Wednesday, December 16, 2015

Unjustified deduction for Group insurance Scheme in 7th Pay Commission Report – IRTSA

Unjustified deduction for Group insurance Scheme in 7th Pay Commission Report – IRTSA
CGEGIS – Central Government Employees Group insurance Scheme

a. Term insurance premiums have plummeted over last 6 years. Since 2009, term insurance premium have crashed by 75 percent. A one crore cover for 30 year old male cost around Rs.30,000 in 2008, but one would be able to get the same cover today for around Rs.8000. But 7th CPC has made its
recommendations exactly opposite to the trend in the market, instead of passing on the benefit to employees, 7th CPC recommended for taking away even meager benefit extended in the form of contribution to CGEGIS.

b. Huge unjustified increase in monthly deduction for GIS: 7th CPC has recommended for increasing monthly deduction & insurance amount by 41.7 times for Group ‘A’ & ‘B’ and 50 times for Group ‘C’ as given in table below,

c. 7th CPC recommended a ratio of savings fund to insurance fund as 75:25.

d. Therefore, for the annual contribution of Rs.18,000 by a Group ‘C’ employee Rs.13,500 will go for savings fund and Rs. 4,500 will go for insurance fund.

e. On cessation of account (ie on retirement) savings amount plus 8.7% interest per annum (compounded quarterly) for savings account has to be paid to the employee.

f. In case of demise of the employee savings amount plus Interest as applicable on date plus insurance amount has to be paid.

g. So for risk coverage to the value of Rs.15,00,000 a Group ‘C’ employee need to contribute Rs.4,500 annually.

h. Whereas in LIC’s New Amulya Jeevan-II insurance policy, which covers only risk (100% goes to insurance fund), if a person joins at the age of 20 for the period of 30 years, for risk insurance amount of Rs.25,00,000annual contribution is only Rs.3,652 per year. In LIC’s New Amulya JeevanII policy annual contribution is less by Rs.848 and insurance amount is more by Rs.10,00,000 than CGEGIS recommended by 7th CPC.

i. Unreasonable recommendation by 7th CPC: For 0.81 times of contribution recommended by 7th CPC, LIC of India a PSU is offering an insurance amount of 1.67 times recommended by 7th CPC.

j. When around 30,00,000 employees are going to be in the Group insurance scheme, annual deduction has to be much less than LIC’s policy which is offered for individuals.

k. Monthly deduction given in the table below for recommended insurance amount by 7th CPC is sufficient as per the rates applicable in New Amulya Jeevan-II insurance policy.


Source: IRTSA Memorandum

Serious disappointment on retrograde and perverse recommendations of the 7th Pay Commission – NFIR

Serious disappointment among Railway Employees on retrograde and perverse recommendations of the 7th CPC
National Federation of Indian Railwaymen

Dated: 13-12-2015
Shri Suresh Prabhu
Hon’ble Minister for Railways
Rail Mantralaya, Rail Bhavan, New Delhi.

Respected Sir,

Sub: Serious disappointment among Railway Employees on retrograde and perverse recommendations of the 7th CPC – reg.

NFIR brings to the kind notice of Hon’ble MR that the Railway Employees are very much disappointed over the retrograde and perverse recommendation of the 7th Central pay commission.

Federation desires to state that the pay Commission has not considered the duties, responsibilities, remoteness and hard working conditions of Railways Employees of various categories while deciding the Pay Structure (Pay Matix). On perusal of report, it is also noticed that the Railway Ministry has not conveyed to the pay commission, the hard working conditions, nature of jobs being performed by the Railway Employees and the risks involved while their duties are unique, uncommon and complex.

In this connection, Federation brings to your kind notice that the 6th CPC anomalies relating to Railways Employees were discussed with the Railway Board. Consequently, it was agreed to rectify the under noted anomalies:-
(a) Merger of Technician Grade-II (GP 2400/-)with the Technician Grade-I (GP 2800/-)
(b) Replecement of GP 4600/- with GP 4800/-
(c) Placement of Mail/Express Loco Pilots in GP 4600/-
(d) Placement of JA Grade Officials in PB-4
However, the above proposals of Railway Ministry have not been cleared by the Finance Ministry and when the 7th Central Pay Commission was constituted, the Finance Ministry conveniently evaded. Although the above agreements were highlighted to the 7th Central Pay Commission by the NFIR, it is sad to note that the Railway Ministry has never taken initiative to apprise the 7th CPC relating to the above agreed proposals. The failure of the Railways Board in highlighting the facts and the commitments given to the Federation (NFIR) has caused grave justice to the staff. Similarly, on many issues, the Pay Commission has ignored the valid justification placed by the Federation seeking improved pay structure/Pay Matrix and incentives for railway categories. Overall, there is unhappiness and anger among all sections of Railway employees.

Apart from the above negative situation, the Pay Commission has given retrograde recommendations on “Minimum wage” and “Multiplication factor. Several Allowances have been recommended to be abolished.
In view of the above development, the National Joint Council of Action (NJCA) has since conveyed to the Government to take steps for constituting Group of Ministers Committee to initiate discussions for reaching negotiated settlement on the charter of demands by 1st week of February. If the Government fails to work towards negotiated settlement by that date, the Railway Employees as well as Central Government Employees will be driven to go on Indefinite stike from 1st week of March, 2016.

NFIR invites kind attention of Hon’ble MR to the pending issues already discussed with the Railway Board (CRB,MS) more than once by the Federation but unfortunately there has been no satisfactory settlement of the issues.

NFIR hopes that you would take initiative for ensuring negotiated settlement on Railway issues very early.

Yours faithfully,
General Secretary
Source: NFIR

Major retrograde recommendations of the 7th CPC to be settled before implementation – AIRF

Major retrograde recommendations of the VII CPC to be settled before implementation

AIRF has raised the issue of retrograde recommendations, made by 7th Pay Commission in its report submitted to Government last month, with Secretary Railway Board. Railwaymen are anguished and agitated over the retrograde recommendations of 7th Pay Commission. AIRF has raised following objections:-

All India Railwaymen’s Federation
4, State Entry Road, New Delhi – 110055

Dated: December 15, 2015

The Secretary(E),
Railway Board,
New Delhi

Dear Sir,
Sub: Major retrograde recommendations of the VII CPC to be settled before implementation

1. Minimum Wage and Allowances, common to all Central Government Employees, based on the justification detailed by the NC/JCM(Staff Side), and conveyed by the letter of the NJCA(copy enclosed), addressed to the Cabinet Secretary, should be considered. (para 4.2.5 to 4.2.13, pg. 61-64 of VII CPC Report).

2. Fitment Factor(Formula), for allotment of pay scales, to be improved for all categories of Railwaymen, based on Minimum Wage, finally drawn in consultation with the NC/JCM(Staff Side), be considered.

3. Indian Railways is an unique, multi-disciplinary and complex Transport Industry. Simple replacement in Pay Matrix (Band Pay +Grade Pay of the specific employee) without extending any weightage and due justice to their job contents, skillness, mental and physical stress and strain, introduction of advanced technology, dealing with most advanced state-of-art technology in various disciplines, working conditions, risk and hazard involved, have not been given any due consideration by the 7th CPC, and many issues have been left with the administrative ministry to decide. A Joint Committee of the Railway Board and both the Federations be formed to re-examine the memorandum submitted by the AIRF to the 7th CPC, detailing out problems/ grievances etc. of each category of Railwaymen, which need to be addressed and allotment of proper pay scales and other benefits be granted with a time-bound programme. Failing to a negotiated settlement in respect of any category, the matter should be referred to the Board of Arbitration under the JCM Scheme for Arbitration.

4. There is serious discontentment among the apex grade supervisors, for not granting them Group `B’ Gazetted status, and the Technicians, because of non-merger of Technician II & I in GP Rs.2400 and 2800 and allotment of pay scale recommended for GP Rs.2800. (para 11.40.115, pg. 749 on Technical Supervisors & para 11.40.132, page 752 on Technicians of VII CPC Report).

5. In the report of the VII CPC, there are abrasions in respect of designation and grade pay of certain categories of staff. Those should be corrected to as exist presently. (e.g. para 11.40.62, pg. 740 of VII CPC Report).

6. The 7th CPC has changed promotional channel and inserted D.R. Quota in certain cases. The existing recruitment policy and channel of promotion should continue, or in case change is warranted for, be bilaterally discussed and settled before being implemented. (para 11.40.51, pg. 738 and para 11.40.69 & 11.40.70, pg. 742 of VII CPC Report).

7. All the allowances, presently admissible to different categories of staff, should continue duly enhancing their rates as mentioned below:-
(a) Fixed amount, but not D.A. Index, to be raised by 2.25(multiplication factor).
(b) Fixed amount, but partially indexed D.A. should be raised by 1.5.

8. Recommendation for reduction in percentage of certain allowances should not be implemented, being bilateral package settlement and existing percentage be continued. (para 8.7.15 – HRA, pg 269 and para 
8.17.101 & 8.17.102, pg 351-352 of VII CPC Report).

9. All the advances, now admissible, should be continued, and enhance the rates of all the advances by a multiplication factor of 2.25. (para 9.1.4, page 360-361 and para 9.1.7, pg 362 of VII CPC Report).

10. The Pay Commission has changed the procedure for granting MACP and imposed stringent condition. 
The existing norms for granting MACP should continue. (para 17.7(i, ii & iii), pg.865 of VII CPC Report).

11. Recommendation of the 7th CPC to stop annual increment permanently in the name of efficiency bar should not be implemented, and annual increments should continue. (para 17.7 (iv), pg 866 of VII CPC Report).

12. Railways should be exempted from the ambit of the National Pension Scheme(NPS) and the Old Guaranteed Pension/Family Pension be restored to all Railwaymen, irrespective of their date of appointment in the Railways.

13. Bilateral agreement arrived at on Productivity-Linked Bonus should continue and improved with the amendment of eligibility limit from Rs.3500 to Rs.7000 as per Bonus Act. (para 15.28 & 15.29, pg 861 of VII CPC Report).

14. In respect of Running Staff Pay, Rest Rule etc., a separate memorandum will follow. (para 8.11.19 & 8.11.20, pg 310-311).

15. The 7th CPC at para 9.2.33 has analyzed the provision of Special Casual Leave(SCL), which is granted to cover absence from duty of an employee and recommended to review the purposes, as also to limit the purposes as well as total number of days that an employee can be granted SCL in a year. This recommendation being retrograde needs not be implemented. (pg 368 of VII CPC Report).

16. The 7th CPC at para 9.2.9, while analyzing the provision of Child Care Leave(CCL) for women employees, has made retrograde recommendation to reduce the salary to 80% for the second spell of 365 days CCL instead of recommending some improvement in the same. This should not be implemented. (pg. 364 of VII CPC Report).

17. Financial benefit on promotion, that is available in the 6th CPC terms, no corresponding benefit has been recommended by the VII CPC. This needs to be addressed.

In addition to the above, we may submit some more retrograde recommendations of the VII CPC in due course.

Source: AIRF

IRTSA requested to grant of Fixed Medical Allowance of Rs.2000 pm to all Pensioners

IRTSA requested to grant of Fixed Medical Allowance of Rs.2000 pm to all Pensioners

IRTSA requested to grant of Fixed Medical Allowance of Rs.2000 pm to all retired employees & Pensioners in its memorandum submitted to the Joint Secretary of Implementation Cell, 7th Central Pay Commission as follows…

“Fixed Medical Allowance (Para 8.17.51)

FMA: Grant of Medical Allowance of Rs.2000 pm to all retired employees & Pensioners
i) The cost had exorbitantly increased for the Medicines, Consultation Fee and cost of Pathological Test required for day to day medical treatment since 1997 (when the FMA was initially granted) and this had risen at a much steeper rate the Price Index.

ii) A large proportion of Pensioners were residing in remote areas or villages having no excess to CGHS Dispensaries & Railway Hospitals and are as such, are wholly dependent on the paltry amount of FMA for day to day treatment of self & spouse.

It is, therefore, requested that the FMA may please be revised to atleast Rs.2000 p.m.”

Authority : IRTSA Memorandum

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