No.IV/RSAC/Conf./Part VIII

Dated: 31/10/2017

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub: Revision of Kilometrage rates and other Allowances for Running Staff in the wake of implementation of VII CPC pay structure-reg.

Ref: (i) Railway Board’s OM No. E(P&A)II-2014/Misc. 3/7th CPC dated 20/10/2014.

(ii) GS/NFIR’s letter No. IV/NFIR/7th CPC/Corres/Pt. V dated 15/04/2015 to Railway Board.

NFIR at the outset, conveys to Railway Board that the delay in granting upward revision of Kilometrage rates for Running staff has been causing serious disappointment and resentment among the entire category.

In this connection, NFIR invites the attention of Railway Board to the discussions held between the Federation and Board on 24th June 2015 on the issue relating to enhancement of Kilometrage Allowance rates (on the basis of Running Allowance Committee Formula) demanded by NFIR with effect from 01/01/2006. A note sheet was also given by the Railway Board to the Federation during discussion and according to the said note sheet, the Kilometrage rates were to be revised with effect from 01/01/2006, adding Rs.72.44 to the rate then existed. It was also discussed on the need for further revision of the said Kilometrage rates w.e.f. 01/09/2008, 01/01/2011 and 01/01/2014 (in view of DA factor). These matters are yet to be satisfactorily finalized inspite of discussions held on 24th June 2015.

NFIR gives again the valid points as listed below for the purpose of revising the kilometrage rates without delay:-

It is a known fact to the Railway Board that the TA factor needs to be taken into account for revising rates of Kilometrage Allowance in the case of Running Staff as per RAC formula.

The TA rate was fixed at Rs. 340/- in the year 2008 as a result of implementation of 6th CPC recommendation and the said TA was raised to Rs. 510/- due to DA linkage and now with the recommendations of 7th CPC, the TA rate has been revised to Rs. 800/-. with effect from 01.07.2017.

But the Kilometrage Allowance rate for Running Staff was fixed at Rs.169/- in the year 2008 assuming TA rate as Rs.210/- and not with the TA rate of Rs.340/- as recommended by 6th CPC, It needs to be admitted that the assumed TA rate Rs.210/- has now been raised to Rs.800/-, which works out to 3.8 times. Therefore the rate fixed in 2009 at Rs.169 should be revised by 3.8 times which works out to Rs.642/-.

Apart from the above, the rise in pay element quantum on implementation of new pay matrix needs to be reflected in the Running Allowance rate, as 30% of Pay element its also a component to decide the rate. When the 30% pay element was calculated at the minimum of pay level-6 i.e 35400, it works out to Rs.10620/-. The 30% pay element calculated on the 6th CPC minimum pay of Rs.9300 + GP 4200 works out to Rs.4050 i.e. 30% pay element component has risen to Rs.6570/-. This amount has to be divided by average KM 5100 (National Average of LP/Passenger as assumed by Railway Board) and it comes to Rs.129. So the amount Rs.642 on account of TA raise and Rs.129/- on account of raising 30% pay element – taken together, the rates comes to Rs.771/-.

NFIR however conveys that the National Average Kilometrage for Loco pilot (Passenger) recommended by the Running Allowance committee, 1980 was 3950 which was revised arbitrarily by Railway Board to 5100 to deny the benefit to Running Staff at that point of time. The Running Allowance Committee, 1980 had also recommended that TA of 21 days must be factored in. As per our statistics, at present, the National Average kilometrage of Loco Pilot (Passenger) stands at 4000 KM, that of passenger Guard at 4600 KM & and that of Assistant Loco pilot at 4000 KM.

Had the Running Allowance rate arrived at in the year 2008 been based on the recommended TA rate of Rs.340, there is some meaning on the argument of multiplying the present rate by a factor of 1.5 (as per the VII CPC recommendations)

In any case, the 7th CPC as well the Government have left this issue to the Railway Board to discuss with the Federations for reaching an agreement for revision of Kilometrage Allowance rates, therefore the 7th CPC recommendation to multiply with 1.5 or 2.25 is not at all relevant, with regard to Running Staff Kilometrage Allowance rates.

Hence, Federation gives the calculation as below:-

KMA rates of LP/Passenger

Mean Pay of L6- (35400+112400)/2 = 73900

30% of Mean Pay = 22170

21 days TA i.e, 800 x 21 = 16800

As per the RAC formula

[(30% Mean Pay + 21 days TA)/Average KM)] x 100 = [(22170 + 16800)/4000)]x100 = Rs.974/- per 100 kms.

KMA rates of Passenger Guard

Mean Pay of L6- (35400+112400)/2 = 73900

30% of Mean Pay = 22170

21 days Ta i.e, 800 x 21 = 16800

As per the RAC formula

[(30% Mean Pay + 21 days TA)/Average KM)] x 100 = [(22170 + 16800)/4600)]x100 = Rs.847/- per 100 kms.

KMA rates of Assistant Loco Pilot

Mean Pay of L2- (19900+63200)/2 = 41550

30% of Mean Pay = 12465

21 days Ta i.e, 800 x 21 = 16800

As per the RAC formula

[(30% Mean Pay + 21 days TA)/Average KM)] x 100 = [(12465 + 16800)/4000)]x100 = Rs.731/- per 100 kms.

Taking the factors as explained above, the NFIR urges that the kilometrage rate for Running Staff (Loco pilot/passenger) should be revised to not less than Rs.974/-. that of passenger Guard to Rs.847/- & that of ALP to Rs.731/- duly retaining the pay element of 55 & 30% (as has been continued since the last more than three decades when the pay scales of 4th, 5th, 6th and 7th CPC have been implemented).

Federation therefore, requests the Railways Boards to take action to revise the kilometrage rates as suggested above with retrospective effect.

Yours faithfully,

S/d,
(Dr.M.Raghavaiah)
General secretary

Source: NFIR

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What the above decision means for pre-2016 retirees?

Modification made appears fixing the pay of pre 2016 retirees notionally in revised pay matrix and then fixing pension at 50% of pay. If the pension so fixed is more than the pension fixed with fitment formula of 2.57 then pension will be revised otherwise no change. It is presumed that option will be given to pensioners. For arriving at pay in revised matrix of 7 CPC for those who retired prior to 1-1-1996 notionally there pay will be fixed under V CPC scales and VI CPC Pay structure. Similarly for those who retired prior to 2006 it will be notionally fixed in VI CPC Pay structure and then in 7 CPC matrix. The pay for this purpose is pay last drawn as recorded in their PPO. For the information of readers fixation formula under V CPC, VI CPC and VII CPC rules is given below:

V CPC:

Pay in the revised scales to be fixed at the stage next above the total even if there is stage equal to the total.

Rates of DA as on 1-1-1996

VI CPC

VII CPC

Illustration:

‘X retired on 31-1-1992 and pay was Rs. 2900 in the scale 1640-2900

1. His notional pay under 5 CPC scale of 6500-10600 is Rs.8900;

2. His notional pay under 6 CPC (PB2 +GP 4200) is Rs.20760;

3. His notional pay under 7 CPC (Level 6) is Rs.53600;

4. Pension fixed on 1-1-2016 with a fitment formula of 2.57 is Rs.25847;

5. Pension as per cabinet decision 50% of notional pay as per 7 CPC is Rs 26800.

Note: The above example is only an illustration.
The pension fixation may vary from case to case. Final calculation has to be made as per the Government orders.

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

The post 7th CPC Pension Calculation for Pre-2016 Pensioners – KarnatakaCOC appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.