BHARAT CENTRAL PENSIONERS CONFEDERATION replies to 7th CPC questionnaire
BHARAT CENTRAL PENSIONERS CONFEDERATION,
NEW DELHI
Camp: 13-C, Ferozshah Road, New Delhi 110
001.
Phone: 9868244035
Dated:
10th May, 2014.
To Ms. Meena Agarwal,
Secretary,
7th Central Pay
Commission,
Post Box No.4599
Hauz Khas PO
New Delhi.
Madam,
Please find
enclosed herewith the reply to the questionnaire item No. 10 relating to
Pension. This is for kind consideration
of the Commission.
Thanking you
Yours
faithfully,
(S.K.
Vyas)
Secretary
General
BHARAT
CENTRAL PENSIONERS CONFEDERATION, NEW DELHI
REPLY TO ITEM NO. 10 OF
VII-CPC QUESTIONNAIRE
Ms. Meena Agarwal, Secretary VII-CPC vide her DO letter No.
VII-CPC/15/questionnaire dated 9th April, 2013 has sought considered
views of all stake holders on the questionnaire of the VII-CPC.
Item 10 of the said questionnaire relates to Pension. Bharat Central Pensioners Confederation, New
Delhi, Apex organisations of Federations/all India Central Government Pensioners
Associations submits the reply there to for the consideration of the VII-CPC.
10-PENSION
Question No. 10.1: The retirement benefits of all Central Government Employees
appointed on or after 1.1.2004 are covered by the New Pension Scheme
(NPC). What has been the experience of
the NPS in the last decade?
Reply: The NPS envisaged one or more Central Record Keeping Agency (CRA)
to maintain records, accounts and effect all instructions regarding
subscription, switching of options and withdrawal by the subscriber. It is also possible that subscribers may
access CRA for any information.
It was therefore expected that the CRA would be set up right from
the inception of the NPS scheme i.e. from 1.1.2004 and maintain records and
accounts of all subscribers. This was
not done. The CRA has been set up after
a considerably delay of more than 3 years.
This has resulted in late opening of Subscribers account causing loss of
interest on contributions. The interest
has been credited in the accounts from the date of opening of these accounts by
the CRA. It has also been learnt that
Central/State Governments also took time in transferring these accounts to the CRA. Some state Governments have transferred only
the contributions recovered from the subscribers and not the matching
contribution from the Government. Due to
these reasons there will be loss of interest to the subscribers during the
period for which the accounts were not opened.
As per the an article in Economics Times dated 29.4.2014 more than
28lakhs Central & State Government Employees who joined service on or after
Ist January 2004 have compulsorily invested in the NPS. Their retirement savings account for 93% of
total NPS corpus roughly 45000 crores.
This huge saving has not been invested right from the 2004-2009 as
because the promoters have been appointed only in the year 2009-10 leading to
this corpus lying idle.
As per this article the following has been performance of these NPS
funds which was obviously the worst ever performance by such funds.
Year Central
Govt. Workers State
Govt. Workers
2010-11 6.91% 7.91%
2011-12 7.28% 8.04%
2012-13 11.24% 11.82%
2013-14 5.37% 4.95%
Since launch 7.55% 7.87%
It has also been learnt that some subscribers have already retired
or died and they have been granted statutory benefit under CCS(Pension)Rules
1965 because of the fact that wealth accrued in their account is quite
insufficient.
The NPS has created a class within the class among Central/State
Government employees which is discriminatory and therefore, impermissible. It is violative of the dictum pronounced by
the Supreme Court in their landmark decision in Nakra vs. Union of India, as
such this NPS deserves to be rescinded.
In the considered opinion of the Pensioners fraternity the NPS must
be scapped and all those who are now covered by NPS should be brought back to
be covered by statutory pension scheme.
VI_-CPC had asked the Centre for Economic Studies and Policies,
Institute for Social & Ecnomic Change, Bangalore to conduct a study and to
suggest various options by which the pension liability can be contained in
future and device suitable and self-sustaining models for financing the pension
of the Central Govt. Employees, the final objective being that the funds are so
devised as are able to meet substantially the entire pension liability of the
Government. In other words Government
wanted complete privatisation of pension by covering all Central Government
employees including Defence personnel under suitable schemes on the pattern of
NPS. The concluding recommendation of
the above study is as under:
“Mainly given the fact that the future liability for pension
although may be large in terms of absolute size is not likely to last very long
and does not constitute an alarmingly big share of GDP which is also on decline. It appears that pursuing the existing PAY AS YOU GO to meet the liability would be
an ideal solution”.
The PAY AS YOU GO system i.e. statutory pension is therefore also an
ideal solution for those who have now been covered under NPS.
The Supreme Court has held that the right of a civil servant to
receive pension is a property within the meaning of article 31(1) and articles
19(1)(g) of the Constitution of India.
Therefore, any order/scheme which denies the civil servant the right to
receive the pension affects his fundamental rights. In the light of the above ruling the NPS is ultra-virus and has
to be scrapped.
Question No. 10.2: As far as
pre 1.1.2004 appointee are concerned, what should be the structure of pension and
other retirement benefits?
a)
The Scheme of one rank one
pension in respect of defence personnel i.e. persons retired from same rank,
same seniority and equal length of service should get equal pension
irrespective of date of their retirement, having been ensured in respect of Defence
Personnel (Army, Navy, Air force) , the principle of full parity in pension of
civilians which had been enunciated by the V-CPC and implemented upto 4th
CPC has to be ensured by the VII-CPC.
b)
In order that pension is
adequate, the minimum pension should 65% of minimum pay and not 50% thereof.
c)
Supreme Court had ruled that
pension should be adequate to enable pensioners to live: free from want, with
decency, independence and self-respect; and at a standard equivalent at the
pre-retirement level. Therefore, the
pension should be 65% of basis pay + DA last drawn.
d)
Dearness Relief @ 100
neutralisation of increase in cost of living with its automatic merger whenever
it cross 50% mark.
e)
Additional Pension. Recognising that with
advancing age anyone is gradually crippled and becomes more susceptible to
decease etc. Therefore, after
superannuation on attaining the age of 60 years the pension should be enhanced
after each five years as under:
65 years @
10% of the basic pension
70 7ears @
20% -do-
75 years @
30% -do-
80 years @
50% -do-
85 Years @
70 % -do
90 years @
100% -do
f)
Pension should be net of Income
Tax.
g)
Restoration of commuted value
of pension should be after 12 years and not
after 15 years applicable to commutation as per old Tables existing upto
2008.
h)
Full pension after 20 years of
service has to be extended also to the Pensioners who retired before 1.1.2006.
i)
Grievance procedure should be
on the lines as under:
a)
Resolution of Pensioners
Grievances should be ensured within a specified time frame.
b)
SCOVA be upgraded to JCM level
c) Benefits of judicial decisions should be extended to all similarly circumstanced pensioners
J) Medical
Facilities:
The following land mark judgements of the Supreme Court have held
that the enjoyment of highest attainable standard of health is recognised as a
fundamental rightsof all workers/pensioners in terms of aAticles 21 read with Articles
39,41,43 and 48 of the constitution.
a) Consumer education and Reserch Centre and others vs. Union of India
(AIR 1995 Supreme Court 922)
b)
Laxman Thammappa Kotgiri Vs.
General Manager, Central Railway & Ors (2005 (1) SCALE.
c)
Indian Medical Council vs. VP
Shantha & ors. 1995 (6) SCC651.
A.
Therefore, smart card may be
issued to all pensioners of all Departments and their dependents to avail cash
less, hussle free health care both indoor as well as outdoor across the country
in-
a)
All Govt. Hospitals and
Dispensaries,
b)
All NABH accredited multi super speciality
Hospitals which has been allotted land on concessional rates or given any otheraid/ concession by Govt.
c)
And All CGHS, RELHS and ECHS empanelled
Hospitals.
A.
All Pensioners irrespective of
pre-retrial class or status be treated equally in all matters like ward
entitlements etc.
B.
Fixed Medical allowance should
2500 p.m. plus dearness relief thereon.
C.
Hospital Regulatory Authority
may be set up to bring all NABH hospitals or diagonistic centres under its
constant monitoring of quality, rates etc. CGHS rates may also be revisd as per
market trend.
D.
Extension of CSMA Rules 1944 to
pensioners residing outside CGHS area.
E.
Extension of minimum pension to
EPS 95 pensioners, SRPF/CPF pensioners.
F.
Revise pension from 1.1.2014
and thereafter every 5 years.
G.
Gratuity should be based on
total length of service @ one month emoluments for every completed service year/part
thereof.
H.
Family pension should be at the
rate of 50% of the pay + DA last drawn.
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