GRANT OF DEARNESS ALLOWANCE TO CENTRAL GOVERNMENT EMPLOYEES - REVISED RATES EFFECTIVE FROM 1.1.2019.

No. 1/1/2019-E-II (B)

Government of India 

Ministry of Finance 

Department of Expenditure

*****

North Block, New Delhi 

Dated the 27th February, 2019.

OFFICE MEMORANDUM

Subject: Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2019.

The undersigned is directed to refer to this Ministry's Office Memorandum No. 1/2/2018-E-ll (B) dated 7th September, 2018 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 9% to 12% of the basic pay with effect from 1st January, 2019 .

2. The term 'basic pay' in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government , but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.

5. The payment of arrears of Dearness Allowance (from January to March) shall not be made before the date of disbursement of salary of March, 2019.

6. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees , separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

7. In so far as the employees working in the Indian Audit and Accounts Department are concerned , these orders are issued with the concurrence of the Comp r ler and Auditor General of India.

Sd/-

(Nirmala Dev) 

Deputy Secretary to the Government of Indiahttps://doe.gov.in/sites/default/files/DA%20eng_0001.pdf(Click the link above to down load the original Order of Ministry of Finance)

AIDTOA OPPOSES GOVT’S HASTY MOVE TO PRIVATISE SIX AIRPORTS.

The All India DRDO Technical Officers Association denounces the hectic move to hand over six airports of the country mostly in the state capitals cities to chosen private player on the terms which clearly appear to be a big bonanza to the most favoured private corporate-the Adani Group, which incidentally had no exposure to airport or aviation related sector. The airports at Ahmedabad, Jaipur, Lucknow, Trivandrum, Mangalore and Guwahati have been put on fast track privatisation with a target to complete the deal well before election is announced.

All these airports, rather the national assets under sale were developed and modernized by Airport Authority during the span of last decade spending thousands  of crores of rupees of tax-payers money. Now, the Govt is in a visible haste to hand over these readymade functional as well as profit making airports to the private hands at a time when the Govt’s tenure is coming to end within months.

And for handing over these readymade modernized airports with huge real estate assets, altogether new modalities have been discovered by the Govt which is  quite innovative to ensure a big bonanza to the most favoured private buyer. The private operator will be required to pay the Airport  Authority an amount  ranging from Rs 115/- to Rs 174/- per month per passenger. And there will be no sharing of the huge non-aeronautical commercial revenues out of the real estate and huge commercial space annexed to every airport, which is always much higher than the aeronautical revenues for almost all the airports under sale.

It is reported in the media that post-privatisation of these six airports, Airport Authority will be getting an upfront payment of around Rs 2500 crore within 90 days and thereafter Rs 525 crore annually as concession fee. Can these paltry returns to AAI be compared with the total amount AAI has spent towards modernization and development of these six airports? If this comparison is made and also the incremental  prospect of revenue generation from these airports in the background of fast expanding aviation sector is taken into account honestly, then this major pre-election deal by Govt is going to be big bonanza to the favoured private player at the irreparable cost of the national exchequer and national interest too.

AIDTOA opines, as such, there has been no urgency to fast track the privatisation of these six airports so far operational and financial efficiency is concerned. The Airport Authority of India successfully developed and modernized with huge investment by itself almost all the major airports of the country and has been operating this crucial infrastructure quite efficiently, both financial and operational. A private new entrant operator like Adani Group, which has no experience in airport management, is now being handed over these airports only to benefit the new operators, and not for better airport operation in the least.

Let’s oppose this hasty deal of handing over country’s six airports to favoured private operators by the Govt which is nothing but a loot of national assets and infrastructure by private corporate.

AIDTOA salutes Indian Air Force for successfully carrying out intelligence- led non- military pre- emptive air strike on terrorist camp.

Treatment of period of Leave towards minimum residency period for in situ promotion under Modified Flexible Complimenting Scheme (MFCS)

OPD Consultation from Private Hospitals empanelled under CGHS

Issue of Pensioners' Identity Card to Pensioners - Revised Format

3% DA increase w.e.f 1.1.2019 approved.

The Union Cabinet  has given its approval to the release of an additional instalment of Dearness Allowance (DA) to Central Government employees, and Dearness Relief (DR) to pensioners w.e.f. 1.1.2019 representing an increase of 3% over the existing rate of 9% of the Basic Pay/Pension, to compensate for price rise. 

FREQUENTY ASKED QUESTIONS WITH ANSWERS ABOUT CGHS

(FAQs on CGHS are intended to provide general information and guidance needed for the CGHS beneficiaries to avail CGHS facilities The contents must be read in conjunction with OMs / Office orders as issued from time to time. The contents are not intended to be applicable to specific /exceptional cases and no such claims may be made under it. Whenever any difference in interpretation of meaning and/or content of the facts stated here vis-à-vis the original OM/office order arises, the latter will be treated as final and binding).

1. Who are entitled for CGHS facilities?

1. All Central Govt. employees and their dependent family members residing in CGHS covered areas.

2. Central Govt Pensioners and their eligible family members getting pension from Central Civil Estimates

3. Sitting and Ex-Members of Parliament

4. Ex-Governors & Lieutenant Governors,

5. Freedom Fighters

6. Ex-Vice Presidents

7. Sitting and Ex-Judges of Supreme Court & High Courts

8.Employees and pensioners of certain autonomous organizations in Delhi

9.Journalists (in Delhi) accredited with PIB (for OPD & at RML Hospital)

10. Delhi Police Personnel in Delhi only

11. Railway Board employees

12. Post and Telegraph Deptt. employees

2. What are the facilities available under CGHS

1. OPD Treatment including issue of medicines.

2. Specialist Consultation at Polyclinic/Govt. Hospitals.

3. Indoor Treatment at Government and Empanelled Hospitals.

4. Investigations at Government and Empanelled Diagnostic centers.

5. Cashless facility available for treatment in empanelled hospitals and diagnostic centers for Pensioners and other identified beneficiaries.

6. Reimbursement of expenses for treatment availed in Govt. / Private Hospitals under emergency.

7. Reimbursement of expenses incurred for purchase of hearing aids, artificial limbs, appliances etc. as specified.

8. Family Welfare, Maternity and Child Health Services.

9. Medical consultation and dispensing of medicines in Ayurveda, Homeopathy, Unani and Siddha system of medicines (AYUSH)

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Implement option No.1 as per the pension fitment formula as recommended by the 7th CPC.

The 7^th CPC in appreciation of the demand placed by the Central Govt. Employees, Officers & 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^th CPC 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, we 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.

(Excerpts from the memorandum submitted to Hon'ble Prime Minister by NCCPA)

Extend support to programme of actions of Central Govt. employees, officers & Pensioners.

As far as 32 lakhs Central Government employees, Officers and 33 lakhs Central Govt. Civilian Pensioners are concerned the present period is the worst in the post-independence period. None of our demands are favourably considered by the Government, rather we have been betrayed and our hopes ended in despair. The same is the case with three lakhs Gramin Dak Sevaks of the Postal department and thousands of casual, contingent and contract workers.

Even though the Group of Cabinet Ministers headed by Shri Rajnath Singh, Home Minister and Shri Arun Jaitley, Finance Minister had given categorical assurance on 30.06.2016 that Minimum Pay and Fitment formula will be increased, in 2018 December, Govt. made it clear in the Parliament that “no such proposal is under consideration of the Government, at present”. Much publicity was given for the Constitution of “NPS Committee”, but the demand to “Scrap NPS &; Restore OPS” is rejected and even the demand for ensuring guaranteed Minimum Pension (i.e., 50% of the last pay drawn or Rs.9000/- whichever is higher) was also turned down. Again, Govt. replied in Parliament that the demand to scrap NPS & Restore OPS cannot be considered favourably due to various reasons. NPS employees are retiring every month with a meager amount of Rs.1000/- to 3000/- as annuity pension. Retirement of each NPS employee is just like a death due to uncertainty about the future life of NPS Pensioner and the family dependent on him/her.

HRA arrears from 01.01.2016 to 30.06.2017 was denied and each employee lost an average Rs. One Lakh. MACP Bench mark, date of effect from 01.01.2006, promotional hierarchy, everything fell on deaf ear. None of the anomalies of 7^th CPC are settled. Option-I parity recommended by 7^th CPC to Pensioners is mercilessly rejected. Revison of wages and pension of many Autonomous bodies are still pending. Compassionate appointment has become a cruel joke, as majority of the cases are rejected. Rights are under attack. All negotiating forums including National Council JCM are either defunct or ineffective.

More than six lakhs posts are lying vacant due to undeclared ban on recruitment. Three lakhs low-paid Gramin Dak Sevaks are cheated by denying arrears of pay for 30 months to be calculated proportionately on the basis of pay scales recommended by the Kamalesh Chandra Committee. Many positive recommendations are either rejected or diluted. Thousands of Casual, part-time, contingent, daily rated mazdoors and contract workers are denied equal wage for equal work. Regularisation of GDS and Casual/Contract workers has become a mirage. None of the demands of C.G employees & Officers are settled including sectional demands of various cadres. None of the demands raised by JCM National Council Staff Side and National Joint Council of Action (NJCA) are also settled.

More and more attacks on existence of Central Govt. departments and employees are made. Privatisation of various functions of Railway department, outsourcing of more than 200 items in Defence sector, fast move to corporatize Postal, Closure of 12 out of 17 Govt. of India Printing Presses etc. are threatening the very existence of thousands of employees.

In short, under the present Government our wages and allowances are under attack, our job security and existence is under attack, our social security and pension is under attack, and our rights and facilities are under attack. 

Let’s oppose these destructive policies and extend support to programme of actions of Central Govt. employees, officers & pensioners

Revision in limit for intimation in respect of transactions in sale and purchase of shares, securities, debentures etc.

NJCA Circular dtd.09-02-2019

Long pending prominent issues of the Central Government Employees

Resp. Shri Raj Nath Singh Ji,

You may kindly recall that, aggrieved by retrograde recommendations of the VII CPC in general and particularly related to Minimum Wage and Fitment Formula as also on the issue of Restoration of Defined Old Pension Scheme for the Central Government Employees, the Central Government Employees, including Railwaymen, had decided to go on “Indefinite Strike” w.e.f. 11th July, 2016 since 06:00 hrs., in the morning. With a view to resolve these important issues amicably, a meeting was convened by your goodself on 30th June, 2016, wherein Hon’ble Finance Minister, Hon’ble Minister for Railways and Hon’ble Minister of State for Railways, were also present.

After detailed deliberations, the representatives of the Central Government Employees(NC/JCM) were assured that, the Union Government would favourably consider their demand of improvement in Minimum Wage and Fitment Formula, recommended by the VII CPC. It was also assured to look into the demand of Scrapping Contributory NPS in respect of the Central Government Employees and restoration of Defined Old Pension Scheme.

The representatives of the Central Government Employees were made to understand in the said meeting that, the Government would take decision in regard to above demands within a timeframe of four months by constituting committees for the purpose. On the assurance of the Group of Ministers, the proposed “Indefinite Strike” was deferred by the NC/JCM.

You may kindly appreciate that, substantially long time has already elapsed and the Federations of the Railways and other Central Government Employees, who had participated in the said meeting, have still been awaiting the positive outcome of the discussions held and assurances given by the Group of Ministers therein.

There is, therefore, serious discontentment brewing among the Central Government Employees, including the Railwaymen, and it is quite difficult to further contain the same any longer. There is, therefore, tremendous pressure to revoke the decision of the “Indefinite Strike” of the Central Government Employees due to non-settlement of the said issues.

It would, therefore, be largely fair and conducive for harmonious relations of the Central Government Employees with the Central Government, that, at least the following two major issues be settled without any further delay:-

(i) Restoration of Defined Old Pension Scheme for all Central Government Employees, irrespective of their date of appointment, which was available for the Central Government Employees appointed before 01.01.2004.

(ii) Improvement in Minimum Wage and Fitment Formula.

I earnestly hope that, your goodself will take these issues with all seriousness for resolving the same before it is too late, in the larger interest of conducive atmosphere in the country.

With Kind Regards,

Sincerely yours,

(Shiva Gopal Mishra)
Secretary(Staff Side)

Shri Raj Nath Singh,
Hon’ble Home Minister
(Government of India),
New Delhi

Grant of Invalid Pension under Rule-38 of the Central Civil Services (Pension) Rules, 1972 - Clarification regarding

VACANT POSTS OF OBC,SC & ST COMMUNITIES IN THE MINISTRY SUBORDINATE OFFICES, CENTRAL UNIVERSITIES AND OTHER EDUCATIONAL / TECHNICAL INSTITUTES . Lok Sabha : Q & A (11-02-2019)

CLICK HERE FOR DETAILS & COPY

NCCPA Writes to Pension Secretary on grant of MACP from 01.01.2016 as per Supreme Court Order.

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                                                               

To

Secretary,

Pension,

Department of Pension and Pensioner Welfare.

Ministry of Personnel andTraining.

Government of India,

Lok Nayak Bhawan,

New Delhi 110 001.

Dear  Sir,

     Sub:Modified assured Career progression Scheme- date of implementation          Decision of the Supreme Court of India- issuance of orders regarding.

                We  solicit your kind attention to the order issued by the DOPT introducing  MACP scheme, which came into effect from.01.09.2008 onwards.  Aggrieved by the  provision concerning the date of effect,  the Staff Side, National Council JCM had both on behalf of the working employees and Pensioners introduced items in the agenda of the National Anomaly Committee for making the scheme effective from 01.01.2006.  The issue was considered as an anomaly for the reason that while  the pay structure was implemented with effect from 01.01.2006, the date of effect for MACP was  unfortunately determined to be 01.09.2008.  No decision was taken by the Government on that item.  Rather the official side dilly dallied the issue indefinitely. Even if they would have disagreed, the item would have as per the scheme of things been got referred to the Arbitrator.

                The matter was taken up by a few Defence Personnel before the Armed Forces Tribunal, whose orders were clearly against the stand taken by the Government. Instead of accepting the decision of the Honourable Tribunal, the petitioners were dragged first to the High Court, and later to the Supreme Court  The Honourable Supreme Court vide their order in W.P.No.3744/2016 dated  08.12.2017 directed the Government to accept the verdict of the Armed Forces Tribunal as that was rightly pronounced.  Having left with no alternative,  the Ministry of Defence issued the orders vide their letter in 14(1)/99-d(ag) dated 25.7.2018 making the decision of the Armed Forces Tribunal applicable only in respect of Defence armed personnel, leaving out the Civilian employees and pensioners  from the ambit of the order.

                We have been given to understand that the Secretary, Staff  Side National Council  had taken up the issue of giving effect to the MACP from 1.1.2006  with the Government  through correspondence first on 16^th January, 2018 i.e. immediately after the verdict of the Supreme Court and once again on 7^th August, 2018, after the issuance of the orders by the Ministry of Defence  extending the benefit of the verdict to the Defence personnel.   To the best of our information and knowledge, the Department of Personnel did not even acknowledge these communications from the Staff Side, leave alone responding to it.

                Recently, the Mumbai High Court in their order in WP no. 1763 of 2013 dated 15.10.2018 In the case of..Shri M..P Joseph Vs. Union of India and three others has directed the Government to  immediately refix the pay and pension of the petitioner on the basis of the Supreme Court Verdict cited ,  failing  which to pay him interest at the rate of 6%.

                There are number of pensioners who will stand to financial benefit, if the Supreme Court verdict is implemented.  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.”

               

                We appeal to you on behalf of the pensioners that the matter concerning the date of effect of the MACP may be taken up with the Department of Expenditure and Department of Personnel and ensure that orders are issued making the verdict of the Supreme Court in the case of Armed personnel are made applicable to all similarly placed civilian employees/Pensioners without further loss of time.   In other words, the MACP scheme may be made operative from 01.01.2006 to all Central Government employees/pensioners.  We expect to receive a  reply from your end.

                Thanking you,

Yours faithfully, 

Sd/-

K.K.N.Kutty

Secretary General

Post Card Campaign to Hon’ble Prime Minister by C.G Pensioners

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. 

The grievances of the Pensioners mainly arise from the non-settlement of the following issues.

1.Implement Option No. 1 as  a pension fitment formula as recommended by the 7^th CPC .

2.Grant MACP benefit w.e.f 01.01.2006 as per the Supreme Court  judgment.

3. Provide notional fixation of pension under Option No. 3 on the basis of the pay     scale/pay level of the cadre or grade from which the pensioner retired.

4. Provide fixation of pension in the case of all pre 2006 pensioners on the basis of the grade pay/pay level or pay scale of the post or cadre from which one has retired as per the judgments of Courts.

5.    Extend the benefit of CS (MA) Rules to all pensioners who are not covered by CGHS.

6.    Increase the FMA to Rs. 2000 as has been granted to PF Pensioners and introduce the health insurance scheme as suggested by the 7thCPC.

7.    Raise the minimum pension to 60% of the Minimum wage. i.e. Rs. 10,800/- p.m.

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

9.    Provide increased rates of pension on attainment of 70 years onwards.

10. Scrap the New Contributory pension scheme and restore the defined benefit pension   to all CGEs irrespective of their date of entry into the Government service. 

I seek the intervention of the Honourable Prime Minister to ensure settlement thereof. 

Withdraw the contributory pension scheme and restore the defined benefit pension to all Central Govt. Employees & Officers.

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 and Officers 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 after 01.01.2004 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 01.01.2004 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 and Officers.

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.  

AIDTOA, CCGGOO, the Pensioners Associations and others 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 macroeconomic  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 advance 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.

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.

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

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.