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Central Government Pensioners: Appeal for restoration of Option 1 recommended by 7th Central Pay Commission for Revision of Pension of Pre-2016 Pensioners

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Central Government Pensioners: Appeal for restoration of Option 1 recommended by 7th Central Pay Commission for Revision of Pension of Pre-2016 Pensioners

7th CPC  :  Appeal for restoration of option 1  for Revision of Pension of Pre-2016 Pensioners

No. RSCWS/ HO / 7th CPC/2017-16

Dated: 23rd August, 2017

Shri Narindera Modi, Hon. Prime Minister India, 152, South Block, New Delhi-110001
Shri Arun Jaitley, Hon. Minister of Finance, Govt. of India, North Block, New Delhi-110001
Shri Jitendra Singh, Hon. MOS Personnel, PG & Pension, GOI, North Block, New Delhi-110001

Dear Sir,

Subject: Appeal for restoration of Option 1 recommended by 7th Central Pay Commission for Revision of Pension of Pre-2016 Pensioners – For Parity of Pension between Pre & Post-2016 Central Government Pensioners

Reference: i) DOP&PW OM No.38/37/2016-P&PW(A) dated 12th May, 2017 & 6th July, 2017 ii) Para 10.1.67 of 7th CPC Report for grant of Parity of Pension of Pre & Post Seventh CPC Pensioners

1. We draw your kind attention to the sad plight of large majority of Central Government Pensioners – especially the Pre-2006 Pensioners and more so the Pre-1996 Pensioners, who will suffer a major financial loss in fixation of their Revised Pension on account of an unjust decision on implementation of 7th CPC Report vide DOP&PW OM dated 12-5-2017 cited above.

2. The Seventh Central Pay Commission (CPC) in Para 10.1.67 & 10.1.68 of its Report had for the first time conceded the long pending demand of the Central Government Pensioners for Parity of Pension between the Pre and Post CPC Pensioners and had recommended the following pension formulation for civil employees including CAPF personnel who had retired before 01.01.2016:

i) All the Civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.

ii) The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.

iii) Pensioners be given option of choosing whichever formulation is beneficial to them.

3. Option 1, cited above, was very much feasible to implement as recommended by 7th CPC for revision of Pension of old Pension since according to the survey conducted by the DOP&PW, it was accepted that the Service Records of over 80% of old Pensioners were available, while those of the others could be re-built as per procedure prescribed in the Rules and as was done after 5th & 6th CPC and as per orders of the Courts in numerous cases.

4. Regrettably, the Committee formed by the Government, to consider the feasibility of implementation of Option 1 recommended by the Seventh CPC, while finding it non-feasible, did not care for the interest of the more than 80% of the Pensioners merely to save the Administration from the botheration of Re-building the Service Records of the rest less than 20% Pensioners. This was a great injustice since the 80% of the Pensioners who’s Records are available, shall suffer a loss of Pension just because of missing records of the rest 20%.

5. Instead, the Government accepted the following formula vide OM Dated 12-5-2017, as recommended by the Committee on Feasibility of Option 1:

“the revised pension/family pension w.e.f. 01.01.2016 in respect of all Central civil pensioners/family pensioners, including CAPF’s, who retired/died prior to 01.01.2016, may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died. This will be done by notional pay fixation under each intervening Pay Commission based on the Formula for revision of pay. While fixing pay on notional basis the pay fixation formulae approved by the Government and other relevant instructions on the subject in force at the relevant time shall be strictly followed. 50% of the notional pay as on 01.01.2016 shall be the revised pension and 30% of this notional pay shall be the revised family pension w.e.f. 1.1.2016 as per the first Permutation.”

6. The above said formula will very seriously and adversely affect the Revised pension of a large majority of the Pre-2016 Pensioners on account of following reasons:

a) “Parity of Pension” between Pre and Post-2016 Pensioners – recommended by the Seventh CPC – would be denied to the Pre-2016 Pensioners.

b) In the process of notional pay fixation in successive Pay Commissions, there is a lot of dilution particularly for pensioners who retired in 4th CPC period resulting in big financial loss.

c) Irrespective of the date of retirement, Option 1 would have given the same pension to pre-2016 pensioners depending upon the number of increments earned in the last Level. By denying option 1 there will be sub-groups even within the homogenous group of pre-2016 pensioners.

d) None of the above losses would occur to the Pre-2016 Pensioners if the Option 1 recommended by the 7th CPC is implemented and if the new formula is allowed as a 3rd Option in addition to Option 1 & 2 Recommended by the 7th CPC in the interest of natural justice to all Pre-2016 Pensioners.

2. It is, therefore, requested that the Pension of Pre-2016 Pensioners be fixed at the highest of the 3 Options – including first two Options as recommended by 7th CPC and 3rd Option as accepted by the Government and Notified vide DOP&PW OM Dated 12-5-2017.

Hoping for a favourable consideration & thanking you in anticipation. With kind regards,

Yours faithfully,
S/d,
(Harchandan Singh)

Source : RSCWS

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RSCWS explains the advantages of choosing Importance of Option 1 of 7th Pay Commission for Revised Pension

Railway Senior Citizens Welfare Society elaborates advantages for Pre 2016 pensioners in choosing Importance of Option 1 of 7th Pay Commission for Revised Pension

IMPORTANCE OF OPTION 1 OF 7TH CPC FOR REVISED PENSION
- BIG LOSS IN PENSION IF IT IS DENIED

By N. P. MOHAN, President, RSCWS

Most of the Pre 2016 pensioners will suffer heavy loss in Revised Pension, if the Option 1 recommended by the Seventh CPC is denied to them.

It was after 20 years that 7th CPC recommended parity between past pensioners and those retiring after 1-1-2016 under Option 1    which means  consideration of increments earned while in service as detailed in Para 10.1.67 of  the Report. This objective of PARITY (Recommended by Commission after examining all factors in depth in Chapter 10) is fulfilled  only with  the  implementation  of  option  1  without  any  dilution/deviation.  Non implementation of option 1 on the plea of non availability of record in a few cases will have the following adverse effects:

i)    Pre 2006 pensioners, in particular, who are victim of modified parity will suffer a much bigger loss compared to the post 2006 retirees because in their case the basic pension which is multiplied by 2.57 in the interim phase takes into accounts their increments before retirement. This aspect has been examined in the case of Pre & Post S 19 pensioner as an example. From the Table 1 given below, it will be clear that  the  reduction  in  pension  for  post  2006  pensioner  is  of  a  uniform  small magnitude as compared to the loss increasing exponentially with each increment lost in case of pre 2006 pensioner. Similar is the case in other scales also

ii)  7th   CPC  has  considered  pre  2016  pensioners  as  one  homogeneous  group  (Para10.1.53 refers). It means that all pre 2016 pensioners have to be treated alike. But with denial of option 1, pre 2016 pensioners will get divided into two groups i.e. Pre 2006 and Post 2006 Pensioners – which violates the settled law of equality between the equals.

iii) In  many  cases,  Option  3  gives  much  lower  pension compared  to  option  1 recommended  by  7th   CPC.  This will  be  clear  from  Table  2  below.  Where  a comparison has been made between two options.

Enlcs: 2 Tables

TABLE- 1 SHOWING LARGE REDUCTION IN REVISED PENSION OF PRE-2006 PENSIONERS COMPARED WITH POST-2006 PENSIONERS IF OPTION 1 IS DENIED ILLUSTRATIVE EXAMPLE OF LEVEL 11 (Scale S 19 – PB3)

POST 2006  PENSIONER

PRE 2006
PENSIONER

Increments

Pay with increments
@ 3% pa

Corres- ponding Existing pension(col. 2/2)

Revsd pensionwith MF of
2.57

Pension for
L 11 as per matrix table

Reductionin pension with denial of Option 1 (col 5-4)

Revsd pensionwith MF of 2.57

Reductio
n in pension with denial of Option 1 (col 5-7)

1

2

3

4

5

6

7

8

0

25200

12600

32382 33850

1468

32382 1468

1

25956

12978

33353 34850

1497

32382 2468

2

26735

13367

34354 35900

1546

32382 3518

3

27537

13768

35385 37000

1615

32382 4618

4

28363

14181

36446 38100

1654

32382 5718

5

29214

14607

37540 39250

1710

32382 6868

6

30090

15045

38666 40450

1784

32382 8068

7

30993

15496

39826 41650

1824

32382 9268

8

31923

15961

41021 42900

1879

32382 10518

9

32880

16440

42251 44200

1949

32382 11818

10

33867

16933

43519 45550

2031

32382 13168

11

34883

17441

44824 46900

2076

32382 14518
1. From the above table it will be clear, that pre-2006 pensioners, as victims of Modified Parity will stand to lose more in pension compared to post -2006 pensioners if Option 1 of counting increments is not accepted by Govt.
2. The loss in pension for post 2006 pensioners is in the range of Rs.1700 (from 1468 to a max of 2076 as per col. 6) only and is nearly constant , whereas for pre-2006 pensioners  the loss in pension increases  by almost Rs.1000/- for every one increment (Refer cols. 6 & 8).
3. For example, the loss suffered in pension of pre 2006 pensioner in losing 5 increments works out to 6868 as against 1710 for post 2006 pensioner.

N. P. MOHAN 29-9-2016

TABLE 2 SHOWING REVISED PENSION OF SCALE S 29-PB 4 (LEVEL 14) PENSIONERS OF 4th CPC REGIME
WITH & 3rd  OPTION BASED ON NOTIONAL PAY OF SUCCESSIVE PAY COMMISSIONS
(Para 5 of minutes of meeting  held on 6th October, 2016) vs  OPTION 1 BASED ON INCREMENTS EARNED

Pay on retirement

Notional pay-5th CPC

Notional pay-6th CPC (Fitment table-6th CPC)

Notional pay-7th CPC with MF OF
2.57-3rd option
(col.3xMF)

Operative
Pay of col. 4 in the next cell of pay matrix (MOF OM dt   25-7-
2016)

Pay based on option
1 with increments
( as per pay matrix)

Pension as per option 3 (col.5/2)

Pension as per option 1 (col.6/2)

Loss of
Revised pension if Option 1 is not given (Difference between Option
1 &  3)
(col.8-7)

1

2

3

4

5

6

7

8

9

5900 18400 54700 140579 144200 144200 72100

72100

0

6100 18400 54700 140579 144200 148500 72100

74250

2150

6300 18400 54700 140579 144200 153000 72100

76500

4400

6500 18900 56050 144049 144200 157600 72100

78800

6700

6700 18900 56050 144049 144200 162300 72100

81150

9050

6900 18900 56050 144049 144200 167200 72100

83600

11500
7100 19400 56050 144049 144200 172200 72100

86100

14000
7300 19400 56050 144049 144200 177400 72100

88700

16600
NOTE: 1.3rd Option is not suitable at all. The loss in pension is clear from col. 9.
2. Notional pay in 6th CPC in col. 3 has been taken from the Fitment table issued by MOF (DOE) on 30-8-2008.
-  Compiled by: N. P. MOHAN 24-10-2016

Source : RSCWS

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7th Pay Commission Pension revision – Interpretation of Proposed Option 3

7th Pay Commission Pension revision – Interpretation of Proposed Option 3

7th Pay Commission Pension revision – Interpretation of Proposed Option 3 by RSCWS for revised Pension as per 7th CPC recommendations as an alternate to Option 1 recommended by 7th Pay Commission

INTERPRETATION OF PROPOSED OPTION 3 FOR REVISED PENSION HOW FAR IS IT AN ALTERNATIVE TO OPTION 1 RECOMMENDED BY 7Tth CPC? By N. P. MOHAN, President, RSCWS

The most significant recommendation of 7th CPC is to bring parity between past pensioners with those retiring after 1-1-2016 (Para 10.1.67). A long standing demand of the pensioners, who have been the victim of Modified Parity in the last two decades from 1-1-1996 (5th CPC), has been addressed by the Commission The parity is sought to be achieved by the recommendation of Option 1 for revised pension which provides for consideration of increments earned in the last Level by a pensioner while in service. Recognizing the delay in checking record for ascertaining the increments for implementation of this option, revised pension in the interim phase was recommended to be fixed by multiplying the pension fixed after 6th CPC by MF of 2.57 (Option 2). This option has already been implemented.

While accepting the above recommendations, Govt. had constituted a 5 member Committee under the chairmanship of Secretary (Pension) to examine the feasibility of implementation of Option 1. The Committee in its meeting with JCM on 6th October has suggested an alternative option (Option 3) to overcome the difficulty of tracing record in some cases. It has been indicated in Para 5 of the minutes of the meeting “that the Committee has found that the alternative method of arriving at notional pay in Seventh CPC by applying formula for pay revision for serving employees in each Pay Commission and giving 50% of this as pension to be beneficial to all pensioners in comparison to the fitment method.”

Dispensation of revised pension under alternative Option 3 will depend on the decision of the Govt on the recommendations of this Committee. The impact of Option 3 as understood from the proposal of the Committee mentioned in above is reflected in the 3 tables indicating the revised pension.

EXAMPLE OF REVISED PENSION UNDER OPTIONS 1 & 2 of 7th CPC & OPTION 3 BASED ON NOTIONAL PAY IN SUCCESSIVE PAY COMMISSIONS
(As proposed in Para 5 of the minutes of the meeting of Feasibility Committee held with JCM on 6-10-2016)

FOR PENSIONERS RETIRING IN 5TH CPC REGIME (1.1.1996 TO 31-12-2005) FROM SCALE S 13 (7450-11500)-LEVEL 7 Average Pay on retirement Pension after 5th CPC (Higher of Mod. Parity or
with factor of 2.26) – whichever is higher Notional pay-6th CPC (As per Fitment table-6th CPC) Notional pay-7th CPC with MF OF 2.57-3rd option (col.2xMF) Pay in the next cell of 7th CPC Pay Matrix- 3rd Option

Pay based on option 1 with no. 0f increments (7th CPC pay matrix- (7th CPC pay matrix- Level 7)Revised Pension as per Option 3 (col.4/2) Revised Pension as per Option 1 (col.5/2)
Revised Interim Pension as per Option 2 of 7th CPC (Col.2×2.57)

 

1

2

3
18460

4

5

6
44900

7

8

9

7450 9230 47442 47600 23800 22450 23721
7675 9230 18880 48522 49000 46200 24500 23100 23721
7900 9230 19300 49601 50500 47600 25250 23800 23721
8125 9230 19720 50680 52000 49000 26000 24500 23721
8350 9436 20144 51770 52000 50500 26000 25250 24249
8575 9690 20550 52814 53600 52000 26800 26000 24903
8800 9944 20970 53893 55200 53600 27600 26800 25556
9025 10198 21390 54972 55200 55200 27600 27600 26210
9250 10453 21810 56052 56900 56900 28450 28450 26863
9475 10707 22230 57131 58600 58600 29300 29300 27516
9700 10961 22650 58211 58600 60400 29300 30200 28170
9925 11215 23070 59290 60400 62200 30200 31100 28823
10150 11470 23480 60344 60400 64100 30200 32050 29477
10375 11724 23900 61423 62200 66000 31100 33000 30130
10600 11978 24320 62502 64100 68000 32050 34000 30783
10825 12232 24740 63582 64100 70000 32050 35000 31437
11050 12487 25160 64661 66000 72100 33000 36050 32090
11275 12741 25580 65741 66000 74300 33000 37150 32744
11500 12995 25990 66794 68000 76500 34000 38250 33397
NOTES:- 1. This table is illustrative under option 3 which is as per understanding of the proposal indicated by the Feasibility Committee based on Notional pay fixation in successive Pay Commissions.

2. Actual fixation of revised pension will depend on Govt’s decision in the matter.

3. The figures of revised pension under Option 1 (Col. 8) are for each stage of increment.
Compiled by: N. P. Mohan, President, RSCWS

Source : RSCWS

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7th Pay Commission News – Parity of Pension of Pre-2016 Pensioners with Post-2016 Pensioners

RSCWS requests Govt to implement Seventh CPC regarding option I for fixation of Pension of Pre-2016 Pensioners

7th Pay Commission News – RSCWS representation to Govt pointing out the Parity of Pension of Pre-2016 Pensioners with Post-2016 Pensioners

Railway Senior Citizens Welfare Society has submitted a memorandum to the Cabinet Secretary with regard to parity in pension of pre-2016 pensioners with post-2016 pensioners

RAILWAY SENIOR CITIZENS WELFARE SOCIETY
(Estd. 1991, Regd. No. 1881 – Under Registration of Societies Act),
Head Office: 32, Phase- 6, Mohali, Chandigarh -160055
Website http://rscws.com Email: rscws1991@gmail.com
Identified & Recognised by DOP&PW GOI under Pensioners Portal

No.RSCWS/ CHD/Memo/2016-9

Dated: 06-06-2016

Cabinet Secretary, Government of India &
CHAIRMAN, EMPOWERED COMMITTEE OF SECRETARIES ON 7TH CPC,
Cabinet Secretariat, Rashtrapati Bhawan, New Delhi – 110 004

CC to: cabinet@nic.in

Dear Sir,

Subject:- Parity of Pension of Pre-2016 Pensioners with Post-2016 Pensioners – as per Recommendations of Seventh Pay Commission. Reference: Para 10.1.67 of Seventh Pay Commission Report

1. We are deeply anguished and shocked to learn from the Secretary Staff Side, JCM, that you had indicated in the meeting with the representatives of JCM Staff Side on 26-5-2016, that the Departments of Pension and Defence were of the view that the first option recommended by the 7th CPC to bring about the parity with the past pensioners is unfeasible and impracticable – due to the non-availability of the requisite records.

2. Denial of Parity to Past Pensioners is going to cause a major financial loss to the Past Pensioners and would naturally agitate them seriously. The issue, therefore, needs reconsideration especially in view of the following points:

i) Service Records are protected documents and cannot be destroyed without specific orders of the competent authority.

ii) The views of the DOP&PW & Defence about the non-availability of the requisite records are too vague, unfounded and unjustified;

iii) Even if the Service Records of some of the Pensioners were not available, the same can be reconstructed/recast as per prescribed procedures and as per directions of various courts issued from time to time in such cases.

iv) All the Past Pensioners cannot be made to suffer heavy financial loss due to some missing records – which can in any way be reconstructed as stated above.

v) 5th & 6th Pay Commissions had recommended for grant of Modified Parity to past Pensioners. The orders were implemented on the basis of service records.

vi) Fifth CPC while evolving the norm of modified parity had mentioned in its Report that further improvements could be brought about by future Pay Commissions. It is after 20 years that 7th CPC taking a step in this direction recommended consideration of number of increments earned in that level while in service. The recommendation cannot be set aside on the plea of non-availability of record.

vii) Recommendations of the 7th CPC in Para 10.1.67 (option 1) for Parity of Pension of Past (Pre-2016) Pensioners were based on legal and Constitutional grounds and, as such, the same may please be implemented.

3. It is, therefore, requested that:

a) Recommendation of the Seventh CPC regarding option I for fixation of Pension of Pre-2016 Pensioners may please be implemented – keeping in view the above submissions.

b) Pay Matrix may please be modified so as to give equitable rise at all levels through same Index for fixation of Pay & Pension of Pre-2016 Pensioners.

c) Pension of Pre-2016 Pensioners who were senior and retired in higher Level of Posts may please be revised at par with the junior Post 2016 Pensioners who may get higher pension due to merger of Pay scales or having longer years of service in lower scale.

Yours truly,

(Harchandan Singh)

Secretary General,

RSCWS

Download RCWS Memorandum dated 06.06.2016

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