Monday, November 30, 2015

Check out top 10 points to clear all doubts in mind regarding the 7th Pay Commission pension, pay scales, MSP, MACP and more

7th Pay Commission pension, pay scales, MSP, MACP
Check out top 10 points to clear all doubts in mind regarding the 7th Pay Commission pension, pay scales, MSP, MACP and more:


7th Pay Commission pension, pay scales – highlights, more: 
The 7th Pay Commission report has recommended an average 23.55% hike in salaries and allowances of Central government staff and the same is likely to be replicated in all the states too, except Puducherry where the same system as in Centre is already applicable – minimum pay set at Rs 18,000 per month and maximum pay at Rs 2,50,000 per month – recommended date of implementation: 01, January, 2016.

Here we provide all you ever wanted to know in 10 points on most crucial aspects of the 7th Pay Commission report:
1. 7th Pay Commission pension, pay scales, allowances – Minimum Pay:
Based on the Dr Wallace Aykroyd formula (nutrition) , the minimum pay (salary) in government is recommended to be set at Rs 18,000 per month; Maximum Pay: Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level. If passed, the salary hikes this report is recommending are likely to boost demand for consumer goods across the spectrum, even though it could also be inflationary. (Reuters)
2. 7th Pay Commission pension, pay scales, allowances – Advances:
a. All non-interest bearing Advances have been abolished; b. Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs 25 lakhs from the present Rs 7.5 lakhs. (PTI)
3. 7th Pay Commission pension, pay scales, allowances – Pension:
The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement. The 7th Pay Commission received many grievances relating to New Pension System (NPS). It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism. (PTI)
4. 7th Pay Commission pension, pay scales, allowances – Performance Related Pay:
The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes. (PTI)
5. 7th Pay Commission pension, pay scales, allowances – New Pay Structure:
Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix. The rate of Annual Increment is being retained at 3 percent. (PTI)
6. 7th Pay Commission pension, pay scales, allowances – Modified Assured Career Progression (MACP):
a. Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”; b. The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service; c. No other changes in MACP recommended. (Thinkstock)
7. 7th Pay Commission pension, pay scales, allowances – Military Service Pay (MSP):
The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows: (Reuters)
8. 7th Pay Commission pension, pay scales, allowances – Short Service Commissioned Officers:
Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. The Seventh Pay Commission also says they will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute to better their prospects in later life. (PTI)
9. 7th Pay Commission pension, pay scales, allowances – Allowances:
The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix. a. Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance. (PTI)
10. 7th Pay Commission pension, pay scales, allowances – Financial Implications:
The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the expenditure as per the “Business As Usual” scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore. In percentage terms the overall increase in pay & allowances and pensions over the “Business As Usual” scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent. (Image by PTI)

Source:  financialexpress.com

LIC India: BONUS Info: Reversionary Bonus Rates declared as a result of valuation as at 31st March 2015

LIC India: BONUS Info: Reversionary Bonus Rates declared as a result of valuation as at 31st March 2015
LIC BONUS RATES 2015

L – 42 (Annexure)
IRDA Public Disclosure
S.No. Plan Term* Bonus Rates
(Per Rs. 1000/- Sum Assured)**

2015
1. Whole Life Type Plans
(2,5,6,8,10,28 – before conversion,
35,36,37,38,
49,77,78,85 & 86)

70
2. Endowment Type Plans
(14,17,27 – after conversion,
28 – after conversion,
34,39,40,41,42,50,54,79,
80,81,84,8 7,90,91,92,95,101,102,
103,109,110 & 121)
< 11 34
11 to 15 38
16 to 20 42
> 20 48
3. New Endowment Plan (814) 12 to 15 38
16 to 20 42
> 20 48
4. Single Premium Endowment Plan (817) 10 to 15 41
16 to 20 46
> 20 51
5. Money Back Assurances Plans (75 & 93) 20 39
25 44
6. New Money Back Plans (820 & 821) 20 39
25 44
7. Jeevan Surabhi Plans (106,107 & 108) 15 34
20 41
25 50
8. Jeevan Mitra (Double Cover Plan), Jeevan Saathi (88,89) 15 40
16 to 20 44
> 20 48
9. Jeevan Mitra (Triple Cover Plan) (133) < 16 40
16 to 20 45
> 20 50
10. Limited Payment Endowment Plan (48) <16 40
16 to 20 44
> 20 49
11. Limited Premium Endowment Plan (830) 12 40
16 45
21 50
12. New Children Money Back Plan (832) 13 to 15 38
16 to 20 42
> 20 48
13. Jeevan Lakshya Plan (833) 13 to 15 41
16 to 20 45
> 20 49
14. Jeevan Anand Plan (149) 5 38
6 to 10 38
11 to 15 41
16 to 20 45
> 20 49
15. New Jeevan Anand Plan (815) 15 41
16 to 20 45
> 20 49
16. Jeevan Rekha Plan (152) < 11 49
11 to 15 44
16 to 20 40
> 20 34
17. Jeevan Anurag Plan (168) < 11 38
11 to 15 40
16 to 20 42
> 20 44
18. New Jeevan Suraksha – I Plan (147) < 6 21
6 to 10 27
11 to 15 31
> 15 35
19. New Jeevan Dhara – I Plan (148) < 6 21
6 to 10 27
11 to 15 31
> 15 35
20. Jeevan Tarang Plan (178) 10 47
15 48
20 49
21. Jeevan Madhur Plan (182) < 11 21
11 to 15 26
22. Child Career Plan (184) 11 to 15 40
16 to 20 38
> 20 40
23. Child Future Plan (185) 11 to 15 38
16 to 20 42
> 20 44
24. Jeevan Bharti Plan (160) 15 38
20 40
25. Jeevan Shree – I Plan (162) 10 44
15 45
20 48
25 52
26. Jeevan Nidhi Plan (169) < 11 38
11 to 15 40
16 to 20 42
> 20 44
27. Jeevan Pramukh Plan (167) 10 47
15 48
20 51
25 55
28. Jeevan Amrit Plan (186) 10 to 15 30
16 to 20 30
> 20 30
29. Jeevan Bharti – I Plan (192) 15 29
20 31
Note:

* Plan – 149 & 152 : Premium Paying Term in place of Term

Plan – 178: Accumulation Period in place of Term

Plan – 147,148 & 169: Deferment Period in place of Term

** Plan – 147 & 148: Bonus rates are per thousand Notional Cash Option

Plan – 182: Bonus rates are per thousand Death Benefit Sum Assured

Plan – 186: Bonus rates are per thousand premium paid
Source: www.licindia.in

LDC-UDC Matter & MACP on Promotional Hierarchy in 7th CPC Recommendation: AIAAS(NG) writes to Confederation

LDC-UDC Matter & MACP on Promotional Hierarchy in 7th CPC Recommendation: AIAAS(NG) writes to Confederation

Message from Secretary AIAAS(NG) :-

This Association has taken up the LDC/UDC, MACP on Promotional Hierarchy, and other issues related to Administrative Staff with Confederation. Copy of the letter sent to the Secretary General, Confederation is given below: All our LDC/UDC friends are requested to raise the issue in their respective Association to force them to represent the issue to Confederation/JCM Staff Side.
ALL INDIA ASSOCIATION OF ADMINISTRATIVE STAFF (NG)
MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION
Bhopal,
Dated 25/11/2015
To
Com. M Krishnan,
Secretary General,
Confederation of Central Government Employees & Workers,
New Delhi

Dear comrade,
This is in connection with LDC/UDC, MACP on Promotional hierarchy and other issues related to Administrative Staff of Subordinate offices. It is surprising to note that the 7th Pay Commission has turned down the genuine issue of LDC & UDC on the ground that the government has stopped direct recruitment for the clerical cadre and gradually phasing out the existing incumbents. If this is true, it is a matter of great concern that the Government has chosen to take a unilateral decision on an important policy matter without consulting the Staff side. The reason given for rejection of the demand is not convincing.
Besides Confederation/Staff Side JCM, several Departments had recommended upgradation of grade pay of LDC & UDC of Administrative Offices especially the LDC & UDCs of subordinate offices of Government of India.
Extracts of the Pay Commission comments on the matter is given below:
By analyzing the demand of SVP, National Police Academy under Para 11.22.100 the Commission has said “This issue has been dealt in Chapter 7.7. Recommendations made there would apply in this case also”
As against the demand of Directorate of Printing under Para 11.52.32 Commission maintained that “posts like LDC, UDC, Accountant are common to a number of ministries/ departments. Recommendations regarding their pay are contained in Chapter 7.7 and Chapter 11.35.”
But, in Chapter 7.7, deals common category, no recommendation for LDC/UDC is given.
However by recording disagreement to increase promotional quota of MTS to LDC under Para 7.7.37 & 11.35.28 Commission has said that “government has already stopped direct recruitment for the clerical cadre and gradually phasing out the existing incumbents, this demand cannot be accepted.”
But the fact is that Staff Selection Commission is frequently conducting recruitment for the post of LDC. Combined higher secondary examination for the selection of LDC also has been conducted recently. Moreover, no alternative recommendation to replace the LDC post is given in the report.  It is to be noted that the normal ratio of LDC and UDC in subordinate offices is 5:2 and thus LDCs have been allocated responsible sections and in many smaller offices LDC alone is handling the work of entire Administration.
On the other hand rejecting Central Secretariat Clerical service demand for parity with DEO, the commission observes “Even though the entry requirements are similar, historically the pay scales of the two posts have been different. Besides, they comprise two distinct cadres with different set of roles and responsibilities. Hence, the demand for parity of pay of LDC with DEOs cannot be acceded to by the Commission.”(Para 11.35.38).
Historically these cadres may be different set of roles but the fact is that functions of LDC are more complex than that of DEO and same was brought before the commission by various Associations/Administrative Authorities. Earlier pay Commissions have fixed Pay Scale to DEO considering their work on computer. But today LDCs are selected on the basis of their expertise in computer operation also.
By concluding the LDC issue, I give hereunder two comments among the dozens of comments/e-mail received us on the subject. This signifies the sufferings of LDCs in subordinate offices.
(1)   I am really disappointed with the decision of 7th CPC, I was hoping that I would get atleast GP 2400 as per their calculation, they don’t even think about lower classMyself Ashutosh, LDC and I am appointed on 2012, 3000 KM far from my house and from last 2 years I am doing the work of cashier along with all the work of Income Tax and budget, apart from me 4 more LDC’s are working here instead of UDC’s and they are the backbone of their branch but as per 7th CPC words we are not having as much responsible work they think LDC’s are recruits only for “dispatch” and “typing” which is not true.
I request to them, sir please come and see how much responsibility we have and what we are getting,
(2)    I am s murugan LDC, handling with pay bills, income tax, TDS and what are related to taxable income such as LTC encashment, final bills, HRA claim and etc…
In 7th Cpc report every where it is stated that this is dealt with chapter 7.7 and 11.35. But, there are no clear instructions for clerical.
The major error is clerical cadre is not included in common categories (chapter 7).
II      Grant of MACP on Promotional Hierarchy:
Even though the Confederation has clarified that the Commission has recommended MACP on promotional hierarchy, the report of the Commission is confusing and contradictory. Para 5.1.44 reads in the new Pay matrix, the employees will move to the immediate next level in the hierarchy. This can be interpreted as fixation in the same principle as that for a regular promotion. But Para 11.52.45 is contradictory.

III     The Grade Pay of  Assistants/Stenographers of Central Secretariat is brought down to Rs. 4200 from the existing Rs. 4600 and NFSG granted to the UDCs of Central Secretariat has been withdrawn thereby the demand for parity with the Grade Pay of Assistant/UDC of Central Secretariat is turned down.
Comrades, Government is bent upon to contractorise all the Administrative posts below the post of Assistants. The demand for merger of Grade Pay of LDC & UDC and upgradation to Rs. 2800, as recommended by the staff side is genuine in accordance with duties assigned. Confederation/JCM (Staff Side) is requested to please help LDC/UDC and other Administrative Staff of subordinate Offices to resolve these genuine issues.
Yours fraternally TKR Pillai
General Secretary
Source: http://aiamshq.blogspot.in/2015/11/this-association-has-taken-upthe-ldcudc.html

7th Pay Commission – Recommends Abolition of 52 Allowances

7th Pay Commission – Recommends Abolition of 52 Allowances – The list of outdated government perks is pretty long. Sample this: select postal department employees are entitled to a Rs 90-per month cycle allowance.

The 7th Pay Commission, headed by Justice Ashok Kumar Mathur submitted its report to the finance ministry about 10 days back. It has made many recommendations to the Government pertaining to salary, pension etc., etc. It has also recommended abolition of 52 allowances that the 7th Pay Commission found obsolete.

The list of outdated government perks is pretty long. Sample this: select postal department employees are entitled to a Rs 90-per month cycle allowance, if the employee fulfills a number of conditions including the submission of proof that there has been an “extensive use” of the bicycle. Indian Foreign Service officers are given a monetary incentive that’s ridiculously low for learning an optional foreign language — Rs 100 per month if the officer turns “proficient” in that language and Rs 200 per month if the officer becomes “above proficient”.

Sounds odd, but Central Industrial Security Force (CISF) personnel receive a haircutting allowance at the rate of Rs 5 per month, the lowest among 196 government allowances that prevail today. This allowance should have been discarded long ago, as haircutting is very much a part of the CISF cadres’ composite personal maintenance allowance. But no one probably had spotted this till the 7th Central Pay Commission found it “outdated” and recommended its abolition.

So, when the 7th Central Pay Commission chairman Justice AK Mathur along with two members of the Commission had to evaluate the demands of IAS, IFS, IPS, Central government services and defence personnel in several rounds of meetings spanning nearly two years, they encountered a humongous task of rationalising as many as 196 allowances in addition to weighing in on the core issues of pay hike and pay parity. The list of allowances includes the well-known ones like DA and HRA.

And the Central Pay Commission, which submitted its report 10 days ago to the finance ministry, clearly recommended abolition of 52 allowances that they found obsolete. We give below a selected list of a few allowances which have been recommended for abolition:

1. Hair cutting Allowance
2. Cash Handling Allowance
3. Hutting Allowance
4. Secret Allowance
5. Cycle Allowance
6. Diet Allowance
7. Soap Toilet Allowance
8. Funeral Allowance

Source: The Economic Times

7th Pay Commission’s Recommendations on Gratuity

7th Pay Commission’s Recommendations on Gratuity

7th CPC recommends for raising Gratuity from the existing Rs.10 lakh to Rs.20 lakh from 01.01.2016. 7th Pay Commission further proposes for DA indexed Gratuity viz., increase by 25 percent whenever DA rises by 50 percent.

Enhancement in the Gratuity Ceiling and its Indexation

A number of representations have been received by the Commission stating that there is a need to revise the existing ceiling of Rs.10.00 lakh with regard to payment of service gratuity.

Analysis and Recommendations

Rule 49 and 50 of the CCS (Pension) Rules provides that a government servant is entitled to get retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service subject to a maximum of 16.5 times of the last emoluments subject to a maximum of Rs.10 lakh.
The Commission sought the views of the government in this regard. The Department of Pension and Pensioners Welfare stated that the VI CPC has increased the amount of gratuity from Rs.3.5 lakh to Rs.10 lakh w.e.f. 01.01.2006. This amount, in the view of the department, is not commensurate with emoluments that are available to senior officers at the time of retirement. The department has suggested to the Commission that a view could be taken to index gratuity with amount of DA admissible at the time of retirement
.
The Commission notes that there is merit in the argument advanced to index the ceiling on gratuity so that the benefits of the enhanced ceiling are available to personnel in a manner which is more even over a time frame. The Commission recommends enhancement in the ceiling of gratuity from the existing Rs.10 lakh to Rs.20 lakh from 01.01.2016. The Commission further recommends, as has been done in the case of allowances that are partially indexed to Dearness Allowance, the ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.

Rationalisation of Death Gratuity

The Commission has received representations pointing to a need for rationalization of current slabs for death gratuity, especially for the slab of 5 to 20 years of qualifying service in which family pensioners are stated to be placed at a disadvantageous position.

Analysis and Recommendations

As per Rule 50 of Pension Rules, the death gratuity admissible will be as follows, subject to the maximum limit prescribed for the gratuity:

Length of Service Rate of Death Gratuity
Less than one year 2 times of monthly emoluments
One year or more but less than 5 years 6 times of monthly emoluments
5 years or more but less than 20 years 12 times of monthly emoluments
20 years or more Half month of emoluments for every complete six monthly period of qualifying service subject to a maximum of 33 times of monthly emoluments

The Commission sought the views of the government in this regard. Department of Pension and Pensioners Welfare stated that it had received similar demands from pensioners’ association and it feels a need for a review of the existing slabs for death gratuity.

The Commission, after examination of the matter, recommends the following revised rates for payment of death gratuity:

Length of Service Rate of Death Gratuity
Less than one year 2 times of monthly emoluments
One year or more but less than 5 years 6 times of monthly emoluments
5 years or more but less than 11 years 12 times of monthly emoluments
11 years or more but less than 20 years 20 times of monthly emoluments
20 years or more Half month of emoluments for every complete six monthly period of qualifying service subject to a maximum of 33 times of emoluments

Reduction in the time period for Restoration of Basic Pension
The Commission has received a number of representations requesting reduction of restoration period of commuted portion of pension from the existing 15 years.

Source: gconnect.in

NJCA – Detailed deliberations on the recommendations of the 7th Central Pay Commission

NJCA – Detailed deliberations on the recommendations of the 7th Central Pay Commission 

CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor,North Avenue PO Building, New Delhi – 110001 Website:www.confederationonhq.blogspot.com
Email:confederationhq@gmail.com

Date : 27-11-2015
Dear Comrades,

National Secretariat of the Confederation of Central Govt Employees & Workers held on 27-11-15 at New Delhi after detailed deliberations on the recommendations of the 7th Central Pay Commission (CPC) has decided as follows :

1.The National Secretariat has come to the unanimous conclusion that many of the recommendations of the 7th CPC are most retrograde and require to be modified before implementation by the Government, especially the faulty and depressed minimum wage arrived at by the 7th CPC and the fitment formula. Some of the recommendations such as abolition of certain allowances etc., are to be rejected.

2. The National Secretariat is of the firm opinion that a united struggle of entire Central Govt Employees including Railways, Defence and Confederation under the banner of National Joint Council of Action (NJCA) can only compel the Government to modify or reject the retrograde recommendations of the 7th CPC and hence it is decided to further strengthen the unity.

3. The National Secretariat further resolved that the form of the united struggle of NJCA should be an indefinite strike, within a time frame, as Govt is moving fast to implement the recommendations. Negotiation with the Government should precede declaration of indefinite strike and intensive campaign among the employees and mobilization, to create sanction behind the demands.

4. In case the requisite movement is not coming about for any reason, Confederation National Secretariat will meet and chalk out its own independent action.

5. Regarding the sector-wise issues relating to the employees of each department, the affiliated organizations of the Confederation in those departments shall take initiative for uniting all like-minded Federations/Associations/Unions in their department and shall organize agitational programmes on departmental specific demands.

6. The National Secretariat decided to insist that the charter of demands of the NJCA and Confederation should include the demands of Gramin Dak Sevaks, Casual/Contract labourers, filling up of vacancies and scraping the New Contributory Pension Scheme.

7. All affiliated organizations of Confederation are requested to intimate by e-mail to the Confederation CHQ (confederationhq@gmail.com or mkrishnan6854@gmail.com) on the required modifications or additions / deletions in the common recommendations (not department-specific) of the 7th Pay Commission on or before 05-12-2015.

8. Available Secretariat members of the Confederation will meet on 07-12-2015 at New Delhi and finalize the common demands to be included in the charter of demands of NJCA. (NJCA meeting is being held at JCM National Council, Staff-side office on 08-12-2015 to finalize the charter of demands and the further course of action).

9. The National Secretariat congratulated all the Central Govt Employees who made the 27th November 2015 ‘All India Protest Day’ at the call of NJCA, a grand success all over the country by wearing ‘black badges’ and participating in protest demonstrations.

Other Decisions:
1. Next All India Workshop-cum-Trade Union Camp of Confederation will be held at Dehradun (Uttarakhand) before March 2016.

2. The National Secretariat extended full support and solidarity to the proposed agitational programmes of Passport Employees Association including ‘Indefinite hungerfast’.
M.Krishnan
Secretary General
Source: http://confederationhq.blogspot.in/

Bill on Bonus Act to be brought to Parliament – Prime Minister Narendra Modi

Bill on Bonus Act to be brought to Parliament – Prime Minister Narendra Modi

Prime Minister Narendra Modi today said the government will bring to Parliament a bill to amend the Bonus Act with a view to enhance the benefits for the working class.

“We are going to bring an important (bill) in this House (to amend) Bonus Act.The Cabinet has already approved it. This is a very important bill for our workers. We are taking decisions and working for welfare of the labour class,” Modi said while replying to a two-day long debate in the Lok Sabha to commemorate the Constitution Day and the 125th birth anniversary of Dr B R Ambedkar.

The Cabinet had earlier decided to double the wage ceiling for calculating bonus to Rs 7,000 per month for factory workers and establishments with 20 or more workers.

The bill also seeks to enhance the eligibility limit for payment of bonus from the salary or wage of an employee from Rs 10,000 per month to Rs 21,000.

Modi also said that the government has fixed the minimum pension under the EPF scheme at Rs 1,000 per month.

He said earlier people were getting pensions as low as Rs 7 and Rs 20 per month which was even insufficient to cover the transport cost.

While talking about these issues, Modi hailed Baba Saheb Ambedkar for providing in the Constitution a cap of eight hours a day on working hours for labourers.

The Payment of Bonus Act 1965 is applicable to every factory and other establishment in which 20 or more persons are employed on any day during an accounting year, he said.

As per the Cabinet decision, the new norms would come into force from April 1, 2015. The bill also provides for a new proviso in Section 12 which empowers the central government to vary the basis of computing bonus.

At present, under Section 12, where the salary or wage of an employee exceeds Rs 3,500 per month, the minimum or maximum bonus payable to employees are calculated as if his salary or wage were Rs 3,500 per month.

Source: http://www.deccanherald.com/

Strengthening of Administration – Premature retirement of Railway servants – Periodical review

Railway Board has issued a communication to all the General Managers of Indian Railways regarding the guidelines to be followed on premature retirement of Railway employees.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
RBE No.143/2015
No. E(P&A)I-2015/RT-38
New Delhi dated 10/12-11-2015.
The General Managers,
All Indian Railways.

Sub:- Strengthening of Administration – Premature retirement of Railway servants – Periodical review under rule 1802 (a)/ 1803 (a)/ 1804 (a) – R- II, 1987 edition – Regarding.

DOP&T vide their OM No. 25013/1/2013-Estt (A) dated 21.03.2014 and 25013/01/2013-Estt.A-IV dated 11.09.2015 have reiterated the instructions on Compulsory Retirement under FR 56(1), 560) or Rule 48(1) (b) of CCS (Pension) Rules, 1972 with a view to improve efficiency and strengthening of the administrative machinery at all levels. They have asked to follow these instructions strictly and to review the performance of Govt. servants periodically with a view to ascertain whether the Government servant should be retained in service or retired from service in the public interest. Provisions in this regard are contained in FR 56(j), 56(I) or Rule 48(1) (b) of CCS (Pension) Rules, 1972. The corresponding rules in railways are Rule 1802 (a)/1803 (a)/1804 (a) of IREC, Vol-II, 1987 edition.

2. DOP&T has also drawn attention to the observation made by Hon’ble Supreme Court in State of Gujarat Vs Umedbhai M. Patel, 2001 (3) SCC 314, which are as follows:

(i) Whenever the services of a public servant are no longer useful to the general administration, the officer can be compulsorily retired for the sake of public interest.

(ii) Ordinarily, the order of compulsory retirement is not to be treated as a punishment coming under Article 311 of the Constitution.

(iii) “For better administration, it is necessary to chop off dead wood, but the order of compulsorily retirement can be passed after having due regard to the entire service record of the officers.”

(iv) Any adverse entries made in the confidential record shall be taken note of and be given due weightage in passing such order.

(v) Even un-communicated entries in the confidential record can also be taken into consideration.

(vi) The order of compulsory retirement shall not be passed as a short cut to avoid Departmental enquiry when such course is more desirable.

(vii) If the officer was given a promotion despite adverse entries made in the confidential record, that is a fact in favour of the officer,

(viii) Compulsory retirement shall not be imposed as a punitive measure.

3. In order to ensure that the power, conferred on the authorities empowered to retire a railway employee prematurely is exercised fairly and impartially and not arbitrarily, consolidated instructions relating to premature retirement of railway servants with a view to strengthening of administration were issued under the Board’s letter No. E(P&A)I-77/RT-53 dated 15.11.1979. These guidelines have, however, not been adequately followed by the Appointing Authorities. With the Government’s commitment to provide clean administration, it is essential that the power for premature retirement in public interest is availed of to weed out all those employees whose integrity is doubtful, with due regard to the appropriate procedure laid down for action for premature retirement.

4. The entire service records should be considered in every review. Here Service record will take in all relevant records viz. ACR/APAR dossier along with personal file of the officer containing valuable material. Similarly, the work and performance of the officer could also be assessed by looking into files dealt with by him or in any papers or reports prepared and submitted by him. All these data along with a comprehensive brief should be prepared for consideration by the Review Committee. Even un-communicated remarks in the ACRs/APARs may be taken into consideration also. In case of those officers who have been promoted during the last five years, the previous entries in the ACRs may be taken into account if the officer was promoted on the basis of seniority cum fitness, and not on the basis of merit.

5. As far as integrity is considered, the following observations of the Hon’ble Supreme Court, while upholding compulsory retirement in the case of S. Ramachandra Raju Vs State of Orissa, may be kept in view:-

“The officer would live by reputation built around him. In an appropriate case, there may not be sufficient evidence to take punitive disciplinary action of removal from service. But his conduct and reputation is such that his continuance in services would be a menace to public service and injurious to public interest.”

Thus while considering integrity of an employee, actions or decisions taken by the employee which do not appear to be above board, complaints received against him, or suspicious property transactions, for which there may not be sufficient evidence to initiate departmental proceedings, may be taken into account. Judgment of the Apex Court in the case of Shri K. Kandaswamy, I.P.S (TN:1966) in K. Kandaswamy vs Union Of India & Anr, 1996 AIR 277, 1995 SCC (6) 162 is relevant here. There were persistent reports of Shri Kandaswamy acquiring large assets and of his getting money from his subordinates. He also indulged in property transactions which gave rise to suspicion about his bonafides. The Hon’ble Supreme Court upheld his compulsory retirement under provisions of the relevant Rules.

6. Similarly, reports of conduct unbecoming of a Government servant may also form basis for compulsory retirement. As per the Hon’ble Supreme Court in State of UP And Others vs Vijay Kumar Jain, Appeal (Civil) 2083 of 2002:-

“If conduct of a government employee becomes unbecoming to the public interest or obstructs the efficiency in public services, the government has an absolute right to compulsorily retire such an employee in public interest.”

7. Further, CVO in the case of gazetted officers, or his representative in the case of non-gazetted officers, will be associated in case of record reflecting adversely on the integrity of any employee.

8. In addition to above, internal committees may be constituted to assist the Review Committees in reviewing the cases. These Committees will ensure that the service record of the employees being reviewed, along with a summary bringing out all relevant information, is submitted to the Cadre Authorities at least three months before the due date of review.

9. In view of DOP&T’s present guidelines, the Board’s letters No. E(P&A)I-77/RT-53 dated 15.11.1979 and E(P&A)I-87/RT-4 dated 17.10.89 containing the provisions on Premature Retirement under Rule 1802 (a)/1803(a)/1804(a) – IREC, Vol-II, 1987 edition are enclosed for guidance. In addition to this, instructions issued by Board from time to time on the subject may also be linked while deciding such matters. Further, all Zonal railways are requested to follow the above instructions and periodically review the cases of railway servants as required under Rule 1802 (a)/1803(a)/1804(a) – IREC, Vol. II, 1987 edition. The quarterly data in enclosed proforma in respect of reviewing the cases of retirement under the aforesaid provisions during the period from 01.04.2014 to 31.03.2015 may be furnished immediately.

10. As per the latest guidelines of DOPcSiT’s OM dated 21.03.2014, para II 3 (c) (d) of the Board’s enclosed letter dated 15.11.1979 should be read as under:

“(c) While the entire service record of an officer should be considered at the time of review, no employee should ordinarily be retired on grounds of ineffectiveness if his/ her service during the preceding 5 years or where he/she has been promoted to a higher post during that 5 year period, his/her service in the highest post, has been found satisfactory.

Consideration is ordinarily to be confined to the preceding 5 years or to the period in the higher post in case of promotion within the period of 5 years, if compulsory retirement is sought to be made on grounds of ineffectiveness. There is no such stipulation, however where the employees is to be retired on grounds of doubtful integrity.”

“(d) No employee should ordinarily be retired on ground of ineffectiveness, if, in any event, he/she would be retiring on superannuation within a period of one year from the date of consideration of his/ her case.

Ordinarily no employee should be retired on grounds of ineffectiveness if he is retiring on superannuation within a period of One year from the date of consideration of the case. It is clarified that in a case where there is a sudden and steep fall in the competence, efficiency or effectiveness of an officer, it would be open to review his case for premature retirement.

The above instruction is relevant only when an employee is proposed to be retired on the ground of ineffectiveness, but not on the ground of doubtful integrity. The damage to public interest could be marginal if an old employee, in the last year of service, is found ineffective; but the damage may be incalculable if he is found to be corrupt and demands or obtains illegal gratification during the said period for the tasks he is duty bound to perform.”

11. The first sentence of para 4 of Boards letter dated 15.11.1979 should be added as under:

“The Supreme Court had not only upheld the validity of FR 56(3) but also held that no show-cause notice need be issued to any Government servant before a notice of retirement is issued to him under the aforesaid provisions.”

12. Kindly acknowledge the receipt.

(Anil Kumar)
Deputy Director E(P&A)I, Railway Board.

Download Railway Board letter RBE No.143/2015 No. E(P&A)I-2015/RT-38 dated 12.11.2015.

Retired Employee’s Liberalized Health Scheme (RELHS)

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
No. 2013/H/PNM/NFIR
New Delhi, Dated: 17.11.2015
General Managers,
All Indian Railways/PUS
(Including RDSO).

Subj- Retired Employee’s Liberalized Health Scheme (RELHS).

Ref:- This office letter of even No. dated 08.09.2015.

The decision of competent authority in the Ministry of Railways to extend the facility of joining RELHS-97 to those Railway employees who retired at the normal age of ‘superannuation irrespective of number of years of their service before superannuation, was conveyed to the Zonal Railways Vide Board’s letter cited under reference. However, one of the Zonal Railways has raised the issue of cut-off date of implementation of the order. The issue has been examined in consultation with Finance Directorate in the Board’s office.

In this context it is clarified that the instruction issued vide Board’s letter cited under reference is applicable to all Railway employees who have retired or retiring from-Railway service on attaining age of superannuation without any Cut-Off date.

This issues with the concurrence of Finance Directorate in the Board’s office.

(R.S. Shukla)
Joint Director/Health
Railway Board

Download NFIR letter No.2013/H/PNM/NFIR dated 17.11.2015 (Retired-Employees-Liberalized-Health-Scheme)

Now Trending

34% DA Order for Central Govt Employees wef 01.01.2022 - Latest CG Employees DA Order Jan 2022

 DA Order for Central Government Employees from Jan 2022 - Finmin Order 2022 Latest CG Employees DA Order Jan 2022 Dearness Allowance payabl...

Disclaimer:

All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. Our blog "Central Government Staff news" accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog.

Links to other websites that have been included on this blog are provided for public convenience only.

The blog "Central Government Staff news" is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.

Any suggestions write to us
centralgovernmentnews@gmail.com