BDPA views on the 7th Pay Commission Report
BDPA views on the 7th Pay Commission Report
G.S. BDPA (INDIA) writes to Shri S. K. Makkar, Under Secretary, GOI Ministry Of Personnel,
PG & Pensions-DOP & PW,
New Delhi
No:BDPA(INDIA)/7th CPD/2015
Dated 21st December, 2015.
Dear Shri Makkar,
Please refer to your letter no 38/66/13-P&PW (A) (Vol.II) dated
1st/3rd December 2015 to the Pensioners‟ Associations, regarding their
views on the 7th CPC report, in respect of Pension /retirement benefits.
The said letter of yours though has not been received by us. But the
undersigned has come to know about it through one of BPS affiliate on
date i.e. 15.12.015. Accordingly undersigned submits BDPA (INDIA) views
on the pension/retirement benefits as follows:
In continuation of representation vide No SG/BPS/10/2015 dtd.25-11.15
( submitted by SG BPS) to the honorable Minister of Finance GOI
following few points are put forth through DOP & PW for the
consideration of Empowered Committee of Secretaries :
Fitment benefit (5.1.27)&{10.1.67(ii)} 2.57 Fitment factor has
been recommended for uniform application to all employees &
Pensioners arrived by dividing revised minimum pay by existing minimum
salary .Minimum revised salary has been worked out on the principle of
need base minimum wage following Dr Aykroyed formula of 50s which is out
dated &smells of colonial mindset . The “Normative Family” is taken
to consist of a spouse and two children below the age of 14yrs.
(Husband 1 unit, wife 0.8 unit and children (2) at 0.6 units each).
Considering wife to be .80 units is nothing but gender bias. In the
present scenario a wife too put in the same amount of physical work
rather may be more as compared to husband. She needs more nutrients to
keep herself fit to be a mother & needs more clothing. A lady
whether she is a wife of a labourer or a Secretary to Govt. of India has
a basic justify to keep her reasonably presentable for which she needs
some minimum add-ons as such treating her to be less than a unit is
gross injustice.
Similarly growing Children of less than 14 yrs need more of proteins,
fats & carbohydrates, with sufficient exercise & field
activities for healthy growth. Today they need much better & more
clothing compared to 50s. Today Nation needs healthy & stout young
citizens. It is against the national interest to restrict their need
base minimum requirement to .6 units.
The basket of items taken does not take care of digital India„s
minimum requirement i.e. a smart mob phone & internet connection.
The quantities of consumption & rates taken for the items in the
basket are unrealistic compared to actual retail market rates.
In the light of above mentioned facts it is felt that minimum salary
has been intentionally calculated to be lower to keep common fitment
factor low. BDPA (INDIA) therefore, appeals that minimum revised salary
be raised upwards to make it realistic.
According to 7th CPC recommendations, 2.57 fitment factors is for all
employees and pensioners. But, in fact, 2.81 fitment has been given at
Secretary Level by raising existing Salary of 80000/PM to 225000/ per
month. This is robbing Peter to pay Paul, is violation of CPC own
recommendation and that of Article 14 of the constitution of India. BDPA
(INDIA), therefore, appeal that 2.81 fitment benefits be provided to
all employee and Pensioners without any discrimination.
2. Minimum Pension/family pension (10.1.24)(10.1.26):As per 7th CPC
recommendations revised minimum pension will be 50% of the minimum
revised salary of Rs 18000/& Family pension will be 30% of it i.e.
Minimum Pension will now be = Rs 9000/PM & family Pension = 5400/ So
far minimum pension &Family pension have been the same i.e. Rs3500/
if existing minimum family Pension of Rs 3500/ is multiplied by 2.57
fitment benefit, it comes to Rs 8995/PM BPS request that the matter be
looked into to ensure that minimum pension & family Pension remains
the same.
3. Parity in Pension between pre & post seventh CPC retirees (10.1.53):
The pension formulation under Para 10.1.67(i) option 1 recommended by
the Commission is that all past pensioners shall first be fixed in the
Pay Matrix being recommended by it, 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 had
earned in the corresponding pay scale from which he had retired, at the
rate of 3 per cent. Fifty per cent of the amount thus obtained would be
the revised pension.
It would be seen that the Commission has recommended fixation of the
revised pension of the past pensioners (without rectifying anomalies of
6th CPC), on the basis of the pay scale, after 31-12-2005/ Pay Band and
Grade Pay from which they had retired and not on the basis of the
revised pay of the post from which they had retired. The concept of full
parity implies that it is the rank or post held by the pensioner which
determines his pension and not the pay scale. In many cases the pay
scales have been up-graded after the retirement of the pensioners as a
result of Pay Commission‟s recommendations or otherwise without any
change in the rank or in the nomenclature of the post held previously by
them. Advantage of these upgraded pay scales was denied to those who
retired earlier to such up gradation creating disparity in Pension.
The formulation proposed by the 7th CPC will not remove the existing
disparity between the pension of the pre 01-01-2006 pensioners and those
retiring after this date. Such a disparity will continue even after the
implementation of the formulation recommended by the 7th CPC for the
fixation of the pension of the past pensioners since their pension will
be fixed on the basis of the pay scale from which they had retired and
the benefit of revised scale upgraded after their retirement will not be
admissible to them.
The principle of full parity implies that the uniform pension should
be paid to all pensioners retiring in the same rank with the same length
of service, irrespective of the date of their retirement. Since the
formulation recommended by the Seventh Pay Commission will not bring
about uniformity in the pension of the past pensioners retiring in the
same rank on different dates, 7th CPC recommendation thus will not
ensure full parity for all civil pensioners.
Another glaring anomaly relating to pensioners in the new Pay Matrix
which the Commission has proposed after dispensing with the existing
system of Pay Bands and Grade Pay introduced on the recommendations of
the Sixth Pay Commission. In the proposed Pay Matrix, in place of the
existing Grade Pay, there are 18 distinct Pay Levels which would
henceforth be status determiner. Each Level lays down the minimum pay,
the annual pay progression of 3 per cent and the maximum pay. It is seen
that the maximum pay in each Level exceeds the minimum pay in the next
higher Level. This is likely to create a situation in which a person
retiring from a higher Level will receive pension less than a person
retiring from a lower Level. A situation may arise where a junior may
draw more pension than a senior in the level above him. In another
situation ( 10.1.71 ). A pensioner of Group “A” retired at last pay
drawn of Rs4,000 on 31 January, 1989 under the IV CPC regime, having
drawn 9 increments in the pay scale of Rs3000-100-3500-125-4500: will
draw a pension of Rs. 44200 (Level 11) where as a promotee officer who
retired from the same scale of pay 0n 31st March 1996 (prior to
implementation of 5th CPC) at the same basic pay i.e. Rs 4000/ will draw
a pension of Rs 34850/- because he could draw only one increment in
level 11 giving rise to huge disparity.
BDPA (INDIA) appeals for the removal of the anomalies discussed above
while taking a decision on the Commission‟s recommendation.
4. Ratio between minimum and maximum: Instead of reducing it is
raised which is against the preamble of the Constitution of Indian
Republic. Issue may be revisited.
5. Raising Percentage of pension, based on sustenance L (10.1.24to27)
Analysis given by CPC is silent on sustenance-this is unjustified
rejection and may be reconsidered.
6. Additional pension at 75 years of age (10.1.28to 30) is denied
only because Defense Ministry did not agree, this is rather absurd. If
Defense Ministry does not want to have it, let them not have it. Why
make others suffer on this account?
7. Medical facilities: (9.5.18 The Commission‟s recommendations
regarding merging of all postal dispensaries with CGHS dispensaries and
inclusion of non CGHS covered postal Pensioners are welcome.
However, its recommendations regarding Health insurance for
pensioners do not suit existing pensioners on account of no coverage of
existing disease without lock-in period, no provision of OPD facility,
payment of premium and less amount of coverage.
BDPA (INDIA), wish to draw your kind attention to Para 9.5.18 (iii)
of the 7th CPC and request you to create without delay a combined entity
of CGHS, ECHS-RELHS which in terms of 7th CPC would result in a very
strong network of health facilities for the Central Government
employees/Pensioners across the length and breadth of the country.
8, Fixed Medical Allowance (FMA) (8.1.51): It is granted to
pensioners for meeting expenditure on day to day medical expenses that
do not require hospitalization. Keeping in view the high cost of
medicines & ever rising consultation fee of Doctors BDPA (INDIA)
urge that the issue be revisited to reconsider the demand for raising
FMA to Rs 2000/ PM.
With warm regards
Yours sincerely,
(D.D. MISTRY)General Secretary,
BDPA (INDIA)
To: Shri S.K.Makkar, Under Secretary, GOI Ministry Of Personnel, PG
& Pensions-DOP & PW 3rd floor, Loknayak Bhawan, Khan Market. New
Delhi-11014
Copy to:- Ms Vandana Sharma, Joint Secretary. DOP & PW, New Delhi
for necessary action at her level please. (D.D. MISTRY) General
Secretary, BDPA (INDIA)
Source:
http://www.bdpa.in/