Record of discussions and decisions at the National Sectt. meeting of ITPF held at Chennai.

As scheduled the National secretariat meeting of ITPF  was held at Chennai (ITEF Union room) on 9.12.2018 at 11.30 AM. Com. Umesh Mehta, President ITPF presided over the meeting. Com. S.K.Sharma and Com. R.B. Deshpande joined the Diaz. On behalf of the host unit com. Perumal welcomed the secretariat members and explained the arrangements made for the comfortable stay of the participants. Com. V. Rathinasabapathy President, Tamilnadu ITPA made a brief presentation on behalf of the host unit.   Com. M.S Vengatesan, General secretary, ITEF TN and Cm. Elango, General secretary ITGOA, addressed the members assuring them all help needed for building up a strong Pensioners federation. Thereafter 2 minutes silence was observed to pay homage to all those who passed away after the  Hyderabad   meeting.

Com. KKN. Kutty presented the agenda for the meeting which was approved with the inclusion of two following issues.

Notional pay fixation from 01.01.1996 in the case of Inspectors and ITOs

Any other matter with the permission of the Chair.

Com. R.B Deshpande presented the issue No. 1 in detail, which was supplemented by the Secretary General. It was noted that :-

(a)    The ITGOA Mumbai Unit had filled petition before CAT demanding that the Pay revision in the case of ITOs made in 2004 must have the benefit of notional fixation w.e.f 1.01.1996 as has been done in the case of Audit and Accounts Officers.

(b)    The CAT Mumbai Bench had issued an order in favour of the Petitioner.

© Though the Department of Revenue wanted to accept the decision DoE directed them to file a writ petition before the Mumbai High Court.

(c)     The case is pending at Mumbai High court for the past six years

(d) Karnataka ITPA want to implead the case as also the ITPF. Only organizations that were in existence in 2012  are entitled to implead  in the case.  Accordingly,  it was decided that  Karnataka ITPA will collect data for preparing impleading petition. ITPF will write  to Chairman CBDT to  engage an advocate for the department so that no further adjustment will come about .   

ITPF CHQ.  will also write to General secretary ITGOA to appoint an advocate and attend the next hearing slated for 8.02.2019

Agenda item No.2

Filing case before the CAT in the MACP and Option No. 1 issues.

Members desired that   draft   petition be placed on the website . It was also decided that atleast ten    from each affiliate will make representation on both MACP and Option No.1

Agenda item No.3 cghs grievances.

The meeting decided to provide one more week for all affiliates to include items in the CGHS grievance list which was circulated at the meeting,     The SG will take up the matter with the Health Ministry.

Agenda item No. 4. Health insurance.

The issue was discussed at length . on the basis of the discussion the CHQ will prepare two proposals for health insurance, for CGHS covered pensioners and others.

Agenda Item No. 5 Member ship

On the basis of the reporting from each affiliates the meeting noted that the overall membership has almost reached 4200. It was decided that steps may be taken to obtain PAN no . from the IT Department. Com. S.K.Sharma informed the house of the developments in getting registration. He said that Meerut unit has given the legal fees and the same may be treated as donation to ITPF. He also said that the signature of the petitioners for registration  might be required at short notice  and the concerned office bearers may have to reach Delhi for this specific purpose..

Agenda Item No. 6. Finance:

The treasurer will prepare a due/ paid statement and will place on the website. The units immediately thereon will make the payment of the dues. Com. Badola requested  each unit  to inform him of the remittances so far made towards subscription as  also payment made for the journal. The Journal subscription as and when paid, he requested,  must be under intimation to him  so as to reconcile the same with the NCCPA.. He circulated the copy of the day book and the balance sheet as on 31.03.2018.

Agenda Item No.7. Widening circulation of the journal.

The meeting decided to make all ITPF members as Journal subscribers.

8^th and 9^th January 2019 strike:

The meeting decided that the affiliates should get in touch with ITEF leadership at  state level and organize solidarity and support actions and do everything possible to make the strike action  a grand success.

Agenda No. 9. Next Conference: I

The  next conference of ITPF will be held at Baroda in August 2019. It was also decided to release a souvenir to commemorate the occasion.  Com Shanti Kumar, will be Chairman of the Souvenir Committee as has been decided at the Hyderabad meeting.

Agenda No. 1.  NCCPA programmes of action.

Com.Secretary General detailed the programme chalked out by the NCCPA in pursuance of the 10 point charter of demands. All affiliates were requested to convene their general body meeting immediately and ensure that the individual comrade participates in the post card campaign.  The meeting also felt that the campaign will help for a closer interaction with the members.  The affiliates will inform the CHQ the number of post cards sent from each Station to the Prime Minister.  The next important programme is a massive fast programme at Delhi on 15^th March, 2019. The affiliates will elicit maximum number of participants in the programme.  It was also decided that the affiliates leadership will make arrangement for the comrades who are going to Delhi arrangements for their comfortable stay through on line booking in hotels.  March will have temperate climate in Delhi.  Still it is necessary to have good arrangements for stay. Each affiliate will send the following number of comrades for the 15^th March programme:

AP-2-. Bengal – 4, Karnataka-2 Gujarat-5 Meerut+Lucknow+Allahabad= 60, Rajasthan. 15, Tamilnadu – 10, Orissa-2, Mumbai. 5, Delhi. 20, MP, 3, NER -2. NWR -2, Kerala -3, Bihar -2. Vidharba. 3, Pune - 1

Agenda No. 10 Any other matter.

As per one of the judgements of the Supreme Court the   persons who could not get their due promotion as the DPC got delayed and the eligible candidate retired will have the benefit of notional promotion and notional pay fixation.   The copy of the judgement will be published in the journal.  The affected comrade’s cam makes a representation to the Board with copy to the CHQ.  The matter will be taken up with the Board as a general issue. 

The deliberations at the meeting was concluded at 5.30 PM.  Com. President declared that the National Sectt. will next meet only at Baroda on the eve of the conference.  The CHQ will prepare on the basis of the membership declared the number of delegates each affiliate is entitled to deploy for the conference, provided the subscription for 2015-16, 2016-17, 2017-18 and 2018-19 are remitted to the CHQ.  Com. President and the Secretary General in their concluding remarks praised the efforts undertaken by the host unit for the conduct of the conference as also for the stat of the Sectt. members.

KKN. KUTTY

Secretary General.

Draft representation in the case of MACP.

From.

…………………………………….

(Name and designation at the time of retirement)

PPO Number.

To

The Chief Commissioner of Income tax,

………..

………….

Sir,

                                                Sub: representation for grant of MAP benefit  with effect from.1.01.2006.

I was recruited to the Department on……………as……………(Designation).  I retired from service on superannuation on………………… During my service life, I was awarded the following promotions.

                                1.

                                2.

The Government enlarged the scope of the time bound promotions  in implementation of the 6^th CPC recommendations., whereby a Government servant became entitled for three promotion at an interval of every ten years in his service career.  These promotions were called financial upgradations as the concerned Government servant will continue to work in the cadre or grade irrespective of such upgradation. The Scheme was however, made effective from. 1.9.2008, even though the pay scales were revised with effect from. 1.01.2006.  Since I retired on……………….I was not granted the benefit of the MACP scheme ( 1^st, 2^nd, or 3^rd financial upgradation or 2^nd and 3^rd financial upgradation or 3^rd financial upgradation as the case may be) ,

The matter concerning giving effect to the scheme from. 1.1,2006 was taken up with the Government in the National Anomaly Committee by the Staff Side, but no decision was arrived at in that forum.  Aggrieved by the decision of the Government, some of the armed personnel approached the Armed forces Tribunal, subsequently, the High Court and ultimately, the issue came up before the Supreme Court.  The Honourable Supreme Court confirmed the verdict in favour of the applicants given by the Armed forces Tribunal and the same has now become final.  The order of the Supreme Court is contained in the W.P. 3744/2016 dated 8.12.2017.  The Government accepting  the Supreme Court verdict issued orders vide the Ministry of Defence letter No. 14(1)/99-d(ag)  dated25.7.2018.   However, the said order was only made applicable to the Defence armed personnel leaving out the Civilian employees and pensioners.  In the light of the following observation of the Honourable Supreme Court, the stand taken by the Government in not extending the benefit to the similarly placed civilian employees and pensioners is not only untenable but unethical too.

The Honourable Supreme Court on more than one occasion has ruled that the decisions of general nature must be extended to all similarly placed employees/pensioners.   In the case of Inderpal Yadav Vs. Union of India,(1985)SCC 648, the Supreme Court had stated :

“Those who could not come to the Court need not be at a comparative disadvantage position to that who rushed in here if they are otherwise similarly situated, they are entitled to similar treatment.”

            If the date of effect of the MACP scheme is shifted back to 1.1.2006, as has been ordered by the Honourable Supreme Court, I shall be entitled for my third promotion( second and third promotions, first, second and third promotions, first and second promotions as the case may be) with effect from. 1.01, 2006.  I shall be grateful if my petition is considered favourably and orders issued accordingly.   I shall also be thankful if  my petition is disposed of expeditiously, say within a period of one month.

            Thanking you,

Yours faithfully

…………………………………..

Name with (designation at the time of retirement)

PPO Number.

               

INCOME TAX PENSIONERS FEDERATION.

A2/95 RAJOURI GARDEN

MANISHINATH BHAWAN

NEW DELHI. 110 027.

PRESIDENT.                        COM. UMESH MEHTA.

SECRETARYGENERAL;     COM KKN. KUTTY;

PHONE: 98110 48303

The Chairman,

Central Board of Direct Taxes

North Block,

New Delhi. 110 001.

Dear Sir,

Sub: Notional fixation of pay  with effect from. 1.1.1006 in the case of Inspectors and Income-tax Officers on revision of pay scale in 2004.

                                    O0o

            The 5^th CPC had disturbed the then existing parity in pay scales between the Inspectors and Incometax Officers of the I.T. Department vis a vis the Inspectors and Group B. Officers of the I.B.and CBI.  The Incometax Employees Federation and the Incometax Gazetted officers association had taken up the matter with the Government then.  The Government appointed a high power committee to look into the matter and they submitted their report asking the Government to bring back the parity that had all along in existence.  However, it took nearly six years, i.e. from 1998 to 2004, for the Government  to take a decision in the matter.  In 2004, the orders were issued revising the pay scales of Inspectors and  Officers of the I.T. Department.  The same was applied in the case of similarly placed officers of the Central Excise  and Customs Department.  The orders were unfortunately made effective only from the date of issue whereas in the identical case of Accounts Officers, Accountants of the Indian Audit and Accounts Departments, the revised pay scales were granted with effect from. 1.11996, though arrears of salary for the period between 1996 and 2003 were denied to them.  In other words, the officials of the IA & AD were given the notional fixation of pay with effect from 1.1.1996 and the same was denied to the officials of the Income tax Department, for no ostensible reasons.  Even though the issue was taken up by the ITEF and ITGOA bilaterally with the Board and the Department of Expenditure, they continue to be denied the benefit of even the notional fixation of pay. 

The Income tax Gazetted officers Association and one another filed a petition before the Mumbai CAT. The case was disposed of by the Tribunal granting the relief prayed for by the applicants.  Despite the opinion of DOLA to the contrary, the CBDT filed writ petition before the Mumbai High Court against the order of the Tribunal.  (WP (SR) No. 25148 of 2012 Reg .No.WP 9649/2012.  The case was listed for hearing by the Honourable High Court in about44 times between 1911.2012 to 14.08.2012.  The cases had to be continuously adjourned due to the absence of a pleader from the Government side.

We may in this connection draw your kind attention to the National Litigation Policy formulated by the GOI in 2010.  We reproduce para c and D thereof. 

para C stipulates:   “…in appellate courts, if the paper books are complete, then adjournment must not be sought in routine course.  The matter must be dealt with at the first hearing itself. In such cases, adjournments should be applied for only if a specific query from the Court is required to be answered and for this , instructions have to be obtained.

Para D… One of the functions of the Nodal officer will be to co-ordinate the conduct of litigation.  It will also be their responsibility to monitor the progress of the litigation, particularly to identify cases in which repeated adjournments are taken.  It will be the responsibility of  the Nodal Officer to report cases of repeated and unjustified adjournments to the Head of the Department and it shall be open to him to call for the reasons for the adjournments. The Head of the Agency shall ensure the records of the case reflect reasons for the adjournment, if these are repeated adjournments.  Serious note will be taken of cases of negligence or default and the matter will be dealt with appropriately by referring such cases to the empowered Committee. If the Advocates are at fault, action against them may entail suspension/ removal of their names from the Government Panel.”

Because of the delay caused by the procrastination, ( which runs to 14 years as on date of writing this letter,) many  officials  retired from service on superannuation and quite a number of them died.   One is constrained to wonder whether the highly laudable Litigation Policy  statements are conceived for platonic pleasure or public consumption.  It is not only unpardonable but even cruel too that the case has been allowed to linger on .  In the first instance, the officials ought not have been drawn to courts at all.   How can the Government without any basis or reasoning adopt two different yardstick in the case of similarly and identically placed situations?

On behalf of the large number of retired personnel, we request you to kindly direct the concerned that the Department is represented before the Honourable Mumbai High Court by their duly appointed pleader on 8.2.2019, to which date the case has been decided to be heard by the honourable court. 

We also request you to kindly recall our plea made some months back when we me you to hold the Pension Adalat at the Board’s level as many of our members are aggrieved over the inordinate delay in finalisation of the cases foisted on them on the eve of their retirement.  There are many other department-specific problems for the retired officials, which require expeditious disposal as these are allowed to pend.

Thanking you,

Yours faithfully,

K.K.N. Kutty

Secretary General.

INCOME TAX PENSIONERS FEDERATION.

A2/95 RAJOURI GARDEN

MANISHINATH BHAWAN

NEW DELHI. 110 027.

PRESIDENT.                         COM. UMESH MEHTA

SECRETARYGENERAL;     COM KKN. KUTTY;

PHONE: 98110 48303

Dated: 10^th December, 2013

Dear Comrades,

                The National Sectt.of ITPF met at Chennai on 9^th December, 2018 as scheduled. The minutes of the meeting is under preparation  and shall be placed on our website as and when it is ready. The  Sectt. took the following decision in connection with the ensuing 2 days strike action  of the Indian working class slated for 8^th and 9^th January, 2019. 

1.   On 12.12.2018, all Units of the Confederation including ITEF  are expected to serve the strike notice to the respective Heads of Departments. It is decided that ITPF units in all State Capitals will mobilize large number of pensioners  and participate in the demonstrations at the respective State capitals  along with the ITEF members on 12^th December,2018;

2.     The ITPF affiliates will discuss the methodology of solidarity action to be mounted on 8^th and 9^th Jan. 2019 with ITEF Circle Secretaries  and take appropriate decision.

With greetings,

Yours fraternally,

KKN. Kutty

Secretary General.

INCOME TAX PENSIONERS FEDERATION.

A2/95 RAJOURI GARDEN

MANISHINATH BHAWAN

NEW DELHI. 110 027.

PRESIDENT.                         COM. UMESH MEHTA

SECRETARYGENERAL;     COM KKN. KUTTY;

PHONE: 98110 48303

Dated: 30^th Novcember,2018

Dear Comrades,

                We send herewith the NCCPA Circular letter and the memorandum to the Prime Minister. The programme of action chalked out by the National Executive of the NCCPA at its Chennai meeting is slated to commence from 11^th December, 2018.  The NCCPA has selected 12 centres to carry out the programme.  The date where the programme is mounted at each Station is indicated in the enclosed circular.  We request all our affiliates to ensure maximum participation of the ITPF comrades in this programme.   Regarding the Post card campaign and the mass fast programme at Delhi,  we shall discuss it elaborately at our Next National Sectt. meeting scheduled to be held at Chennai on 9^th  December,2018.  All Secretariat members are requested to attend the Chennai meeting on 9^th and inform their journey plans to the host Unit, the Tamilnadu Incometax Pensioners Association immediately.  The host unit has made all arrangements for stay and the conduct of the meeting.  The details of the venue etc.have already been placed on the website. 

                With greetings,

Yours fraternally,

KKN KUTTY

SECRETARY GENERAL

NATIONAL CO-ORDINATION COMMITTEE

OF PENSIONERS ASSOCIATIONS.

13-C  Feroze Shah Road,

New Delhi.110 001

 Website: www.nccpahq.blogspot.com

Email. nccpahq@gmail.com

President:                          Shiv Gopal Misra:            Ph: 9717647594

Secretary General:          K.K.N. Kutty                       Ph: 9811048303

Dated: 27^th November, 2018.

To

The Honourable Prime Minister,

Government of India,

South Block,

New Delhi. 110 001.

Dear Sir,

                 We submit herewith a memorandum containing the demands, issues and grievances of the Central Government Pensioners.  We request your good-self to  kindly cause consideration thereof with a view to provide relief to them. 

                Thanking you,

Yours faithfully,

K.K.N. Kutty

Secretary General.

Memorandum

                On behalf of the community of pensioners who retired from various Central Government establishments after putting in more than three decades of active service, we submit the following for your kind consideration and necessary direction to the concerned  to evolve solutions to the issues raised therein. Before we dwell upon the issues in detail,  permit us to mention sir, that  NCCPA  is the apex organisations of the Central Government Pensioners Associations in the country.  Our affiliates also include associations of Pensioners of the Central Autonomous bodies.  The grievances of the Pensioners mainly arise from the non-settlement of the following issues.

1.            Implement option No.1 as per the pension fitment formula as recommended by the 7^th CPC  and grant MACP benefit with effect from 1.1.2006 .

The 7^th CPC  in  appreciation of the demand placed by the Central Pensioners organisations jointly  had recommended two distinct methodology of Pension revision leaving it to the beneficiaries to choose whichever is beneficial to them.  The entire pension community was highly appreciative of the said recommendation and pleaded for the acceptance thereof to the Government.  Unfortunately the Pension Department advised the Government not to accept Option No.1  on the ground that it was not feasible to be acted upon. The Government heeding to the said advice,  accepted the recommendation and issued notification in which it was specified that the acceptance of the Government of the 7^th CPC suggestion is subject to its  feasibility of implementation.  The subjective  clause in the Notification was without precedence and appeared to be strange. In order to meet out the objections from large number of Pensioners,  a Committee under the chairmanship of the Secretary of the same Pension Department was set up.   The Committee made the same recommendation to the effect that the suggestion of the 7^thCPC contained in Option No.1 was not feasible.  They however suggested to the Government an alternative formulation to replace the recommendation of the 7^th CPC.  This was primarily to benefit the officials in organised Group A service, where career progression was time bound. In a written submission made to the Committee, the Staff Side of the National Council JCM pleaded for offering all the three alternatives so that the pensioner would be able to choose whichever was beneficial to them.  The Committee’s  conclusion that option No. 1 was not feasible was flawed in as much as the document,  which the official side affirmed as the bare necessity to implement Option No. 1 was available in the case of 86% of the pensioners, even according to the Committee’s own finding.  The Committee’s report was heavily one sided and was conceived to favour a section of the pensioners, especially those who retired from the higher echelons of the bureaucracy. If the third alternative , which was accepted and implemented had benefited pensioners who had retired from the lower rungs of the hierarchy, it was incidental.  Our submission before your goodself is that the Government, having accepted the recommendation of the 7^th CPC must implement the same.  The feasibility or otherwise of the recommendation must be subjected to critical scrutiny.  The Committee’s finding that the Pay  Commission’s recommendation was not feasible  had been made to enable them to put before the Government the third alternative.  There is no difficulty in disproving the  Committee’s findings on the question of “feasibility”.   A large number of pensioners would have been benefited and the question of parity between the past and present pensioners would have been properly addressed.

Another related issue is the date of effect of the MACP Scheme.  The recommendations of the 6^th CPC was implemented with effect from 1.1. 2006. However, while issuing the orders the MACP was introduced from a different date i.e. with effect from. 1.09.2008.  The matter went first to the Armed Forces Tribunal, where the Govt. lost in as much as the Tribunal made it clear that the Government’s decision to implement MACP from 1.09. 2008 was wrong.  The Government took  up the matter before the High Court, where again they lost.  The matter went upto the Supreme Court,who also  confirmed the position taken by the Tribunal.  Having reached a finality, the Government issued orders making  the scheme effective from 1.1.2006 but only in the case of armed forces personnel, leaving out the Civilian employees and Pensioners from the ambit of their latest order.  This is despite many decision of the  Honourable Supreme Court that similarly placed personnel  should not be dragged to the court for redressal.  The Staff Side of the National Council, JCM had taken up this  issue with the Government twice but are disappointed as those communications have not been responded with till date.  We request that the Department of Expediture, Ministry of Finance and the Department of Personnel may be directed to issue orders extending the MACP Scheme effective from 1.1.2006 in the case of all civilian pensioners.

2.            Revise  the  Pension of BSNL absorbed retirees with 15% fitment recommended by the 3^rd CPC and approved by the Government from 1.1.1017 delinking  the wage revision in BSNL.

When BSNL was formed in 2000, the entire employees working in the Department of Telecommunications were absorbed in BSNL with assurance of better prospects and pension from consolidated fund of the government of India. Rule 37A was incorporated with the CCS (Pension) Rules , 1972 to ensure them government pension and also their pay was upgraded to IDA scales. The pension revision was given to them with 30% fitment , recommended by the 2^nd PRC for the PSU employees from 01-01-2007. Later, they were also granted pension revision based on the 78.2% IDA fitment at par with the working employees of BSNL. But both these revisions were much delayed due to a condition of 60:40 stipulated by the government for payment of pensionary benefits. However with much effors and struggles, this condition was annulled by the Cabinet and the order issued vide No.40-13/2013-Pen (T) dated 20-07-2016. It is stated in the order, Para 2 (b) that “The liability towards pensionary benefits including family pension to the BSNL employees (excepting those recruited after 01-10-2000), as per sub rule, 22 of Rule 37-a of CCS (Pension) Rules, 1972, lies with the government.”

The 3^rd PRC has recommended 15% fitment for the pay revision of PSU employees with effect from 01-01-2017 which has been approved by the government. The BSNL absorbed government retirees are fully justified to get their pension revised with 15% fitment from 01-01-2017 without linking to the wage revision of BSNL employees. Wage revision of BSNL employees is being delayed due to the affordability condition laid down by the 3^rd PRC.  The pension revision of BSNL absorbed government retirees has nothing to do with the finance of BSNL, as the entire liability lies with the central government. The Department of Telecommunications, despite the assurance by the hon’ble Minister of Communications for early pension revision, is adopting a negative approach and their mindset , even after a series of discussions and struggles, is for the pension revision only after pay revision of BSNL employees. The central government pensioners have already got their pension revised from 01-01-2016 as per the recommendations of 7^th CPC. So it is a great injustice being meted out to the BSNL absorbed government retirees by denying the due pension revision, even after two years of their counterparts in central service got their pension revision.

3.            Revise Pension of Central Autonomous Body pensioners.

There are more than 600  Central autonomous bodies.  Thousands are employed in these institutions.  These institutions  were created as special vehicles to deliver certain goods and services for public benefit.  Most of these institutions have adopted Govt. of India rules and regulations and service conditions.  Some time back, the Govt. issued an executive fiat making it obligatory for these  institutions to generate own funds and be self reliant.  The said fiat as pointed out by the Managements of these institutions, were impracticable unless the user charges are increased manifold putting the public at large into unbearable financial burden. After  the 7^th CPC’s  recommendations, most of these autonomous bodies revised the wages of the working employees and officers, but chose to punish the pensioners. In quite a number of cases, the pension revision has not taken place.  Even the entitled dearness relief was  not sanctioned in certain cases.  It is our ardent plea to your goodself that the pension revision in the case of retirees from the autonomous bodies may be directed to be undertaken immediately and the funds required for the purpose being made available to these bodies.

4.            Provide notional fixation of pension under Option No.3                 on the basis of the pay scale/grade pay/pay level from which the pensioner retired. Provide fixation of pay in the case of all pre 2006 pensioners on the basis of the grade Pay/pay level/pay scale of the post or cadre from which one has retired as per the judgements of the court.

It is the interpretation of the Department of Expenditure that led to the denial of the legitimate quantum of pension in respect of some of the pensioners, who could not avail the benefit of pay scale revision during their service. The issue had been the subject matter of judicial scrutiny and the judgements were clearly against the interpretation of the Department of Expenditure   Instead of accepting these court verdicts, the Govt. had been dragging the poor pensioners to higher courts denying them what is legitimately due to them.  While the serving employees are given the benefit of revision of pay scale or grade pay, the same is denied to the Pensioners.  In some cases, the  Govt. has implemented the decisions of the tribunal denying the benefit to the other similarly placed personnel. The attitude of the Department of Expenditure has only led to the increase in the number of cases in the court apart from placing unbearable financial burden on the pensioners.  This is also clearly against the principle/policy announced by the Government while setting up the administrative tribunals to the effect that the Govt. would abide by the decisions of these tribunals with a view to speed up the delivery of justice.  It has now become a common practice for the Govt. to approach the High Court and Supreme Court whenever the decisions of the tribunals go contrary to the position taken by the Govt. We request you to kindly direct the Department of Expenditure to reverse their untenable interpretation in the matter and render justice to the Pensioners.

5 & 6.     Extend the benefit of CS(MA) rules to all pensioners who are not covered by CGHS. Increase the FMA to Rs. 2000 pm as has been granted to PF pensioners. Introduce the health insurance scheme as suggested by the 7thCPC.

CGHS came into existence decades back in consideration of the dire requirement of addressing the health cared needs of the Central Government employees. It commenced its operation in a few stations initially and was later widened to cover 26 important towns of the country including almost all metro cities.    It received wider appreciation from the employees and Pensioners.  However, its expansion was arrested in the post 1991 period, especially after the report of the Expenditure Reform Commission was submitted to the Government.  Its service was curtailed and the budget allocation was drastically reduced.  The number of empanelled hospitals at certain points of time got reduced.   In a city like Mumbai, where number of Central Government employees and pensioners is huge, at some point of time, there had been only one or two empanelled hospitals.  The health insurance scheme, which was one of the recommendations of the 6^th CPC, did not take off.  The health care has now become abysmally poor. While this is the case of the employees and pensioners in the CGHS covered areas,  the situation in other moffusil stations is precarious.  While the working employees have the old CCS(MA)system whereby they could get the expenses reimbursed, the poor pensioners are given a pittance of Rs. 1000 p.m.to meet out the health related expenses.  Most of pensioners, being at the advanced age, require hospitalisation for continuous treatment of the ailments.  Therefore, the demand for the extension of the CCS(MA) Rules had been raised continuously and persistently for many years.  The Government has not responded to this demand positively.  Rather on many occasions, the Govt. has expressed their inability to consider this demand fearing the huge financial outflow.  We request your goodself, to kindly get the matter seriously examined from the humane angle and pending a decision thereon, kindly direct the Department of Expenditure of the Ministry of Finance to increase the FMA toRs 2000 p.m to the pensioners. 

Incidentally, we may also bring to your kind notice that the 7th CPC had recommended for introduction of a health insurance scheme. This is an alternative worth   considering by the Government as the insurance scheme will obviate the financial outflow from the exchequer.  The Departments of Pension and expenditure may be asked to consider this recommendation seriously and evolve a scheme which would go a long way in addressing the health related problems of the pensioners to a very great extent.

7.            Raise the minimum pension to 60% of the Minimum wage i.e. Rs. 10800pm.

Minimum Pension is presently computed as half of the minimum wage determined by the Pay Commissions.   One is entitled  for full pension on completion of the specified number of years of service. Pension is computed as 50% of the last pay drawn.  It is, therefore, discernible that the computation of Minimum pension at 50% had been based on the assumption that pension is normally calculated as half of the last pay drawn. This appears to be not based on any sound principle.  Minimum pension is related to Minimum wage. Minimum wage  is the wage determined on the basis of the minimum basic and essential  requirement of a person’s existence. As per the agreed formulations as early as in 1957, the basic essential requirement is considered to be the requirement of the family of a person.  Family is defined as “Husband, wife and two children” treating this as three units.  The formula stipulates and provides one unit for the bread earner, 0.8 units to his spouse and 0.6 unit for each children.   The point at issue is that the minimum pension cannot be less than the minimum wage.   Minimum wage being the least below which a person may not be able to live on, the same analogy must apply to the pensioner. Minimum pension is the need based requirement  of a pensioner, whose family includes his spouse who  is fully depended upon his pension income.    However, taking into account the fact that the superannuation age of retirement being 60, no pensioner in the normal circumstances may  have dependent children.  The logical conclusion that emerges is that the minimum pension must not be less than 60% because the family of the pensioner shall have 1.8 units  which is just 60% of the family units of a working employee.  We  request therefore, that the concerned may be advised to determine the minimum pension at 60% of the minimum wage, which will work out to Rs. 10,800 p.m.

8.            Restore the commutation value of pension after 10 years.

The restoration of the commutation value of pension is made after 15 years.  The 5th CPC had pointed out that the period of 15 years is too large in as much as the Government recovers the advance with interest in less than 11 years. Accordingly the 5^th CPC recommended restoring the commuted value on completion of 12 years, so that full pension is restored.  After the subsequent revision of the commutation value factor, the period by which the government could recover the full amount with interest has further been reduced to 10 years.  The recommendation of the 5^th CPC was not accepted by the Government. With this decision, the Government is presently recovering almost one and half times of the commuted value along with interest, interest being charged on fictional amount of principal.  There is absolutely no justification for the stand taken by the Government in the matter.  The Pensioner community feels that the Government is behaving like a cruel and parsimonious money lender.  At no point of time, the Finance Ministry has been able to advance any logical argument in support of their reluctance to reduce the period from 15 to 10 years.  This apart, quite a number of pensioners will not be able to receive the benefit of restoration as they may not be able to live even up-to 75 years.   We, therefore, request you to kindly direct the Finance Ministry to issue orders for the restoration to 10 years.

9.            Provide increased rate of pension on attainment of 70 years of age.

               

Taking into account, the increased financial requirement of a pensioner, the earlier Pay Commission had recommended to raise the pension by 20% on attainment of age of 80.  This recommendation was implemented.  Many of the pensioners are compelled to spend huge sums of money on health related problems and other debilities once they attain the age of 70.  The Pensioners Associations had represented before the 7^th CPC to increase the pension by 20% on attaining the age of 70 and a periodic rise to reach 100% on attaining the age of 90. The  CPC however, on obtaining the opinion from the Defence Ministry turned down this request, even though the Pension welfare department had suggested to increase the pension on attainment of the age of 75.   On such a crucial issue, it was unfortunate that the Pay Commission instead of arriving at an independent decision relied upon the opinion of the Defence Ministry.  We are not aware of the circumstances under which the Defence Ministry came to such an unhelpful conclusion. Over the years, as your goodself  is aware, the Government had been reducing the rate of interest on fixed term deposits, which had adversely affected the Pensioner community as most of the Pensioners have chosen to invest their retirement benefits on these instruments. While the  constant reduction of interest rate by the RBI and consequently by the Financial institutions may be  in consonance of the  sound macro economic  policy matters,  there is no way the pensioners could compensate for their reduction in monthly income. They face a piquant situation in as much as they face reduction of their income and an increase in their financial requirement simultaneously.  At the advanced age, there is no cushion for them to absorb the unanticipated expenditure.  Having recognised the fact that the advanced age poses problems it would be in the fitness of things, that the pensioner is granted a small increase in their pension income.  We, therefore, request that the suggestion put forth by the Pensioner Community to increase the pension as suggested above may please be accepted.

 10.         Withdraw  the contributory pension scheme and restore the defined benefit pension to all

                Central  Govt. employees.

The main objective of introducing the new contributory pension scheme in 2004 was stated to be to arrest the financial outflow on account of the constant increase in the pension liability of the Government. The IMF had earlier advised the Government to do so as a measure to contain the fiscal deficit in the Union Budget. The employees organisations had been consistently opposing this move and had been presenting the obvious fact that the pension liability of the Government would not be abated by this move, rather it would only register an increase.  The 6^th CPC set up a Committee to go into the matter headed by Dr. Gayatri.   The Committee’s conclusion was akin to what the employees organisations were all along making. The matter came up for the consideration of the 7^th CPC again as by that  time the new scheme had been in operation for more than a decade.  The  Commission received many complaints and suggestions from the stake holders.  These had been enumerated in their report.   Instead of making any recommendation, the Commission suggested to the Government to set up a Committee to go into these complaints and take remedial measures.  Govt. set up such a committee under the Chairmanship of the then Secretary, Pension, who heard the presentations made by the Service organisations and the Pensioners Associations.   One of the suggestions made before the committee was to guarantee a minimum pension or a minimum return for the investments being made by the employees during their service career.  It is reported that the Committee has submitted its report to the Govt.  But the same has not come to the public domain so far. The Pensioners are, rightly so, apprehensive of the continuation of the present defined benefit pension system, they enjoy.  The employees, who are recruited after1.12004 are highly agitated as the new scheme guarantees no mimum annuity nor does the projection made by the PFRDA gives them any hope for a decent return for the contribution they make every month which is presently 10% of their Pay + DA.   The  facts now available with the Government over the financial outflow from the exchequer both in respect of the Pension liability of the employees who were recruited prior to 1.1.2004 and the contribution the Government is to make under the new contributory scheme must convince that the decision taken to introduce the new scheme in replacement of the erstwhile defined benefit scheme had been flawed.  If that be so, the scheme requires to be scrapped lock stock and barrel as it has not benefitted the Govt,  nor the subscribers, i.e. the employees. The discontent over this ill advised decision is growing day by day and the younger generation of workers and officers have become highly critical.  We, therefore, request you to kindly cause a revisit with a view to bring back the defined benefit pension scheme for all Central Government employees. 

K.K.N.KUTTY

Secretary General