BSNL Pensioners will get Merger of 50% DA / DR with Basic Pay / Pension

No.40-13/2013-Pen (T)
Government of India
Ministry of Communications
Department of Telecommunications

Dated 18.07.2016

OFFICE MEMORANDUM

Sub: Revision of pension of BSNL pensioners/ family pensioners, who retired prior to 10.06.2013 by allowing the benefit of merger of 50% DA/ DR with Basic Pay/ pension, effectively amounting to 78.2% DA/ DR for the purpose of fitment

The pension to combined service optee absorbed employees in BSNL is paid by Government as per sub-rules 21 to 23 of Rule 37-A of CCS(Pension) Rules 1972.

2. Consequent to the Department of Public Enterprises (DPE) orders dated 26.11.2008, revision of pay of employees of BSNL was allowed with effect from 1.1.2007 vide Letter No. 61-01/2009-SU dated 27.02.2009. Subsequently, pension/family pension of employees retired from BSNL who retired between 01.10.2000 and 1.1.2007, was revised vide this office O.M No. 40-17/2008-Pen (T) Vol.III dated 15.3.2011.

3. Further to Department of Public Enterprises O.M. No. 2(70)/08-DPE (WC)-GL- VII/09 dated 02.04.2009, the benefit of merger of 50% DA with Basic Pay effectively amounting to 78.2% IDA as on 1.1.2007 for the purpose of fitment, was granted to the BSNL serving employees w.e.f. 10.6.2013 vide Order No. 61-01/2012-SU dated 10.6.2013.

4. The issue regarding revision of pension/ family pension of BSNL IDA pensioners/ family pensioners, who retired prior to 10.06.2013 has been considered by the Government, and the following has been decided:

(a)The pension/ family pension of BSNL IDA pensioners/ family pensioners, who retired prior to 01.01.2007, may be revised as on 01.01.2007 notionally with actual benefit w.e.f. 10.06.2013 by adding together

1. Existing basic pension/ family pension including commuted portion of pension, if any
2. Dearness relief (IDA) @ 78.2%
3. Fitment weightage @ 30% of the existing pension/ family pension and dearness relief (IDA) thereon.

The amount so arrived will be regarded as consolidated pension/ family pension with effect from 10.06.2013.

(b)The pension/ family pension of BSNL IDA pensioners/ family pensioners, who retired between 01.01.2007 and 09.06.2013, their pay may be revised notionally with effect from 01.01.2007 by allowing the benefit of merger of 50% DA/DR with Basic Pay/ Pension effectively amounting to 78.2% IDA for the purpose of fitment, and consequential revision of pension on notional pay with actual benefit w.e.f. 10.06.2013, at par with the serving employees of BSNL. However, these pensioners do not get actual benefit of increase in pay/ pension during the period between 01.01.2007 to 09.06.2013, and they would not get increase in the amount of DCRG, leave encashment and commutation of pension on this account.

5.The other conditions with regard to commuted portion of pension, minimum pension and increase in the quantum of pension/ family pension to the old pensioners/ family pensioners, as mentioned in this office O.M. No. 40-17/2008-Pen (T) Vol.III dated 15.3.2011 shall remain the same.

6.Action to revise pension/ family pension in terms of these provisions may be initiated suo-moto by the concerned Heads of offices. All administrative offices of BSNL handling preparation of pension papers of BSNL pensioners may be directed to initiate the process of consolidation of pension/ family pension to the BSNL IDA pensioners/ family pensioners, who retired prior to 10.06.2013, at the consolidated rates in terms of para 4 above immediately and forward the same to the concerned CCAs for consolidation and issue of revised Pension Payment Orders (PPOs).

7. The exercise to extend benefit of these orders to the pensioners/ family pensioners should be completed by 31.12.2016.

(S K Jain)

DDG (Establishment)

Download DOT OLM No.40-13/2013-Pen (T) dated 18.07.2016

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Let us now analyse what would have been the case, had 50% of Dearness Allowance / Dearness Relief been merged with pay / pension with effect from 01-11-2011. DA merger had taken place before implementation of 5^th and 6^th CPC Recommendations.

Though we had demanded it this time also, it was not agreed to. Whether enough organizational pressure was there to get the demand accepted is now an academic issue for discussion only. The DA / DR was 51% in January 2011. The percentage rates of DA/DR were 58, 65, 72, 80, 90, 100 107, 113, 119 and 125 during subsequent six monthly periods up to January 2016.

Now we shall workout the financial implication of the 50% DA/DR merger notionally.  A person with a basic pay / pension of Rs. 10,000/- would have got Rs. 1,06,500/- as difference in DA/DR for the period 01-01-2011 to 31-12-2015. That is the notional loss. It is easy to workout. For every 1,000 rupee as pay / pension, the benefit would have been Rs. 10650/- We cannot even dream of such an amount as pay revision “bonanza”.

The pay + DA of the lowest paid employee who was drawing Rs. 7,000/- (5,200 +1,800). On 01-01-2016 would have been Rs. 1,8375/- In that case, no Pay  Commission would have dared to recommend Rs. 18000/- as minimum pay as it would have been less than the actual pay + DA drawn by the employee.

Even if we accept the 14.29% increase recommended by the 7^th pay commission, the minimum pay would have been Rs. 21,000/- and so the multiplication factor would have increased to 3 instead of 2.57. Employees and pensioners would have been benefitted significantly.

We were after the euphoria of a Pay Commission. We thought the 7th pay commission and the Government will deliver us good. It was a folly on our part in not clinching the demand of merger of 50% DA with effect from 01-01-2011. We shall blame ourselves for that. This is a lesson for us to be cautious in future.

Source: CGPA Kerala

The post 7th Pay Commission – DA Merger Would have been more Beneficial – Whether enough organizational pressure was there to get the demand accepted is now an academic issue for discussion only. appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

DA MERGER WOULD HAVE BEEN MORE BENEFICIAL THAN PAY COMMISSION – G. SAHARAJAN, SECRETARY, CGPA, KERALA

The 7th CPC submitted its report in November 2015. The Empowered Committee of Secretaries blocked it for 7 long months. Finally the cabinet approved the report without any modification, The Gazette Notification on the pay and allowances of employees was issued on 25-07-2016. The same minimum pay of Rs.18000/- The same multiplication factor of 2.57. Absolutely no change.

Let us now analyse what would have been the case, had 50% of Dearness Allowance / Dearness Relief been merged with pay / pension with effect from 01-11-2011. DA merger had taken place before implementation of 5th and 6th CPC Recommendations.

Though we had demanded it this time also, it was not agreed to. Whether enough organizational pressure was there to get the demand accepted is now an academic issue for discussion only. The DA / DR was 51% in January 2011. The percentage rates of DA/DR were 58, 65, 72, 80, 90, 100 107, 113, 119 and 125 during subsequent six monthly periods up to January 2016.

Now we shall workout the financial implication of the 50% DA/DR merger notionally. A person with a basic pay / pension of Rs. 10,000/- would have got Rs. 1,06,500/- as difference in DA/DR for the period 01-01-2011 to 31-12-2015. That is the notional loss. It is easy to workout.

For every 1,000 rupee as pay / pension, the benefit would have been Rs. 10650/- We cannot even dream of such an amount as pay revision “bonanza”. The pay + DA of the lowest paid employee who was drawing Rs. 7,000/- (5,200 +1,800). On 01-01-2016 would have been Rs. 1,8375/- In that case, no Pay Commission would have dared to recommend Rs. 18000/- as minimum pay as it would have been less than the actual pay + DA drawn by the employee. Even if we accept the 14.29% increase recommended by the 7th CPC, the minimum pay would have been Rs. 21,000/- and so the multiplication factor would have increased to 3 instead of 2.57. Employees and pensioners would have been benefitted significantly.

We were after the euphoria of a Pay Commission. We thought the CPC and the Government will deliver us good. It was a folly on our part in not clinching the demand of merger of 50% DA with effect from 01-01-2011. We shall blame ourselves for that. This is a lesson for us to be cautious in future.

Source: http://cgpakerala.blogspot.in/

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Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
EMail: nc.jcm.np@gmail.com

NO.NC/JCM/2016/CS/PM

Dated: 14.06.2016

Hon’ble Prime Minister of India,
152, South Block,
Raisina Hill,
New Delhi-110011

Respected Sir,

Sub: Non-settlement of our demands – Decision to go on “Indefinite Strike” commencing from 11.07.2016 – Request for your intervention and support.
I write this on behalf of the apex level body of all the Central Government Employees Organizations who are participating in the Negotiating Forum; called the Joint Consultative Machinery. The JCM as a Negotiating Forum was conceived and implemented in 1966 after the prolonged discussions with the Staff Associations and the Federations in the Central Services in the wake of first industrial action in 1960. The idea of setting up the JCM was in realization of the absence of a platform to discuss, deliberate and settle the demands/issues/grievances/problems of the Civil Servants. Up to 1995-96 the JCM, which has a three level negotiating platform was functioning well, meetings were regular. However, after the promulgation of the new recognition Rules in 1993, the meetings at the Ministry level became few and far between and at the national level, the deterioration stepped in a little latter. The National Council, which was to meet thrice in a year did not meet even once in a year. The last meeting of the National Council was held on 15.05.2010 The organizations participating in the JCM were demanding the meeting to be held, but the pleas were ignored by the successive Cabinet Secretaries. The Charter of Demands (copy enclosed), in pursuance of which the strike is decided to be organized, has arisen due to long neglect of the grievances of the employees/workers.

When the 7th CPC was set up in February, 2014, no announcement for Interim Relief or DA Merger was made by the then government, which had all along been the practice whenever the government had set-up the Pay Commissions earlier. We fully co-operated with the Commission, submitted a memorandum detailing the issues and explained the reasoning behind each demand. The 7th CPC submitted report on 19.11.2015 to the government. In our communication dated 10.12.2015 (copy enclosed), we sought improvement/amendment over the recommendations of the 7th CPC and explained our demands both in writing and orally before the Empowering Committee. Most of the meetings were monologues except perhaps the last one. What we have understood, is that, the Empowering Committee might not come forward to make any major changes. A fruitful meeting is supposed to be a dialogue where both parties at the negotiating table exchange their understanding, views and difficulties and reach a mutually acceptable position. In 1998, when the then Cabinet Secretary decided not to have such a dialogue with the Staff Side and unalterably issued the Government Notification on the 5th CPC recommendations, the then government did set up a committee of Group of Ministers. The GoM held discussions on all issues and averted the strike action. The 1998 situation establishes, without an iota of doubt, that, the Staff Side has always taken reasonable stand on all the issues and paved way for settlement.

The one and only recommendation made by the 7th CPC was to provide some relief to the past old pensioners. The Department of Pension & Pensioners’ Welfare has unfortunately recommended to the Cabinet Secretary that, even that recommendation must be rejected on the specious plea that the requisite relevant records might not be available.

These developments have caused anguish, anxiety and anger amongst the workers. It is now more than six months that the Commission submitted its report. If the government comes forward to hold a meaningful discussion with the leaders of the NJCA, a mutually acceptable settlement can be brought about and the impending strike, slated to commence from 11.07.2016, can ultimately be avoided.

We seek your co-operation, supports and intervention in the matter

Yours faithfully,

sd/-
(Shiva Gopal Mishra)
Secretary(Staff Side),
NC/JCM

Source : National Council (Staff Side)

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Cabinet approves 6 percent Dearness Allowance hike for Central Government employees

“In the 7th Pay Commission report, submitted to the government on 19.11.2015, it was mentioned that the DA is assumed to be 125 percent as on 1 January, 2016, the day from which the
Commission expects its recommendations to be implemented by the government. As calculated by the 7th Pay Commission, a six percent Dearness Allowance hike is being given to the Central Government employees.”

The Dearness Allowance (DA) is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay from erosion in the real value on account of inflation. Presently, DA is based on the All India Consumer Price Index (Industrial Workers).

On 23.03.2016, Wednesday, the Centre decided to give a Dearness Allowance of 6 percent to the Central Government employees in order to enable them to manage the price rise and inflation.

On the occasion of Holi, a special cabinet meeting, under the leadership of Prime Minister Narendra Modi, was held in New Delhi on 23rd March 2016. At the end of the meeting, Mr. Ravishankar Prasad, the Minister of Communications and Information Technology, spoke to the reporters. He said, “The cabinet has decided to issue a Dearness Allowance of six percent to the Central Government employees and pensioners.”

The Dearness Allowance is expected to be calculated from January 1, 2016 onwards. This increases the total Dearness Allowance from 119 percent to 125 percent. More than 50 lakh Central Government employees and 58 lakh pensioners will benefit from this. The government will incur an additional financial burden of Rs.14,725 crores. Dearness Allowance is issued twice a year, based on inflation. The previous Dearness Allowance hike, of six percent, was issued in the month of September 2015, and had a retrospective effect from July 2015 onwards.

This is the last and final instalment of Dearness Allowance calculated by the recommendations of 6th Pay Commission. And, after implementation of 7th Pay Commission the new and first Dearness allowance from 1.7.2016 will be approved by the Cabinet in the middle of September 2016.

The post 6th Pay Commission Dearness Allowance ends with 6% hike at 125% appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Member of the Seventh Central Pay Commission Rathin Roy has suggested that to meet its fiscal deficit target the Government should merge the basic pay and dearness allowance (DA) of central government employees in the current year and defer implementing any real increases in pay and pensions. This, the member has said, could be done by compensating those who would have to bear the burden of the deferred effect by giving them a “more generous award distributed over several years”.

“I am saying that the increment need not all be given at one go… It can be staggered and made more generous… So this could be done for pay and for pension,” Dr. Roy told The Hindu in an exclusive interview. “Now I am not competent to say whether this is politically feasible or not,” he, however, added.

Last month, the Union Cabinet set up an empowered committee of secretaries under the Cabinet Secretary for processing the recommendations of the Commission.

The pay and pension revision recommendations of the Commission are scheduled to take effect from January 1, 2016, but Dr. Roy, who is also the National Institute of Public Finance and Policy’s Director, has suggested that the implementation should be pushed to April 1.

What they should get, from April 1, 2016, is what they would get if we merge the basic pay and the DA, which is more or less what they are already getting, he said. “That will mean some increase in allowances but other than house rent allowance the burden of that [on the government budget] will not be very high.” He has also recommended that the Government defer allowances, principally the house rent allowance. “The case for that is strong because we are in the midst of fairly flat growth in consumption expenditure and rents are not going up much.”

Ahead of the presentation of Union Budget 2016-17, the Government is considering options for keeping the fiscal deficit for the next year within the Fiscal Responsibility and Budget Management target. The Government’s fiscal deficit in 2008-09, the year the Sixth Central Pay Commission award was implemented, doubled to 6 per cent, though not all of the increase was on account of the pay and pension hikes. Currently, Central government pay and allowances account for 1 per cent of the country’s GDP.

The Seventh Pay Commission, which submitted its report in November 2015, estimated that the total financial impact due to the hike in pay and allowances of central government employees recommended by it would be Rs 1,02,100 crore. Of this, Rs 73,650 crore will be borne by the General Budget and Rs. 28,450 crore by the Railway Budget. The Commission was set up by the UPA government in February 2014 to recommend revisions of remuneration for 48 lakh central government employees and 55 lakh pensioners.

Source: The Hindu

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Order for Merger of 50% DA, Retirement age news.

Recently rumour mill went overdrive in social media with the following news that

1. Central Government decided to merge 50% DA with basic pay with effect from 1.1.2015.

2. It went on to say that age of Retirement will be on completion of 33 Years of service or at the age of 58 Years whichever is earlier.

The 7th CPC is expected to submit its report shortly and due to Bihar elections the Central Government cannot take any policy decisions in this regard. Hence it is clarified that none of the above news are correct.

Source: http://karnatakacoc.blogspot.in/

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NATIONAL JOINT COUNCIL OF ACTION
4, State Entry Road New Delhi–110055

No.NJCA/2015

Dated: June 15, 2015

All the Members of the NJCA,

Dear Comrades,

Sub: National JCA Meeting held on 8th June

The National JCA, which met at the Staff Side Office on 8th June, 2015, took note of the fact that quite a few states are yet to hold the State Level Conventions. The meeting also noted that the strike decision taken on 28th April, 2015 has not been percolated down to the rank and file of the workers. The meeting wanted the affiliate to realize that the denial of the demand for wage revision to be effective from 01.01.2014 and the consequent denial of interim relief and the benefit of merger of DA with Pay must be viewed very seriously as the said decision will have far reaching consequence. The Government would discard the age old practice of grant of I.R. and merger of DA forever. It has decided to appeal to all the affiliates to chalk out independent programmes of actions in the months to come and to carry out the same in all seriousness so that the employees become fully aware of the possible outcome of the 7th CPC. The Chairman and Convenor of the National JCA will get in touch with those States, where the convention has not been held so far. The meeting decided to convey to members that the minimum wage computation, in the given situation would be on an imaginary basis. The National JCA was of the opinion that a meeting of all office bearers of the participating organizations must be convened at Delhi somewhere in the month of July to chalk out programmes of action to be pursued by the CGEs together. It was informed at the meeting that both Defence and Railways would be taking their strike ballot and would be concluded in the first week of October. The meeting, therefore, decided to advise the other units to chalk out progammes of action in July so that an ambience of struggle could be created. The NJCA also took note of the painful fact that despite assurances, Government was not convening the National Council and Departmental Councils and the JCM has been allowed to become defunct. The National JCA in conclusion decided to appeal to all affiliates to take concrete steps to invigorate the joint movement of the Central Government employees and meet the challenge that is likely to arise on receipt of the recommendations of the 7th CPC by creating an atmosphere of Unity, and determination to carry out the call of indefinite strike action scheduled to commence on 23rd November, 2015.

With greetings,

(Shiva Gopal Mishra)
Secretary (Staff Side)
NC JCM & Convener

Source: www.ncjcmstaffside.com

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No. 2(42)/97-DPE (WC)-GL-VIII/15
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises

Public Enterprises Bhawan,
Block 14, CGO Complex, Lodi Road.
New Delhi-110003, 29thApril, 2015

OFFICE MEMORANDUM

Subject: – Payment of DA to the CDA pattern employees of CPSEs governed by HPPC recommendations.

The undersigned is directed to refer to Para No. 2 and Annexure-III to this Department’s OM. dated 24.10.1997 wherein the rates of DA payable to the employees of CPSEs following CDA pattern pay scales, which are governed by HPPC recommendations had been indicated.

2. In continuation of this Department’s OM of even number dated 9.10.2014, the rates of Dearness Allowance w.e.f. 01.01.2015 payable to the employees of CPSEs governed by the recommendations of HPPC. which have not revised their pay scales in terms of DPE O.M. No. 2(54)/2008-DPE(WC) dated 14.10.2008 may be as follows:-

a) In case of CPSEs who have not allowed the benefit of merger of 50% of DA with basic pay as contained in DPE QM. dated 24.05.2005 to their employees. the DA payable may be enhanced from existing rate of 262% to 273%.

b) In case of CPSEs who have allowed the benefit of merger of 50% of DA with basic pay as contained in DPE QM. dated 24.05.2005 to their employees, the DA payable may be enhanced from existing rate of 212% to 223%.

3. The payment of Dearness Allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored.

4. All administrative Ministries/Department of Government of India are requested to bring the foregoing to the notice of the Central Public Sector Enterprises under their administrative control for action at their end.

sd/-
(Samsul Haque)
Under Secretary

Source: http://dpe.nic.in/sites/upload_files/dpe/files/29_04_2015_CDA_5th_CPC0001.pdf

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Recently rumour mill went overdrive in social media with the following news that

1.central government decided to Merge 50% DA with basic pay with effect from 1.1.2015 and order will be issued within 15 days

2. Encashment of Earned Leave to be curtailed to 180days instead of existing 300 days.

3.It went on to say that age of Retirement will be on completion of 33 Years of service or at the age of 58 Years whichever is earlier

According to the Social Media , the above strong decisions were taken in last three meeting of cabinet committee to recommend 7th pay commission. Further the post published in social media warned the central government employees that if above decisions are implemented; they should not expect more from 7th Pay Commission. Since it is considered to be the indication of what the think tank of central government will do for its employees.

We enquired about this rumour with one of the Member to the National council JCM, who recently met the 7th Pay Commission. According to him, the central government has firm on its decision not to accept the Merger of DA with Pay, since the due date of the 7th Pay Commission to submit its recommendation is nearing and the central government in many occasions cleared that the recommendation of 7th pay commission will be implemented from 1.1.2016. So there is no question of issuing order for merger of 50% DA with effect from 1.1.2015.

Further he clarified that the present government wanted to use the man-hours of central government employees productively by introducing new systems like bio metric attendance etc. Hence curtailing EL Encashment will lead the central government employees to take more leave if it is not allowed for encashment. So there is no need to implement such proposal as government point of view is against taking leave by Govt officials.

There is mixed response from the sources whether the retirement age of central government employees will be revised or not. It is believed that the present government is in favour of reducing retirement age to 58. But at the same time government doesn’t want loose resources of knowledge gained through experience by reducing retirement age of Government employees. Since the work culture of government service is deteriorating day by day due to various factors , govt would like to retain the experience of the senior Government officials . Anubhav is the one of the initiative introduced by the central government to improve the work culture of youngsters in government service. So there will not be any change in retirement age of central government employees at present.

Source:www.gservants.com

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