My View on "'Pay revision' and 'Pension updation' two sides of...":
Shri A. Chandramouliswaran Sir would like some clarification- whether pay and pension revision should be in 'consonance' with GOI, once in 10 years.Otherwise, it would not be possible to ensure that all pensioners who have retired in the same grade but at different points of time, draw the same quantum of pension. I try to clarify /submit to the best of my knowledge. A letter published in the FPJ dated 05-10-2013 (reproduced) reflects the present/actual -pension drawn - position of -Civil-pensioners retired at different points of time.{ Defence pensioners are getting / going to get-once the formalities are complete effective from this month of April, 2014, OROP-same rank same pension depending on length of service in the same grade/rank etc} Unrectified pension anomaly-GOI 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 spiraling 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. Kindly see below -added to the above letter in order to make the point clearer. 5th CPC revision in GOI :The fixation of pension was subject to the ' provision, in no case, shall be lower than 50% of the revised 1996 pay relevant to the scale of pay that the employee had retired. IF THE ABOVE MENTIONED PROVISO -NOT LESS THAN 50%..granted to old pensioners was not in the fitment formula :
(A)The basic pension of Shri K. Ganesh, my neighbour, a pensioner retired in 1988 at the maximum in the 4th CPC scale-01-01-1986 (S-29 scale : the same relevant 2006 quoted in the letter : Rs.5900--Rs.7300) would have been Rs.7300/2=Rs.3650. He got pension revision as per 5th CPC(1996) and subsequently, in 2008, he got pension revision as per 6th CPC(2006). HIS revised basic pension is Rs.27350/- .He is not 'rotting' at the basic pension of Rs.3650/- (Although the basic pension of 'old' 1997, Nov. pay scales- RBI retirees and 2002, Nov. pay scales -RBI retirees is remaining unchanged/not revised but not 'rotting' as they get 228.96% and 144.54% dearness relief respectively and those retired in 2007, Nov. pay scales get 99.90% DR.
(B)Shri M.P.Kulkarni retired in 1998 at the maximum in the 5th CPC-01-01-1996 (the same S-29 scale)---Rs.18400-Rs22400. His basic has been revised to Rs.27350/-.
A note posted in VITALINFO-'OROP@2007: Loud but logical' may be seen.
- R.G.Nakhate
If it is really so than Association/Unions should drop demand of pension updation.
1. Wage revision once is 5 years is always better compare to once in 10 years that too depends on the mercy of Govt.
2.Pension updation in Govt. Of India is not statutory in nature and a result of a executive order(notification), What if govt. stops updating the pension for its employees in future.
3. As on date some sizable allowances qualify for DA in Bank , what if these are excluded from the definition of Pay.It will result in reduction in salary of existing employees.
4. In commercial banks only non optees paid the price of option i.e. refund of employers share with interest and some extra money as trade off. Why should all employees pay the price for few non optees.
5. There may be a immediate decrease in pension amount if some allowances are left out.How wise will it be to take less pension today to get some benefit after 10 years.
6. Will it be possible to convince existing retirees to opt for a lesser pension in lieu of updation and present employees to give away their benefits which is going to affect their payments of loan EMI's, expenses of education of children etc.
7. Those joined bank after January 2012 has nothing to do with both option and updation. Why they should sacrifice their present pay and perqs for others?
This issue reached a stage where it will lead to loss to present employees to benefit retirees. It is best in the interest of all to drop this demand immediately and concentrate on revision of pay and perqs which are already due from November 2012.
- Anonymous
2 comments:
To address the genuine doubts (lingering in the minds a few or many), to put the facts precisely and in short :
(A) It is possible to ensure that all the pensioners who retire in the same grade with same length of service but at different points of time draw the same amount of pension only when the dream of same rank same pension / one rank one pension-OROP- is realised, comes true- possible only in the 'regime' of OROP.The revision of pay and pension could be once in five years and ten years respectively.
(B) RBI Pension Regulations, 1990 apply to the employees who joined the Bank on or after 01-11-1990 and those in service as on 01-11-1990 and opted for pension. A very small number of pensioners who did not opt for pension - instead preferred the Bank's contribution to PF - may exercise if allowed to opt for pension.
The employees appointed in the Bank on or after 01-01-2012 are governed by another -pension scheme-the Defined Contribution Pension Scheme.
The (burning) issue of the updating of pension pertains to, relates to and a matter of concern only to those governed by the 1990 Pension Scheme.
(C) There is no need to 'do away with' PA, FPA, CAIIB etc. allowances, (Pay-as defined in the RBI (Staff) Regulations, 1948..) which qualify for DA/DR and family , local allowances etc.The RBI management, by and large, ensures 'external relativity'-including the relatively comparative pay scales ( among their 34 scales-main) of GOI while finalising the pay scales of its employees.
For example : Joint Secretary's (S-29) pay scale was 18400 ---22400 in GOI as per 01-01-1996 pay scales ; General Manager's (Grade -E) pay scale was 17275---21200 (22150 including PSSP, PA, FPA eligible for pension) in RBI as per 01-11-1997 pay scales. All inclusive, PA, FPA etc. eligible for DA, family , local allowances, the RBI- GM's total at the maximum works out to more at 23120 appxly. compared to GOI-Jt.Sec.'s- 22400 at the maximum. BUT, RBI- GM got DA on tapering basis while ' his counter part ' GOI -Jt. Sec.got DA with 100% neutralisation.
(D)GOI have introduced Pay Bands-PB-1 to PB-4 in 2006 pay revision. An officer in Gr. A in RBI gets 22530 appxly. all -PA,FPA,Grade Allowance, FA. LA ..all inclusive plus DA at the minimum and 45500 appxly -all inclusive-also inclusiveof the stagnation increments -at the maximum plus DA. His 'counter part.... (cannot be exact because-there are 9 scales inclding -Group A-Entry scale in Pay Band -3)... in PB-3 viz.15600-39000 plus grade pay of 5400 (minimum grade pay in PB-3) /6600/7600 (maximum grade pay in PB-3) gets 21000/22200/23200 at the start/minimum and 44500/45700/46700 at the end/maximum.
(E) It suffices , if say, the above examples do apply 85%-95% to other grades, other categories of staff.
(F) O&AE
Anonymous II
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1. A very interesting situation has arisen in RBI Pension updation field. Pension in RBI came into force w.e.f.01 November 1990 under RBI Pension regulation, 1990. This RBI Pension Regulation is being replaced for new entrants and shall cease to be from 1 January 2012 for NPS. That means the present pension regulations will be implementable to employees who worked in RBI during these 22 years. As the New pension Scheme (NPS) is started in RBI from 01 January 2012 on wards.I do not know whether the RBI Pension Regulation, 1990 Chapter 1. Reg. 1. (2) has been amended by the Bank for it's discontinuing to new entrants.Or, a new RBI Pension Regulation has been incorporated with parliament approval for new entrants w.e.f. 01 January 2012, the RBI Legal department will be the best to know this.
2. As far as the existing Pensioners under RBI Pension Regulations, 1990; one thing is clear that" Neither the pension can be reduced nor withdrawn by any Government Order without a judicial pronouncement." So, the Pension and DR received is assured for the entire future of the Pensioner. As regards Updation, the Bank to consider how best it can pay pension to the all equally at the same length and scale of pay with out making a different category among the pensioners against the law explained by Hon. Supreme Court in their various judgments chiefly Nakara Case.
3. Therefore, Bank is required to Pay Pension to an equal amount to Pensioners on each pay revisions at the same level ensuring no junior gets more pension at any point of time during the currency of RBI Pension Regulation, 1990 and that is called - - - Pension Updation.
4. It can be very easily be paid either merging all the superannuation elements in Basic Pay or the Grade Pay. Since, RBI Scales and positions are on different pattern, the Grade pay may be considered an additional allowance as paid with salary in Private Sector as a separate nomenclature.
This solution will solve RBI Pension Updation issues without any problem. United Forum may consider it as one of their avenue along with other alternatives also.
Regards.
Capt. C B Gupta
M - 256
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