The Need for Pay & Pension Reforms-Presentation by: Bharat Pensioners Sa...

Introduction & Key Issues

Pay Commissions are constituted every 10 years, but inflation outpaces salary and pension adjustments.
Pensioners experience declining real income, requiring major revisions.
Disparities exist in pay bands, pension fixation, and notional pay calculations, leading to financial stress among retirees.

Addressing Pay & Pension Disparities

. Disparity in J.A. & Selection Grade Pay Bands

. Fixation Issues for Pre-2006 Retirees

Pre-2006 retirees receive lower pensions than post-2006 retirees despite similar service records.
Supreme Court rulings uphold pension parity, but government reluctance persists.

. Pension Anomalies in Survey of India

Pre-1989 retirees were denied due pension benefits, violating policy directives.

. Economic Benefits of Pay & Pension Reforms

Increased Consumer Spending → Higher disposable incomes boost the economy.
Higher Tax Revenues → More salaries & pensions lead to higher tax collections (GST, Income Tax, Corporate Tax).
Enhanced Social Security → Financial stability reduces dependency on welfare schemes.

Fiscal Responsibility & Revenue Optimization

Eliminate Wasteful Expenditures → Reduce unnecessary administrative costs.
Rationalize VIP Perks → Cut excessive allowances & privileges for legislators.
Broaden the Tax Base → Bring high-income sectors & large agriculturists into taxation.

. Key Pension Reforms Demanded

. Minimum Pension Revision

. Age-Based Pension Increments (Based on 110th DRPSC Report)

. Parity for BSNL/MTNL & Statutory Body Pensioners

Include them in Pay Commission recommendations for timely pension revisions.

. Ensuring Pension Parity & OROP

One Rank One Pension (OROP) → Required for Para-Military & MES personnel.
Ex-Servicemen Status → MES personnel must be recognized as ex-servicemen.
Fixed Medical Allowance (FMA) → Increase to ₹5,000 per month.
Merger of DA with Pension → Merge DA with pension once it crosses 25%.

7. Supreme Court Observations on Pension (30 sec)

Pension is a statutory right, not a discretionary benefit.
Nakra Judgment: Pensioners must live with dignity, independence & financial security.
Since 2016, inflation has significantly eroded the purchasing power of pensioners, requiring urgent revision.

. Conclusion & Call to Action The 8th CPC must ensure fairness, social justice & economic stability.

Immediate correction of disparities is crucial for pensioners’ dignity.
The government should view pension reforms as an investment, not a liability.
BPS urges the Commission to act decisively to ensure justice for pensioners!

Bharat Pensioners Samaj