Suggestions to 7CPC

A few suggestions to 7CPC, for consideration.

Gratuity

The present system is raising the Gratuity limits every 10 years (with the Central Pay Commission recommendations).

Eg.  5CPC  raised the limit to 3.5 Lakhs  w.e.f. 1-1-1996 and valid upto  31-12-2005 .

        6CPC  raised the limit to 10 Lakhs  w.e.f  1-1-2006 and valid upto 31-12-1015.

A person retired on 31-12-2005 was entitled a Gratuity  of   max. 3.5 Lakhs. A person retired on the next day (  1-1-2006 )  was entitled a Gratuity of max. 10 Lakhs.

This is quite illogical and injustice.

The suggestion is to implement an Annual Incrementing Method.  ie.  To raise the Gratuity limits annually  (and not by decade),  by a suitable incrementing factor.

The incrementing factor may be linked to the Bank Interest Rates and/or Average Annual inflation rates.

House Rent  Allowance

Pensioners are really burdened with the shooting house rent / maintenance costs, eating away a major share of their pension receipts.  It is thus essential that the Pensioners are supported by paying them an allowance to meet the rental/accommodation expenses.

The suggestion here is that  all pensioners be given an HRA, at the same rate as the employees, on their Basic Pension.

Travel Allowance

Pensioners are now compelled to spend large amounts for their travels on pilgrimage or social/ personal interactions. As you would agree, travel costs a lot, eating away a major part of one’s pension receipts. 

Govt of Punjab is granting Travel Allowance to all its Pensioners  by paying one month’s basic pension  for every block of 2 years.   This has been introduced from 1-1-1989, and the payment is made in January, on alternate years.

It is suggested that atleast a month’s pension be additionally paid annually, towards Travel Allowance, to all Pensioners.

Waiver of  Income Tax on Pension

Pensioners in the Income Tax bracket  are charged Income Tax at the same rate as Employees and others (whose income is substantially higher, net of taxes,  than the pensioners).  It would be justice, not to charge the tax on pensioners.

The suggestion and request here is to waive IncomeTax  from pensioners who have only pension as income.

Full Parity for Pre-2006 Pensioners

One Rank One Pension is a declared Policy of the Government (2004). Though this has been recommended for implementation by the Pay Commission, Government has not yet implemented it  for the Central pensioners. However, OROP (Full Patity) has been implemented for the Defense pensioners and some of the top level bureaucrats (secretaries, Judges, ..) in Central service.  This is certainly a denial of justice to the  other  Central pensioners.

Any two pensioners retiring from the same grade, pay, and length of service should get the same pension and other pensionary benefits.  That’s  justice.  This is the true spirit and meaning of Full Parity / OROP.

The request is to implement Full Parity w.e.f. 1-1-2006, for all Central Pensioners.

( More to follow )