My View on Rationale, logic and facts of updation
I have read Shri Parab's comments on the captioned subject in the Newsletter of date. I have nothing but appreciation and admiration for the efforts put in by Shri Talekar on the subject and also for the in depth knowledge of Shri Parab on the subject especially the detailed calculations. I am still at a loss to know the grounds on which the GOI are not acceding to the request for upgradation of pension. I find it difficult to believe that the GOI would not have adduced any grounds for their refusal to agree to the upgradation. I find it more difficult to believe that the top management of the RBI would keep quiet and would have refrained from demanding and knowing the grounds on which the GOI are finding it difficult to agree to the proposal. I had raised this issue even earlier to the readers of the Newsletter and am disappointed that no one found that the issue raised is deserving of any reply. Certainly, the argument of the GOI could not have been merely that if the demand of RBI is conceded, it would invite similar demand from the entire banking sector and the LIC as this is not only irrelevant but also irresponsible and hence deserves to be rejected with all the contempt it deserves. Hence, I would like to be enlightened on the subject by any one of the large number of avid readers of Mangesh's Newsletter. Even Dr Subbarao, our respected former Governor, who has been a regular reader of the News Letter, should not have any objection in sharing with us what could be shared subject to the limitations, if any, of the Official Secrets Act.
Is it possible that because RBI had,over a period of time, reckoned more and more allowances as counting for superannuation benefits ( I am not sure whether the substantial "Central Banking Allowance" which was granted some time ago does also count for superannuation benefits which could possibly create more problems for the issue of Upgradation of pension), GOI are finding it difficult to convey its concurrence ? I have raised this issue since another reason for the objection of the GOI to agree to upgradation, viz that it requires an amendment to the RBI Pension Regulations, has been taken care of (to the best of my knowledge) by the Bank forwarding to GOI an amendment after securing the approval of the Committee of the Central Board. If the problem is as suspected by me, the Bank should be prepared to rectify the situation and meet the objection of the GOI in the larger interest of the resolution of the issue.
Finally, I am deeply conscious of the fact that my knowledge on the subject is not deep and comprehensive and I may be excused if I have gone wrong. I would like to be enlightened on the subject.
A.Chandramouliswaran
6 comments:
The issues raised here are those concerning the entire RBI family including serving and retired RBI employees and family pensioners. On different occasions and in different contexts, I have also tried to elicit this information from serving and retired employees of RBI without success. My appeal to VITLINFO readers to share information relating to evolution of pension in RBI, which they consider, can be used for research/publication(my appeal regarding RBI Pension History). I didn’t get any encouraging response. Still, if no clarity emerges within a reasonable time(considered reasonable by me), I will share my thoughts through media. Copied below is an excerpt from my email addressed to individual/s, who, I consider, must have the information sought by Shri Chandramouliswaran:
“The first casualty of lack of transparent communication is truth. It cannot be different, even if the institution is as big as RBI and the Governor is a person of impeccable integrity.
Dr Subbarao’s efforts to resolve the long pending issue of pension revision got stifled by a hostile finance ministry. Hostility of a ministry should not be allowed to cause hurdles in the management of HR beyond an acceptable level of tolerance.
I am not privy to the goings on in regard to pension revision at this point of time.
But, based on ‘rumors’, I want to share my information on a couple of points relating to pension revision.
There is a belief that lower level officials in finance ministry are being used to pressurize RBI to agree with the line of thinking in the ministry using pension revision as a bait. One such issue is notification of RBI(Staff) Regulations, 1948.
I am copying below excerpts from a note recorded by me on related issues sometime back.”(not copied here)
M G Warrier, Thiruvananthapuram
mgwarrier@gmail.com
As per the recommendations of the 6th CPC, the GOI employees
get “Grade Pay” at the minimum of Rs.1300/- to the maximum
of Rs.12000/- (Scale-1 : Class IV to Scale-32 :Class I).The Grade
Pay is eligible for pension, superannuation benefit.
It is Central Banking Allowance, rechristened as Grade allowance
(Maximum Rs.10000/-) in the RBI which is also counted for all
superannuation benefits, pension, gratuity, etc.
Incidentally, the GOI pensioners on reaching 80, 85, 90, 95 and
100 (centurions) do get additional 20%, 30%, 40%, 50% and 100%
respectively of their basic pension and also the dearness relief
on the additional pension(now,90% from July to December 2013).
Submitted , in brief, for general information please.
R.G.Nakhate
It is gathered from different sources that all High courts and the Supreme Court have given judgements in favour of LIC etc. pensioners for periodic updating of their pension on stage to stage basis along with revision of pay scales of serving employees.But, GOI(MOF) is dilly-dallying asking for adjournments,going in appeals etc.
A letter published in the Free Press Journal dated 05-10-2013, which speaks about the position of updation of GOI pensioners is reproduced below for information.
Unrectified Pension Anomaly
There is an issue related to government pensioners that remains unresolved for over a decade: government pensioners not getting One Rank One Pension( OROP) based on length of qualifying service etc. This is a reasonable demand, as majority of the pre-2006 pensioners are living in low dignity compared to post-2006 pensioners in the midst of similar conditions of spiralling prices and skyrocketing inflation.
Pre- 2006 pensioners have been granted pension as per the fitment formula – not less than 50% of the revised ( 2006) minimum pay and grade pay relevant to the scale of pay that the employee has retired (family pensioners- 30 percent) . To mention by way of a single illustration : a pensioner who retired between Jan 1 , 1996 and December 31,2005 at the maximum of the scale corresponding to the 2006 scale of PB4: Rs 37000 to Rs 67000 plus grade pay of Rs 10000 is assured of Rs 27350 in pension and a family pension of Rs. 16410 as per fitment, as against Rs 38,500 and Rs 23,100 respectively drawn by a post 2006 retiree at the end scale- at maximum.
This kind of discrimination amongst retirees is neither just nor equitable. Such anomalies should be addressed at the very earliest.
R.G.Nakhate
A write up posted in VITALINFO on 28-06-2013 is appended for kind information, may be at the cost of repetition.
B.W.Betsur& R.G.Nakhate
Updating of pension-Govt. of India/ Reserve Bank of India
As per recommendations of Vth central pay commission, the pension of pre and post 01-01-1996 pensioners/family pensioners was updated by GOI, New Delhi . Pension/ family pension was fixed at 50% and 30 % respectively of the last ten months average pay and on certain fitment norms in the revised Vth CPC pay scales relevant for the post held by the pensioner at the time of retirement/death. Dearness allowance/ relief was granted with 100% neutralisation from 01-01-1996. All the the pensioners and family pensioners got arrears from 01-01-1996.
All Pensioners and family pensioners who were alive on 01.01.1996 and died subsequently, his / her legal heirs were eligible to apply for/got arrears retrospectively from 01.01.1996 to till the date of death of pensioner/ family pensioner.
VI th CPC recommendations and implementation by GOI were 'bonanza' for both serving and retired employees of central government. All pensioners, including family pensioners received arrears from 01-01-2006. Those 80, 85, 90, 95. and 100 years old got/get 20, 30, 40, 50, and 100 per cent more in basic and admissible dearness relief.
The pay scales of serving employees of R.B.I. have also been revised substantially w.e.f. 01-11-2002 and 01-11-2007. The revision of pay scales effective from 01-11-2002 and 01-11-2007 restricts revision of pension to those retired on or after those dates. Updating of pension in RBI should be from the date of revision of scales of serving employees as is the position obtaining with GOI pensioners.
Family pensioners in RBI started getting family pension at 30% of ‘refixed’ basic pay of the late employee/ pensioner from the date of GOI Gazzette notification viz.12-01-2013. The family pension in RBI should be from the date of demise of employee /pensioner as the practice/position with GOI.
Pension revisions in the RBI and banking sector in general should not be at the mercy of the Government of India for the civil service personnel do not want either pensions or scales of pay more than theirs and they would like to sit in judgment over institutions that have ability to respond to rational demands of pensioners. Can you imagine top executives of the SBI get their basic pension at as low as INR4250 per month and with even the currently applicable DA would be less than what an auto driver earns per month with just eight hours duty at the wheel? We should seek dissociation of the Ministry of Finance over wage and pension settlements in the Banking sector in general and RBI in particular. In case of the RBI it shall be unto itself. In case of the rest of the public sector banks, the IBA should negotiate for better deal.
The top executives scale of pension referred by me relate to those pensioners who retired prior to 1994.
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