Memorandum by Secretary JCM National Council (Staff Side)
Submitted on 8.4.2008 to Cabinet Secretary Reg. VI Pay Commission
Dear
Sir,
As you are aware that the report of the VI CPC has
been submitted and there are varied types of commentaries including expression
of anger amongst the Central Govt. employees in various parts of the country.
We, staff side members of the National Council JCM
have discussed and prepared a note which we are enclosing herewith.
We will like to request you to kindly advise
Secretary DOPIT who is also the Chairman of the Standing Committee
(NC-JCM) to call the meeting of the Standing Committee to discuss all these
matters in presence of Secretary (Expenditure) and others concerned.
I have met the Secretary (Expenditure) who has
kindly clarified certain issues. This has gone a long way in proper
understanding of the issues involved.
An
early action would help clear the atmosphere.
Thanking
you,
Umraomal Purohit
Secretary.
Modification
proposed by JCM (Staff Side) to be made to the report of the 6th CPC
1.
A. The minimum wage
The computation of minimum wage of the 6th CPC is
not acceptable for the following reasons in brief:
i. Prices applied for various commodities (included
in the basket) is the wholesale price as increased by 20% which is not the norms
prescribed by the 15 ILC
ii.
The exclusion of 25% for meeting expenditure connected with social obligation
like marriage, education of children, recreational needs etc., is on the
untenable grounds. iii. The exclusion of 10% for the housing requirement (on
the ground that HRA is given separately) is not correct as HRA is not a full
reimbursement of the expenses incurred by the employee.
If these corrections are carried out the need based
minimum wage will be what is computed by the staff side,
B. Even as per the formulation adopted by the 5th CPC the minimum wage
works out to R's.7400 i.e, by application of the percentage increase of the net
national product which comes to 56.2%.
C. The Commission, without assigning any reason has rejected the demand
of the staff side for parity in the minimum wage with what is obtaining in
certain specified public sector undertakings.
D. For the above reasons, the minimum wage need to be worked out afresh
and the same reflected in all the pay bands appropriately by applying the
resultant multiplication factor as was done by the 5th CPC.
2.
Fitment formula
Rejection of point to point fixation, (which is
normally adopted by the PSUs in their wage revisions as fitment formula) is for
no sound reason. There is no 40% hike as propagated by the Commission. By
withdrawing the benefit of merger of DA the actual rise is between the' 15 to
28%. Our demand in this connection is as under:-
(a) The merged portion of the DA should be taken
into account to arrive at the revised basic pay and Grade Pay in each case.
(b)
Since quite a number of pay scales have been merged' together (especially in
Gr.B and C cadres) the senior employees who were in higher scales of pay and
who ~ have put in large number of years of service progressively get reduced
benefits.
(c)
Taking these two factors into account we suggest that the fitment formula as suggested
by the Commission may be amended to incorporate the following:
"subject to the condition that the pay
and grade pay so fixed is not less than 2.625_times of the pre-revised
basic pay."
The multiplication
factor of 2.625 is the same as is applied in the case of the entry I grade pay band and grade pay in the case of
Gr.-A officers. This clause will make good the
loss of benefit one might suffer due to the exclusion of the DP
from
the computation process of fitment formula.
3.
Rate of increment
(a)
The rate of increment suggested by the CPC is to be raised to 3.5% for the
following reasons: -
(i)
The 2.5% is below the existing rate of increment in many grades.
(ii) Due to the compounding factor, over a period
of ten years, this might rise to 4.5% still less than the prevailing rate of
increment in the PSUs which is 5% and above.
(b) The condition prescribed i.e. to have a minimum
six months for applying the uniform-date of increment must be done away with,
as it is only to applied in the initial year.
4.
Transport allowance
The recommendation of the Commission is to be
subsume the CCA in the Transport allowance and raise the existing Transport
allowance by 4 times. This has reduced the proportionate benefit to certain
grades and categories of employees. We make the following suggestions:
(a) Since the CCA has been subsumed in this allowance,
no condition should be imposed for the grant of this allowance.
(b) Taking into account that some of the employees
might get reduced benefit from the across the board rise at the rate of 4
times, the following rates may be applied.
|
Employees drawing grade pay
|
A-1/A class cities
|
Others
|
|
Rs.5400 and above
|
RS.3200+ DA
|
RS.2400+DA
|
|
Rs.4200-4800
|
RS.2400+DA
|
Rs.1800+DA
|
|
RS.Below Rs.4200
|
RS.1600+DA
|
RS.1200+DA
|
5.
Fixation of pay on Promotion
In the present scheme of things, wherein many
grades have been merged under one single Pay band, promotion will not bring
about any significant rise in emoluments. The benefit will be very
insignificant in the case of promotion from one grade to another where the
grade pay is one and the same. In that case the one increment benefit will be
less than even what is obtaining today. We suggest to incorporate the
following clause to take care of this situation.
"the pay plus grade pay so fixed on promotion
shall not be less than 10% of pay plus grade pay the individual was drawing in
the feeder cadre."
6.
Allowance and benefits withdrawn
Certain allowances and benefits have been withdrawn
to be replaced with a new scheme. The New scheme will have to be formulated on
the basis of discussion/ agreement in the National/Departmental Council as the
case may. Till such agreement is reached the old scheme of allowances and
benefits will continue to be operated relating to the revised basic pay and
grade pay.
7.
Special duty allowance of North Eastern Region:
We hope that the SDA will now become available for
all employees working in the North Eastern 'Region. However, we feel that it is
likely that the phraseology employed in detailing the scheme is capable of
misinterpretation giving room for further discrimination amongst the employees
posted in N.E. Region. This may therefore, be appropriately clarified to mean
that the employees and officers working in North Eastern Region is entitled to
draw this allowance.
The rates of daily allowance which include the
following elements, viz. food, conveyance and accommodation suggested by the
Commission to the officers other than Gr.-A is extremely meager and would not go
to meet the expenditure involved. We suggest the following amendment.
The rates prescribed for grade pay of Rs.4200 to
4800 and below Rs.4200 may be replaced with the following.
Rs.4200
to 4800- Reimbursement of hotel accommodation of upto RS.1 000 per day
reimbursement of travel charges upto RS.150 per diem for travel within the city
and reimbursement of food not exceeding RS.200 per day.
Below
Rs.4200- Reimbursement of hotel accommodation of upto RS.700 per day reimbursement
of travel charges upto Rs.150 per diem for travel within the city and reimbursement
of food not exceeding RS.200 per day.
9. Promotion ACP
Scheme
The scheme should be improved to provide three
promotion at the intervals of ten, twenty and twenty five years of service.
10.
Inappropriate rationalization
There is a great deal of resentment over the
rationalization of the scales of pay of S9 to S12. The grievances in this
regard must be addressed by appropriate decisions.
11.Pension
The Staff Side appreciates the acceptance of some
of its suggestions for improving the pension of the old pensioners by the
Commission. However, we feel the following amendment is needed in the case of
pensioners.
(a)
The minimum. pension must be the minimum of the PB.1 with grade pay
(b) The 5th CPC suggestion to refix the
pension on the basis of the notional pay as on 1.1.96 is to be implemented. The
pension entitlement has to be worked out on that basis. The new commutation
table to be applied only prospectively
(c) The restoration of commuted value of pension
should be on completion of 12 years.
12.
Fast Track Committee
There are cases like the Master Craftsmen, where
the existing pay scales have been reduced to a lower scale. To consider these
types of cases, a fast track committee may be set up.
13.
Anomalies
There are certain anomalies arising from the
disturbance of vertical and horizontal relativities etc. For quick and time
bound disposal of these anomalies a Joint Committee of the National Council JCM
with the participation of the Secretaries of all concerned Ministries should be
constituted.
14.
Grameen Dak Sewaks
Grameen'Dak Sewaks are employed by the Postal
Department. They constitute the largest segment of the workforce of the Postal
organization. We suggest that the pay, allowance, pension and other benefits in
their case should be proportionately that is suggested to the regular civilian
employees. Since the-Group' D. Cadres have been abolished, they may be
promoted/absorbed/regularized in Group C cadres in the same manner provided.
for matriculate/non matriculate regular Group D employees.
Meeting with Department of Pension and
Pensioners Welfare
JCM Note for Improvements/Modifications
of Pensionary
Benefits
Shri Umraomal Purohit, Secretary, Staff Side,
National Council, JCM for Central Government Employees, accompanied by Shri
S.K. Vyas, Coordinating Secretary, NCCP and other important leaders of
Pensioners' Organizations held a meeting with the Secretary, Department of
Pension & Pensioners Welfare, Government of India, New Delhi on 15.4.2008
and apprised him of their views about recommendations of Sixth Central Pay
Commission on Pension & Pensioners.
Later on, Shri Umraomal Purohit, Secretary, Staff
Side submitted a note to the Secretary, Department of Pension & Pensioners
Welfare seeking improvements/modifications in Pay Commission's recommendations
on Pension & Pensioners, as under:
Note
seeking improvements/modifications in recommendations of VI CPC on Pension & Pensioners
A.
Quantum of Pension
I. Employees organisations &
Pensioners
Organisations had demanded 60% of the average emoluments/emolument last drawn
whichever is higher/more beneficial as pension on superannuation/retirement.
This demand was based on the fact that in
neighbouring countries like Bangladesh
etc. the rate of pension is higher as under:-
Bangladesh- 60% without any
contribution from the employees
Myanmar- 60% without any
contribution from the employees
Pakistan- 70% without any
contribution from the employees
(Vide Para 132.4 of V CRC Report page 1773)
The VI CPC has not recommended any change in the
present rate of pension which is payable at 50% of emoluments on completion of
minimum prescribed years of qualifying service.
We
submit that raising this rate to 60% of emoluments may kindly be considered.
II. The VI CPC has taken into account the fact that older pensioners require a
better deal because their needs, especially those relating to health, increase
with age. The Commission has recommended additional quantum of pension on
attaining age of
80
years @ 20% of basic pension
85
years @ 30% of basic pension
90
years @ 40% of basic pension
95
years @ 50% of basic pension
100
years @ 100% of basic pension
We
submitted that additional quantum of pension should be granted on
attaining
75 years of age & onwards as under:-
75
years @ 20% of basic pension
80
years @ 30%
()f basic pension
85
years @ 40%
of basic pension
90
years @ 50% of basic pension
95
years @ 75% of basic pension
100
years @ 100% of basic pension
B.Qualifying
service for full pension
The VI CPC has recommended that full pension (i.e.
50% of emoluments) should be paid once the employee renders minimum of 20 years
of pensionable/qualifying service.
Advantage of the above recommendation will not
doubt be taken by such employees who have more lucrative jobs awaiting them
like in spheres of power, shipping, construction, telecom etc. Since for most
of the employees such alternate and more lucrative career opportunities are
seldom available, they will stay on to complete their tenure till they reach
the age of superannuation. It is also necessary that a large scale wholesale
exodus does not take place. For this reason as well the service after minimum
20 years of service should continue to be pensionable disregarding the fact
their pay will increase alongwith their tenure making them entitled to little
higher pension.
We therefore suggest that for each year of
additional service after minimum of 20 years of pensionable service, an
additional pension @ 2% of emoluments per annum may be provided over and
above present full pension of 50% of emoluments.
Commutation
of part pension
The VI CPC has recommended a revised Commutation
Table to be used for purpose of commuting pension. It has also observed that
till such time the above revised table is revised there may not be any
justification for decreasing the period of restoration which is 15 years.
We submit that the period of 15 years may be
revised to 12 years even in respect of employees who have been granted
commutation as per the existing commutation table. This is insisted upon
because the amount of commutation paid is fully recovered in a period of 12
years. This can be illustrated by the following example:-
Age next birth
day=61 years
| Details |
|
| Commutation factor |
9.81 |
| Amount commuted
|
Rs. 100 |
|
Commuted value paid
|
Rs.11,772/ |
| Amount
recovered in 12 years |
Rs.14,400/ |
|
Amount
recovered in 15 years |
Rs.18,000/- |
|
Excess Amt. Recovered in
12 years-representing interest on decreasing principal |
Rs. 2,628/-
|
| Excess recovered in 15 years |
Rs. 6,228/-
|
Since the revised
commutation table has a commutation factor of 8.971 at age 46 (i.e. after 20
years of service) &8.194 at age of 61, the amount payable will still be
less.
Taking these factors into account, we propose that commuted
portion of pension may be restored after 12 years.
C. Family Pension
The Sixth Pay Commission
has recommended that only in case of Govt. employees dying in harness, family
pension may be paid at enhanced rates (i.e. the pension which the employee
would have got) for a period of 10 years. In case the employee dies after his
retirement, enhanced family pension shall continue to be granted for 7 years
only.
This is discriminatory recommendation. In the
case of Govt. employee dying after his retirement, the enhanced family
pension may be granted for 10 years.
Additional quantum of
family pension may also be provided at the rates indicated in respect of
pensioners on attaining 75 years of age and thereafter for the few who manage
to live on.
Ex-gratia over &
above pension
VI CPC has recommended
exgratia of 10 lakhs in case of death occurring due to accidents in course of
performance of duty and to RS.15 lakhs in case of death occurring due to army
action in International Wars etc.
We suggest that exgratia
of 15 lakhs may also be granted in case of death due to accident as well
since death under tragic circumstances is attendant with agony anguish pain
and uncertainties. We should avoid unintended discrimination.
Parity in Pension
The main demand of the
past pensioners was for full parity in pension to those who have retired
during the period from 1.1.1986 onwards. The V CPC in Para
137.13 (PP 1830) has observed as under:-
"While it is
desirable to grant complete parity in pension to all past pensioners
irrespective of the date of their retirement, this may not be feasible
straightaway as the financial implications would be considerable. The pr9cess
of bridging the gap in pension of past pensioners (Pre 1986 pensioners) has
already been set in motion by the Fourth CPC when past pensioners were
granted additional relief in addition to consolidation of their pension. This
process of attainment of- reasonable parity needs to be commuted so as to
achieve complete parity over a period of time."
In Paras 137.13 and .14
of their Report the V CPC stated that as follow-up of our basic
objective of parity, we would recommend that pension of all the Pre 1986
retirees may be updated by notional fixation of their pay as on 1.1.86 by
adopting the same formula as for the serving employees. This step would bring
all the past pensioners to a common platform or on the IV CPC pay scales as on
1.1.86. Thereafter, all these pre 1986 pensioners can be treated alike in
regard to consolidation of their pension as on 1.1.96 by allowing the same
fitment weightage as may be allowed to the serving employees.
It was, therefore, expected that VI CPC will
adopt the similar procedure at least in respect of all pre-1996 retirees, if
not pre 2006 retirees but this has not been done. The result is that therefore:
the pre 1996 retirees i.e. one below Pay Commission would get less pension than
post 1996 retirees.
We request that this disparity in pension may be
removed by adopting same procedure which was implemented in respect of pre 1986
retirees for pre 1996 retirees.
Fitment
Benefit to the past pensioners
The VI CPC has allowed fitment benefit equal to 40%
of pension excluding the effect of merger of 50% Dearness Relief. The result is
that net increase in the Pension+DR is merely 28% of basic pension which is
quite inadequate.
We therefore propose that revised pension should be
determined by multiplying the pre revised basic pension with 2.625 which is the
minimum multiplying factor in respect of Group 'A' PB-3 pay band. This fitment
benefit has been demanded by the Serving Employees Organisations in respect of serving
employees as well. Hence this multiplying factor may be extended to pensioners
also.
Medicare
for Pensioners
I. We demand that C.G.H.S. may be expanded to cover
other cities as well or alternatively CS(MA) Rules, 1944 may be suitably
modified to cover pensioners who have settled in stations not covered by the
CGHS. The Health Insurance should be an optional' alternative and not made
compulsory as and when introduced. The AMAs under CS(MA) Rules can act on CGHS
OPD advisor at that place i.e. where no dispensary exists. Thus the present
left out pensioners will be, brought under CGHS.
II. Fixed Medical Allowance of RS.100 in lieu of OPD treatment was
sanctioned on the basis of recommendations of V CPC. The VI CPC has, however,
not revised this allowance and left it to Govt. to revise it. We demand that F.M.A. @Rs.5001- p.m. may be
sanctioned to all pensioners until such time that they are covered under CA(MA)
Rules, 1944 on out side the jurisdiction of CGHS dispensary. All Postal
pensioners may also be made eligible for CGHS/FMA etc. The fact that the
offending letter has been quashed and set aside has been ignored by the VI CPC.
Ex-gratia
to CPF/SRPF retirees
The VI CPC has not revised the scheme of payment of
ex-gratia. This has also not been granted to those CPF/SRPF retirees who after
having rendered 20 years of service had voluntarily retired or were retired on
invalidation. These retirees may also be granted ex-gratia.
Whereas SRPF retirees have been granted option to
come over to pension scheme 12 times during the period from 1957 to 1986, no
such option excepting the one given in 1987 has been granted to CPF retirees of
Organisations like Atomic Energy Commission etc. - on
the ground that it took these employees time to
understand that pension scheme was more favourable than CPF scheme. As a matter
of fact all these employees should have been given a default option for
pension.
Minimum
Pension
VI
CPC has fixed 50% of Rs.6,660/- (Pre revised pay scale of Rs.2750-4000) i.e. Rs.3,330/-
as minimum pension.
No one retires at the minimum wage. As full
pension is now admissible after rendering 20 years of service, we demand that
the minimum pension should be 50% of pay in pre-revised pay scale of
RS.2750-4000 (revised pay scale of 486020200+Rs.1800) after rendering 20 years
of service.
In the 20th year, pay of the employee in
the revised pay scale of RS.486020200+Rs.1800/- at the variable rate of 2.5%
p.a. as increment works out to RS.1 0,647/ -. As such the minimum pension
should be 50% of Rs.10,647/- i.e. RS.5324/- p.m. instead of Rs.3,330 as adopted
by VI CPC in their tables.
S.S. Ramachandran/ Chairman
Shyam
Sunder Convenor
S.K. Vyas Coordinating
Secretary
NCCP Bharat Central Pensioners Confederation
