BPS lists what they asked for, what CPC recommended, and the Grievances as well as discrepancies now they have referred to Empowered Committee

7th Pay Commission accepted few of the demands in principle – Bharat Pensioners Samaj reports on demands made by Pensioners Associations and Staff Side, recommended by 7th Pay Commission and grievances out of 7th CPC recommendations which have been represented now to Empowered Committee

Secy Genl. BPS speech at Lumding on 2.4.2016 on 02.04.2016

Respected Guests, office bearers Govt pensioners welfare organization MujjafarNagar , Brothers & Sisters,

I thank you all to have invited me and to be with you this day at Mujjafar Nagar.

Ladies & gentlemen we are all eagerly waiting for the notification implementing 7th CPC recommendations. Presently Implementation cell of the Empowered Committee of Secretaries is examining the grievances of employees and the Pensioners. After giving final touch to report, Empowered Committee will send recommendations to PMO for its nod. Once PMO go through the report, it will be placed before the Cabinet for final approval. The whole process may still take another about one months or so. We are getting information through print media that PMO has forwarded our representations/demands to the Empowered Committee of Secretaries with instructions to adjust genuine demands as far as possible.

Comrades, 7th CPC invited & listened patiently to Bharat Pensioners Samaj more than once. I, as Secy Genl Bharat Pensioners Samaj, got the chance to interact with the comm.3 times..7th CPC has accepted few of our demands in Principle.

So let us today examine what we asked for, what CPC recommended, and the Grievances as well as discrepancies we have referred to ECOS for redressal and the genuineness of our demands &grievances.

1.Stating that pension is always related to Salary, we represented to the pay commission to calculate need base minimum wage ensuring that wide gulf between haves & have lots is reasonably reduced. Pay Comm. after discussion did agree to calculate need base minimum wage for a family of 4 i.e. Husband wife & Two children. However, Pay Comm. without updating the criteria evolved by ILO in 1957 which in turn was based on age old Dr. Wallace Aykroyd formula for an average Indian family of four involved in   moderate physical activity considering it as three consumption units — husband: one unit, wife: 0.8 unit and two children below 14 yrs of age: 0.6 units each, calculated the minimum Salary.

Considering the changes which have taken place since 1957 BPS has raised three major issues in this reference .1 Considering wife of the employee as 0.8 unit as compared to husband as 1 unit is gender bias. Today physical & and intellectual activities of the lady of the house are in no way less than her male counterpart. She needs the same rather more nutrients, calories and clothing.  No 2. That growing children below 14 yrs. age for their healthy intellectual & physical growth needs much more and better nutrients, Calories, education & clothing compared to 1957. Then how they can betaken as 0.6 unit compared to head of the family. And No3 that Prices of commodities/facilities taken by the pay commission are on lower side compared to actual market prices. Also instead of reducing minimum -maximum paid ratio CPC has increased it.

These factors put together have resulted in calculation of Minimum Salary on lower side and is responsible for increased min-max ratio & lower common multiplication factor, thus minimum Salary needs upward revision.

If this is done common multiplication factor 2.57 which resulted in much less the rise than given by earlier Pay commissions will automatically go up.

2 OROP for all While asking for 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. We explained to the 7thCPC that ‘Justice must be equal for all, otherwise, it breeds contempt, discontent, inefficiency, corruption & finally the insurgency. Vast inequality of income and wealth between lowest & the highest paid, violates Article 14of the Constitution, 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 aperiod 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.

7th CPC re-iterating the famous D.S.Nakra case   agreed in principle & did recommend 100% parity but the method of implementation & the pay matrix evolved defeats the purpose. Not only that it will not provide full parity for lower & middle level retirees, it will result in juniors drawing more pension than their seniors & give more benefit to direct group ‘A’ retirees. Moreover, there are errors in the matrix designed. For example, entry pay for 4800GP in PB 2 is calculated as Rs18175 instead of Rs18750.

We have therefore sought rectification of such discrepancies in pay matrix ensuring that persons retired from same rank, same seniority & equal length of service get equal pension irrespective of date of retirement.

Common Multiplication factor: We had pleaded before the pay comm.to provide a common multiplication factor applicable to all, so that everyone get equal % rise.

Pay comm. while positively reacting, recommended 2.57 as common multiplication factor by dividing revised minimum Salary by existing min.Salary but in the first place since minimum salary calculated wrongly to keep it on lower side, this factor remained to be low to provide only .32% benefit which is lower than .40% provided by earlier pay panels. And secondly 7th CPC provided from back door a factor of 2.81 to higher ups through the jugglery of Pay matrix. We have therefore sought from the ECOS a common multiplication factor of 2.81 for all.

Downward revision of 100yrs age for additional pension i.e. additional pension to start from the age of 65 yrs. BPS pleaded before the Pay Panel that in the present scenario of climatic changes, incidence of pesticides in food articles 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.  Grant of 100% additional Pension after 100 years of age is 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% at the age of 90yrs. After discussions pay comm. Had agreed to consider granting additional age related Pension from the age of 75 yrs.& above. But alas! Issue was rejected merely because defence ministry did not accept it. We have requested ECOS to revisit the issue stating that in case defence ministry does not agree let the defence pensioners not have it. Why make all others to suffer for the sake of one section?

Fixed medical allowance (FMA): 

BPS represented that:

M/O Health & Family Welfare spent per card Rs.1369 per month in 2007-2008 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 minimum of Rs 2000/- FMA be granted. 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 suggested that FMA for all C.G. Pensioners be raised to at least Rs 2000/- PM linking it to Dearness Relief for automatic further increase and without any distance restriction as distance restriction is discriminatory to those who do not choose Govt. schemes/hospitals. We further suggested that FMA be exempted from INCOME TAX. Fixed Medical Allowance (FMA) is a compensatory allowance to meet day today medical expenses. As Medical Reimbursement is not taxable, FMA should also be exempted from Income Tax.

This demand has been rejected by the Pay Panel on the ground that FMA was recently hiked from Rs 300 to Rs500PM.

We have represented to ECOS to revisit the issue & to accept the demand to raise FMA to Rs 2000/ PM. NCJCM is supporting our demand & we expect some positive result

Medical facilities/Health care:BPS represented That “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/Family 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 are given any aid or concession by the Central or the State govt.

• all CGHS, RELHS & ECHS empaneled hospitals across the country.

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 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)

We suggested that, all the pensioners, irrespective of pre-retiral class and status, be treated as same category of citizens and the same homogeneous group. There should be no class or category based discrimination and all must be provided Health care services at par. We also requested the commission to recommend to govt. to make preventive health care an essential ingredient of all health care schemes for retired Persons. And that CGHS,RELHS, ECHS&ESI should be pooled together to provide a strong network of health care with lager coverage area

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 periodically keeping in mind the workability as per market conditions.

The 7th pay comm. recommends Medical Insurance for all. This of course will be beneficial to all those who are presently not covered by any of the present schemes. But the major issues with Insurance scheme for pensioners’ i.e. (1) Coverage of existing disease (2) OPD facilities (3) Amount of coverage for a family (4) Amountof Premium and its yrly payment need to be resolved before introduction. On pooling of different existing schemes to increase coverage & easy accessibility, Pay Comm. did agree that it will create a very strong network of health care but has left it to the Govt. to look into.  On the issue of Smart card for cashless treatment for all pensioners in all empaneled hospitals 7th pay comm. has not come out with any recommendation.

The Pay Panel recommendation regarding withdrawal of discriminatory orders of MOH &FW regarding Postal Pensioners & merging of all postal dispensaries with CGHS is welcomed.

7th pay commission has either rejected for left unaddressed the issues like:

1. Ratio between min & max. paid to be brought back to 1:8.

2. Upward revision of pension to 67/65% of last drawn.& Family pension 50% of LPD

3 Removal of discrimination with those who retire on 31.12 & 30.06

4.  Modification of NPS to ensure Family Pension as per pre 2004 rules & that min pension shall not be less than 50% of last drawn

5. DR merger with pension whenever it goes above 50%

In a scenario wherein Corporates are swallowing 5.3 lac crore through unpaid loans and Legislators are in a spree to hike their own Salaries & Perks.What if our genuine demands/grievance are not addressed?:

Prepare for long drawn struggle?–  What are the options?:

1.Legal remedy: it is not a viable solution for pensioners as it takes years & need huge money.

2. Print & Electronic media:  Does not high light our issues. Most of the times it involves substantial payments for paid news /Press conferences.

3.Representations/correspondence & meetings with Ministers & Govt.officials are of little use except for resolving individual grievances.

4. Demonstrations Rallies: Will be effective if we are able to pool few thousand pensioners. This will need months of advance preparations, strong contacts, communication and money.

5. Mustering support of Politicians: Will be helpful. However, this will come if we have large following & good contacts as they always eyeyour vote strength.

6. Social media: Is very strong & effective platform we already have a large audience of over 22 lac consisting of Elderly, younger people, politicians, Ministers, MPs, Govt. officers& professionals. In short persons from all walks of life. Over 12 lacs of pensioners are computer savvy who can play very important role.

7.Pensioners Own media: i.e Periodical magazines / newsletters, websites blogs, Facebook Pages,Twitter handles.You Tube Channels: Can prove to be very effective for creating awareness, dissemination of information and motivation.

8. Join hands with Trade unions /confederations /Associations of employees: For them Pensioners issues are the last priority for them. Recently while trimming down their demands,they have dropped down all the issues of Pensioners except that of FMA

Ladies & Gentlemen,

As far back as 1955 Retired Justice late Sh.Shankar Saran of Allahabad high court, dreamed of giving a strong voice to pensioners community through consolidation. He dreamed of developing systems to enable pensioners of the country to act as one family with mutual confidence, support and growing interdependence. With this dream he founded Bharat Pensioners Samaj in 1955 which has today grown into the largest Federation of Pensioners Associations with over 7 lac members through over 650 Affiliates & Associates.

Moving forward through the decades with this dream of the founder, BPS took on its shoulders the responsibility of Welfare of Pensioners Community.

After years of welfare work for the Pensioners community BPS evolved 4 ‘C’ action plan for the final fulfillment of the dream i.e 4 C action plan, The prerequisites for 4C action plan

1) Collection of Pensioners Contact details i.e. Mob. Phone Nos &email addresses,2) Identification of issues 3). Motivation 4). Designing & launching a campaign

The four “C” action Plan

1. Communicate: World has changed & is constantly changing we too need to change ourselves. Even developed countries have realized that moving alone is not possibleanymore and have started communicating with other countries. Same is true for pensioner’s organizations instead of wasting time & energy in raising new or reviving dormant organizations we need to form strong conglomerate of existing live Federations and Associations. As main aspirations i.e. Financial, Social security &healthcare are common, this is possible. To achieve it communication is the basic tool. So communicate amongst yourself, with your members, affiliates, associates, MOU partners, with Civil Society, National / local leaders, with Media and with the employees retiring in next six months. Spread awareness about, what pensioners did for the country & are still doing for the civil Society. Apprise Civil Society about their service conditions, entitlements as per Constitution, Supreme court pronouncements. Empower Pensioners & Pensioners to be with information, knowledge & network to interconnect. Aggressively use Social Media & modern digital technology to interact among yourself & with the civil society to enable them to understand pensioner’s/family pensioner’s issues& the deficient areas.

2. Coordinate: Coordinate not only to seek govt. support in deficient areas but to develop systems which may enable all of us to act as one family with mutual confidence, support and growing interdependence. Comrades, if we have to survive with dignity then such should be our system of mutual confidence, interdependence & coordination that none of us feel lonely &helpless.

Share information, technology and resources with Affiliates/Associates MOU partners/sister organizations &members. Coordinate and provide support to members, affiliates and associate associations. Coordinate & stand shoulder to shoulder with the administration & fellow citizens during National emergencies and natural calamities. Launch and participate in welfare activities such as organ donation for the good of civil society.

3.Consolidate:  Inspire more & more pensioners/Associations/Federations to come together. Strive to bring all C.G; State, PSU, EPS95 &statuary body pensioners/family pensioners together.  Inspire sister organizations sign MOUs to jointly & severally struggle for resolving common issues. BPS, AIFPA, NFRPPalghat& AISCCON have been successfully wkg with such an agreement. I inviteother likeminded pensioner’s organizations to join. BPS today has over 22 lac audience on Social media platform, let us utilize the facility for pensioners’ cause. We have thrown it open to all likeminded organizations. Add more & more, friends, viewers &followers on Social media pages. Share pensioner’s related posts as much as possible. Twit & retweet pensioners/ sr citizen issues issue

Due to age &ailments, traditionalagitational   methods like Dharnas, Demonstrations etc are losing sheen for pensioners. Let us blend old & new techniques, strengthen presence to highlight pensioner’s issues & deficient areas. Streamline & inter- link available resources like publications, websites, Blogs, Groups, Face book, Twitter, You Tube etc. BPS has launched a pilot project ‘PENSIONERS OWN MEDIA’ under which publications of likeminded Pensioners organizations who willingly provide us their publications in pdf format up-to 5MB are being uploaded on BPS website, Blog, Face book, Twitter & BPS 1955 yahoo group.BPS ‘Bharat Pensioner'(monthly publication) has circulation ofover 64000 pdf copies through Social media &email.

4.Contribute: Contribute whatever you can, your ideas, knowledge,experiences, efforts & of course money to make the project succeed.

Let us make best use of modern technology /opportunities combined with traditional methods to consolidate ‘Elderly Vote Power’, the ultimate weapon & panacea for all our ills.

Comrades, we are not a helpless, useless or a tired lot. Neither we are a liability to the society or a burden on the exchequer. We are an asset for the civil society & the Govt.

We can still turn the TIDES. With ‘elderly vote power’ we have the ability to change Govt. Even in our death we have the capacity to give life to 5 persons (by organ donation)

We may not live to see the end results but it is our responsibility to give correct direction & a road map to pensioners of tomorrow.

Today I call upon the entire fraternity of Sr Citizens to unite& move forward.

Jai hind, Jai Bharat.

Er. S.C. Maheswari

Secy. Genl. Bharat Pensioners Samaj

Source: Bharat Pensioners Samaj

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RSCWS demands for revising 7th pay commission mulitiplication factor, Parity of Pension, and revision of Fixed Medical Allowance – Submits memorandum to 7th pay commission empowered committee

7th Pay Commission Latest News – Railway Senior Citizen Welfare Society has submitted representation to 7th Pay Commission Implementation Cell highlighting the need for reviewing the recommendations for the benefit of Pensioners

No. RSCWS/ CHD / Memo 7th CPC Emp Com/2016-3

Dated: 6-2-2016

1. Cabinet Secretary, Government of India & CHAIRMAN, EMPOWERED COMMITTEE OF SECRETARIES ON 7TH CPC, Cabinet Secretariat, Rashtrapati Bhawan, New Delhi – 110 004
CC to:cabinet@nic.in

2. ALL MEMBERS OF EMPOWERED COMMITTEE ON 7TH CPC

Dear Sir,

Subject: Recommendations of the 7th Pay Commission relating to Pension & Retirement Benefits

We would like to draw your kind attention to the following major points & serious inadequacies & consequential serious injustice to the Pensioners. We earnestly request you for consideration of the following issues:
1. MULTIPLE FACTOR (REF: PARA 10.1.67):

I) The 7th Pay Commission has very unjustly & arbitrarily recommended the multiple factor of 2.57 for fixation of Pay & Pension. It is tantamount to less than 14.3% rise of emoluments as on 1-1-2016 (with expected DA of 125%) as against over 21% rise proposed by 6th CPC. This is especially very much unjustified in view of much high price rise in the last 10 years.

II) Long pending demand may please be accepted for merger of DA for fixing the Revised Pay & Pension;

III) It is, therefore, requested that the multiple factor should, therefore, be raised to 3.15 times of Sixth CPC Basic Pay & Pension if the merger of DA is agreed to or at least to 2.65 if merger of DA is not agreed to.

IV) The Minimum wage of Rs.18000 proposed by 7th Pay Commission is based on Dr Aykroyed formula for Minimum Need Based Wage. This has already been overruled by the Supreme Court as it does not reflect the present day needs for Housing, Social obligations and Children Education etc. The Apex Court had already modified the said formula by adding appropriate weightage for these Factors – which may please be considered for fixing the Minimum Pay and the Pay at higher Levels as well as the Pension as based thereon.
2. PARITY OF PENSION (PARA (10.1.53 & 10.1.67):

a) We welcome the recommendation of 7th CPC and thank the COMMISSION for accepting the long pending demand of Parity between pre and post 7th CPC Retirees. However the method suggested by the Pay Commission for the above purpose, needs to be revised & simplified in view of the following reasons:

i) It may not be possible to implement this Option in many cases for fixation Revised Pension of Pre-2016 Pensioners in the absence of Service Records of the old Pensioners to check the number of increments earned in the Grade from which the Pensioner retired in cases where the Service Records of the old Pensioners are not available thus depriving them of the benefit of the same permanently or for many years till their records are rebuilt – which will be like groping in the dark;

ii) Basing of Pay Matrix & Pension on disproportionate Rise of Pay & Pension – given after 6th CPC – will be unjustified – as the rise given after 6th CPC was 3 times or more in PB 4 as against 2.26 times in PB 2 & PB 3;

iii) Using lower Index of only 2.57 at lower levels and 2.62 at Middle Levels as compared to 2.67, 2.72 and 2.81 at higher Levels of Posts will further accentuate the discrimination caused by the 6th CPC. The Index of 2.81 should be uniformly applied at all Levels.

iv) In the past, while fixing the salary of serving personnel in the revised scale under the 4th CPC recommendations, point to point fixation based on the number of increments already earned was not undertaken and one increment was allowed for every 3 (three) increments earned in the pre-revised scale thereby suppressing the number of increments earned in relation to the number of years actually spent in the grade.

The same principle of allowing one increment for every 3 earned in the 4th CPC scale was also followed while fixing salary of serving employees in 5th CPC scales. This has resulted in artificially suppressing the time spent in a particular level.

v) Senior Pre-2006 Pensioners will get lesser higher pension than even the Pre-2006 junior Pensioners who retired later from the same Post with slightly longer or more years of service in that Grade;

vi) Senior Pre-2016 Pensioners who retired in higher Level of Posts will get lesser pension than the juniors who retired from one or even more Levels below just because Either the Juniors could not get promoted to higher grade but had earned more increments in the lower Grade than the seniors who retired from a higher grade.

Or the two Pay Scale got merged after the retirement of the senior and thus the junior will get the benefit of all increments earned in either of the two scales while the senior will get the benefit of the increments earned only in the higher grade.

All this would be greatly unjustified.

a) It is, therefore, requested to please simplify the method for the purpose and the same should be based only on the information available in the PPO.

b) It is requested that – in order to remove the above infirmities – the Pension of Pre-2016 Civilian Pensioners be fixed at the higher of the following two formulations:

i) a) Pension of Pre 2016 Pensioners be fixed at par with Average of the Pension of Post-2016 Pensioners based on the 50% of the Average Pay in the Pay Matrix or such other formula as may be universally implementable as per readily available records of all concerned / based on the information available in the PPO;

b) Till such time the above said dispensation is implemented, minimum Pension of Pre-2016 Pensioners should not be less than 50% of the minimum of Pay in the Pay Matrix of 7th CPC for the Pay Level corresponding to the Pay Scale or the Grade Pay from which the Pensioner had retired;

ii) Pension fixed after Sixth CPC be multiplied by Multiple Factor of 3.15 if the merger of DA is agreed to or at least to 2.65 if merger of DA is not agreed to (as proposed in Para 3 above)

iii) Increments earned or the number of years spent in either of the merged scales should be taken into consideration for fixing the Revised Pension.

Pensioners may please be fixed at the higher of the above – without getting any option from the Pensioner as it is an obvious matter that all will opt for the higher Pension.
3. ADDITIONAL PENSION (Para 10.1.28):

7th CPC has totally ignored the reasons of extra expenses on medical care & treatment in old age for the demand for reducing the age for grant of Additional Pension of 5% from 65 years of age, 10% from 70 years and 15% from 75 years. It has also ignored even the recommendations of DOP&PW for starting it at the age of 75 years. This has greatly hurt the Pensioners.

It is, therefore, requested that the Additional Pension may please be granted @ 5% from 65 years of age, 10% from 70 years and 15% from 75 years of age, besides continuing with Additional Pension of 20% from 80 years, 30% from 85 years, 40% from 90 years, 50% from 95 years and 100 % from 100 years of age as granted after 6th CPC.
4. FIXED MEDICAL ALLOWANCE(Ref: Para 8.17.52):

It is regretted that the 7th CPC has recommended no enhancement of Fixed Medical Allowance (FMA) for Pensioners for day- to-day medical treatment not requiring hospitalization, merely on the ground that “this Allowance was last enhanced from Rs.300 to Rs.500 pm from 19/11/2014” – even without going into the merits of the following valid reasons advanced for the revision thereof:

i) FMA should have been revised from 1-9-2008 – like all other Allowances after the 6th CPC. The belated revision done in 2014 was itself delayed by 6 years;

ii) The cost had exorbitantly increased for the Medicines, Consultation Fee and cost of Pathological Tests required for day-to-day medical treatment since 1999 (when the FMA was initially granted) and this had risen at a much steeper rate than the Price Index.

iii) Average expenditure per pensioner/per Patient on OPD in CGHS Hospitals has increased manifold and is at present over Rs.2500 per patient. This reflects the exorbitant increase in the cost of Medicines, Consultation Fee and cost of Pathological Tests etc. required for day-to-day medical treatment. The FMA of Rs.500 per month is thus a pittance of the actual expenditure on day-to-day Medical Treatment by the Pensioners who are residing in non-CGHS /RELHS areas and have thus opted out of the same.

iv) A large proportion of Pensioners were residing in remote areas or villages having no excess to CGHS Dispensaries & Railway Hospitals and as such, are wholly dependent on the paltry amount of FMA for day-to-day treatment of self & spouse.

v) It is, therefore, requested that the FMA may please be revised to at least Rs.2000 p.m. or at par with the average expenditure on OPD Treatment per month per Pensioner / Patient.

Hoping for a favorable consideration;

Thanking you

Yours faithfully
(Harchandan Singh)
Secretary General, RSCWS

Source: IRTSA

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Comments of Karnataka Central Government Pensioners Associations on the 7th Pay Commission Report

The Karnataka Central Government Pensioners’ Association comments on the 7th Pay Commission report are given below:

N0:KCGPA/2015-10

Dear Shri Makkar,

Kindly refer to your letter no 38/66/13-P&PW(A) ( Vol.II ) dated 1st/3rd December 2015 to the Pensioners’ Associations, regarding our views on the 7th CPC Report, in respect of Pension /retirement benefits. The letter was received in Association Office only on 10th December 2015. Our views on the pension/retirement benefits are given below.

2. We have gone through the Chapter on pension and retirement benefits of the report, on line. We find that the recommendation is more analytical in nature, quoting references. In regard to recommendations, this CPC has been less appreciated.

3. The fixation of revised pension has been broken into 2 options; one depends upon pay matrix and the second option is 2.57 times of the pension fixed by 6th CPC. Our considered opinion is that the 7th CPC was authorized to give specific suggestions, not alternatives. In the present situation, the Govt should assume its authority and address itself to one decision. In nutshell it is generally felt by us that the pay matrix leads to lot of confusion and anomalies. We fervently appeal that the govt should stand by latter formula i.e. 2.57 times of the existing basic pension.

4. Another Point is the age-related enhanced pension. The 6th CPC recommended the enhanced pension from 80 years and above. Various Associations represented to revise the age to 60 years and above. The 7th CPC Report indicates that their opinion was in favor of 75 years, as also the Ministry of Pension. The report added that the Ministry of Defence was against this suggestion. The Ministry of Pension is more authoritative than anybody in matters related to pension. It is therefore strongly felt that the age limit of 75 years should be approved by the Govt for age related increase of pension. Any anomaly that may arise due to this revision should be made effective from 01 Jan 2016.

5. The Ratio of minimum and maximum pension is recommended to be 1:13.8, with minimum pay Rs 18000/- and maximum Rs 2.50 lakhs. Earlier the ratio was 1:12. Various associations demanded the ratio to be curtailed to 1:8. The Govt should look in to it and decide at a ratio of 1:8.

6. The Health Care system is deemed to be extended to all employees and pensioners by the govt., at all times. In this connection, FMA was introduced for those who could not avail CGHS. The present FMA of Rs.500/- should be revised to Rs 1,000, as demanded by all the Associations. The CPC has proposed no change. The Govt should readdress this issue.

7. The CGHS has got to come out with some assistance to the pensioners of autonomous /statutory bodies. We have personally seen some of the pensioners from these bodies suffering badly. They do need help. The CPC while in Bangalore (August 24, 2014) had assured to come out with some recommendations in this regard. It has not done so, and has just proposed some Health Insurance, to be sponsored by the Govt. It is good that P& T dispensaries will be merged with CGHS which is a CPC recommendation. The CPC has also proposed extension of CGHS to those in non-CGHS areas, which is welcome.

8. One of the post retirement issues is the Revision of PPOs. Even after a lapse of 7 years, many of the pre 2006 retirees are waiting for revised PPOs. Some mechanism must be evolved to issue the PPOs fast, after the 7th CPC recommendations are accepted by the Govt.

9. General.

This Association had written to the 7th CPC stating that the Govt is top heavy and some posts have to be reduced. For example the two posts of Addl Secretary and Special Secretary between Joint Secretary and Secretary should be done away with. This reduces the delay and expenditure for the Govt. This is in consonance with Prime Minister’s idea of better governance.

With kind regards,

To,

Shri S.K.Makkar,

Under Secretary,

Ministry of Personnel, PG &Pension,

3rd Floor, Lok Nayak Bhawan, Khan Market,

New Delhi-110003.

No. KPTPA/ VII CPC/2015

To

Shri S.K.Makkar

Under Secretary to the Govt. of India,

Department of Pension and Pensioners’ Welfare,

3rd Floor, Lok Nayak Bhawan,

Khan Market, New Delhi-110003

Sir,

Subject: Recommendations of the 7th Central Pay Commission relating to pension/ retirement benefits

Reference: DoP&PW Letter No. 38/66/13-P&PW(A) (Vol.II) dated 1/3rd December, 2015

We express our sincere thanks for calling for our views on the recommendations of the 7th Central Pay Commission relating to pension/retirement benefits. We wish to write as stated below on the recommendations of the Pay Commission. We would also like to point out some anomalies that may arise consequent upon implementation of the recommendations in toto. Some points of doubts are also given here under, which require to be clarified.  It is requested that the points raised by us may please be examined and the suggestions made by us in further improvement of the benefits that are likely to accrue to Pensioners on implementation of the recommendations, may be accepted if found feasible and included in the Office Memorandum likely to be issued by DoP&PW in due course.

Our views/ comments /suggestions on the recommendations of the 7th Central Pay Commission made in para Nos.10.1.30, 10.1.33, 10.1.37, 10.1.41,10.1 .49,10.1.67 and 10.1.70 of its report are furnished on the respective paras arranged in chronological order for easy reference and perusal by DoP&PW.

Para 10.1.30 Increase in the Rate of Additional Pension and Family Pension to the Older Pensioners

The Pay Commission, though, was of the considered view that age-related additional pension and family pension should be allowed from 75 years instead of 80 years as at present, had to recommend continuance of the additional pension at the existing rates/ ages since MoD reportedly, did not support its proposals. We urge the DoP&PW to consider the views of the Pay Commission in its perspective and allow the additional pension to commence at 75 years of age of Pensioners/Family Pensioners. We request further that 100 % of pension/ family pension should be allowed at the age of 95 years instead of at 100 years. As the average life span in the country is around 75 years and only a very small percentage of Pensioners live beyond 90 years and the percentage of those who attain 100 years is negligible, the request for lowering the age for entitlement of age-related additional pension may please be considered favourably.

We suggest grant of Additional Pension at the following rates

Para 10.1.33 Increasing the existing time period of seven years for enhanced family pension

Family pension at enhanced rate is paid for a period of 10 years to the spouse of an Employee dying while in service whereas, in the case of a Pensioner dying even immediately after retirement, the enhanced family pension is paid only for 7 years. This discrimination between Family Pensioners needs to be removed. Hence, it is suggested that the period of payment of enhanced family pension may be increased to 10 years uniformly for all Family Pensioners.

Para10.1.37 Retirement Gratuity

Indexation of Gratuity to Dearness Allowance recommended by the Pay Commission is appreciated. However, the existing maximum of 16 ½ times the emoluments for calculation of Gratuity under Rule 50(1) (a) may be removed in view of delinking of full pension with 33 years off qualifying service from 1-1-2006.Removing the ‘maximum’ will benefit those employees who have rendered more that 33 years of qualifying service.

Para10.1.41 Death Gratuity

Revision of the slabs for payment of Death Gratuity and introduction of an additional slab of 11 to 20 years is appreciated. However, the existing maximum of 33 times of monthly emoluments for calculation of Death Gratuity under Rule 50(1) (b) may be removed in view of delinking of full pension with 33 years off qualifying service from 1-1-2006.Removing the ‘maximum’ will benefit the families of employees who die while in service after rendering more that 33 years of qualifying service.

Para 10.1.49 Fixed Medical Allowance:

The Pay Commission has not recommended any increase in the amount of FMA of Rs. 500/- being paid to Pensioners not covered under CGHS. But, has recommended an increase in allowances such as Canteen Allowance, Children Education allowance, Constant Attendance Allowance etc paid to serving employees. Some allowances have been indexed to D A and the allowances will rise by 25% each time DA increases by 50 %.( Chapter 8.17)

We suggest that FMA must at least be doubled from the existing Rs. 500/- and indexed to Dearness Relief and it should rise by 25% each time D R increases by 50 %.

Para10.1.67 Revision of Pension

The Pay Commission has recommended formulation for revision of pension of pre-2016 Pensioners and has suggested 2 types of calculations for computation of revised pension as on 1-1-2016. Option- I, is a simple method whereby the revised basic pension could be arrived at by multiplying the existing basic pension by 2.57. The other option, option-II , is not that simple as it necessarily, requires reference to the service records of the Pensioners to ascertain the number of increments the Pensioner had earned in that level while in service. Computation of revised pension after adding the number of increments to the notional minimum pay of the corresponding pay level in the Pay Matrix , will result in anomalies which have been narrated below. Several doubts that arise (stated below) need clarifications.

Anomalies

Almost all the pensioners would have been placed in a higher pay scale before their retirement consequent upon introduction of several career progression schemes Viz. ACP, MACP, Time bound financial up gradation schemes in addition to the regular promotions available in all the cadres /grades. So, to find out the number of increments earned in the grade /level from which the pensioner had retired, it is absolutely essential that the particulars of (a) the number of years of service rendered in that grade, (b) the stage of the pay scale at which the initial pay was fixed and (c) the last pay drawn are obtained from the service records/ pay bills etc. Collecting these particulars will no doubt be a herculean task especially in respect of pre- 1986 retirees since the records would have been weeded out.

Anomaly arises when a pensioner, who was placed in a higher pay scale at the fag end of his/her service, retires either without earning any increment or after earning one or two increments. In such cases, fixation of pension with reference to the notional pay of the lower pay scale/ lower level after adding increments earned in lower level would be more beneficial than fixation of pension with reference to the notional minimum pay of the higher level (without added increments) from which he /she had retired .The anomaly is well brought out in the example given below.

Example -1

A. Calculation of pension if computed with reference to the higher pay scale/ higher level from which the pensioner had retired without earning any increments

• Date of Retirement : 31-5-1988
• Qualifying Service : 31.5
• Pay Scale from which Retired: IV CPC- Rs.3700 – 125 – 4700 – 150 – 5000
• Corresponding Pay Scale :V CPC 12000-375-16500(S-21)
• Corresponding Pay Band : VI CPC, PB-3, 15600-39100 + Grade pay Rs.7600
• Last Pay drawn: Rs. 4325
• Pension sanctioned on retirement: Rs: 1989 (IV CPC)
• Revised Pension under V CPC : Rs. 5728
• Revised Pension under VI CPC : Rs. 12947
• Grade pay under VI CPC : Rs. 7600
• Level as per the Pay Matrix (Table 3) – Level 12
• Number of increments earned in level 12 (in grade S-21): NIL (retired within one year after promotion)
• Minimum of the corresponding pay level in VII CPC Rs.78,800 ( Table 4)

Revision of Pension under VII CPC

• Option- I

• Basic Pension fixed in VI CPC = Rs.12947
• Initial Pension fixed under VII CPC 12947 X 2.57 = Rs. 33274 (using a multiple of 2.57)

Option- II

• Minimum of the corresponding pay level in VII CPC = Rs. 78,800
• Notional Pay fixation based on Increments drawn at the same level -No change since increments was not earned at the same level ie in grade S-21. However, Notional Pay for computation of revised pension under 7th CPC should be taken as Rs. 78,800 which is the minimum pay at level 12. Though para 10.1.67 of VII CPC report does not specify this, obviously for calculation of revised pension , minimum pay at the applicable level should be taken in to account for computation of pension.
• Pension @50 percent of the notional pay so arrived = Rs. 39400
• Pension amount admissible (higher of Option 1 and 2) Rs.39,400

B. Calculation of pension if computed with reference to the lower pay scale/lower level from which the pensioner had been placed in the higher pay scale before retirement

• Lower pay scale (IV CPC) Rs. 3,000-100-3,500-125-4,500
• Corresponding Pay Scale :V CPC 10,000-325-15,500 (S-19)
• Corresponding Pay Band : VI CPC, PB-3, 15600-39100 + Grade pay Rs.6,600
• Level as per the Pay Matrix (Table 3) – Level 11
• Number of increments earned in level 11 (in grade S-19): 12
• Minimum of the corresponding pay level in VII CPC Rs.67,700 ( Table 4)

Option- II

• Minimum of the corresponding pay level in VII CPC (level 11) = Rs. 67,700
• Notional Pay fixation based on 12 Increments drawn at the same level = Rs. 96,600
• Pension @50 percent of the notional pay so arrived = Rs. 48,300
• Pension amount admissible (higher of Option 1 and 2) Rs.48,300

Amount of pension calculated as per Level 12 of the Pay Matrix : Rs.39,400

Amount of pension calculated as per Level 11 of the Pay Matrix : Rs.48,300

Example -2

Calculation of pension if computed with reference to the higher pay scale/ higher level from which the pensioner had retired without earning any increments

( Promoted from Grade S-9 to S-12 five months before retirement)

( calculations are based on the service & pension particulars furnished by a Pensioner)

• Date of promotion to Grade S-12 : 12-12-2001
• Date of Retirement : 30-04-2002
• Qualifying Service : 40 years
• Pay Scale from which Retired: V CPC- Rs.6,500- 200- 10,500
• Corresponding Pay Band : VI CPC, (PB-2)Rs. 9,300-34,800 + Grade pay Rs.4,200
• Last Pay drawn: Rs. 7,500
• Pension sanctioned on retirement: Rs: 3,684 (V CPC)
• Revised Pension under VI CPC : Rs. 8,327
• Grade pay under VI CPC : Rs. 4,200
• Level as per the Pay Matrix (Table 3) – Level 6
• Number of increments earned in level 6 (in grade S-12): NIL (retired within 5 months after promotion)
• Minimum of the corresponding pay level in VII CPC Rs.35,400 ( Table 4)

Revision of Pension under VII CPC

Option- I

1. Basic Pension fixed in VI CPC = Rs. 8,327

2. Initial Pension fixed under VII CPC 8327 X 2.57 = Rs.21,401

(using a multiple of 2.57)

Option- II

3. Minimum of the corresponding pay level in VII CPC = Rs. 35,400

4. Notional Pay fixation based on Increments drawn at the same level -No change since increments were not earned at the same level ie in grade S-12. However, Notional Pay for computation of revised pension under 7th CPC should be taken as Rs. 35,400 which is the minimum pay at level 6 Though para 10.1.67 of VII CPC report does not specify this, obviously for calculation of revised pension , minimum pay at the applicable level should be taken in to account for computation of pension.

5. Pension @50 percent of the notional pay so arrived = Rs. 17,700

6. Pension amount admissible (higher of Option 1 and 2) Rs.21,401

B. Calculation of pension if computed with reference to the lower pay scale/lower level from which the pensioner had been placed in the higher pay scale before retirement

Date of placement in grade S-9: 1-10-1991

1.Lower pay scale (V CPC) Rs. 5,000-150-8,000 (S-9)

2.Corresponding Pay Band : VI CPC, (PB-2)Rs.9,300-34,800 + Grade pay Rs.4,200

3.Level as per the Pay Matrix (Table 3) – Level : 6

4.Number of increments earned in level 6 (in grade S-9): 10

5.Minimum of the corresponding pay level in VII CPC: Rs.35,400 ( Table 4)

Option- II

Minimum of the corresponding pay level in VII CPC (level 6) = Rs. 35,400

Notional Pay fixation based on 10 Increments drawn at the same level = Rs. 47,,600

Pension @50 percent of the notional pay so arrived = Rs. 23,800

Pension amount admissible (higher of Option 1 and 2) Rs.23,800

1. Amount of pension admissible if the pensioner

had not been promoted to Grade S-12 ………… Rs. 23,800

2. Amount of pension admissible due to promotion to Grade S-12 : Rs.21,401

Note: Since Grade pay of Rs. 4,600 admissible to Employees in Grade S-12 from 1-1-2006 has not been given to Pre-2006 Pensioners retired from the same Grade and as they have been granted Grade Pay of Rs. 4,200 only, there is no change in the level in Pay Matrix, though they have retired from Grade S-12 after their promotion from Grade S-9 to Grade S-12. Thus in respect of pre-2006 retirees Level in pay matrix is the same, both for retirees from Grades S-9 & S-12.

From the above examples it can be seen that the amount of pension calculated as at “B” above is more than the amount of pension calculated as at “A” above. The pensioner would have got a higher amount of pension under 7th CPC had he/she not been promoted to a higher post / pay scale or if he/ she had retired from the lower post/ pay scale itself. Ironically, promotion to a higher post/ pay scale has worked out to the pensioner’s disadvantage.

Suggestion

To set right this anomaly, we suggest that instead of two options recommended by 7th CPC in para 10.1.67, a third option be introduced whereby the revised pension is calculated with reference to the service/pay particulars of the lower pay scale / lower level and the amount of pension which is higher of options I, II & III is authorized for payment. If this anomaly is not set right either through provision of the suggested 3rd option or through some other dispensation that DoP&PW may think of, the aggrieved pensioners are likely to seek judicial intervention and in all probability judicial orders would be in their favour on the principle of rendering natural justice.

We are aware that the above suggestion of our Association involves additional work for the PAOs in calculation of revised pension, since 3 types of computation will have to be made to ascertain the amount of pension that would be more beneficial for the pensioner. But, there seems to be no other way out to set right the glaring anomaly that is sure to arise, adversely affecting a very large number of pensioners – especially pre-2006 pensioners, after implementation of the formulation recommended by the 7th Pay Commission.

We, therefore request DoP&PW to peruse and accept the suggestion made by us with a view to avoid a striking anomaly that will arise as stated above.

Para10.1.70

Rounding off of the amount of pension

In the New Pay Matrix vide Table No. 5 the amount of revised pay arrived at after multiplying the existing entry level pay by 2.57, 2.62 and so on, has been rounded off to the nearest Rs.100 , ignoring an amount less than Rs. 50 and rounding off Rs. 50 and above to the next Rs. 100.

But, in the case of calculation of revised pension indicated in the illustrations in para10.1.70 of the Pay Commission’s report, the amount of revised pension arrived at after multiplication of the existing pension by 2.57 has been rounded off to the next higher rupee as per the extant rules

The different methods of rounding off of fractions as stated above will result in an anomaly between the amounts of pension paid to a pre-2016 Pensioner and a post- 2016 Pensioner retiring at the same stage of Pay as shown in the example given below.

Employee retiring on 30-11-2015

Basic Pay : 55,040 ((Pay in the Pay Band Rs.46340 + Grade Pay Rs.8700)(Level -13)

Pension sanctioned @ 50 % of Basic : 27,250

Revision of pension from 1-1-2016 in terms of para10.1.67 – 7th CPC

Existing pension 27250 multiplied by 2.57 = Rs.70726.4 rounded off to Rs. 70,727

Employee retiring on 31-1-2016

Existing Basic Pay 55,040

Revised basic pay after multiplication of the existing basic pay by 2.57 = Rs.1,41,453

In the Pay Matrix for level 13, the figure closest to Rs.1,41,453 is Rs.1,41,600.

Hence the pay of the employee will be fixed at Rs.1,41,600 in level 13 in the new pay Matrix. on 1-1-2016

On the employees retirement on 31-1-2016, his/her pension will be fixed at 50% of the revised pay @ Rs.70,800

Revised Pension of an employee retiring on 30-11-2015 with a basic pay of Rs.55,040 = Rs.70,277

Pension fixed for an employee retiring on 31-1-2016 with same pre revised basic pay = Rs.70,800

We suggest that since the pay commission has recommended rounding off of fraction of the amount of pay of serving employees to the nearest 100 rupees, DoP&PW may please consider rounding off of fraction of the amount of pension to the next rupees 50 ( since pension is calculated at 50% of pay)

Doubts which need clarifications

1. Pension Calculation and Qualifying Service

The Pay Commission in para10.1.6 7(i) of its report states that

“All the Civilian personnel including CAPF who retired prior to 01.01.2016 ………. Fifty percent of the total amount so arrived at shall be the revised pension.”

As per the above recommendation, pension shall be calculated at 50 % of the notional pay. It is therefore presumed that there will not be any pro rata reduction in pension for less than 33 years of service in respect of pre -2006 Pensioners and for less than 20 years of service in respect of post -2006 Pensioners since the Pay Commission has not recommended any reduction in the amount of pension for lesser number of years of service. This may please be confirmed.

2. Increments

A. Number of increments

Regarding the number of increments to be added to the minimum pay of the corresponding level in the pay matrix the report states that

“All the Civilian personnel……………………………………………………………… ……………………………………………. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service…….”

It is presumed that the number of increments earned both in the pay scale from which the pensioner had retired and in the corresponding pre-revised pay scale in the same grade/level are to be taken into account for counting the total numbers of increments earned in that level.

This may please be confirmed.

Example:

Grade S-19

Pay Scale from which Retired: V CPC: Rs.10,000-325-15,200 : Increments earned: 4 Corresponding pay scale: IV CPC Rs. 3000-100-3500-125-4500 : Increments earned: 8

Total number of increments to be added to notional minimum pay: 12

B. Stagnation Increments

It is presumed that stagnation increment is also to be included in the number of increments earned in that level. This may please be confirmed.

3. Revision of pension of pensioners who had retired from posts which were upgraded subsequent to their retirement

The Pay Commission has recommended a new Pay Matrix with distinct pay levels which would be the Status determiner. The new levels have been determined on the basis of the existing levels of Grade Pay.

As the new levels are based on the existing Grade Pay, the level in the Pay Matrix for pre-2006 Pensioners has to be determined on the basis of the Grade Pay they would have been entitled to but for retirement. Some of the posts were upgraded to higher pay scale from 1-1-2006 and granted higher grade pay. For example, the post in Grade S-12 in the pay scale of Rs. 6,500-200-10,500 was upgraded to the pay Scale of Rs.7,450-225-11,500 and granted Grade Pay of Rs.4,600. But, for revision of pension of pre 2006 Pensioners retiring from the pay scale of Rs. 6,500-200-10,500 or corresponding pre- revised pay scales, Grade Pay of Rs.4,200 only was considered . Similarly, in respect of several posts upgraded under 5th CPC also, Grade Pay admissible for the normal corresponding pay scale only was considered for revision of pension in terms of para 4.2 of DoP&PW OM dated 1-9-2008.Thus pre- 2006 Pensioners were denied the benefit of upgraded pay scale even though they too had served in the same Grade before their retirement.

With the 7th CPC recommending that “increments earned in that level” shall be added to the minimum pay of the corresponding level in the pay matrix, to arrive at the notional pay for calculation of pension and as the level is determined on the Grade Pay, the grievance of pre-2006 pensioners who had retired from posts which were upgraded subsequent to their retirement will continue to remain unresolved even after implementation of 7th CPC recommendations, if they are accepted by the Government.

We earnestly request that this long pending demand of pre-2006 Pensioners, which is stated to be under consideration, may please be considered favorably on priority basis, which will pave the way for their placement in a higher level under 7th CPC making them eligible for higher pension.

4. Family Pension

Para 10.1.25 states that the Commission does not recommend any further increase in the rate of pension and family pension from the existing levels. Therefore, the family pension will continue to be calculated at 30% of last pay. While the Pay Commission recommends revision of pension of pre -2016 pensioners under the formulation suggested by it vide para10.1.67, there is no mention on the question of revision of family pension of pre-2016 family pensioners either in paras, 10.1.25 or 10.1.67 or in any other pars of the report. Hence, it may please be clarified whether the provisions of para 10.1.67 and 10.1.68 are equally applicable to pre-2016 family pensioners also, however, with the exception that the family pension shall be calculated at 30 % of the notional pay.

We suggest that the provision for revision of family pension, on the analogy of revision of pension in terms of options I & II indicated in para 10.1.67 of Pay Commission’s report, may please be specifically included in the O M likely to be issued in due course.

Conclusion:

The letter of DoP&PW dated 1/3-12-2015 calling for the views of our Association to be submitted before 7-12-2015, was received by us on 12-12-2015, leaving no room for a more analytical study of the report. However, with a view to send our views/ comments as early as possible, an interim reply listing out the anomalies, doubts and suggestions has been given in the fore going paras for favour of consideration.

Source : BPS

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