BPS draft Memorandum to 7th CPC for Suggestions/comments
BPS draft Memorandum
As Pension is not
independent of Salary. Salary structure also, is a matter of concern to
pensioners as such following points enunciated here-under may kindly be
considered while arriving at the maximum & minimum revised Salary
1.
Salary Structure:
Any Commission which
considers the question of emoluments for employees/workers should first be
inspired by the Amendment in the preamble of our Constitution where-by the
words “socialist & secular” were prefixed to the word “Republic”, as also
the Directive Principles of State Policy enshrined in Article 43 i.e. the state
should endeavor to secure living wage for its employees/workers.
The commission may
consider that Group C employee is a skilled worker. MTS is the lowest category of Group C. The 6th CPC
evolved the MTS by amalgamating some of the unskilled, semi-skilled and skilled
functions without any scientific basis or logic. From the standpoint of the
stipulation in the recruitment rules, eligibility criteria etc, MTS deserves to
be categorized as a skilled worker. In practice, most of the departments have
outsourced or contractorised the unskilled or semi skilled jobs leaving the MTS
to cater to the requirements of the skilled functions.
Wage structure in civil service is to be
determined on the basis of the computation of the minimum wage; fair comparison
of wages elsewhere, growth in the economy etc. The living wage, which is a
constitutional guarantee, has not been defined. The 15th Indian Labour
Conference held in 1957 brought in the concept of “Need Based Minimum wage” on
the basis of Dr. Aykhroid formula. The need based minimum wage is required to
be provided for an unskilled worker whenever one is employed. The definition
underwent minor changes, when the Supreme Court revised the norms later.
Presently there are no unskilled regular
employees’ cadre in Government of India services. The Commission is required to
first determine the need based minimum wage as per the Dr. Aykhroid formula and
make necessary adjustment to determine the wages of MTS which is the lowest
category in Government of India services. The co-relation of the wages of the
skilled and unskilled worker at the lowest grade had always been of the order
of 130% for the skilled worker. The minimum of the pay of the MTS/SS has
therefore to be determined at 130% of the need based minimum wage.
The minimum maximum ratio obtaining in different
countries as per information gathered by V CPC was as under:
Malaysia - 1:3
Sweden 1:4
USA - 1:4
Britain - 1:6
France - 1:6.6
Indonesia - 1:6.9
Australia - 1:7.7
Thailand - 1:9
Considering
the importance of disparity in ratio between the minimum and maximum pay the
Fourth Central Pay Commission opined (Para 7.58) that an effort should be made
not only to reduce the number of pay scales, but also to reduce the disparity
between minimum and maximum scales of pay. The Fifth CPC had retained the
minimum: maximum salary ratio of 1:10.7 inherent in the Fourth CPC pay scales
even though the ratio had become 1:8 in 1996 on account of unequal rates of
Dearness Allowance neutralization where the highest category was allowed
neutralization at 65%.
Hence, in order to reduce vast
inequality between income & wealth of haves & have lots , the ratio
between the minimum & maximum Salary should be brought back to 1:8. (Taking the salary of Cabinet
Secretary to be the maximum salary)
Retirement Benefits
1.
Pension
1.1
New pension Scheme: The retirement benefits
of all Central Government employees appointed on or after 1.1.2004 are covered
by the New Pension Scheme (NPS). Bharat Pensioners Samaj pleads for Withdrawal of New Pension Scheme
for Govt. employees: On 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.
(viii)The New pension scheme has in fact created a class within class
amongst the Central Government employees which is discriminatory and
impermissible. It is clearly in contravention of the dictum pronounced by the
Constitution Bench of the Supreme Court in Nakara Vs Union of India and
therefore deserves to be rescinded.
1.2 Pension For pre
2004 appointees
1.Pension should 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).Esuring that,
(i) the inequality created
by different multiplication factors
adopted in arriving at Pay Bands/ Pay Scales by 6th CPC and by the
govt; while implementing the 6th cpc recommendations, is rectified.
(ii) exactly same fitment benefit & revision formula as given to working
employees is allowed to pensioners
(iii)Equal % rise in pension
of all pensioners is given irrespective of pre retiral status by, adopting uniform multiplication
factor.
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, is 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.
Therefore, the concept of modified parity
introduced by the 5th CPC as a measure to reduce the financial implication must
be replaced with the full parity concept as was made applicable for the
personnel retired prior to 1.1.1986. In other words, the pay of every retired person must be re-determined
notionally (corresponding to the post from which he/she retired
& not corresponding to the scale from which rtired)as if he/she is not
retired and then his pension to be computed under the revised rules. This alone
will protect the value of pension of a retired person & ensure justice.
3. Injustice to those born on 1.1.1996/1938/1928
The modified FR56(a), requires
every one whose date of birth is the first of a month to retire from service on
the afternoon of the last day of the preceding month on attaining the age of
superannuation .As a result of this modification pensioners
born on 1.1.1946/1938/1928 are deprived of all the central pay commission
benefits in terms of pay revisions & Pensionary benefits owing to
their retirements on31.12.2005/1955/1985.
This proviso singled out the Ist Jan.
1946/1938/1928-born pensioners for deprivation of the Pay
Commission benefits. Such of the pensioners are made to suffer for no
fault of theirs and are deprived of EQUALITY of status and of opportunity. This violation of
Article 14 of constitution need to be set right immediately.
4.
Defence Civil Pensioners: Civilian in Defence Services’ belongs to
Defense Forces are paid from defence budget and are also accorded Rank equivalency
as such they may be classified as ex servicemen and their case may be
considered under Para 2(b) of the terms of reference of 7th CPC along-with
other personnel of the Defense Forces.
5. Enhanced
Pension to spouse: The advantage of enhanced family
Pension for a period of 10 years (as provided vide para 5.1.42 of 6th
CPC Report) may please be extended to all cases .
6. Disability
Pension: In the case of 100% disability where the
pensioner/family pensioner is completely dependent on somebody else for day to
day functions, provision for Constant
Attendant incase of disability arising post retirement, it is requested that an
allowance may be granted on the lines as existing in Defence Forces under the
CCS(Extraordinary) Pension Rules, 1939
7.
Dearness relief :
a)
100% neutralization of Price Rise; and
b)
Automatic merger of DA with Pension whenever it goes to 50%
Pension of Central
Government Pensioners undergoes revision only once in 10 years during which
period the pension structure gets seriously dis-aligned; 50% increase in prices
takes place even in less than 5 years. This results in considerable
erosion of the financial position of the pensioners. DR does not adequately
take care of inflation at this level. As such, DR may please be automatically
merged with Pension whenever it goes to 50%.
8.
Additional Pension / Family Pension:
Sixth Pay Commission had recommended
additional Pension of 20, 30, 40, 50
and 100 % for retirees and
family pensioners on attaining the age of 80,
85, 90, 95 and 100
years respectively. However, 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. Recommendation of
Sixth Pay Commission for grant of 100% additional Pension after 100 years of
age was rather illusionary in view
of chances of survival up to or beyond
age of 100 years being rare.
It is therefore requested that 10%
Additional Pension should be granted every 5 years from the age of 65 to 75
years & thereafter 20% every 5 years from 80 years onwards and 100% after
90 years of age.
9. Pension and Dearness Relief 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 on Pension and the DR – as recommended by 5th Pay
Commission.
10. Death-cum- Retirement
Gratuity (DCRG):
Death-cum- Retirement Gratuity (DCRG may please be paid @ one month
for every completed year of (actual) service - without limit of maximum 33 yrs
and without ceiling of Maximum Rs.10.00 lakh
h) Hon’ble Supreme Court of India
pronounced the judgment in the case of Jeewan Lal vs. Appellate Authority {
1984 SCC (L&S) 753} that for the payment of gratuity in the case of a
monthly rated employee, the fifteen days wages shall be calculated by dividing
the monthly rate of wages last drawn by him by twenty-six and multiplying the
quotient by fifteen. Subsequent to the above decision of the Supreme Court an
explanation has been added after second proviso to Section 4(2) of the Payment
of Gratuity Act, by Act of 1987 (w.e.f. 01.10.1987), which reads as under:
“Explanation – In
the case of a monthly rated employee, the fifteen days wages shall be
calculated by dividing the monthly rate of wages last drawn by him by
twenty-six and multiplying the quotient by fifteen.”
Whereas, Rule 50 of CCS (Pension) Rules, 1972 states
that retirement gratuity equal to one – fourth of his emoluments for each
completed six monthly period of qualifying service subject to a maximum of 16½
times the emoluments will be paid and emoluments means basic pay as defined in
Rule 9(21)(a)(i) of the Fundamental Rules which a Govt servant was receiving
immediately before his retirement or on the date of his death; and in addition
DA admissible on the date of retirement/ death of the Govt. employee shall also
be treated as emoluments. Hence, we demand that CCS (Pension) Rules, 1972
should be amended as under:-
“Emoluments-
Fifteen days wages shall be calculated by dividing the pay in pay band plus
grade pay last drawn by him by twenty six and multiplying the quotient by
fifteen and in addition DA admissible on the date of retirement/death of Govt
employee will be added”
11.(a) Restoration of
commuted value of Pension with respect to Central Govt Pensioners other than
PSU absorbee Pensioners:
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.
11.(b)
Restoration of Commuted value of Pension with respect to PSU absorbees:
It
is stated that Commutation is an advance sanctioned to
a pensioner at a specific rate of interest applicable at the time of sanction
and is recoverable from his pension in regular monthly installments. Thus the
recovery must stop the day total amount with specified interest is recovered
& the excess if any recovered must be refunded with interest. Presently for
pensioners other than PSU absorbees, this period is specified to be 15 years
which too is longer. Whereas, in case of PSU absorbees recovery continues
till survival which is unfair & discriminatory. Thus need to be taken care
of. In their case also full 100% pension should be restored the day sanctioned
amount of commutation with specified
rate of interest is fully recovered. The
honorable Pay Commission therefore, is requested to give specific
recommendation in this regard.
12 (C).Refund Excess Recovery of Commuted Pension by
the Govt
As per extant
rules, commuted pension is restored after 15 years after the Govt makes
full recovery of the commuted amount with interest. This period of 15
years is arbitrary, hypothetical and without any mathematical basis.
Calculations show that the recovery with interest exceeds the amount of Commutation.
Retirees
between 1986 and 1995
The age of retirement during the period, was
58 years. This category of retirees have all completed the prescribed period of
15 years for restoration of pension. Since 1.3.1971 and until 31.12.2005,
the Commutation Factor (CF) was 10.46 for the 59 year old (age next birth
day) retirees and the officially prescribed rate of interest was 4.75%
p.a. Commutation allowed was 1/3rd of the basic pay.
For example, the
basic pension of Secretaries
who superannuated between 1.1.86 and 31.12.95 at the top of their pay
scale (Rs. 8,000) was fixed at Rs.4,000 and the commuted portion of
their pension was Rs.1,67,318 with a deduction of Rs.1,333 per month. The
principal amount of Rs. 1,67,318 was fully recovered in 10.46 years [10.46 x 12
x 1333 = 1,67,318].
·
If we consider the prescribed interest rate of 4.75% p.a. as
simple interest, the total interest works out to Rs.36,250. This is recoverable
in 2.27 years [36250/1333 = 27.2 months or 2.27 years]. Thus, total recovery
period of the commuted amount works out to 10.46 + 2.27 = 12.73 years. Even after full recovery,
the pensioner kept on paying for 15 – 12.73 = 2.27 years. Thus, excess recovery
= 2.27 x 12 x 1333 = Rs.36,311.
·
If we consider the prescribed interest rate of 4.75% p.a. as
compound interest, the total interest works out to Rs.54,750. This is recoverable
in 3.42 years [54750/1333 = 41.07 months or 3.42 years]. Thus, total recovery
period of the commuted amount is = 10.46 + 3.42 = 13.88 years. Even after full recovery,
the pensioner kept on paying for 15 – 13.88 = 1.12 years. Thus, excess recovery
= 1.12 x 12 x 1333 = Rs.17,916.
i)
Retirees between 1996 and 2005
The age of retirement
was raised to 60 years after the 5th Central Pay Commission (CPC).
Permissible commutation was also raised to 40% of the basic pay.
Those who retired between 1996 and 1998 have already completed the prescribed
period of 15 years for restoration of pension. Since 1.3.1971 and until
31.12.2005, the Commutation Factor (CF) was 9.81 for the 61 year old
(age next birth day) retirees and the officially prescribed rate of interest
was 4.75% p.a.
Secretaries who
superannuated between 1.1.96 and 31.12.05 at the top of their pay scale
(Rs.26,000), were sanctioned commuted pension amount of Rs.9,18,216 with a
deduction of Rs.7,800 per month. The principal amount of Rs.9,18,216 is fully
recovered in 9.81 years [9.81 x 12 x 7800 = 9,18,216].
·
If we consider the prescribed interest rate of 4.75% p.a. as
simple interest, the total interest works out to Rs.2,12,114. This is
recoverable in 2.27 years [212114/7800 = 27.2 months or 2.27 years]. Thus,
total recovery period of the commuted amount works out to 9.81 + 2.27
= 12.08 years. Even after
full recovery, the pensioner keeps on paying for 15 – 12.08 = 2.92 years. Thus,
excess recovery = 2.92 x 12 x 7800 = Rs.2,73,312.
·
If we consider the prescribed interest rate of 4.75% p.a. as
compound interest, the total interest works out to Rs.3,20,367. This is
recoverable in 3.42 years [320367/7800 = 41.07 months or 3.42 years]. Thus,
total recovery period of the commuted amount is = 9.81 + 3.42 = 13.23 years. Even after full recovery,
the pensioner keeps on paying for 15 – 13.23 = 1.77 years. Thus, excess
recovery = 1.77 x 12 x 7800 = Rs.1,65,672.
ii)
Retirees from 2006 Onwards
The age of retirement continues to be 60
years. After the 6th CPC, since 1.1.06, the Commutation Factor (CF) has
been downgraded from 9.81 to 8.194 for
the 61 year old (age next birth day) retirees, thereby reducing
the commuted amount by a whopping 16.5% !!! On top of that, the
prescribed rate of interest has been enhanced from 4.75% to 8% p.a. which is an astronomical jump of 68% even in
this low interest regime!!!
The basic pension of Secretaries who superannuated on or
after 1.1.06 at the top of their pay scale (Rs.80,000) was fixed at Rs.40,000.
Their commuted pension amount is Rs.15,73,248 with a deduction
of Rs.16,000 per month. As per the old CF of 9.81, they would have been
entitled to a commuted sum of Rs.18,83,520. Thus, there is a
huge drop of Rs.3,10,272 !!!
The currently sanctioned principal amount of Rs.15,73,248 is fully recovered in
8.194 years [8.194 x 12 x 16000 = 15,73,248].
·
If we consider the prescribed interest rate of 8% p.a. as simple
interest, the total interest works out to Rs.5,10,417. This is recoverable in
2.66 years [510417/16000 = 31.9 months or 2.66 years]. Thus, total recovery
period of the commuted amount is = 8.194 + 2.66 = 10.85 years. Even after full recovery,
the pensioner keeps on paying for 15 – 10.85 = 4.15 years. Thus, excess
recovery = 4.15 x 12 x 16000 = Rs.7,96,800.
·
If we consider the prescribed interest rate of 8% p.a. as
compound interest, the total interest works out to Rs.9,93,007. This is
recoverable in 5.17 years [993007/16000 = 62.06 months or 5.17 years]. Thus,
total recovery period of the commuted amount is = 8.194 + 5.17 = 13.37 years. Even after full recovery,
the pensioner keeps on paying for 15 – 13.37 = 1.63 years. Thus, excess
recovery = 1.63 x 12 x 16000 = Rs.3,12,960.
The above calculations are only illustrative,
applicable to retired Secretary rank
officers who retired on or after 1.1.86 at the top of their pay scale and
their pension was fixed at the maximum. Calculations can be made
similarly for other cases and the results would tally.
We may point out that the interest charged on
various Govt. advances like House Building Advance, Car Advance, Festival
Advance, Marriage Advance etc. is simple interest and not compound. Applying
the same policy, the commuted amount of pension was fully
recovered with interest in 12.73 years in case of 1st category of retirees (who
retired between 1986 and 1995), in 12.08 years in case of 2nd category of
retirees (who retired between 1996 and 2005) and in 10.85 years in case of 3rd
category of retirees who retired in 2006 or after. There is no justification
for the Govt. to recover anything more than what it has advanced to the
retirees.
Logical Recovery Period
The Govt. should be moved to rectify
this wrong and modify the period of restoration of
commuted pension as under:-
1st
category of retirees (who retired between 1986 and 1995): They have
already repaid the entire amount with interest. The excess amount recovered
should be refunded to them with the same rate of interest as was charged from
them for recovery (i.e. 4.75% p.a.).
·
The same policy should be adopted towards those who retired
before 1986. Similar calculations can be done in their case.
- 2nd
category of
retirees (who retired between 1996 and 2005): Those who retired 15 years
ago have already repaid the entire amount with interest. The excess amount
recovered should be refunded to them with the same rate of interest, i.e.
4.75% p.a. For others, the recovery should be stopped and
full pension be restored after completion of 12.08 years.
- 3rd
category of
retirees who retired in 2006 or after: The recovery should be stopped and
full pension should be restored after completion of 10.85 years.
12. Qualifying Service for Full Pension – Applicability to Pre
2006 Pensioners:
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.
13.
Medical facilities to Pensioners:
“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 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. We also request the commission to
recommend to govt. to make preventive health care an essential ingredient of all health care
schemes for retired Persons.
14.
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.
15. 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.
We suggest that FMA for all C.G. Pensioners be raised to at least Rs 2000/-
PM without any distance restriction.
Distance restriction is discriminatory to those who do not
choose Govt schemes/hospitals) 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.
16.House
Rent Allowance :All the pensioners do not
have a roof over them. After retirement,
their pension income is nearly reduced to 40% of gross salary they got at the
time of retirement. We would like to
point out in concrete terms that one employee (in B class city) was having a
Basic Pay of Rs.27,570/- in March 2014 and his gross salary was
Rs.58,738/-. He retired on 31/3/2014 and
he received a Basic Pension of Rs.13,785/- and DR of Rs.12,475/- in April 2014
(Total Rs.26,260/- which works out to 44.7%).
This sudden drop in income creates financial problems. The pensioners do not get the same treatment
and dignity even from their own family.
After retirement, financial institutions are not granting loans. The pensioners have to continue in rented
houses and the rent in Metros and other cities are exorbitant. Hence the commission is requested to
recommend same percentage of HRA (on basic pension) as being given to serving
employees in respective places.
17.
Travel Concession: After retirement, most of
the pensioners spend the time on spiritual activities. They would like to visit important religious
places in the country. The Commission’s
attention is drawn to the fact that Government of Punjab is granting Travel
Concession to all its pensioners by paying one month’s Basic Pension for every
block of 2 years. It was introduced from
1/1/1989 and the payment is made in January every two years (Source: Punjab
Government letter No.1/15/89-IFP-II/8078 dated 31/8/1989). In the past 25 years
the cost of everything has gone up. The Commission is requested to
recommend to the Government to pay 3 months Basic Pension as Travel concession
and the facility may be extended once in 2 years to all those pensioners who
are at present not getting travel
facilities as departmental advantage.
18.
Death Relief:
In the last decade, the social fabric has undergone a drastic
change. The Indian Parliament had to
enact a law for the kith and kin to look after their parents. After the death of a pensioner,
cremation/burial has to take place in an honorable manner. Each religion has got its own custom and
rituals and the cost is very high. It is
to be noted that Andhra Pradesh Government is granting an amount of Rs.10,000/-
as ‘Death Relief’ to its pensioners, Family pensioners (Source: AP Govt. G.O.
MS.No.102 Finance (Pen.I) Department dated 6/4/2010 & G.O. M.S. No.136
dated 29/6/2011). The Commission is
requested to recommend an amount of Rs.10,000/- as ‘Death Relief’ in the event
of death of pensioner, pensioner’s spouse or Family Pensioner.
19. 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.
20. 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 and
deciding the matters 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.
21.
Lingering Litigation on Pensioners matters due to uncalled for Appeals by
Government: 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.
Fifth 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.
Seventh CPC is requested to
look into this matter once again and to issue suitable guidelines as deem fit
and necessary.
In the end commission is
requested to grant personal hearing to the representatives of Bharat Pensioners
Samaj to enable it to explain its viewpoints.
Thanking
you, With regards
Truly
Yours,
ER..S.C.Maheshwari,
Secretary General.
Bharat
Pensioners Samaj
Comments