Meeting with Department of Pension and Pensioners Welfare PDF Print E-mail
Sunday, 26 April 2009 19:38
Shri Umraomal Purohit, Secretary, Staff Side, National Council, JCM for Central Government Employees, accompanied by Shri S.K. Vyas, Coordinating Secretary, NCCP and other important leaders of Pensioners' Organizations held a meeting with the Secretary, Department of Pension & Pensioners Welfare, Government of India, New Delhi on 15.4.2008 and apprised him of their views about recommendations of Sixth Central Pay Commission on Pension & Pensioners.


Later on, Shri Umraomal Purohit, Secretary, Staff Side submitted a note to the Secretary, Department of Pension & Pensioners Welfare seeking improvements/modifications in Pay Commission's recommendations on Pension


Note seeking improvements/modifications in recommendations of VI CPC on Pension & Pensioners


A. Quantum of Pension


Pensioners Organisations had demanded 60% of the average emoluments/emolument last drawn whichever is higher/more beneficial as pension on superannuation/retirement.

This demand was based on the fact that in neighbouring countries like Bangladesh etc. the rate of pension is higher as under:-

Bangladesh- 60% without any contribution from the employees

Pakistan- 70% without any contribution from the employees


(Vide Para 132.4 of V CRC Report page 1773)


The VI CPC has not recommended any change in the present rate of pension which is payable at 50% of emoluments on completion of minimum prescribed years of qualifying service.

We submit that raising this rate to 60% of emoluments may kindly be considered. II. The VI CPC has taken into account the fact that older pensioners require a better deal because their needs, especially those relating to health, increase with age. The Commission has recommended additional quantum of pension on attaining age of


80 years

20% of basic pension

85 years

30% of basic pension

90 years

 40% of basic pension

95 years

50% of basic pension

100 years

100% of basic pension


We submitted that additional quantum of pension should be granted on attaining 75 years of age &

75 years

20% of basic pension

80 years

30% of basic pension

85 years

 40% of basic pension

90 years

50% of basic pension

95 years

75% of basic pension

100 years

100% of basic pension


B.Qualifying service for full pension


The VI CPC has recommended that full pension (i.e. 50% of emoluments) should be paid once the employee renders minimum of 20 years of pensionable/qualifying service.


Advantage of the above recommendation will not doubt be taken by such employees who have more lucrative jobs awaiting them like in spheres of power, shipping, construction, telecom etc. Since for most of the employees such alternate and more lucrative career opportunities are seldom available, they will stay on to complete their tenure till they reach the age of superannuation. It is also necessary that a large scale wholesale exodus does not take place. For this reason as well the service after minimum 20 years of service should continue to be pensionable disregarding the fact their pay will increase alongwith their tenure making them entitled to little higher pension.


We therefore suggest that for each year of additional service after minimum of 20 years of pensionable service, an additional pension 2% of emoluments per annum may be provided over and above present full pension of 50% of emoluments.


Commutation of part pension


The VI CPC has recommended a revised Commutation Table to be used for purpose of commuting pension. It has also observed that till such time the above revised table is revised there may not be any justification for decreasing the period of restoration which is 15 years.


We submit that the period of 15 years may be revised to 12 years even in respect of employees who have been granted commutation as per the existing commutation table. This is insisted upon because the amount of commutation paid is fully recovered in a period of 12 years. This can be illustrated by the following example:-


Age next birth day=61 years






Rs. 100
Commuted value paid Rs.11,772/­

Amount recovered in 12 years

Amount recovered in 15 years Rs.18,000/-
Excess Amt. Recovered in 12 years-representing interest on decreasing principalRs. 2,628/-

Excess recovered in 15 years

Rs. 6,228/-


Since the revised commutation table has a commutation factor of 8.971 at age 46 (i.e. after 20 years of service) &8.194 at age of 61, the amount payable will still be less.


Taking these factors into account, we propose that commuted portion of pension may be restored after 12 years.


C. Family Pension



The Sixth Pay Commission has recommended that only in case of Govt. employees dying in harness, family pension may be paid at enhanced rates (i.e. the pension which the employee would have got) for a period of 10 years. In case the employee dies after his retirement, enhanced family pension shall continue to be granted for 7 years only.


This is discriminatory recommendation. In the case of Govt. employee dying after his retirement, the enhanced family pension may be granted for 10 years.


Additional quantum of family pension may also be provided at the rates indicated in respect of pensioners on attaining 75 years of age and thereafter for the few who manage to live on.

Ex-gratia over & above pension


VI CPC has recommended exgratia of 10 lakhs in case of death occurring due to accidents in course of performance of duty and to RS.15 lakhs in case of death occurring due to army action in International Wars etc.


We suggest that exgratia of 15 lakhs may also be granted in case of death due to accident as well since death under tragic circumstances is attendant with agony anguish pain and uncertainties. We should avoid unintended discrimination.


Parity in Pension


The main demand of the past pensioners was for full parity in pension to those who have retired during the period from 1.1.1986 onwards. The V CPC in Para 137.13 (PP 1830) has observed as under:-


"While it is desirable to grant complete parity in pension to all past pensioners irrespective of the date of their retirement, this may not be feasible straightaway as the financial implications would be considerable. The process of bridging the gap in pension of past pensioners (Pre 1986 pensioners) has already been set in motion by the Fourth CPC when past pensioners were granted additional relief in addition to consolidation of their pension. This process of attainment of- reasonable parity needs to be commuted so as to achieve complete parity over a period of time."


In Paras 137.13 and .14 of their Report the V CPC stated that as follow-up of our basic objective of parity, we would recommend that pension of all the Pre 1986 retirees may be updated by notional fixation of their pay as on 1.1.86 by adopting the same formula as for the serving employees. This step would bring all the past pensioners to a common platform or on the IV CPC pay scales as on 1.1.86. Thereafter, all these pre 1986 pensioners can be treated alike in regard to consolidation of their pension as on 1.1.96 by allowing the same fitment weightage as may be allowed to the serving employees.


It was, therefore, expected that VI CPC will adopt the similar procedure at least in respect of all pre-1996 retirees, if not pre 2006 retirees but this has not been done. The result is that therefore: the pre 1996 retirees i.e. one below Pay Commission would get less pension than post 1996 retirees.


We request that this disparity in pension may be removed by adopting same procedure which was implemented in respect of pre 1986 retirees for pre 1996 retirees.


Fitment Benefit to the past pensioners


The VI CPC has allowed fitment benefit equal to 40% of pension excluding the effect of merger of 50% Dearness Relief. The result is that net increase in the Pension+DR is merely 28% of basic pension which is quite inadequate.


We therefore propose that revised pension should be determined by multiplying the pre revised basic pension with 2.625 which is the minimum multiplying factor in respect of Group 'A' PB-3 pay band. This fitment benefit has been demanded by the Serving Employees Organisations in respect of serving employees as well. Hence this multiplying factor may be extended to pensioners also.


Medicare for Pensioners


I. We demand that C.G.H.S. may be expanded to cover other cities as well or alternatively CS(MA) Rules, 1944 may be suitably modified to cover pensioners who have settled in stations not covered by the CGHS. The Health Insurance should be an optional' alternative and not made compulsory as and when introduced. The AMAs under CS(MA) Rules can act on CGHS OPD advisor at that place i.e. where no dispensary exists. Thus the present left out pensioners will be, brought under CGHS.


II. Fixed Medical Allowance of RS.100 in lieu of OPD treatment was sanctioned on the basis of recommendations of V CPC. The VI CPC has, however, not revised this allowance and left it to Govt. to revise it. We demand that F.M.A. @Rs.5001- p.m. may be sanctioned to all pensioners until such time that they are covered under CA(MA) Rules, 1944 on out side the jurisdiction of CGHS dispensary. All Postal pensioners may also be made eligible for CGHS/FMA etc. The fact that the offending letter has been quashed and set aside has been ignored by the VI CPC.


Ex-gratia to CPF/SRPF retirees


The VI CPC has not revised the scheme of payment of ex-gratia. This has also not been granted to those CPF/SRPF retirees who after having rendered 20 years of service had voluntarily retired or were retired on invalidation. These retirees may also be granted ex-gratia.


Whereas SRPF retirees have been granted option to come over to pension scheme 12 times during the period from 1957 to 1986, no such option excepting the one given in 1987 has been granted to CPF retirees of Organisations like Atomic Energy Commission etc. - on the ground that it took these employees time to understand that pension scheme was more favourable than CPF scheme. As a matter of fact all these employees should have been given a default option for pension.


Minimum Pension


VI CPC has fixed 50% of Rs.6,660/- (Pre revised pay scale of Rs.2750-4000) i.e. Rs.3,330/- as minimum pension.


No one retires at the minimum wage. As full pension is now admissible after rendering 20 years of service, we demand that the minimum pension should be 50% of pay in pre-revised pay scale of RS.2750-4000 (revised pay scale of 4860­20200+Rs.1800) after rendering 20 years of service.


In the 20th year, pay of the employee in the revised pay scale of RS.4860­20200+Rs.1800/- at the variable rate of 2.5% p.a. as increment works out to RS.1 0,647/ -. As such the minimum pension should be 50% of Rs.10,647/- i.e. RS.5324/- p.m. instead of Rs.3,330 as adopted by VI CPC in their tables.


S.S. Ramachandran/ Chairman

Shyam Sunder Convenor

S.K. Vyas Coordinating Secretary

NCCP Bharat Central Pensioners Confederation

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