Bharat Pensioners Samaj reply to 7th CPC questionnaire-Revised draft
Ms Meena Agarwal
Secretary GOI
Seventh Central Pay Commission
Post Box No 4599 Hause Khas
P.O. New Delhi -110016
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 500 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.
The Ratio between maximum & minimum 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 therefore 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
existing Salary first. Divide the revised maximum Salary by 9 to arrive at the
revised minimum Salary. Divide the revised minimum salary by existing salary.
The factor so arrived may be adopted as common multiplication factor.
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 following reasons:
(i) Pension of Govt.
employees is a deferred wage. Since wage paid out to them
during the course of
work tenure is kept low by design, to cater for pension. (ii) He/She forgoes
with interest 8.33% of govt. matching contribution to PF.
(iii) Pension is a
social security measure & cannot be subjected in any way to Market risks
(iii) It does not
guarantee minimum return & thus lacks the basic fiber of Social Security
Scheme (iv). It is in no way better than the existing Pension Scheme .
(v)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 common
multiplication factor for revision of Pension, raising the ratio between minimum & maximum pension to 1:12.85 by 6thCPC , 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)
2.One
Rank one pension i.e 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. employees & 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.
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(c), 41, 43, 48A and all related Articles as
pronounced by the Supreme Court in Consumer Education and Research Centre
& 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 vigour. 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 ,
(i) 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 Fora 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
homogenous 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,
ER.S.C.Maheshwari
Secy.Genl. Bharat Pensioners Samaj
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