Memorandum 2 to be Submitted on
05.09.2024
To
Honourable Prime Minister
Honourable Finance Minister
Honourable Pension & Pensioners
Welfare Minister
Honourable Railway Minister
And The Cabinet Secretary
By NCCPA and its Affiliates
*****
The
National coordination committee of Pensioners Associations and its affiliated
Associations are submitting this memorandum on Pension related issues of CG
Pensioners, BSNL Pensioners, Bank Pensioners etc., seeking your personal
intervention for early settlement. The undermentioned issues require to be
attended to by the Government urgently:
1. Restoration of Old Pension scheme:
The Central, State Government employees as
well as the Public Sector Employees retire from services were granted Pension
under different rules ensuring 50% the basic pay on retirement and Dearness
Relief on it. This Pension quantum was periodically revised along with the wage
revision except for Public Sector Retirees through the Pay Commissions also.
The introduction of NPS (National Pension System) from 1.1.2004 turned all
these rights into vagaries depending on the market investment besides 10% of
Pay and DA was regularly being recovered monthly from the employees under NPS.
The argument of the Government that this NPS will be fruitful only after long
time also turned out to be false as after 20 long years of introduction the NPS
fetched only a pittance of quantum as Pension. Many State Governments
understanding the issues reversed the NPS into OPS but the Center failed to
appreciate the move. It started to threaten the State Governments with dire
financial consequences if reversion to OPS is resorted to by them.
Even the so-called GPS *Guaranteed Pension
System” implemented by the Andhra State Government is not ameliorating the
Pensioners from all the problems posed by the NPS as like the monthly
recoveries. The constitution of a high-powered Committee by the Central
Government is not going to solve the issue because of the terms of reference to
the said Committee restricts the recommendation from suggesting abrogation of
NPS by the Committee.
Massive protests are being galvanized by
different organizations of Employees and Pensioners against the NPS and the
NGOs also conducting big demonstrations in Delhi against the NPS. NCCPA and its
affiliates requests the Government to abrogate the NPS and embrace OPS once
again for all work force to guarantee regular and enhanced pension payment to
all the retirees.
2. NPS Pensioners switching to OPS
without hiccups:
Subject to conversion of NPA into OPS for all,
we welcome the Government OM issued through DoP&PW on 9.4.2024 and 3.3.2023
allowing those NPS employees and pensioners recruited on the basis of any
advertisement or vacancies notified prior to the issuance of OM dated 22.12.2003
can get into the OPS by option. But certain hiccups are encountered while
implementation at the field level. Those Pensioners who had drawn the amount at
the time of their retirement are forced to return the amount with interest to
the Government and opt for conversion to NPS. This has acted as a ruin and most
of the Pensioners retired under NPS cannot repay as they have spent the amount
for their children’s marriage or education. Now they have to rely on money
lenders for the amount to be remitted to the Government and even there the
calculation of interest is left to the department and this causes abnormal
delay. The strain on the Pensioners is also huge and unbearable. The NCCPA and
its affiliates request for adjustment of the amount to be remitted to the
Government in the amount to be sanctioned by way of commutation and other
benefits granted on conversion to OPS.
NCCPA and its Affiliates also urge the
Government to extend the right of grant of family pension to all the NPS
Pensioners also on their death and the spouse and subsequently the wards are
eligible to family pension like their counter part the CG Pensioner under CCS Pension
Rules, 2021. In short, we insist that the NPS be abolished altogether and OPS
be restored for all.
3.
Restoration of Senior Citizen Travel Concession:
During Corona Pandemic the travel concession
in Train Journey was withheld by the Indian Government but even today in the
name of profit to Railways the concession is not restored. The travel
concession was granted as a measure to grant concession to senior citizens and
this Government’s action of not restoring the concession is clearly anti-senior
citizens. Such measure should not be looked into as profit and loss while the
Government has no hesitation to write off lakhs of crores of rupees bank loans
for the corporates without batting the eye. NCCPA urges to restore the
concession immediately.
4) Constitution of 8th CPC:
The inflation rate in the country has already
made the real pension a mockery. The Dearness Relef granted has already crossed
50% mark. The Pay Commission will take its time and the Government its time to
examine the recommendations. Therefore, it is high time to constitute 8th
Pay Commission now so that the recommendations are examined and implemented
from 1.1.2026. There is only 18 months’ time left for the next revision of
pension updation implemented.
5) Updation of pension for BSNL
Pensioners:
Pension Revision to BSNL
absorbed retirees due from 01-01-2017 is being prolonged unjustly. NCCPA
strongly protest against the injustice meted out to the BSNL retirees by
denying their legitimate right of pension revision for such a long time. The
entire telecom employees were transferred to the new entity, BSNL without
giving them any option but assuring them better prospects and pension from
government. The CCS (Pension) Rules, 1972 was amended by incorporating Rule 37A
for this purpose. Accordingly, pension to BSNL absorbed retirees is being paid
from the Consolidated Fund of the Central Government.
The pension revision due from
01-01-2007 was settled with 30% fitment recommended by the 2nd PRC. The 3rd PRC
has recommended a maximum fitment of 15%. However, initially the
government had taken a stand that pension revision is intrinsically linked with
wage revision and BSNL not in a position to implement wage revision.
But the fact remains that
payment of pensionary benefits to BSNL absorbed retirees is no way connected
with BSNL as the entire liability is to be borne by the government,
particularly after annulment of 60:40 condition in 2016. Moreover, government
has collected the pension contribution of these retirees on the basis of maximum
of their pay scales. Therefore the
demand of Pensioners Associations, including our affiliate, AIBDPA to revise
the pension with 15% fitment from 01-01-2017 as per 3rd PRC, delinking wage
revision is absolutely right and fully justified.DOT also in the meeting with
the Pensioners Associations had agreed to delink the Pension revision from wage
revision. The only disagreement was fitment percentage and DoT finally had
assured to reconsider it. The file was processed accordingly and reached to
near finality. But eluded settlement, presumably due to the court proceedings
by certain pensioners organizations seeking 7th CPC fitment for pension
revision. NCCPA is of the opinion that pension revision of BSNL absorbed
retirees, already delayed 90 months is not an issue to be left to the uncertainties
of court proceedings and the NCCPA and all its Affiliates request the present
central government early action for a reasonable out of court settlement.
6. Bank Pensioners denied Updation for
decades:
The Bank Pensioners are denied any updation
despite the repeated wage agreements to the serving bank employees. The
argument of the Government that there is nothing in the original agreement
about updation at the time of granting the pension as the third benefit is not
tenable. The Bank Pensioners are denied any updation for decades. It is brought
to the notice of Government that the Bank Pensioners are not second-class
citizens to be treated like this. The reality is that the retired Chief
Managers of the Banks are getting less pension than the
Peons of the Banks who retire recently. The main reason is not granting any
updation like the CG Pensioners in CCS(Pension)Rules who are brought to the
notional wages in the Pay Matrix of the recent CPC and fixed the Pension. There
is no justification to continue the stand of the Government. NCCPA and its
affiliates urge the new Government to revise its stand and grant updation of
pension to the bank pensioners.
7. Commutation of pension period:
At present for 15 years period the recovery
against commutation of pension is continuing. The 5th CPC had
recommended for reducing this period to 12 years. Even the Judicial National
Commission appointed by the Supreme Court had recommended for reducing the
period to 12 years. The interest rate fixed by the RBI has gone down. The
mortality risk factor is also reduced and as per the Institute of Actuaries the
mortality risk factor has 41% reduced now. It is a fact that at present the
recovery is completed before 12 years and the recovery continue to be made in
13th to 15th year are clearly in excess. Many State
Governments like Kerala, Andhra Pradesh, Gujarat have already reduced the
period of commutation less than 15 years despite their financial problems. The
words of Minister of State of DOPT in Parliament on 21.12.2022 that the matter
of restoring the commuted pension has been referred to the Finance Department
should not be forgotten. NCCPA and its Affiliates are pointing out that it is
high time that the Central Government also come forward to reduce the period of
commutation of pension recovery like some State Governments in our country.
8. Grant of Notional Increment to 30th
June and 31st December retirees:
Many Courts including the Supreme Court had
directed that notional increment to be granted and pension refixed for the 30th
June and 31st December retirees. These pensioners work yearlong and
for the convenience of Government only the date of increments was changed into
1st July and 1st January after 1.1.2006 and 1.1.2026
respectively for easy accounting purposes. There is no justification to deny
the benefit in the name of fundamental rules to CG Employees. It is pertinent
to point out that some State Governments like Tamil Nadu had already amended
the FR of State Government Employees to grant the notional increments. The OMs
issued by various departments of the Central Government differs funnily whereby
some grant the facility to all, while some other grant from the date of
Judgement, while others restrict it to litigants. The DOPT is not coming forward
to release its own OM. The Chairman of SCOVA also desired and directed the DOPT
to consult the Attorney General early in the matter. NCCPA and its Affiliates request
the Government to early change the FR of Central Government Employees also to
grant the notional increment to all retired and retiring on 30th
June and 31st December.
9. Grant of Additional Pension as and
when a Pensioner enters 80 years of age:
The Honourable Courts including the Supreme
Court had ruled that additional pension of 20% should be granted to pensioners
as and when they enter in their 80th year of age. The Government’s
interpretation of completing the age of 80 as attaining the age was not
acceptable to courts. Moreover, the Government had gone to Parliament to revise
the FR for Judiciary to deny the benefit of Guwahati High Court verdict to
Judiciary. After the High Court and Supreme Court judgments the relevant sub
rule 6 of 44 and sub rule (3) (a) of 50 CCS Pension Rules 2021 needs amendment.
It is therefore pertinent to grant the additional pension as and when a
pensioner enters the age of 80. NCCPA and its affiliates request the Central
Government to amend the FR of CG Employees so that they are made eligible to
receive the additional pension as and when they enter their 80th
year of age.
10. Additional Pension from 65 years
of age:
The Parliament Standing Committee has
recommended that the additional Pension may be granted from attaining the age
of 65 instead of granting on attaining the age of 80. The recommendation says
that on attaining 65 the additional pension @ 5%; on 70 it should be 10%; on 75
it should be 15% and when they attain 80 years the additional pension can be
20% and so on. The Pensioner should enjoy the additional pension as the
inflation is robbing the pensioners this happiness. The Government should keep
the pensioners at the same living standard as they were under service. Grant of
additional pension from the age of 65 can be a step towards this end. The
Government should not argue that the expenditure is more as it did not hesitate
to reduce the burden of Corporates by cancelling the huge debts due to
nationalized banks. NCCPA and its affiliates therefore urge for grant of
additional pension from the age of 65 onwards.
11. Frame Recognition Rules to
Pensioners Associations:
There are no rules of recognition to Pensioners Associations at present like
the service unions which are recognized either under CCS (RSA) Rules, 1993 or
under the Indian Trade Union Act etc. Selection therefore to SCOVA and
Pensioners Portal are made at the whims and fancies of Government. The members
selected to SCOVA also not in a position to raise subjects on their own as the
Government selects the subjects. There are no statutory rights to the forum of
SCOVA also like the JCM National Council in which the members have the right to
raise subjects of their choice and on disagreement enjoy the right of arbitration
etc. To put it mildly, this is not desirable in a democracy. NCCPA and its
Affiliates request the Government to initiate talks with all stakeholders to
frame rules of recognition to all-India and State level Pensioners
Associations.
12. Formation of National Litigation
Policy: Most of the
cases filed in different courts against the employees and pensioners are by the
Government at the Centre, State Governments and the Public Sector Undertakings.
The Supreme Court had revealed this information. Accordingly, the Central
Government in 2010 had tried to frame a ‘National Litigation Policy 2010’ but
given up. A National Litigation Policy 2015 was in the air but not seen the
light of the day. Now we are in 2024 but there is no National Litigation Policy
by the Central Government. The result is that the number of cases against the
employees and pensioners are on the increase by the Official Side. More over
the trend that calling the Judgments as “In Personam” and not as “In Rem” even
when the case covers most of the similarly placed is not at all justified.
Dragging poor pensioners to courts at their old age is also not at all
justified. NCCPA and its Affiliates request for early framing of appropriate
‘National Litigation Policy’ to not to drag each and every pensioner to
different courts at their old age.
Hope and Trust that these issues will
be settled early by the New Government so that the senior citizens in the
country feel a sigh of relief.
Thanking you Sir,
Yours faithfully.
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