Briefcase Allowance of 7th Paycommission

Briefcase Allowance of 7th Pay Commission

8.17.5 Certain categories of Central Government employees are entitled to reimbursement of expenditure incurred on purchase of briefcase/official bag/ladies’ purse as per the following provisions:

Pay Band/GP	Ceiling (Rs.)
Apex	10000
HAG, HAG+	8000
GP 10000	6500
GP 7600 to GP 8700	5000
GP 4800 to GP 6600	4000
GP 4200 to GP 4600	3500

8.17.6 The periodicity of reimbursement is restricted to once in three years. No demands have been received regarding this allowance.

Analysis and Recommendations

8.17.7 The Commission is of the view that the present rates are adequate However, the ceiling shall further increase by 25 percent each time DA increases by 50 percent

Source: 7cpc.india.gov.in

7th Pay Commission Shortcomings – BPS writes to FM

7th Pay Commission Shortcomings – BPS writes to FM

Bharat Pensiners Samaj, one of the oldest & the largest Federation of Indian pensioners writes to Finance Minister regarding the recommendations of 7th Pay Commission. The Federations insists to redress the eight serious shortcomings in the recommendations of 7th CPC. Particularly in the fitment factor issue, the Federation appeal to provide 2.81 fitment benefit for all employees without any discrimination. Read the detailed letter is reproduced and given below for your kind information...

BPS writes to Finance Minister pointing out 7th CPC shortcomings.

BHARAT PENSIONERS’ SAMAJ
(All India Federation of Pensioner’s Associations)
New Delhi -110014

SG/BPS/ 10/2015

New Delhi-Dt. 25-11-15

To
Dear Shri Arun Jaittleyji,
Honourable Minister of Finance
Government of India

Subject : 7th Central Pay Commission report released on 19.11.2015

Sir.
With deep resentment and pain BHARAT PENSIONERS SAMAJ( BPS) the oldest & the largest Federation of Indian pensioners which is a conglomerate of over 650 Pensioners Associations appeal to you to redress the following issues which 7th CPC failed address:

1. Ratio between minimum and maximum: Instead of reducing it is raised which is against the preamble of the Constitution of Indian Republic.

2. Minimum salary has been intentionally calculated to be lower to keep common fitment factor low. Counting employees’ wife as 0.80 unit is gender biase and is totally unjustified. Quantities & rates taken for the items in basket are unrealistic for example Rs 524.07 per month is provided Even the lowest category of Govt. accommodation is not available at this rate. Similarly rate of ‘Dal’ is taken to be 97.84 per Kg. No ‘ Dal‘ is or was available in the market at this rate. Quantity of Milk is taken to be 200 ml per unit per day which is too little for a vegetarian rate of Milk is taken to be Rs 37.40 per Kg which is lower than market rate.

3. According to 7th CPC 2.57 fitment factor is for all employees. But, in fact. 2.81 fitment has been given at Secy level. This is robbing Peter to pay Paul, violative of CPC own recommendation and that of Article 14 of the constitution of India. 2.81 fitment benefit should be provided to all employee without any discrimination.

4. Raising percentage of pension based on sustenance: Analysis given by CPC is silent on sustenance this is unjustified rejection.

5. OROP recommended by 7th CPC for all. But through the jugglery of pay matrix, for promotee officers and group ‘C.‘ it will end up only in modified parity. This needs rectification to ensure absolute parity for all.

6. Additional pension at 75 yrs of age is denied only because Defence Ministry did not agree this is rather absurd. If Defence Ministry does not want to have it, let them not have it. Why make others suffer on this account?

7. Medical facilities : While the Commission’s recommendations regarding merging of all postal dispensaries with CGHS dispensaries and inclusion of non CGHS covered postal Pensioners are welcome.

However, its recommendations regarding Health insurance for pensioners do not suit existing pensioners on account of no coverage of existing disease without lock-in period, no provision of OPD facility , payment of premium and less amount of coverage.

Under signed, wish to draw your kind attention to para 9.5.18 (iii) of the 7th CPC and request you to create without delay a combined entity of CGHS, ECHS-RELHS which in terms of 7th CPC would result in a very strong network of health facilities for the Central Government employees/pensioners across the length and breadth of the country.

8.Scraping of New Pension scheme(NPS) : It has come out through 7th CPC report that though NPS was introduced more than a decade back Govt; to date could not firm up rules in this regard. With the result over 300000 employee recruited after 2004 may not have enough funds in their accounts at retirement to ensure financial security. Center and state Govt’s share of contribution is insufficient and these governments are not depositing their contribution in time, investments are subjected to service tax & withdrawals are taxable under Income Tax with the result there would not be enough money for reasonable post retirement financial security. Due to ever rising inflation, this situation will go on worsening year by year and will go out of hand by the time of retirement of the beneficiary. This is more than sufficient reason to scrap NPS & to revert to pre 2004 defined benefit Pension Scheme.

Thanking you in anticipation.

sd/-
S.C.Maheshwari
Secy. General Bharat Pensioners Sama

Abolishing 12 Interest free advances including LTC Advance recommended by 7th CPC

7th Pay Commission recommendations on LTC advance and Medical Advance

Abolishing 12 Interest free advances recommended by 7th CPC

The 7th Pay Commission has , in a casual manner, recommended that all interest free advances to be abolished. The impact of this recommendation is yet un noticed by the central government employees
There are 12 Interest free advances are listed in that table provided in the 7th CPC Report. When hearing the news that 7th cpc has recommended to abolish interest free advances , every body thought that some advances like festival advances only will be abolished. But if you read the names of advances recommended for abolishment, it will give you little bit shock.

In general opinion, the amount that is paid for government servants in some occasions and for specific purposes and the same will be recovered through monthly instalments are considered advances.

But the advance paid for Medical treatment and LTC are not supposed to be included this list, since it is reimbursable in nature and will not be recovered by Government.

The amount paid as advances to the Medical treatment and LTC are not recoverable by government if there is no any default in the claim. since the expenses incurred should be reimbursed to the Govt servants according to their entitlements, the amount paid in advance can be adjusted against the claim of reimbursement is sanctioned. So there is no need of repaying the advance to government in respect of Medical and LTC advances.These should not be included in the list of interest free advances.

Eventually abolishing these advances will make the central government employees not to avail LTC facility and medical treatment in Private hospital, since the amount of 90 % of the expenses paid in advance will not be available for them any more due to this recommendation. By availing this advances they were able to manage the Medical Expenses and by availing this advance only they were able to bye Air or Train Tickets to go on LTC.

Without these advances, the Group C and B employees cannot imagine availing of LTC to visit some places in India with their family.

The Central Government should not accept the proposal of Abolishing these advances.

Source: GServants.com

New Pension Scheme : Analysis of the Issues by the 7th Pay Commission

New Pension Scheme : Analysis of the Issues by the 7th Pay Commission

10.3.12 The Commission has examined these concerns raised by the stakeholders. The Commission also interacted with Chairman, PFRDA, and representatives of the Department of Pensions and Pensioners Welfare (DPPW), Department of Personnel and Training (DoPT), Department of Expenditure (DoE) and the Department of Financial Services (DFS).

10.3.13 In so far as the future value of pension under NPS is concerned, the Commission notes that this would depend upon a combination of factors:

(i) performance of the invested fund, which in turn would depend on the asset mix of the investment and general economic situation of the country,
(ii) cost of financial intermediation,
(iii) contribution rates,
(iv) period of contribution,
(v) performance of the fund manager and
(vi) development of the annuity market.

Grievances against the NPS

The NPS has now been in effect for over 10 years. During this period, there has been perceptible progress in putting together the architecture and providing information to subscribers. Major concerns, however, remain. Broadly, these are as under:

i. The larger federations and staff associations advocated scrapping the NPS on the ground that it discriminates between two sets of government employees.

ii. Individuals covered under NPS have pleaded for reverting to the OPS on the grounds of uncertainty regarding the actual value of their future pension in the face of market related risks.

iii. Individuals have pointed out that under NPS, the effective salary becomes less since the employee has to mandatorily contribute 10 percent of pay towards the pension fund.
iv. Individuals have stated that grievance redressal facility is not effective and consultation with stakeholders has been non-existent. This communication gap has generated insecurity in the minds of stakeholders including staff and Group ‘A’ officers of Central Government as well as All India Service Officers.

v. Associations have complained that Family Pension after the death of the employee is not ensured in the NPS. Moreover, if an employee dies at an early age, the family would suffer since annuity from the contribution would be grossly inadequate.

vi. Individuals have complained that NPS subscribers have no recourse to GPF for their savings. Their personal savings (10% of salary) are considered part of a larger corpus. It has been pointed out that the justify approach would be to consider only government’s contribution and the returns earned on it as the effective amount available for purchase of annuities.
vii. Associations have pointed out that unlike the facility under GPF, it is not possible to take refundable advances under NPS, even to meet obligatory social expenditure. This forces employees towards increased indebtedness as they have to borrow from elsewhere.

viii. Grievances also relate to tax treatment under NPS. While contributions and accumulations in NPS are exempt, lump sum withdrawals from NPS at any time are taxable at par with any other income. In addition, there is a service tax liability on any amount utilised for purchase of annuity.

ix. It has been pointed out that though NPS became effective from 2004, detailed instructions were issued only in late 2009 and in many cases the credit of contributions began from 2012. In the case of AIS officers in some States, contributions by the concerned State Government are yet to be fully made and deployed. The net result of this has been that contributions for the period 2004-2012 have not been made in full or have earned simple interest and did not get any market linked returns. Because of the prevailing confusion, contributions made by some AIS officer have been returned to them without interest. This will have a huge impact on the eventual corpus as the benefits of compounding were not available for the first 8 -9 years.

x. Individuals, in their presentation before the Commission, stated that annuities under NPS have no compensation for inflation unlike dearness relief under OPS. Further, in the case of OPS there is a revision in basic pension itself after every Pay Commission. This too is not available in respect of annuity of NPS subscribers.

xi. It has been pointed out that government employees are not given freedom of choice in choosing their fund manager based on performance and track record as the contributions are divided in a pre-specified ratio among selected Pension Fund Managers. It has been stated that government employees have no say in asset allocation
of their money.

xii. Concerns were raised that the contribution of 10% + 10% will not be sufficient to create a corpus which provides reasonable assurance that pension will be 50 percent of the last pay drawn.

Authority : http://7cpc.india.gov.in/
7CPC, 7th Central Pay Commission, 7th CPC News, 7th CPC Report, 7th CPC Shortcomings, National Pension Scheme, New Pension Scheme, New Pension System, NPS, Scrap New Pension Scheme

Railway Reservation for Physically Challenged made easier

Railway Reservation for Physically Challenged made easier

New Delhi: In a much-needed relief to the physically challenged persons availing concessional rail fares, Railways has rationalised provisions for allotment of berths in a sleeper class under such quota by earmarking middle seat for the accompanying passenger.

As per the revised provisions, which are to come into effect from December 22, there will be two types of physically-challenged quota of two berths each — one lower and one middle — in the same cabin.
One will be for physically challenged persons who can utilise concession only when accompanied by an escort and the second for those for whom it is optional to take an escort with them, Railways announced in a release today.

It has also been decided that whenever a physically handicapped person books ticket on concession and if no berth is available in handicapped quota, the system will automatically try to allot the lower berth to the travelling passenger and middle berth to escort, subject to availability of same at the time of booking, the release said.

These changes were necessitated following some cases of the handicapped persons for whom it is optional to take an escort were not allowed to book single berth against this quota on the ground that the second berth will go vacant (as middle berth cannot be allotted to physically handicapped persons) was brought to the notice of the Railway Ministry, it said.

This issue has now been examined by the Ministry of Railways and further rationalisation has been done to ensure optimum allotment and utilisation of handicapped quota, the release said.

According to Railways, the berths for the physically handicapped persons, who can utilise concession only when accompanied by an escort, can be booked on first come first serve basis.

Similarly, for those handicapped persons having option of taking an escort, the berths will be booked together (in the same cabin), it said.

The release also said that at the time of preparation of reservation charts, the untiled lower berths under this quota can be released to physically handicapped passenger(of either category who were kept in general waiting list due to exhaustion of their quota), single senior citizen travelling alone on priority or to waitlisted passengers as per priority.

PTI
Physically Challenged Persons, Railway Reservation, Railways, handicapped persons, PTI News,