Main demands for inclusion in Memorandum to 7th CPC
For comments & corrections by MOU Partners, Affiliates/Members/Supporters & Well-wishers
Few of the main demands of C.G. Pensioners’ identified by BPS for inclusion in the Memorandum to 7th CPC
(Department wise issues will be attached as Annexure)
1.Bring down the Ratio between maximum & Minimum of Salay to 1: 9Some
25 years back 4th CPC had determined the ratio between minimum &
maximum of salary to be 10.7(Chapter 41 & 43) Vth cpc maintained
it to be
10.97 (Appendix ‘I’ to VOl.III of 5th CPC
report “ Summary of recommendations” para19) in their recommendations
which while implementation was raised to
1:11.76Shredding
the basic fiber of the Constitution of Indian Socialistic State, after
implementation of 6th CPC this ratio stand raised to 1: 12.85. Both
for salaried employees & Pensioners. Which is much more, than even
the capitalist countries like America & Britain.
This
negative and socially regressive effects of the 6th Central Pay
Commission has had the effect of worsening wealth and income inequality
not only between pre-and post-2006 retirees, but even within pre-2006
retirees where in higher-ups from Scales S30.S31& above got full
parity in Pension.
Raising, instead of reducing the ratio between minimum & maximum of salary is unconstitutional .
We demand:
That Preamble to the Constitution, Articles 366(17),14 & 21read in
the light of Honorable Supreme Court judgments, in the cases of D.S.
NAKARA & OTHERS Vs UNION OF INDIA DATED 17/12/1982 1983 AIR
130,1983 SCR (2) 16, 1983 SCC (1) 305 1982 SCALE (2)1213, and, in the
case of Consumer Education and Research Centre & Others Vs union of
India(AIR 1995 supreme court 922) to be implemented in letter &
spirit.
Accordingly the Ratio between minimum & maximum of
Pay/Pension should progressively go on reducing ensuring complete
equality.
We appeal to the 7th CPC: That the
ratio between maximum & minimum Salary/Pension be brought down to 1:
9 accordingly, 7th pay commission should first workout the top most
revised salary, divide it by 9 to arrive at the minimum revised salary
& then on this basis derive a uniform multiplication factor to
arrive at revised Pay & Pension with the condition that Pension
shall not in any case be less than 65% & family Pension 45% of the
last Pay in Pay in Pay Band/Pay scale or of average of last 10 months
emoluments (Whichever is more beneficial)
2.Pension to be
65% of last drawn or 65% of Av. Of last 10 months emolument whichever
beneficial & Family Pension to be 45% of last drawn or Av. Of 10
month:Honorable Supreme Court, in its landmark 5-Judge
Constitutional Bench judgment dated 17.12.1982 in the case D.S.Nakara vs
UOI, ruled that “A pension scheme consistent with available resources
must provide that the Pensioner would be able to live Free from want,
with decency, independence and self respect, and at a standard
equivalent at pre- retirement level”. As laid down in Para 127.9 of 5th
Central Pay Commission report Vol. III, the study done by the
Consultants to 5th Central Pay Commission (TECS – Tata Economic
Consultancy Services) recommended Pension to be 65% of the last
emoluments drawn.
We demand 65% of the last drawn emoluments or
65% of Av. Of last 10 months emolument whichever beneficial &
Family Pension to be 45% of last drawn or Av. Of 10 month:
Honorable Supreme Court, in its landmark 5-Judge Constitutional Bench
judgment dated 17.12.1982 in the case D.S.Nakara vs UOI, ruled that “A
pension scheme consistent with available resources must provide that the
Pensioner would be able to live Free from want, with decency,
independence and self respect, and at a standard equivalent at pre-
retirement level”. As laid down in Para 127.9 of 5th Central Pay
Commission report Vol. III, the study done by the Consultants to 5th
Central Pay Commission (TECS – Tata Economic Consultancy Services)
recommended Pension to be 65% of the last emoluments drawn.
We
demand 65% of the last drawn emoluments or 65% of the last 10 months’
average emoluments, whichever is more beneficial, as Pension and 45% as
Family Pension subject to the condition that minimum pension shall not
in any case will be less than 65 % of the 7th Central Pay Commission
revised minimum Basic Pay of Central Govt. employees,
3. Grant 5% upward enhancement in pension be granted every five years’ after the age of 60 years & upto 80 years & thereafter as per existing dispensation.
In
their Para 5.1.32, the 6th Central Pay Commission agreed that older
pensioners require a better deal on account of their needs, especially
those relating to health, increase with age. Accordingly, the Commission
recommended that quantum of pension available to the old pensioners
should be increased as follows:-
On attaining age of Additional quantum of pension
80 years – 20% of basic pension
85 years – 30% of basic pension
90 years – 40% of basic pension
95 years – 50% of basic pension
100 years – 100% of basic pension
In
the present scenario of climatic changes, incidence of pesticides and
rising pollution old age disabilities/diseases set in by the time an
employee retires and go on manifesting very fast, needing additional
finances to take care of these disabilities and diseases, especially as
the cost of health care has gone very high compared to 01.01.2006.
We
therefore, demand, that 5% upward enhancement in pension be granted
every five years’ after the age of 60 years & upto 80 years &
thereafter as per existing dispensation.
4.. Pension to be net of Income Tax :
The
purchase value of pension gets reduced day by day due to continuously
high inflation and steep rise in cost of food items and medical
facilities. Retired persons/Senior citizens do not enjoy fully public
goods and services provided by Government for citizens due to lack of
mobility and many other factors. Their ability to pay tax gets reduced
from year to year after retirement due to ever-increasing expenditure on
food and medicines and other incidentals. Their net worth at year end
gets reduced considerably as compared to the beginning of the year.
Inflation, for a pensioner is much more than any tax. It erodes the
major part of the already inadequate pension. To enable pensioners, at
the far end of their lives, to live in minimum comfort and to cater for
ever rising cost of living, they may be spared from paying Income Tax.
We
demand that pension should be net of income tax as recommended by 5th
Central Pay Commission, vide their Para 167.11(Vth CPC report Vol. III)
5. Automatic Merger of Dearness relief with Pension :
The
Pension of Central Government Pensioners undergo revision only once in
10 years during which period the pension structure gets seriously
dis-aligned; 50% increase in price takes place even in less than 5
years. This results in considerable erosion of the financial position of
the pensioner with otherwise inadequate Pension. As admitted by Shri
Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, in his
statement to PTI on 27.2.2008, DA does not adequately take care of
inflation. Working employees are getting automatic relief by way of 25%
increase in their allowances with every 50% rise in Dearness Allowance.
As pensioners do not get any allowances, they feel discriminated
against. In order to strike a balance, DR may be merged with Pension
whenever it goes beyond 50% as recommended by 5th Central Pay
Commission.
We demand automatic merger of DR with pension, whenever it goes above 50%
6. Restoration of commuted vale of Pension in 12 years
Commutation
value in respect of employee superannuating at the age of 60 years
between 1.1.1996 and 31.12.2005 and commuting a portion of pension
within a period of one year would be equal to 9.81 years Purchase. After
adding thereto a further period of two years for recovery of interest,
in terms of observation of Supreme Court in their judgment in writ
petitions No 395-61 of 1983 decided in December 1986, it would be
reasonable to restore commuted portion of pension in 12 years instead of
present 15 years. In case of persons superannuating at the age of 60
years after 31.12.2005 and seeking commutation within a year, numbers of
purchase years have been further reduced to 8.194. Also, the mortality
rate of 60 plus Indians has considerably reduced ever since Supreme
Court judgment in 1986; the life expectancy stands at 69 years now.
We demand restoration of commuted value of pension in a period of 12 years.
7. The 6th Central Pay Commission’s new benefits,
e.g. full pension for 20 years of service/10 years in superannuation
cases, last pay drawn or average of last 10 months’ pay whichever is
beneficial to the retiring employee as emoluments for computation of
pension etc., have been limited only to post-1.1.2006 retirees. This is
in violation of the letter and spirit of Hon’ble Apex Court judgment in
Nakara Case.
We appeal to the 7th CPC to extend
the above benefits to all pre-1.1.2006 retirees with monetary benefit
from 1.1.2006 to do them equal justice. And that new benefits as 7th CPC
too be made equally applicable to present & past pensioners
8..Medical facilities:
To
ensure hassle free health care facility to Pensioners/family
pensioners, Smart Cards be issued irrespective of departments to all
Pensioners and their Dependents for cashless medical facilities across
the country. These smart cards should be valid in all Govt. hospitals
all NABH accredited Multi Super Specialty hospitals across the country
which have been allotted land at concessional rate or given any aid or
concession by the Central or the State govt. all CGHS, RELHS & ECHS
empanelled hospitals across the country.
Medical attendants. Reimbursement bill for treatment both 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
OPD can be made by respective departments.
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(c), 41, 43, 48A and all related Articles as pronounced by the
Supreme Court in Consumer Education and Research Centre & Others vs
Union of India (AIR 1995 Supreme Court 922) The Supreme court has held
that the right to health to a worker is an integral facet of meaningful
right to life to have not only a meaningful existence but also robust
health and vigour. Therefore, the right to health, medical aid to
protect the health and vigour of a worker while in service or post
retirement is a fundamental right-to make life of a worker meaningful
and purposeful with dignity of person. Thus health care is not only a
welfare measure but is a Fundamental Right.
We
demand that, all the pensioners, irrespective of pre-retiral class and
status, be treated as same category of citizens and the same homogenous
group. There should be no class or category based discrimination and
must be provided Health care services at par with IAS and ex-Ministers.
9. 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 be revised keeping in
mind the workability and market conditions.
We demand that a Hospital Regulatory Authority be constituted.
10.Fixed Medical allowance (FMA):
As
is recorded in Para 5 of the minutes of Committee of Secretaries (COS)
held on 15.04.2010 (Reference Cabinet Secretariat, Rashtrapati Bhavan No
502/2/3/2010-C.A.V Doc No. CD (C.A.V) 42/2010 Minutes of COS meeting
dated 15.4.2010) which discussed enhancement of FMA: CGHS card estimates
for serving Personnel since estimates are not available separately for
pensioners M/O Health & Family Welfare had assessed the total cost
per card p.a. in 2007-2008 = Rs 16435 i.e. Rs.1369 per month for OPD.
Adding to its inflation the figure today is well over Rs 2000/- PM.
Ministry of Labour & Employment, Govt. of India vide its letter no.
G-25012/2/2011-SSI dated 07.06.2013 has already enhanced FMA to Rs
2000/- PM for EPFO beneficiaries. Thus, to help elderly pensioners to
look after their health, Adequate raise in FMA will encourage a good
number of pensioners to opt out of OPD facility which will reduce
overcrowding in hospitals. OPD through Insurance will cost much more to
the Govt. As such the proposal for raising Fixed Medical allowance to
Pensioners is fully justified and is financially viable.
We
demand that FMA for all C.G. Pensioners be raised to at least Rs 2000/-
PM without any distance restriction linking it to Dearness Relief for
automatic further increase. We further demand that FMA be exempted from
INCOME TAX: Fixed Medical Allowance (FMA) is a compensatory allowance to
reimburse the medical expenses. As Medical Reimbursement is not
taxable, FMA should also be exempted from Income Tax.
11.Grievance redressal Mechanism:
Pensioners/Family
Pensioners are exploited, harassed and humiliated by their own
counterparts in chair, who at the sight of an old person adopt a wooden
face and indifferent attitude. Pensioners do not have representation
even in Forums & Committees wherein pension policies and connected
matters are discussed. The forum of Pension Adalat too is not of much
avail as it meets only once a year which is too long a period for an
elderly nearer to his end. Moreover, these Adalats deal with settlement
claims only. SCOVA too meets only twice a year for about 3 hours at
occasion. Moreover, the scope of SCOVA is limited to feedback on
Government policies. DOP (P&PW) is perceived as a toothless
authority which lacks direct Service Delivery Capability. It has been
striving over the years to redress the Pensioners’ grievances through
the ‘Sevottam’ model of the Department of Administrative Reforms &
Public grievances; in the absence of strict timeline with punitive
clause it is, however, proving to be a failure. Grievances are either
not resolved for years or closed arbitrarily without resolving.
We therefore, appeal that for resolving Pensioners complaints of all pensioners,
(i) A strict time line with punitive clause be introduced in “Sevottam model”
(ii) Grievances are not allowed to be closed without resolving.
(iii) SCOVA be upgraded to JCM level covering all Pensioners by introducing suitable legislative amendment if required.
(iv)
As recommended vide Vth CPC report Vol III para 141.30 Pensioners’
representatives should be included in various committees & other For
a of Govt where issues relating to the welfare of pensioners are likely
to be discussed &debated
Er.S.C.Maheshwari
Secy Genl
Bharat Pensioners Samaj