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Saturday, 6 May 2017

Clarifications and update on the Cabinet decisions on pay and pensionary issues emanating out of the 7th Central Pay Commission: By Maj Navdeep Singh

Clarifications and update on the Cabinet decisions on pay and pensionary issues emanating out of the 7th Central Pay Commission: By Maj Navdeep Singh

There is a press note floating around on social media regarding certain decisions taken by the Cabinet related to pay and pensionary modalities related to the 7th Central Pay Commission (CPC). Though many have questioned its veracity, this is to confirm that it is absolutely a valid document and has been officially issued by the Ministry of Finance.

That said, let me run through some of the important decisions taken by the Cabinet, clarifications thereon and their impact. Please note that the new Pay Rules issued by the Ministry of Defence do not take into account the changes in the pay structure or removal of anomalies and these shall be incorporated through separate amendments in the rules issued on 03 May 2017.

Restoration of Percentage based Disability Pension Rates
The 7th CPC had recommended 'flat/slab' rates of disability pension for the defence services rather than the ones based upon 'percentage of pay'. Civil disabled personnel were however retained on the percentage system as before. As stated earlier, frankly, I never expected this regressive 7th CPC recommendation to be accepted by the Government, but unfortunately it was. While recommending this aspect, the 7th CPC had also made unfounded and uncharitable remarks against disabled soldiers by casting aspersions on those who have incurred disabilities while in service which was discussed in detail by me earlier in my opeds, here and here. This resulted in a massive decrease after the 7th CPC resulting in a payout even lower than 6th CPC rates for almost all post-2016 retirees of all ranks and also for pre-2016 retirees of certain ranks. The arbitrariness of this decision becomes evident from the following chart at the apex levels:

(100% Disability)
Rank
Rates under the
6th CPC as on
31 Dec 2015
Rates applicable
after the 7th CPC
as on 01 Jan 2016
Lt GenRs 52,560Rs 27,000
Head of Central Armed Police ForceRs 52,560Rs 67,500

Thankfully, the then Defence Minister, Mr Manohar Parrikar, fully understood the issue and took personal interest in getting the issue referred to an Anomaly Committee. The Defence Services HQ as well as the Ministry, and even civilian employee organisations, supported the resolution of this anomaly which now stands addressed and the Cabinet has decided to retain the old system of calculation on percentage basis, that is, 30% of pay shall remain the disability element for 100% disability. I however do hope that a protection clause is introduced for pre-2016 retirees of lower ranks who stood to gain from the slab rates.

Improvement in Pension calculation system for pre-2016 civil and defence retirees
The Cabinet has also accepted an improvement over and above the system of pension calculation which was finally effectuated after the 7th CPC. Rather than basing the pensionary calculations on the "Old Pension X 2.57" formula, an option would be provided to calculate the pension based upon the notional pay stage from which the employee had retired as opposed to the minimum of pay as was the system followed till the 6th CPC. Calculation of pension in this manner would definitely enhance the pension of civil pensioners and perhaps a small number of defence pensioners, who, in all probability would be provided the opportunity of choosing the most beneficial option, that is, the new formula, 2.57 multiplication formula or OROP rates. Contrary to popular perception, this does not exactly result in OROP for pre-2016 civil employees as is being projected, since while this is based on notional data, the military OROP is operated on live date of fresh retirees, moreover while this system is expected to be revised only after ten years, the military OROP as per the current scheme is meant to be revised after every five years.

Issuance of Pay Rules rather than Instructions on Pay
There were messages that the Chiefs of the Defence Services have been sidelined and downgraded since the earlier system of issuance of Special Army Instructions, Special Navy Instructions and Special Air Force Instructions (SAI/SNI/SAFI) has been discontinued and a new dispensation of 'Pay Rules' has been initiated. This seems to be the negative imagination of fertile minds. SAI/SNI/SAFI were never issued under the authority of the Chiefs of the Defence Services HQ but were always issued by the Ministry of Defence, that is, the Government of India. 'Orders' such as Army Orders (AO) etc were (and are) issued by the Defence Services HQ under the power of the Chiefs. The new Pay Rules have been promulgated under the authority of Article 309 of the Constitution of India and are statutory in character rather than being mere executive instructions like was the case till now. With this, the pay rules of the Defence Services are at par with the statutory pay rules of the civil services which are also issued under the authority of Article 309 of the Constitution of India.

Defence Pay Matrix to have 40 stages
The 7th CPC had recommended only 24 stages in the defence matrix while 40 stages were provided to civilians. This anomaly has been rectified and now the defence pay matrix shall also have 40 stages. This will particularly be helpful for JCOs towards the retiring years and will also beneficially affect their pension and other retiral benefits.

Multiplication factor of 2.67
This anomaly had been rectified earlier for Brigadiers and a multiplication factor of 2.67 had been applied for the said rank. Now the same benefit has also been extended to Lieutenant Colonels, Directors to Government of India and Colonels, that is, Levels 12A and 13 of the Pay Matrix.

Other Anomalies
There shall be pay protection for the amount of Military Service Pay (MSP) on promotion from the rank of Brigadier to Major General. It may be recalled that MSP is not entitled to ranks above the rank of Brigadier. No decision has been taken by the Government on the aspect of Non Functional Upgradation till now since the matter is being considered sub judice. On directions of the Supreme Court, the Government is re-considering the issue of NFU for Central Armed Police Forces for which a meeting was recently held. The issue is to be considered by the Government and the fresh decision is to be placed before the Supreme Court in August 2017. The most pertinent anomaly of enhancement of Military Service Pay, especially for JCOs, also remains pending along with other matters and probably these issues would be clearer after various anomaly committees submit their reports and a decision is taken thereafter by the Cabinet. The committee on allowances has already submitted its report which will now be examined by the Government. Unlike pay and pension which are admissible retrospectively from 01 January 2016, most freshly rationalized allowances shall only be admissible prospectively.

This is all I have to say at present, please DO NOT mail me individual queries on email or social media. You are free to discuss the above @ the comments section of this post.

Thank You.

Source: Maj Navdeep Blog
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The promulgation of Banking Regulation (Amendment) Ordinance, 2017 will lead to effective resolution of stressed assets, particularly in consortium or multiple banking arrangements


The promulgation of Banking Regulation (Amendment) Ordinance, 2017 will lead to effective resolution of stressed assets, particularly in consortium or multiple banking arrangements

The Ordinance enables the Union Government to authorize the Reserve Bank of India (RBI) to direct banking companies to resolve specific stressed assets

The promulgation of the Banking Regulation (Amendment) Ordinance, 2017 inserting two new Sections (viz. 35AA and 35AB) after Section 35A of the Banking Regulation Act, 1949 enables the Union Government to authorize the Reserve Bank of India (RBI) to direct banking companies to resolve specific stressed assets by initiating insolvency resolution process, where required. The RBI has also been empowered to issue other directions for resolution, and appoint or approve for appointment, authorities or committees to advise banking companies for stressed asset resolution.

This action of the Union Government will have a direct impact on effective resolution of stressed assets, particularly in consortium or multiple banking arrangements, as the RBI will be empowered to intervene in specific cases of resolution of non-performing assets, to bring them to a definite conclusion.

The Government is committed to expeditious resolution of stressed assets in the banking system. The recent enactment of Insolvency and Bankruptcy Code (IBC), 2016 has opened up new possibilities for time bound resolution of stressed assets. The SARFAESI and Debt Recovery Acts have been amended to facilitate recoveries. A comprehensive approach is being adopted for effective implementation of various schemes for timely resolution of stressed assets.

PIB
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NFIR -7th CPC Allowances, Minimum Wages, multiplying factor, pension parity, MACP, Running Staff Issues discussed in the Standing Committee Meeting of NC/JCM on 3rd May 2017


NFIR - 7th CPC Allowances, Minimum Wages, multiplying factor, pension parity, MACP, Running Staff Issues discussed in the Standing Committee Meeting of NC/JCM on 3rd May 2017

National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi - 110055
No. IV/NFIR/SCM/Part VII
Dated: 04/05/2017
The General Secretaries of
Affiliated Unions of NFIR

Brother,
Sub: Issues discussed in the Standing Committee Meeting of NC/JCM held at Room No. 119, North Block, New Delhi on 3rd May 2017-reg.

The Standing Committee Meeting of the NC/JCM held at Room No. 119, North Block, New Delhi on 3rd May 2017 under the chairmanship Secretary (Personnel), Government of India. S/Shri M. Raghavaiah , Leader JCM (Staff Side) and NFIR General Secretary, President NFIR Guman Singh, Working President R.P. Bhatnagar and Vice President K.S. Murty have participated in the meeting while representatives of other Federations/Associations have also taken part in the meeting.

2 Important points deliberated in the meeting:-
  • In the opening address, the Leader JCM (Staff Side) has conveyed to the Secretary (Personnel), the serious disappointment and unhappiness among Central Government employees over breach of commitment on the part of Government on major issues. He cited the assurance given by the Senior Ministers on 30th June 2016 on the demand for revision of minimum wage, multiplying factor and official statement issued by the Ministry of Finance on 06th July 2016 for constituting High Level Committee to examine these issues for placing before the Cabinet. Unfortunately, only one meeting was held by the Additional Secretary (Expenditure) and thereafter nothing is known on these vital demands even after lapse of about 10 months. The Leader JCM (Staff Side) also expressed unhappiness over lack of transparency on several issues discussed, consequently the JCM (Staff Side) is kept in dark. He pointed out that the 7th CPC recommendation for revision of pension to the retired employees and said that although the JCM (Staff Side) is the major stake holder and held discussions, the contents of the report of the Committee are not made available to us. This reveals that the Government does not bother to share the information with JCM (Staff Side), he pointed out.
  • On Allowances, he said that though discussions with the Staff Side JCM, the views of the Committee headed by Finance Secretary are not shared with the JCM (Staff Side). Apart from this, the decision on Allowances has been procrastinated for several months leading staff He further said that it is not known whether the Government will be modifying the recommendations of 7th CPC on Allowances on the basis of justification given by the JCM (Staff Side) as the report of the Committee though finally submitted, the proposals are not known to JCM (Staff Side). He urged upon the Chairman of the meeting to convey JCM (Staff Side) demand that Allowances should be given effect from Olst January 2016.
3. On other issues, the Leader JCM (Staff Side) pointed out were as follows:-
  • 29% hike in the wages of Running Staff in Railways has not been ensured inspite of Resolution of Finance Ministry, Government of India. He said that the Railway Ministry's proposal is pending with Ministry of Finance.
  • The references made by different ministries to the DoP&T/MoF as a result of discussions by the JCM constituents are pending with the Government without finality.
4. Conclusion:
  • The Leader JCM (Staff Side) requested the Chairman of the meeting to convey unhappiness of the JCM (Staff Side) to the Government and also take initiatives on the points highlighted above, mainly minimum wage, multiplying factor, pension parity etc.
  • The action taken statement on pending items have be reviewed in the meeting. The draft minutes are expected to be received soon from DoPT finalization of the minutes, same will be circulated.
  • The Railway related demands mainly counting of temporary status service of casual labour in full for the purpose of retirement benefits was discussed in the meeting. It was assured to consider after further consultations with the Ministry of Railways.
  • MACPS issues were discussed but however there is no finality.
  • Re-fixation of pay of re-employed Defence Forces Personnel in the Central Government (POBRs) - under examination [ATS - S No. 26/Item No. 6(XIV)].So far as Standing Committee agenda items are concerned, special meeting will be convened by DoP&T for discussion.
The above is for information of the affiliates.
Yours fraternally,
Sd/-
(Dr. M. Raghavaiah)
General Secretary
Source : NFIR
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Revise allowances including HRA with effect from 01.01.2016 - Mass Dharna 23rd MAY 2017


Revise allowances including HRA with effect from 01.01.2016 - Mass Dharna 23rd MAY 2017

MASS DHARNA IN FRONT OF FINANCE MINISTER'S OFFICE, NEW DELHI
EMPLOYEES & PENSIONERS COME IN LARGE NUMBERS
AND MAKE IT A GRAND SUCCESS

HONOUR THE ASSURANCE GIVEN BY GROUP OF MINISTERS ON 30.06.2016
  • Increase minimum pay and fitment formula.
  • Revise allowances including HRA with effect from 01.01.2016.
  • Grant option-I pension parity recommended by 7th CPC.
  • Revise pension and grant dearness relief to autonomous body pensioners
  • Implement positive recommendations of Kamlesh Chandra Committee on Gramin Dak Sevaks. Grant Civil Servant Status.
  • Regularise all Casual, Part-Time, Contingent and Contract Workers and grant equal pay for equal work.
  • Remove stringent conditions imposed for grant of MACP etc.
All affiliated organisations and COCs are once again requested to mobilise large number of employee and pensioners as per quota fixed in the last circular and make the programme a grand success.
S/d,
(M. Krishnan)
Secretary General
Confederation
Mob& WhatsApp - 09447068125
Email: mkrishnan6854@gmail.com
Source - http://confederationhq.blogspot.in
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Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

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