon’ble Members are aware of the long standing demand of the Defence Services for One Rank One Pension (OROP).  It is an emotive issue, it has legal implications, and it has to be handled with great sensitivity.   During the tenure of the UPA Governments, changes in the pension rules applicable to the defence services were notified on three occasions in 2006, 2010 and 2013.  As a result, the gap between pre-2006 retirees and post-2006 retirees has been closed in four ranks (subject to some anomalies that are being addressed): Havildar, Naib Subedar, Subedar and Subedar Major.  There is still a small gap in the ranks of Sepoy and Naik and a gap in the ranks of Major and above.  We need a young fighting force, we need young jawans, and we need young officers.  We also need to take care of those who served in the defence forces only for a limited number of years.  Government has therefore decided to walk the last mile and close the gap for all retirees in all ranks.  I am happy to announce that Government has accepted the principle of One Rank One Pension for the defence forces.  This decision will be implemented prospectively from the financial year 2014-15.  The requirement for 2014-15 is estimated at `500 crore and, as an earnest of the UPA Government’s commitment, I propose to transfer a sum of `500 crore to the Defence Pension Account in the current financial year itself.

by Wg Cdr ( Retd) V. S. Tomar

Finance Minister P. Chidambaram has announced partial acceptance of One Rank, One Pension. But the modalities of implementing the same have not been elaborated. It is pertinent to explain the meaning of One Rank, One Pension to understand the long standing demand of the armed forces personnel.
“ Simply put, One Rank, One Pension means that two retired soldiers having same rank and same length of service should get same pension irrespective of their date of retirement.” Till the Fifth Pay Commission, full pension — 50 per cent of the emoluments last drawn — was linked to completion of 33 years of service including the weightage. However, in the Sixth Pay Commission, those retiring on or after January 1, 2006 did not have to complete 33 years of service to get the pension.
But people who had retired before 2006, the pension was still linked to completion of 33 years of service through a government order of November 11, 2008.” “ In the case of D. S. Nakara, decided in 1982 by a five- judge Constitution bench of the Supreme Court, it was held that the pensioners form one class irrespective of their date of retirement and any liberalisation or improvement in the calculation of pension has to be extended to all pensioners. This was followed in various decisions of the Supreme Court leading up to the issue being decided in the case of Major General ( retd) SPS Vains, which was settled on September 9, 2008.” “ I challenged the government letter of November 2011 in the Armed Forces Tribunal, Delhi, which decided in my favour.
The court ruled that para 5 of the government letter, dated November 11, was unconstitutional as it directed the government to extend the benefit to me and other applicants of full pension by applying the same method of calculation as is being applied to post- 2006 retirees.” “ This announcement of OROP is nothing but modified parity which meant that the past pensioners ( pre- 2006 retirees) will get minimum of the full pension which is applicable to post- 2006 retirees irrespective of their length of service.” The writer has been fighting a legal battle in the matter

Sunday, February 16, 2014

Rahul joins ex-servicemen’s ‘one rank, one pension’ battle

SOLID SUPPORT Congress vice president promises to take up the issue ‘forcefully’ with government, may even speak to Prime Minister Manmohan Singh

NEW DELHI: The UPA-2 government may give in to a long-standing demand of soldiers for ‘one rank, one pension’ (OROP), with Congress vice president Rahul Gandhi firmly backing the proposal and raising the hopes of around 3 million defence pensioners.
Gandhi met several ex-servicemen delegations on Friday and told them he was sensitive to their demand and would take it up with the government forcefully. HT was first to report that he was pushing hard to get the OROP implemented. It is learnt Gandhi may raise the issue with the PM soon.
“I am on your side. I will do all that I can to see that your demands are met,” Gandhi told the veterans.
The OROP will ensure that soldiers of the same rank and the same duration of service receive the same pension, irrespective of their retirement date. “It should be effective from 2006, the year the 6th pay panel report was implemented,” said 85-year-old Brig SP Sibal (retd), who turned up for the meeting after reading the HT report on the issue.
Gandhi’s interventions have produced results, be it raising the cap on LPG cylinders from nine to 12 or junking a controversial ordinance shielding convicted lawmakers.
All pre-2006 retirees receive lesser pension than not only their counterparts but also their juniors. A major general who retired in 1995 draws a basic pension of ` 30,350, but a colonel who retired after 2006 gets ` 34,000.
Successive governments have made assurances to remove disparities, but none have put their money where their mouth is. Implementation of the pension scheme is estimated to cost ` 2,000 crore every year.
“It’s a step in the right direction, though belated. The PM should make a statement in Parliament on implementing the OROP,” said Maj Gen Satbir Singh (retd).

Monday, February 10, 2014

Disabled ex- servicemen get breather from Antony

By Gaurav C. Sawant in New Delhi
IN THE face of massive outrage, Defence Minister A. K. Antony has been forced to withdraw a controversial Ministry of Defence ( MoD) ruling that ex- servicemen and disabled soldiers who take the ministry to court over disability pension matters should be challenged all the way to the Supreme Court.
On January 2, 2014, the department of ex- servicemen welfare issued a ‘ New Year’ memo. H EADLINES T ODAY accessed the Memo that said, “ The department will appeal automatically since reference to legal opinion is time consuming and involves a lot of paper work.” The veterans who fought and won wars at the Line of Control, appeared to be fighting a losing battle against the bureaucracy in the MoD. Ex- servicemen were up in arms about MoD’s heartless and desperate effort to “ tire them out” in the autumn of their lives. “ Soldiers who fought for the country and bled for the country were being forced to sweat it out in a superior court, despite winning cases for enhanced pension in the Armed Forces Tribunal ( AFT). Not many disabled soldiers or veterans can afford to keep fighting from the AFT to High Court to the Supreme Court, and so many gave up disgusted,” said lawyer and activist Major ( retd) Navdeep Singh.
MoD initially defended the order saying the intension was to simplify the process of decision- making and avoid delays.
However, several veterans were ready to challenge the bizarre order legally.
In a letter to Antony, MP Rajiv Chandrashekhar had written, “ This order smacks of callousness and high- handedness on the part of the government... The order will aggravate the misery of those who have lost their limbs or eyesight or sustained any other grievous harm in the service of the nation.”

Thursday, February 6, 2014

Tuesday, February 4, 2014

7th Pay Commission announced

Prime Minister Approves Composition of 7th Central Pay Commission Under the Chairmanship of Justice Ashok Kumar Mathur, Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal

The Finance Minister Shri P. Chidambaram has issued the following statement:

            “The Prime Minister has approved the composition of the 7th Central Pay Commission as follows:

1.         Shri Justice Ashok Kumar Mathur                            -                          Chairman           
            (Retired Judge of the Supreme Court and Retired
            Chairman, Armed Forces Tribunal)

2.         Shri Vivek Rae                                                             -                          Member (Full Time)
            (Secretary, Petroleum & Natural Gas)

3.         Dr. Rathin Roy                                                             -                          Member (Part Time)
            (Director, NIPFP)

4.         Smt. Meena Agarwal                                                   -                          Secretary
            (OSD, Department of Expenditure,
            Ministry of Finance)”



(Release ID :102978)

Saturday, February 1, 2014

Expected DA/DR w.e.f 01.01.014

Expected DA/DR wef 01.01.014 = 100% i.e. 10% rise

The dichotomy in the approach of the Govt.

2.It is also strange, that the "MATTER BEING SIMILAR", THE LAW MINISTRY HAVE ADVISED THEM TO GO FOR FILING A CURATIVE PETITION. What does this mean?...Delay- wasting Court time.....
3.The HSC must be pointed out the dichotomy and the deliberate mischievous attempt to drag on to implement JUSTICE.....on one side SLPs are being filed on "MATTER OF SIMILAR NATURE" to encroach upon the valuable time of the court and on the other hand , even if they fail to succeed on this attempt, they want to go for  CURATIVE petition on the RP already dismissed on 12 Nov 2013>.. no law point.....