INDIAN REVENUE SERVICE (CUSTOMS & CENTRAL EXCISE) PROMOTEE
OFFICERS ASSOCIATION
C.R. BUILDING , BHUBANESWAR-751007
SECRETARY
GENERAL
LOKANATH MISHRA
No.P-1/VII-CPC/2014 Dated: 28.10. 2014
To
The Chairman,
VII CPC,
New Delhi.
Sir,
Sub: Memorandum to the 7th Central Pay Commission on issues of IRS(C&CE) Promotee Officers.
On behalf of the IRS(C&CE) Promotee Officers
Association, we submit the memorandum for the consideration of the Commission.
As indicated in detail in the memorandum, we have made certain submissions to elucidate
the views and contentions in respect
of the Service
conditions and pay and perquisites of the IRS promote officers. We request that the 7th Central Pay Commission may consider
our submissions and make appropriate recommendations to the Government.
Particulars of
the Association.
(i). Name: Indian Revenue Service ( Customs
& Central Excise) Promotee Officers Association.
(ii). Headquarters: Bhubaneswar.
(iii). Address
for communication: C.R. Building , Bhubaneswar-751007.
(v). Mobile No. 0 9437314941.
(vi). Membership: The Association
presently represents more than 3000 members, who are Gr-A
promotee officers (Executive Officers) under Central Board of Excise and
Customs , the Department of Revenue of Ministry of Finance.
MEMORANDUM
Though the Central Board of Excise and Customs (CBEC) deals with
task of policy formulation and administration of indirect taxes through levy
and collection of Customs and Central Excise duties, Service Tax and other
miscellaneous indirect taxes and matters relating to Narcotics, however recent
shift in commodities being smuggled from traditional items like gold, silver,
watches etc. to arms, ammunition, explosive, fake Indian currency, Narcotics
etc. CBEC focused attention on prevention of smuggling of these contraband
goods which are posing a serious threat to national security. The major
responsibility in the area of Central Excise is the prevention of leakages in
revenues and providing smooth and efficient flow of collections. By revenue
points of view, the CBEC is the highest revenue earning source for the Union
Govt., which has no parallels. The IRS (promote) officers are being posted in
different field offices of CBEC and also posted in CBEC ( Hdqrs) on central
deputation scheme as Central Secretariate Gr-A officers.
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1.
Direct promotion of
Gr-B Gazetted Officers of CBEC to STS post:
The most of group ‘B’ gazetted officers in the Central as well
as State governments are being promoted directly
to a Senior Time Scale (STS) post with Grade Pay of Rs. 6600/- in PB-3 including CSS, CPWD, Railway Board, CSSS, AFHQ, Rajya Sabha Secretariat,
Forest services, Police services, Foreign Services, Engineering services, State
services etc., whereas the Group ‘B’ gazetted officers of CBEC are being promoted merely to a Junior
Time Scale (JTS) post with Grade Pay of Rs. 5400/- in PB-3. Since these Gr-A officers are being joined in
CSS ,they should also be granted promotion directly to a Senior Time Scale post
with Grade Pay of Rs. 6600/- in PB-3 to maintain parity with similarly placed
employees of CSS. Not
only the promotion directly to STS post, the counterparts of Gazetted Gr-B officers of CBEC are also given benefit of seniority in group
‘A’ at many places in lieu of the service rendered by them in group ‘B’at many
places like various services in Railways, Administrative Services, Police
Services, State Services etc., the group ‘B’ gazetted officers are allowed the
weightage of minimum of 4 years at the time of entry into group ‘A’ also giving
them the due benefit of seniority in lieu of the service rendered by them in
the group ‘B’. For example, the officers of Provincial Services in Southern States
enter into IAS in a grade pay of Rs. 6600/- within 8 years with 4 years of
seniority benefit while the most of the Gr-B Gazetted officers of CBEC are entering into IRS in a lower grade pay of Rs. 5400/
even after serving for 35-40 years. They enter into IRS in a grade pay of Rs.
5400/- only and retire at same level without any weightage for seniority in
group ‘A’. The rationale behind such a provision of
weightage or direct promotion to STS group ‘A’ is based on the fact of the
promotee officers having gained rich job experience at the time of working as
group ‘B’ officer as compared to direct recruit group ‘A’ officers. But very
unfortunately, the Gr-B Gazetted
officers of CBEC are not being given the
said benefit despite of being served for the longest period in group ‘B’ as
compared to any other category of the group ‘B’ employees of the Govt. of
India. They are not allowed the benefit of their rich experience even despite
of the Adjudication Orders also being prepared by them for the Commissioner
level officers. Before the enactment of
Indian Customs & Central Excise Service Group ‘A’ Rules, 1987, the group
‘B’ gazetted executive officers in CBEC were allowed five increments in their
group ‘A’ pay scale on promotion to group ‘A’ since senior time scale was not
available at that point of time. It is
also worth to mention that the common entry counterparts of CSS are not only
being promoted directly to a STS post after Section Officer (analogous to Gr-B
gazetted officers of CBEC) but also reaching the level of Joint Secretary
(GP-Rs. 10000/-). The position in CPWD is even more interesting where an
officer with a grade pay of Rs. 4600/- is directly being promoted to a post
with a grade pay of Rs. 6600/- (STS) and further directly to a post with the
grade pay of Rs. 8700/- from a post with a grade pay of Rs. 6600/-. Thus, they
don’t need to serve on a post with a grade pay of Rs. 4800/-, 5400/- and 7600/-
for promotion to the post with a grade pay of 8700/- after entry into a post
with merely a grade pay of Rs. 4200/-.
Further; the Gr-B non Gazetted officers of CBEC and Assistants of the Central Secretariat
Services (CSS), being analogous posts, are recruited through a common entrance
examination conducted by the Staff Selection Commission and in a common scale
of pay. Once upon a time, the pay scale of the Assistants was lower than the
pay scale of the Gr-B non gazetted officers of CBEC but was upgraded at par
later on. Like it, the pay scale of the Section Officers of CSS was also lower
than the pay scale of the Gr-B gazetted officers of CBEC once upon a time but was upgraded at par later
on. The posts of Gr-B gazetted officers
of CBEC and Section officer of CSS are
analogous, yet the similarity ends here.
Section Officers are promoted directly to the Senior Time Scale post
with a grade pay of Rs. 6600/- and reach upto the level of Joint Secretary in
the grade pay of Rs. 10000/- whereas the Gr-B gazetted officers of CBEC are
promoted, to the Junior Time Scale post
merely with a grade pay of Rs. 5400/-. IAS and IPS are the most elite services
in the country and the group ‘B’ officers are provided weightage even on
promotion to these services in lieu of the service rendered in group ‘B’. But
nothing such happens to the Gr-B gazetted officers of CBEC at the time of entry to IRS, the same also
being one of the elite services of the Govt. of India. Like CSS,
there is a provision of direct recruitment in Group-B non-gazetted and Group-B
gazetted posts in CBEC. Hence like CSS , the Group-B gazetted officers of
Central Excise and Customs are required to be promoted directly to a post
having senior time scale and the Group-B gazetted officers completing 1½ of
qualifying service be promoted to STS
posts as it was done in CSS during 1999. CBEC also recommended to VIth CPC for
direct promotion of Group B gazetted officers to STS posts. In view of the above, all of the Group ‘B’
gazetted officers of Govt. of India including the Gr-B gazetted officers of
CBEC are also required to be promoted directly to a STS post like many
other group ‘B’ officers of the Govt. of India by giving due weightage of the
service rendered in group ‘B’ and to bring uniformity in promotions for all for
the sake of justice.
SUGGESTIONS--- Hence, it is requested
that honourable 7th CPC may kindly be pleased to recommend for
promotion of Gr-B Gazetted officers of CBEC directly to a
senior group ‘A’ post (STS) like many other counterparts of them.
(2) BATCH TO BATCH NON FUNCTIONAL
FINANCIAL UPGRADATION TO THE GR-A PROMOTEE OFFICERS OF CBEC AT PAR WITH THE COUNTERPARTS OF CSS .
All
the organised group ‘A’ direct recruit officers recruited along with IAS, the
best placed group ‘A’ service, in the same pay scale through common entry
examination conducted by UPSC have been granted financial parity with the
counterparts of IAS. They have been granted non-functional financial up-gradation vide DOPT OM No.
AB.14017/64/2008-Estt.(RR) dt. 24.04.09 to compensate the lack of promotions as
compared to IAS. . The group ‘B’ non gazetted officers of CBEC and the
Assistant of CSS are recruited in a common scale of pay through common entry examination conducted by SSC. The
officers recruited as Assistant (Group-B, Non Gazetted) in the Ministries get
the benefit of promotions upto the Joint Secretary level, i.e., i) SO with GP
of Rs. 5400/- in PB3 after 4 years of service, ii) US (Grade-I) with GP of
Rs.6600/-, iii) DS with GP of Rs. 7600/-, iv) Director with GP of Rs. 8700/- in
PB-4 and v) JS with GP of Rs. 10000/-. The
Assistants/Section Officers are working in the headquarters offices on policy
making seats whereas the Gr-B officers of CBEC are working on more important seats of revenue
collection in the field formations. Despite of working on more important seats,
the Gr-B officers of CBEC are not
treated at par with the counterparts of CSS. These CSS counterparts are
retiring 4-5 grades above the officers recruited as the Gr-B officers of CBEC.
On account of this, the CSS counterparts are getting 60% more pay than the
officers recruited as Gr-B officers of CBEC. Even the pension of CSS
counterparts is more than the salary of the officers recruited as Gr-B officers
of CBEC. The Gr-B officers of CBEC are recruited in PB2 and also retire on a
PB2 post of Gr-B gazetted, barring
around 1% while all of their common entry counterparts of CSS easily reach PB4
levels after being recruited with them in PB2 through the same examination with
same eligible conditions. It is also worth to submit that the revenue officers
are highly placed throughout the world in the matter of salary, perks and
career prospects as compared to other employees but, very unfortunately, our
officers are facing the worst prospects in each & every matter. The promote
group ‘A’ officers of CBEC are selected
under Central Staffing Scheme on deputation and worked under many
CSS officers, who are promoted from the post of Assistant/Section
Officer and joined in service much later than the joining of such Gr-A officers
of CBEC in Gr-B cadre. The grant of the non-functional financial upgradation on
batch to batch basis with the common entry counterparts of CSS on the lines of
granting the non-functional financial upgradation to all Group ‘A’ officers at
par with IAS may really be a solace for these hard working Gr-A officers of
CBEC.
The parity is the
basic concept of our Constitution and the parity in promotions is required to
be maintained amongst the similarly placed employees but the Government of
India have not initiated any action to maintain parity in promotions as well as
pay packages amongst the Group ‘B’ Gazetted and Non-Gazetted officers. The
group ‘A’ direct recruit officers have
already been granted financial parity by the Government of India by of granting of non-functional financial upgradation at par
with the counterparts of IAS. The
grant of the batch to batch non-functional financial upgradation after entry
into group ‘B’ or equivalent grade is also the immediate need of the time for
all group ‘B’ officers to bring them at par at least financially with the group ‘B’ counterparts of CSS.
SUGGESTIONS:
In
view of above, it is requested that the Honourable 7th CPC may be
pleased to recommend that the Gr-A promotee officers of CBEC initially recruited as Gr-B be
granted at least non-functional financial upgradation at par with their
counterparts of CSS on batch to batch basis.
(3)
Enhancement of retirement age of Central Government Employees.
Kind
attention of Hon’able 7th CPC is invited to the
recommendation of standing committee of Parliament on social justice and
empowerment to raise the retirement age of the Central Government Employees to
65 years from the existing 60 years.. It
appears that the recommendation is based on the fact that growing lifespan was
adding to the need for "productive ageing”. The recommendation for
increase in retirement age comes with a reminder that senior citizens would
form 12.4% of the total population in 2026 from 7.5% in 2001. "The
committee feels that with the increase in life expectancy and relatively better
state of health of people, the government needs to look at continuity of
employment up to 65 years," said the report. It also recommended that
government look at greater post-retirement opportunities for senior citizens
and creates greater financial support. While suggesting immediate redressal for
the ageing population, the panel sought to train the government's focus on the
60-plus group by pointing out that its growing numbers would be a serious challenge
in health and social care. Specifically, it underlined that as per population
projections, the 80-plus bloc, the most-vulnerable group, would see a sharper
rise in numbers. The urgency of parliamentarians towards senior citizens comes
amid growing global realization that increasing lifespan is creating a new
demographic bloc requiring state intervention. Seeking government attention,
the committee noted that senior citizens comprised 7.5% of the total population
in 2001 but their share is likely to increase to 12.4% in 2026. Importantly, UN
projections say while India's population will rise by 55% by 2050, that of
60-plus would increase by 326% and that of 80-plus would go up by 700%.
The Govt. of Punjab vide notification dated
29.11.2011 had already enhanced the age of retirement of employees of Govt of
Punjab from 60 years to 62 years. The Central Administrative Tribunal,
Chandigarh vide OA no . 680/HR/2013 in the case of Dr. Harsh Mohan vrs. Union
of India and others had enhanced the retirement age of employees of Union
Territory of Chandigarh (who are central government employees) to 62 years at
par with the employees of Govt. of Punjab. The Central Government had
increased the retirement age of professors in all the central universities from
62 to 65 years. The retirement age of Teachers and Scientists of Central
Government organisations is 62 years. The Centre had in
1998 raised the retirement age of central government employees (including
teachers and scientists) to 60 from 58 years. Govt should not provide two different treatments to
its employees. Teachers and Scientists are also govt. employees hence like the
year 1998, it was required to increase the retirement age of all central govt.
employees to 62 years at par with teachers and scientists. The teachers and
scientists are central government employees and all the provisions enunciated
by central govt for its employees are applicable equally to all including the
age of retirement. Central Govt should provide equal treatment to all its Employees
as per provisions of Constitution of India. As regards the right to equality
guaranteed under Article 14 the position is well settled that the said right
ensures equality amongst equals and its aim is to protect persons similarly
placed against discriminatory treatment. It means that all persons similarly
circumstanced shall be treated alike both in privileges conferred and
liabilities imposed. Conversely discrimination may result if persons
dissimilarly situate are treated equally. Even amongst persons similarly
situate differential treatment would be permissible between one class and the
other. In that event it is necessary that the differential treatment should be founded
on an intelligible differentia which distinguishes persons or things that are
grouped together from others left out of the group and that differentia must
have a rational relation to the object sought to be achieved by the statute in
question.” In the CIVIL APPEAL NO. 5527 OF 2012 (arising out of SLP (c) No.
31279 of 2010) STATE OF UTTAR PRADESH …APPELLANT Versus DAYANAND CHAKRAWARTY
& ORS. …RESPONDENTS the Apex court has decided for applicability of
retirement age uniformly.
SUGGESTIONS: Therefore the Honourable 7th
CPC is requested to kindly recommend to the
Government for enhancement of retirement age of all Central Govt. Employees to
65 years as per the recommendation of the Parliament committee.
(4) DATE OF EFFECT:
The recommendations of the CPC are, at present, being implemented at the
frequency of 10 years. But wage revision for employees/workers of various Central Public Sector
Undertakings is being made at the frequency of 5 years. As such, the
recommendations of the VIIth CPC should kindly be made applicable to the
employees as well as pensioners/family
pensioners’ w.e.f. 01.01.14. Moreover,
the percentage of DA as on 01.01.14 has already become 100%. Therefore, the
recommendations of 7th CPC are required be made effective at least
from 01.01.14.
SUGGESTIONS: In view of the above, it is
requested that the Hon’ble CPC may kindly be pleased to recommend for implementation
of their recommendations w.e.f. 01.01.2014.
(5) MERGER OF DA:
Hon’ble 7th Pay Commission may kindly appreciate that the
Dearness Allowance (DA) has already become 100% w.e.f. 01.01.14. It was 50% as
on 01.01.11. This scenario was never anticipated by the 6th CPC. It may,
however, also be appreciated that the Government merged DA with pay in the past
when it had crossed 50% in the year 2004. It was done on
the basis of the well considered recommendations of the Vth CPC that DA should be merged with basic pay whenever it
exceeded 50%,. Now, the DA has already exceeded 50% on 01.01.11 and 100% on 01.01.14.
SUGGESTIONS:. In view of the above, it
is requested that the Hon’ble 7th CPC may kindly be pleased to
recommend the merger of 50% of the DA with basic pay retrospectively w.e.f.
01.01.11 and the consequential
arrears may kindly be disbursed to the employees accordigly.
(6) INTERIM
RELIEF:
We suggest and request that the Hon’ble
7th Pay Commission may kindly be pleased to recommend 25% of basic
pay/pension as Interim Relief to all
the employees and pensioners/family pensioners.
(7)
PENSION
The standing committee of Parliament on Social Justice and
empowerment have recently stated that the life expectancy
stands at 76 years now. Therefore, restoration of pension for employees joined
on or after 2004 is not only required but also it is essential to provide more
retirement benefits including pension to all the Central Government employees.
New Pension Scheme
is required to be withdrawn and newly recruited employees of Central Government
on or after 01.01.04 be covered under Old Pension Scheme.
(i)
ONE RANK ONE PENSION:
The
Central Excise and Customs Department
has the same structural features, command & control elements as in Defence
forces. The Central Excise and Customs executive officers also serve under
similar harsh service conditions as the Army. In spite of the similarities in
the duties performed by the Central Excise and Customs personnel and Defence
personnel, the former ones are deprived of privileges extended to
Defence and Police services. The command, control and also rank structure
of Central Excise and Customs are similar to the Army except that the
ranks in Central Excise and Customs have different nomenclature (Chairman,
Member, Principal Chief Commissioner, Chief Commissioner, Commissioner,
Additional Commissioner, Joint Commissioner, Deputy Commissioner, Asst.
Commissioner, Superintendent, Inspector, Havildar and Sepoy).
In accordance with the NDPS Act and the
Central Excise Act, the powers of the Police officers are also vested into
executive officers of Central Excise and Customs. The personnel
of Central Excise and Customs are deployed on the borders (with Pakistan,
Bangladesh, Nepal, China, Myanmar etc.), International Airports and
International Sea Ports. They are also actively engaged in counter
insurgency operations against dreaded smugglers, hard core criminals etc. within
the country. These personnel have suffered heavy casualties while dealing with
trans-border crimes and countering with dreaded smugglers. Their duties are
akin to the Army and they are responsible not only for guarding the Economics
borders of the Country but also for security of the Nation. In fact in J &
K and North Eastern states of India, the Central Excise personnel are
deployed side by side with the Army, BSF, CRPF and ITBP on the same location.
They perform their duties in most adverse conditions coupled with the threat to
the lives of them & their families by enemy action, insurgents, dreaded
smugglers, hard core criminals and the climatic hazards.
The personnel of Central Excise and Customs
are deployed on the borders, International Airports and Sea Ports also being
actively engaged in counter insurgency operations against smugglers and tax
evaders etc. within the country. These personnel have suffered heavy casualties
while dealing with trans-border and other hard core criminals. Their duties are
akin to the Army and they are also responsible for security of the Nation. They
perform their duties in the most adverse conditions coupled with every threat
to the person & property along with their families.
The Central Excise and Customs executive officers, therefore, should also be
granted all benefits to be extended by 7th CPC to the Defence
personnel. The Central Government has decided to introduce ‘One Rank, One
Pension’ for Defence personnel. The executive officers of Central Excise and
Customs are uniformed officers having the same structural features,
command & control elements and also serving under similar harsh service
conditions as the Defence personnel. In spite of the similarities in the
duties, the Central Excise and Customs executive personnel are deprived of the
privileges extended to Defence and Police services. Under these
conditions; if the juniors start getting more pension than the seniors, it
violates not only the hierarchy of command system as is applicable to all Armed
Forces but it is unjustified in general also for the Govt. employees performing
civil duties.
It is a well-established dictum
based on the Supreme Court judgement of 1982 and accepted by the Government
that “pension is not a bounty nor a matter of grace depending upon the sweet
will of the employer. It is not an ex-gratia payment but a payment for past
services rendered”. In another judicial ruling, it has been stated that
different criteria for grant of unequal pay/pension for the same rank on the
basis of cut-off date of retirement violates Article 14 (equality before law)
of the Constitution. Thus, all pensioners irrespective of rank are entitled to
same pension.
In the case of Defence services, the
Government has rightfully realized the truth of this fact and given succour to
the pre-2006 Defence pensioners to come up to the level of their post-2006
retirees of equivalent rank and status by granting them ‘One Rank, One
Pension’. However, the Central Excise executive pensioners having equitable
dispositions, command structure, rank system & nature of duties are grossly
ignored, discriminated & forced to face the ignominy of less emoluments
vis-a-vis their post-2006 retiring juniors.
SUGGESTIONS;
Therefore, we suggest & request that the Honourable Commission may kindly
be pleased to recommend for introduction of the system of ‘One Rank, One
Pension’ for the executive cadres of Central Excise and Customs also like
Defence employees.
(ii) RATE OF PENSION:
The rate of pension should kindly be at least 75% of the pay last drawn
or the average of 12 months emoluments last drawn, whichever is higher.
The minimum basic pension fixed by VIthe
CPC was Rs.3500/- which was 50%
of the minimum pay in the pay band (Rs. 5200/-) plus Grade Pay thereon
(Rs.1800/-). The consultants for
Vth CPC, Tata Economic Consultancy Services, taking all micro aspects into scientific consideration had suggested
that 67% of last pay drawn should be allowed as minimum pension. Considering the
passage of time since then, the quantum of increase in the GDP of the Nation, quantum of increase
in the per capita income and the expenses of the daily life, at least 75% of
the last pay plus Grade Pay is the need of the time as minimum pension.
The rate of pension fixed by VIth CPC was 50%
of the pay last drawn. The Hon’ble
Supreme Court of India had in the landmark judgement of D. S. Nakara and others
Vs. Union of India (AIR 1983, SC
130) clarified that a pension scheme must provide that the pensioner should be able to live at a
standard equivalent to the pre retirement level.
Conclusion:
SUGGESTIONS: We suggest & request
that the Honourable 7th CPC may kindly be pleased to recommend, even
as a partial compliance to the observation made by the Supreme Court, thaht the
rate of pension should be at
least be 75% of the pay last drawn (band pay+grade pay) or the average of 12
months emoluments last drawn, whichever is higher.
(iii) FAMILY PENSION:
The quantum of
the family pension is also required to be equal to the pension as the
unfortunate death of one member noway reduces the respect, decent status &
expenses of daily life of the remaining family in the time of today. It rather
increases the agonies of the family after sudden & unfortunate shock on
account of demise of family head. Untimely death in younger age makes it even
harder requiring more pension even equal to the salary of the deceased. The grant of family pension equal to the
pension will also give a bit consolation to the family of the deceased. At
present, merely 30% of last pay drawn is allowed as family pension.
SUGGESTION: . We, therefore, suggest &
request that the family pension may kindly be equal to the pension.
(iv) ROUNDING OFF AND NOTIONAL DETERMINATION:
We suggest & request that the
pension amount may kindly be computed by rounding to the next multiple of Rs. 10/-. Pay band and grade pay system
introduced by VI CPC caused heavy disparities between pre and post 2006 retirees. The
concept of modified parity introduced by the 5th CPC as a measure to reduce the financial
implications must be replaced with the full parity concept as was made applicable for the personnel
retired prior to 01.01.86. In other words, the pay of every retired person must be
re-determined notionally as if he/she is not retired and then his/her pension computed under the revised
rules. This alone will protect the value of pension of a retired person.
(v) ADDITIONAL RATE OF PENSION:
Additional pension at the rate of 10% is required to be granted from the
age of 65 years and at the rate of 20% from the age of 80 years. According to the present scheme, a
consolidated amount reckoned at the commutation value of 8.194 is disbursed to the pensioner
at the time of retirement whereas recovery is effected
for 15 years, i.e, for approximately double the commutation value. As per a
Note prepared by Ministry of
Personnel, Public Grievances and Pensions, Department of Pension & Pensioners’ Welfare {File
F.No.42/8180/2011-P&PW (G)}, the rate of interest at which commuted value of pension is fully recovered is
20.7% per annum in the case of employees who retired at the age of 60 years after 01.01.06.
This is, in fact, an enrichment of the exchequer at the expense of the poor pensioner which
cannot be justified by any stretch of reasonable argument particularly in a State where
socialism has been declared as the goal.
The pension of Central Government pensioners/family
pensioners undergoes revision only once in 10 years. The pension structure gets
seriously dis-aligned during this period as 50% increase in price takes place
even in less than 5 years. This results in considerable erosion of the
financial position of the pensioner and family pensioner. Dearness Relief does
not adequately take care of the inflation at this level. Working employees are
getting automatic relief by way of 25% increase in their allowances with every
50% rise in Dearness Allowance. As pensioners do not get any allowance, they
feel discriminated. In order to strike a balance, Dearness Relief should be
automatically merged with pension whenever it goes to 50%. Alongwith, 10%
upward enhancement in pension/family pension be granted every five years after
the age of 65 years & up to 80 years. Thereafter, it should be 10% more
than the existing dispensation as in the present scenario of high inflation,
climatic changes, incidence of pesticides & rising pollution old age
disabilities/diseases set in by the time an employee retires and go on
manifesting very fast needing additional finances to take care of these
disabilities and diseases.
Hence, the restoration of the commuted portion should be done
after 10 years instead of the present 15 years. In the case of pre-2006 retirees, the excess
recovered may be refunded to the pensioners. Senior citizens, during their
advanced age, have to bear additional financial burden due to age related diseases and social &
family obligations. So, additional pension/family pension at the rate of 10% may be granted from 65 years and
at the rate of 20% from 80 years of age after every 5 years.
SUGGESTIONS: Accordingly,
we suggest & request the following increase in the basic pension/family
pension:
Age (in yrs) Increase
in pension/family pension
65 ………………10%
70 ………………20%
75 ………………30%
80 ………………50%
85 ………………70%
90 ………………90% and so on.
(vi) MERGER OF
DA:
It was the well considered suggestion of
Vth CPC that DA should be merged
with basic Pay/pension/family pension whenever DA exceeded 50%. Now the DA has
exceeded 50% w.e.f. 01.01.11 and 100% w.e.f. 01.01.14.
It is, therefore, requested that 50% DA
may kindly be merged with basic pay/pension/family pension retrospectively w.e.f.
01.01.11 and the consequential
arrears may be disbursed to the employees as well as pensioners and family
pensioners.
(vii) INTERIM
RELIEF:
It is requested that Hon’ble Commission
may kindly recommend 25% of basic pay/pension/family pension as Interim Relief
to all the existing employees as
well as pensioners and family pensioners.
(viii) RATIONAL
METHODOLOGY FOR COMPUTING DA/DR:
A rational methodology for computing DA/DR is required to be
evolved and the periodicity changed to quarterly from the present half yearly. At present, DA/DR is given to the employees/pensioners on half yearly basis taking into account the average consumer price
index for 12 months. It is claimed that full neutralization of the cost of living is affected in
granting the DA/DR. But the claim does not stand the scrutiny of the contemporary economic
stratification. For example, on 01.01.06, i.e, at the time of implementation of VIth Pay
Commission, the DA/DR was nil. Now on 01.01.14 after giving full neutralization, the DA/DR
has arrived at 100%. The conclusion is that the cost of index based on the present methodology
of calculation has only doubled. But the reality is that the cost of essential commodities
has increased manifold.
Hence, a rational methodology for computing DA/DR is requested to be
evolved and the periodicity changed to quarterly from the present half yearly.
(ix) HEALTH
SCHEMES:
The existing Health Schemes such as
CGHS, ECHS, RELHS etc. are to be strengthened by providing all facilities and extending
to all the District Head Quarters of the
country. The pensioner and family pensioners not covered by the schemes should
be provided with the facility of
claiming medical expenses for indoor treatment under CS (MA) Rules, 1944 as recommended by the Vth CPC. District
level nodal offices under each department may be recommended for reimbursement purpose.
The existing Fixed Medical Allowance in lieu of outpatient treatment is to be enhanced
to Rs. 3500/- per person and should be linked to the increase in Consumer Price Index.
(x) TAX
EXEMPTION TO SENIOR CITIZENS:
At present, senior citizens are exempted
from Income Tax up to Rs. 3 lakh only. Actually, pensioners/family pensioners
should be exempted from any tax. It is, therefore, suggested that the pensioner
senior citizens may be exempted totally from Income Tax or any other tax and other
(non-pensioner) senior citizens may kindly be exempted from Income Tax for an amount upto Rs. 6 lakh at least.
(xi) FESTIVAL
ALLOWANCE:
Almost all State Governments grant
festival allowance to their pensioners. Actually, the senior citizens are generally
enthusiastic in celebrating every festival of their region/religion. We, therefore,
request the VIIth CPC to recommend the amount equivalent to one month pension
in a year as festival allowance
to the pensioners and family pensioners.
(xii) TRAVEL
CONCESSION TO PENSIONERS:
At present LTC is being granted to
working employees only. The
pensioners’ organizations have been consistently and persistently demanding
travel concessions to pensioners
under a rational and reasonable scheme. It is requested that a scheme may kindly be evolved under
which a pensioner/family pensioner along with family members is eligible for reimbursement of the cost of journey
within the country at least once in 2 years reckoned at actual entitlement
while the pensioner was in service. They may also kindly be allowed at least
one Foreign Leave Concession.
(xiii)
RESTORATION OF COMMUTED VALUE OF PENSION AFTER 10 YEARS:
The
purchase value of pension gets reduced day by day due to continuous high
inflation and steep rise in cost of food items & other requirements making
over all steep rise in living cost. Retired persons/senior citizens do not
enjoy fully public goods & services provided by Government due to lack of
mobility and many other factors. Their ability to pay tax gets reduced from
year to year after retirement due to ever-increasing expenditure on food,
medicines and other incidentals. Their net worth at year end gets reduced
considerably as compared to the beginning of the year. Inflation is much more
than any tax for a pensioner. It erodes the major part of the already
inadequate pension. To enable pensioners to live in minimum comfort at the far
end of their lives and to cater for ever rising cost of living, they should be
spared from paying any tax including Income Tax. The commutation value in r/o
the employee superannuating at the age of 60 years between 01.01.96 and
31.12.05 commuting a portion of pension within a period of one year would be
equal to 9.81 years purchase. After adding thereto a further period of two
years for recovery of interest in terms of observations of Supreme Court in its
judgment in Writ Petitions No. 395-61 of 1983 decided in December 1986, it
would be reasonable to restore commuted portion of pension in 10 years instead
of present 15 years. In case of persons superannuating at the age of 60 years
after 31.12.05 seeking commutation within a year, numbers of purchase years
have been further reduced to 8.194. Also the mortality rate of 60+ Indians has
considerably been reduced ever since Supreme Court judgment in 1986 and the
life expectancy stands at 76 years now. Therefore, restoration of commuted
value of pension after 10 years is
fully justified.
(xiv) HASSLE
FREE HEALTH CARE FACILITY TO PENSIONERS/FAMILY PENSIONERS:
As
far as health is concerned, it is not a luxury and it should not be the sole
possession of a privileged few only. It is not only a welfare measure but also
a fundamental right of all present & past employees. To ensure the
hassle free health care facility to pensioners/family pensioners, Smart Cards
should be issued to all pensioners, family pensioners and their dependents for
cashless medical facilities across the country irrespective of department.
These smart cards should be valid in all Govt. hospitals, all private &
Govt. Multi Super Specialty hospitals and all CGHS, RELHS & ECHS empanelled
hospitals across the country. No referral should be insisted for medical
treatment or tests. The Doctors/Medical officers working in different Central/State
Govt. department dispensaries/health units should also be recognized as
Authorized Medical Attendant.
The enjoyment of the highest attainable
standard of health is recognized as a fundamental right for all in terms of
Article 21 read with Article 39(c), 41, 43, 48A and all related Articles as
pronounced by the Supreme Court in Consumer Education and Research Centre &
Others vs Union of India (AIR 1995 Supreme Court 922). The Supreme Court has
held that the right to health to a worker is an integral facet of meaningful
right to life to have not only a meaningful existence but also robust health
& vigour. Therefore, the right to health and medical aid to protect the
health & vigour of a worker alongwith family while in service or after retirement
is a fundamental right to make life of a worker meaningful and purposeful with
dignity. All pensioners,
irrespective of pre-retirement class & status, should be treated as same
category of citizens in r/o health. There should be no class or category based
discrimination and all must be provided health care services at par. To ensure
that the hospitals do not avoid providing reasonable care to smart card holders
and other poor citizens, a Hospital Regulatory Authority should be created to
bring all hospitals and diagnostic labs under its constant monitoring for
quality, rates & timely bill payments by Govt. agencies & Insurance
companies. CGHS rates should be revised keeping in mind the workability and
market conditions.
(xv) FIXED MEDICAL ALLOWANCE TO PENSIONERS/FAMILY PENSIONERS:
As recorded in Para 5 of the minutes of Committee of
Secretaries (COS) held on 15.04.10 {Reference- Cabinet Secretariat, Rashtrapati
Bhavan No 502/2/3/2010-C.A.V Doc No. CD (C.A.V) 42/2010 Minutes of COS meeting
dated 15.4.2010} discussing the enhancement of FMA and CGHS card estimates for
serving Personnel (since estimates are not available separately for
pensioners), M/O Health & Family Welfare had assessed the total cost per
card per annum in 2007-08 to be Rs. 16435/-, i.e., Rs.1369/- per month for OPD.
Adding to its inflation, the figure today is well over Rs. 2000/- per month.
Ministry of Labour & Employment, Govt. of India vide its letter no.
G-25012/2/2011-SSI dated 07.06.13 has already enhanced FMA to Rs 2000/- per month
for EPFO beneficiaries. Thus to help elderly pensioners to look after their
health, adequate raise in FMA will encourage a good number of pensioners to opt
out of OPD facility which will reduce overcrowding in hospitals. OPD through
insurance will cost much more to the Govt. Thus, the proposal for raising Fixed
Medical allowance to Pensioners is fully justified and is financially viable.
The FMA for all pensioners/family pensioners should be raised to at least Rs. 2500/-
per month without any restriction of linking it to Dearness Relief for further
automatic increase. The FMA should also be exempted from any tax including
Income Tax as it is a compensatory allowance to reimburse the medical expenses.
The actual expenses made in addition to FMA should be reimbursed in hassle free
manner.
The Ministry of Personnel and Pensions
has launched an initiative to route the skill and experience of retired
government employees back into socially useful and constructive work. Retired
Government employees can soon find employment opportunities back in government
departments and other social organisations on a voluntary basis. There are 50
lakh government employees today. But there are also 53 lakh retired employees,
the most of whom can still contribute to Nation building exercise. Govt. should
tap their skills and experience.
It
is suggested that Honourable 7th CPC
may be pleased to recommend for creation of a separate cell for welfare
of retired employees in each and every office and these cells should kindly be
managed by willing retired employees only.
(xvii) HOUSE RENT ALLOWANCE TO PENSIONERS/FAMILY PENSIONERS:
House Rent allowance is also required to
be granted to all pensioners and family pensioners. It is requested that the
Hon’ble Commission may kindly be pleased to recommend the grant of tax free HRA
to all pensioners/family pensioners at the rates on which it is being given to
the serving employees in accordance of the status of the pensioner at the time
of retirement.
It is also requested that kindly condone
the delay in submission of our memorandum and the representatives of our
Association may also kindly be given an opportunity to present our case in person and give
oral evidence in support of the submissions detailed in this Memorandum and also to allow the Association to add,
alter, amend or delete any submission made hereinafter in the interest
of its members and to facilitate the Commission to discharge its duties
entrusted with.
