NC JCM Memorandum to 7th CPC on merger of DA with Pay and Interim Relief

Memorandum to VII CPC on merger of DA with Pay and Interim Relief:-

National Council (Staff Side)

Joint Consultative Machinery

for Central Government Employees

13-C, Ferozshah Road, New Delhi - 110001

Shiva Gopal Mishra
General Secretary
No.NC4JCM/2O14/VII CPC

Dated: June 3, 2014

Justice Shri Ashok Kumar Mathur,
Chairman,
Seventh Central Pay Commission,
New Delhi
Dear Sir

Sub: Memorandum to VII CPC on merger of DA with Pay and Interim Relief

As was decided in the Preliminary Discussion Meeting, held on 28”‘ May, 2014, with the VII CPC, we submit herewith Memorandum on Merger of Dearness Allowance with Pay and Interim Relief, on behalf of Staff Side, National Council(JCM).

Yours faithfully,

sd/-

(Shiva Gopal Mishra)

Copy to: Ms Meena Agan/val, Secretary, Seventh Central Pay Commission (Government of India), New Delhi, along with a copy of above cited memorandum.
Encl: As above

Copy to: All Constituent Organizations of the NC/JCM(Staff Side), along with a copy of above cited memorandum.

Encl: As above

MEMORANDUM 

ON MERGER OF DA WITH PAY AND INTERIM RELIEF. 

We solicit the kind reference of the 7th Central Pay Commission to the discussion during the informal interaction the staff side of the National Council had with the Commission on 28.5.2014, when we inter alia raised the issue of merger of Dearness allowance and Interim Relief.

2. Before we dwell upon the issues, it may not be out of place to refer to the evolution of the JCM which later became the negotiating platform for the entirety of Central Government employees and workers It was conceived to bring about a conflict free industrial climate in Civil Service in the wake of the tumultuous experience of an industrial strike action in 1960. The National Council, the apex forum under the three tier system headed by the Cabinet Secretary was empowered to deliberate upon the common issues of the Central Government employees. The Staff Side, National Council, thus became the united voice of the entirety of the Central Government employees on fundamental issues like Wages, Pay Scales, Rate of increment, Dearness compensation and other general allowances.

3. However, over the years, JCM became an ineffective instrument to address the basic issues and demands of the employees. We shall detail the requirements to empower and streamline the functioning of the JCM as a negotiating forum in our Main Memorandum to the Commission.

4. The twin issues viz. Merger of DA and Interim relief had been the subject matter of discussion with the Government when the Staff side was called upon to present their views in the matter of finalization of the terms of reference for the 7th CPC by the Secretary, Personnel, (Department of Personnel and Training) in his capacity as Chairman, Standing Committee, National Council JCM. Though we pleaded for the specific reference of the above two issues, to the 7th CPC, the final 1 version of the terms of reference approved by the Government did not find a place for our views. We have, therefore, been constrained to take recourse to clause 5 in the terms of reference, which enables the Commission to send interim report to the Government.

MERGER OF DA WITH PAY: 

5. Dearness allowance is considered as a device to protect, to a greater or lesser extent, the real income of wage earners and salaried employees from the effects of rise in prices. As per the vagaries of price fluctuation in the market, the allowances are bound to go up and down. Constant rise in the price level, might bring about a situation whereby the quantum of allowance shall go up. Such a phenomenon of constant increase of prices of commodities gave rise to the demand for merger of Dearness allowances with pay so as to make it pay, rather than an allowance, with all concomitant benefits. A committee to advice the Govt. on the portion of such DA to be treated as pay was appointed on 15th July, 1952 (Resolution No. F6(6)E-II/52). The terms of reference of the Committee was :

“Taking in to consideration the rates of dearness allowance that have been sanctioned to date for Central Govt. servents, and the level at which cost of living index are likely to stabilize in the foreseable future, to recommend the percentage of dearness allowance now given to the Central Govt. servents which should be allowed to be treated as pay for all purposes in future, provided that by doing so the present total pay and dearness allowance is not enhanced:”

6. The said committee was headed by Shri N.V. Gadgil, Member of Parliament. The Committee in its report concluded that

“We have recorded the various reasons which we have taken into account in arriving at the conclusion that the appropriate level below which the All India cost of living index is not likely to fall, should be taken as 265-284. We find that for the index figure of 265, the Central Pay Commission formula allows Govt. Employees in the lowest pay group a dearness allowance of Rs.20/- and this amount remain unchanged until the cost of living index go above the index of the next level i.e. 285. We, therefore, consider that the employees in this pay group, a sum of Rs. 20/- which represents 50% of the present dearness allowance of Rs. 40 per month should be treated as pay (page 22 chapter V Report of the Dearness allowance Committee).”

7. The Committee also enumerated in their report the purposes for which the DA shall be treated as pay as under:-

• Retirement Benefits
• Travelling allowance
• Compensatory allowance
• House rent allowance
• Compensation of Leave Salary etc.

8. The 3rd CPC, whose recommendations were implemented with effect from 1.1.1973 had no reference from the Govt. on the question of merger of DA. Still while dealing with the issue of Dearness allowance (vol.IV – Page 1 Ch.55) the Commission noted that “no other country in the world (except Ceylon and Pakistan) seems to be following the practice of paying dearness allowance or cost of living allowance as a separate element of wage. In most of the countries compensation to Govt. employees for the increase in the price level is given by way of periodical salary revisions Prior to the setting up of the 3rd CPC, pursuant to the discussion in the National Council, JCM, the entire dearness allowance as on 1.8.1966 was treated as Dearness pay and the consequent increase in allowance was granted by the Government with effect from 1.12.1968. In para 16, the Commission recommended that should the price level rise above twelve monthly index of 272 ( 1960=100) the Government should review the position and decide whether the Dearness allowance Scheme should be extended further or the pay scale themselves should be revised. ( Page 4 Chapter 55. Vol. 4 3 rd CPC report). On crossing the index point of 272, the Government conceded the demand for merger of 36% of DA with pay. Later, based on an agreement reached at the National Council JCM the DA granted upto the index level of 320 points i.e. 60% of the Basic Pay was merged through executive instructions for purpose of allowances and pension. Before the 4th CPC was set up in 1983, the issue of further merger of DA with Pay was raised by the employees. Conceding the demand the Government decided that DA entitled to be drawn upto the index average of 568 points be treated as pay for all purposes.

9. Since the Pay Scales were to be constructed with reference to the consumer price index as on the date of revision, every Commission had to perforce merge the entire DA when the actual revision was made. The DA on such revised pay is to be computed on the basis of annual average rise of index after every six months interval. Therefore, the question of merger of DA again rose at the time of negotiation with the Government for setting up the 5th CPC. An agreement was reached on merger of certain percentage of DA and interim relief. (Rs. 100/-) in September, 1993. In April, 1994, the Government issued notification setting up the 5 th CPC (resolution No. 5(12)E-III/93 dated 9.4.1994).

10. The Staff Side placed before the 5th CPC the necessity to merge DA with Pay at an index level below which prices were not likely to move downwards. Pointing out that in the last two decades i.e. 1980s and 1990s there had been not a single occasion when the annual average index had fallen consequent upon which the DA rates were to be reduced, they requested the Commission to merge the entire DA which had been at 97% of the Basic pay as on 1.7. 1993. (The AICPI index being 1201.66). The Commission after deliberations on the memorandum and discussion with the staff Side, recommended that 97% of Basic Pay as DA admissible from. 1.7. 1993 be treated as Pay for all purposes. However, they suggested that the said merger might be given effect only from 1.4. 1995.

The 5th CPC submitted its final report to the Government on 19th January, 1997. Before the Commission, the Staff side had demanded that as and when the consumer price index exceeds 25% of the base index at which the pay is fixed that proportion of Dearness allowance should be treated as Pay for all purposes and the decision on this must not be left at the discretion of the Government. The Commission considering this demand observed that:

“From the past trend of CPI given in annexure 11’8.1 it is observed that 50% increase in prices generally takes around five years to materialise. A mid-term quinquennial revision of salaries of the Government employees is not something the Government should grudge. In view of the above, we recommend that DA should be converted into Dearness Pay each time the CPI increases by 50% over the base index used by the last Pay Commission. Such DA should be termed as Dearness Pay and be counted for all purposes including retirement benefits. (Chapter 105 page 157)”. The 5th CPC thus regularised the periodical merger of DA into a well thought 11. out scheme. They also established that wage revision is needed either when the DA exceeds 50% over the base index or after five years .

12. The Government, however, did not act upon this recommendation, when the percentage of DA exceeded 50( 52%) as on 1.7.2002, though it had accepted the recommendation in 1997. With the persistent persuasion, ultimately, the Government issued orders treating 50% DA as Dearness Pay for all purposes with effect from.1.4.2004.

13. Even though the 5th CPC had brought about a finality on the approach to the question of merger of DA with pay, the 6th CPC reopened the issue afresh. The Commission made the following observation-

“This conversion (merger of DA with Pay) is however not necessary in the revised structure being recommended where increments are payable as a percentage of Pay in the Pay Band and Grade Pay thereon and provision has been made for all allowances/benefits to be revised periodically, linked to the increase in the price index. The Commission is, therefore, not recommending merger of DA with Basic pay at any stage.”

14. The 3rd, 4th and 5th Central Pay Commissions had approvingly endorsed the recommendations made by Gadgil Committee in 1952. The practice of periodical merger had been followed as a device to protect the erosion in the real value of wages (including allowances) especially at the lowest level of employees. This erosion becomes unbearable when DA crosses over 50%. To say that the increment rate which is presently 3% of pay would take care of the erosion is to say the least, atrocious. Increment is granted as a legitimate reward for the service rendered by an employee for a year. It has nothing to do with the erosion in the real value of wages. No doubt, the 6th CPC has recommended that a few allowances should be revised by 25% as and when the DA crosses over the stipulated 50%. Such allowances are very in number. Moreover, 25% rise as a compensation when the DA itself rises to 50% is arbitrary and conceived to compensate the worker with lesser amount than what he is entitled to.

15. We, therefore, strongly plead before the Commission, for the reasons enumerated in the foregoing paras, that the Dearness allowance as on 1.1.2014 which stood at 100% may be recommended to be merged and treated as Dearness Pay for grant of all benefits, allowances, pension and other retirement entitlements.

16. We further submit that Merger of D.A. as on 1.1.2014 may also be recommended in respect of pensioners and Gramin Dak Sewaks of Postal Departments.

INTERIM RELIEF 

Barring the 6th Central Pay Commission, all other Commissions had recommended grant of Interim Relief to the Central Government Employees. As per the 5thCPC, Interim relief represented a provisional arrangement during the period between setting up of a Pay Commission and submission of a report by the Commission and its acceptance by the Government. Most of the earlier Commissions with the exception of Ist and 6th Central Pay Commission had taken 2-3 years and sometimes more to finalise their recommendations. Despite the specific reference made to the 6th CPC, by the Government to consider grant of Interim Relief the Commission took the position that having decided to submit its recommendation within the stipulated period of eighteen months and having arrived at a view that its recommendations must be effective from 1.1.2006, it shall not waste time on the question of interim relief. What the 6th CPC failed to appreciate was the erosion in the real value of wages that had taken place over the years due to inflation and rise in prices of essential commodities and the inability especially of the employees at the lower level to make the both ends meet with the available wages. No doubt, the employees had been to some extent benefitted by the decision of the Government to merge 50% Dearness allowance and treat it as pay for all purposes including DA thereon.

2. Every Pay Commission which had recommended Interim Relief had made it amply clear that it was intended to provide some relief to the employees pending a comprehensive determination of their salary structure and other benefits. The relief granted was treated as sui generis (one of its own kind, unique) and it was not taken into account for determining any allowance or benefit.

3. We give below briefly the course of negotiation and approach of various earlier Pay Commissions on the question of grant of interim relief.

4. The Second Pay Commission gave a report within a month’s time and recommended an Interim Relief of Rs. 5/-. The third pay Commission gave three instalments of Interim Relief on varying rates. After appoint of the 4th CPC in July, 1983, Government sanctioned (Vide Department of Expenditure O.M.No. 7(39)-E III/83 dated 2nd August, 1983) on their own initiative Interim Relief at varying rates of Rs. 50 and Rs. 100 per month. In March, 1985, 4th CPC submitted a report and granted a further interim relief at 10% of Basic pay subject to a minimum of Rs. 50 per month. Again before the setting up of the 5th CPC, the Government sanctioned Rs. 100 as interim Relief. As it was not considered adequate, the staff side of the National Council, JCM submitted a memorandum to the 5th CPC demanding additional interim relief. The Govt. vide their Department of Expenditure, Resolution No. 5(12)EIII/93 dated 12.01.1995 amended the terms of reference to enable the Commission to decide upon the additional interim relief. The 5th Central Pay Commission in their interim report submitted on 2 nd May, 1995, recommended Interim Relief equal to 10% of Basic Pay subject to a minimum of Rs. 100/-. The terms of reference of 6th CPC on the issue of Interim Relief was as under:-

“2.g. To examine desirability and need to sanction any interim relief till the time the recommendations of the Commission are made and accepted by the Government. “

5. It has to be recalled that the Government did not initially refer the question of Interim Relief to the 5th CPC but when the Staff Side submitted their memorandum to the Commission on I.R., the Government had to amend the terms of reference and refer the issue to the Commission for their decision.

6. These go to establish the need for a relief in view of the erosion in the real value of wages, the need to fill the widening gap in wages when compared to outside rates and the fact that final recommendations of the 7 th Pay Commission are bound to revise the wage structure and above all the need to provide some relief to the employees who would retire before the Commission’s recommendations are finally submitted to the Government and accepted by them.

7. We give hereunder a table indicating the retail prices of the commodities which goes into the computation of minimum wage as per Dr.Ackroyd formula as on 1.1.2006 (quoted by the 6th CPC in their report. Page 53. Table 2.1`.1 Chapter 2.2.) and the actual retail price of those very commodities as on 1.1.2011. The percentage increase in the prices of each commodity is also given in the table. The average rise in prices was of the order of 174%, whereas the Dearness allowance entitlement was only 51%.. The table clearly indicate the erosion in the real value of the wages.

Sl.No	Name of articles	Price as 1.1.2006	As on date	%increase
1	Rice	18	38	120
2	Dhall 4 varieties; average	40	87	120
3	Raw vegetables	10	40	400
4	Green veg.	10	56	560
5	Other veg	10	40	400
6	Fruits	30	100	330
7	milk	24	32	40
8	Sugar,jiggery. average	24	43	95
9	Edible oil.3 varieties.average	50	95	95
10	Fish	120	300	150
11	meat	120	240	100
12	egg	2	3	50
13	Detergents/soap	200	350	75
14	Cloth	80	120	50
	Average increase			174

8. The need based minimum wage computed on the basis of Dr Ackroyd formula as on 1.1.2014 will be around Rs. 26,000 bringing about a gap of almost 12,000 at the level of an MTS. We shall submit the details thereof in our main memorandum.

9. The only Public Sector undertaking in which the wage agreement has been reached in 2013 is the Coal India Limited. As per the said agreement, the minimum wage at the lowest level of the worker as on 1.12014 is:

 

Basic Pay --------------------------------Rs. 15, 712
Dearness allowance:  29.6%
Special allowance: 4.0%
Special DA: 1.795%
Attendance bonus:  10%
Total: 49.395%-------------------------- Rs. 7132.46
Total salary:  -----------------------------Rs.22844.46 
At the MTS level 22.844.46 x 130% ---- Rs.29697.


10. As per the formula adopted by the 5th CPC, the minimum wage will work out to Rs. 22,857 as under:
A. Per Capita NNP at constant price for 2004-05 - Rs. 24,143
B. Per capita NNP at constant price for 2011-12 - Rs. 38,037
C. The increase registered over 8 years. - Rs. 13,894.
D. Percentage increase over 2004-05 - 57.54877.
E. Emoluments of an MTS as on 1.1.2014 - Rs. 14,000
F. 57.55% of Rs. 14,000.  - Rs. 8,857.
G. Wage to be fixed in thecase of MTS as on1.1.14. - Rs. 22857.

From the above it is seen that Central Government employees presently have a very depressed salary structure. The final outcome of the deliberations of the 7 th CPC will become available only by 2016. It is, therefore, needed that the employees have to be compensated in the form of Interim Relief. In our opinion the Commission may, as has been done by the various earlier Pay Commissions, recommend atleast 25% of Pay in Pay Band plus Grade Pay as Interim Relief subject to a minimum of Rs. 4000/-. Incidentally we may point out that the grant of interim relief will enable the Government to spread out the financial outlay on account of wage revision over a period of more than three years.

We further urge that the Commission may kindly recommended Interim Relief at the above rate subject to minimum of Rs.2000/- to as pensioners and Gramin Dak Sevaks of Postal Department.

SHIVA GOPAL MISHRA

Secretary, Staff Side, National Council JCM.

 Source: http://ncjcmstaffside.com/wp-content/uploads/2014/06/Memorandum-for-IR-and-DA-merger_03.06.2014.pdf

Reply to 7th CPC Questionnaire is being prepared by Confederation CHQ

Reply to 7th CPC Questionnaire is being prepared by Confederation CHQ

Reply to be submitted to 7CPC on Questionnaire is being prepared by Confederation CHQ under the able and experienced guidance and leadership of Com.S.K.Vyasji (Advisor, Confederation) and Com.KKN.Kutty ( National President, Confereration). Suggestions if any, by the C-O-C s and Affiliated Organisations may be sent by e-mail to Confederation CHQ (e-mail-ID confederationhq@gmail.com ormkrishnan6854@gmail.com ). Karnataka C-O-C has already sent its valuable comments and feedback to the CHQ.

Final Draft of the reply to the Questionnaire will be exhibited in the Confederation website.
It will be better if all the affiliates of Confederation submit the reply on the same line

M.Krishnan

Source: Confederationhq.blogspot.com

Bharat Pensioners Samaj reply to 7th CPC questionnaire-Revised draft

Bharat Pensioners Samaj reply to 7th CPC questionnaire-Revised draft

Ms Meena Agarwal

Secretary  GOI Seventh Central Pay Commission

Post Box No 4599 Hause Khas

P.O. New Delhi -110016

e.mail: secy-7cpc@nic.in

Madam,

Subject: 7th CPC Questionnaire

Reference: D.O. No 7cpc/15/questionnaire dated 9th April 2014

‘Bharat Pensioners Samaj’. One of the identified Pensioners’ Federation by GOI  M/O Personnel,  PG & Pensions-DOP& PW and a stake holder. In its capacity as one of the oldest & largest Pensioners Organization with over 500 Affiliated Associations, submits hereunder its reply to the questionnaire issued vide your D.O. No 7cpc/15/questionnaire   dated 9th April 2014.

As Pension is not independent of Salary. Salary structure also, is a matter of concern to pensioners. However, Bharat Pensioners Samaj limits its answers to Question Nos 1.1,1.2 , 10.1 &  10.1.2 under the heads ‘Salary’ & ‘Pension’ .

Q.1.1  The consideration on which the minimum and maximum salary in case of the lowest group c’ functionary and the maximum salary in case of a secretary level officer may be determined and what should be the ratio between the two.

Ans. Socialistic structure of the country , constitutional provisions for equality & reduction of vast  inequality in income & wealth between highest and lowest paid should be the main  considerationfor fixing maximum & minimum Salary.

The Ratio between maximum & minimum of Salary be brought down to  1: 9. Ensuring uniformly equal % rise in Salary of all employees by adopting a common multiplication factor.

4th CPC had determined the ratio between minimum & maximum of salary to be 10.7(Chapter 41 & 43). In accordance with  the basic fiber of a socialistic State this ratio should have gone reducing Pay Commission after Pay Commission. Even in capitalist countries like America & Britain this ratio is 1: 3.3 &1:5 respectively?  In  countries with weaker economy like Philippines this is 1: 9.5. VI CPC adopted conversion factor of  1.86 to arrive at the minimum of lowest pay Band, where as it adopted a factor of  3.37 for arriving at the highest scale. This shredded the very basic fiber of the Constitution of Indian Socialistic State by raising  the  ratio  between minimum & maximum of Salary to 1: 12.85. This negative and socially regressive effect 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 wherein higher-ups got full parity in Pension(Through modified parity) .Adoption of  a ratio of 1:9 between minimum & maximum paid will therefore rectify to some extent the injustice done so far .

Defence Employee:

As far as Armed forces are concerned they do the supreme sacrifice for the country & must be the highest paid .For them the ratio between lowest & highest paid must not be more than 1:5.

Q.1.2  What should be the consideration for determining salary for various levels of functions between the highest level and the lowest level functionaries?

Ans. Equal  % rise in Salary of all employees should be the main consideration .Revise the highest existing Salary first. Divide the revised maximum Salary by 9 to arrive at the revised minimum Salary. Divide the revised minimum salary by existing salary. The factor so arrived may be adopted as common multiplication factor.

Q. No 10.1 New pension Scheme i.e The retirement benefits of all Central Government employees appointed on or after 1.1.2004 are covered by the New Pension Scheme (NPS). 

What has been the experience of the NPS in the last decade?

Ans. Withdraw New Pension Scheme: for following reasons:

(i) Pension of Govt. employees is a deferred wage. Since wage paid out to them

during the course of work tenure is kept low by design, to cater for pension.

(ii) He/She forgoes with interest 8.33% of govt. matching contribution to PF.

(iii) Pension is a social security measure & cannot be subjected in any way to Market risks

(iv) It does not guarantee minimum return & thus lacks the basic fiber of Social Security Scheme (iv). It is in no way better than the existing Pension  Scheme .

(v)It does not provide guaranteed Family Pension to dependents & disabled siblings which exist in present scheme, even in case of spouse & dependent parents where death of the employee occur in early years of service there is no adequate social security.

Q. 10.1.2  i.e.  As for as pre 2004 appointees are concerned, what should be the principles that govern the structure of pension and retirement benefits?

Ans.  1.Keeping in view the Socialistic structure of the country , constitutional provisions & to reduce vast inequality between have & have lots, it is proposed:  The Ratio between maximum & minimum of Pension be brought down to  9:1. Ensuring uniformly equal rise in Pension of all pensioners, irrespective of pre- retiral status. By adopting common multiplication factor for revision of Pension, raising the ratio between minimum & maximum pension to 1:12.85 by 6thCPC  , instead of reducing it,  was  unconstitutional.

7th pay commission is requested to  first workout the top most revised pension, divide it by 9 to arrive at the minimum revised pension & then derive a uniform multiplication factor  by dividing minimum  revised Pension by minimum pre-revised Pension, with the condition that Pension shall not in any case be less than 65% & family Pension 45% of the last Pay  in Pay Band i.e. Pay in Pay Band+ GP  /Pay scale or of average of last 10 months emoluments (Whichever is more beneficial) as was worked out & recommended by TECS (Tata Economic Consultancy Services)  consultant to Vth CPC (Para 127.9 Vol III 5th CPC report)

2.One Rank one pension i.e full parity: ‘Justice must be equal for all’.

Otherwise, it breeds contempt, discontentment, inefficiency, corruption & finally the insurgency. We have seen it happening in Tribal areas of N.E, Chhatishgarh, Jharkand, Orisa, MP etc.

Vast inequality of income and wealth between lowest & the highest paid, violation of Article 14 has already induced contempt, discontent, inefficiency & corruption, in Civil services.

Govt. granted One Rank One Pension (OROP) to Armed forces, Judges granted it to themselves. Even a period of private practice of lawyer judges, to be counted towards qualifying service. Higher Bureaucracy got it through modified parity.   All other Central Govt. employees & Pensioners are definitely not the 2nd grade citizens!  One Rank one Pension to all retirees is now a constitutional requirement to ensure equality.

3.Defence Pensioners: 

As far as defence pensioners are concerned they do the supreme sacrifice for the country .For them the ratio between highest & lowest paid must not be more than 1:5 and instead of being thrown out at an early age they must be transferred to paramilitary/police force after active tenure in armed forces. Otherwise, if these retired army personnel trained in all sort of weaponry are left uncared, they may fall prey to undesirable anti National outfits. In their case it is also essential that retirees from uniformed cadre & civilian defence Pensioners are treated at Par for all purpose.

4.Dearness relief : 

100% neutralization with automatic merger with Pension whenever it goes to 50%  :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. DR does not adequately take care of inflation at this level. 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 automatically merged with Pension whenever it goes to 50% .

5.Additional old age Pension : 

5% upward enhancement in pension be granted every five years’  after the age of 60 years & upto 80 years & thereafter as per existing dispensation.       As 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.

6.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, 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.

7. Restoration of commuted value 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 76 years now. Therefore, restoration of commuted value of Pension after 12 years is fully justified.

8. The 6th Central Pay Commission’s improved/new benefits, like full pension for 20 years of service/10yrs service 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/improved benefits which 7th CPC may recommend, too be made equally applicable to present & past pensioners

9.Medical facilities: 

“Health is not a luxury” and “not be the sole possession of a privileged few”. It is a Fundamental Right of all present & past Employees!

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. For reimbursement of bills for treatment & 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 medical attendant.

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 suggest 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 all must be provided Health care services at par .

10. 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 may be revised keeping in mind the workability as per market conditions.

11.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 it 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 suggest 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 suggest 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.

12.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 each occasion. Moreover, the scope of SCOVA is limited to feedback on Government policies. DOP&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 correctly.

We therefore, appeal that for resolving Pensioners complaints ,

(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.

13. Representations in various committees : As recommended vide Vth CPC report Vol III para 141.30 Pensioners’ representatives should be included in various committees & other Fora of Govt where issues relating to the welfare of pensioners are likely to be discussed &debated :

Discussing, debating and deciding the matters / Policies relating to Pensioners, with representatives other than those of pensioners, is unfair & against the Rules of ‘Natural Justice’. At present various Committees like National Anomaly Committee (NAC) and JCM (on Pensioner matters), are there, wherein matters / policies relating to pensioners’ welfare are discussed and decided, but they do not have pensioners’ representatives with the result their viewpoints, hardships & anomalies are not properly represented. As pensioners are a homogenous class, there is an urgent need to constitute separate Committees for pensioners wherein matters / policies / anomalies relating to pensioners of all Groups, categories &departments may be discussed.

14. Govt. should not indirectly pressurize courts by appealing again & again to get judgments reversed in its  favor & must implement all court  judgments  in  case of all similarly placed persons.

V CPC recommended in para 126.5 that any Court Judgment involving  a common policy matter of pay/pension to a group of employees/pensioners, should be extended automatically to similarly placed employees/pensioners without driving every affected individual to the Courts of law. This recommendation is never followed by GOI, with the result Pensioners in the evening of their life, are forced to approach the legal forums, seeking  the same relief. This in turn, bulges court dockets. VII CPC to look into this matter once again and to issue suitable guidelines as deem fit and necessary.

With regards

Truly Yours,

ER.S.C.Maheshwari

 Secy.Genl. Bharat Pensioners Samaj

Source: www.scm-bps.blogspot.in

[http://scm-bps.blogspot.in/2014/04/bharat-pensioners-samaj-draft-reply-to.html]