7CPC - 40 % increase in salaries !

7th Pay Commission may raise salaries of Central Government Employees up to 40% :

Credit Suisse’s Interview in NDTV indicates increase in consumption which could act as a stimulant for Economy.

The 7th Pay Commission is likely to raise the salaries of government employees by up to 40 per cent, said Neelkanth Mishra, India equity strategist of Credit Suisse. The Pay Commission will submit its recommendations in October and it will be implemented by next year.

“As the Pay Commission numbers come through there could be a 30-40 per cent increase for each  individual. It won’t be as big as last time because it was driven by a lot of arrears but definitely a large number of government employees will come into the pay bracket which can afford to have, for example,  four-wheelers,” he said in an interview with NDTV.

Credit Suisse says about one-third of India’s middle class is employed by the government and as the 7th Pay Commission comes through, there will be an improvement in discretionary spending.

“In Tier 3, Tier 4 towns where government employees are 50-60 per cent of the middle class, it is very likely that real estate markets will take off again,” Mr Mishra said.

Once the Pay Commission submits its recommendations in October, it will take 3-6 months for the Centre and the states to announce its implementation, Credit Suisse said.

Gujarat and Madhya Pradesh have already indicated that they are going to implement the 7th Pay Commission recommendations from January 1, 2016, he said.

As clarity emerges on the 7th Pay Commission, consumption will see an uptick and that could act as a stimulus to the economy, the brokerage said.

However, Mr Mishra struck a note of caution. “Clearly if you see a third or 35 per cent of your middle class getting a 40 per cent or 30 per cent jump in compensation in one shot, the fears of inflation will rise.” Expectations of rate cuts can get pushed out and some possible fiscal pressures canemerge, he warned.

{ from gConnect.in and sourced from NDTV }

Pre-2006 Pensioners - Re-revision - Modified Parity

DPPW -  OM dated 28 January 2013 - revision of Pension for Pre-2006 pensioners , effective from 24-9-2012 (and not wef 1-1-2006). 
DPPW - OM dated 30 July, 2015 - Revises the effective date to 1-1-2006.

Pre-2006 Pensioners to get revised Pension from 1st January 2006 instead of 24.09.2012- Orders issued by Department of Pension and Pensioners’ welfare.

Following Hon’ble Supreme Court’s Decision, Department of Pension orders for Revision Pension of Pre-2006 Pensioners from 01.01.2006 as per revised concordance Table in OM dated 28.01.2013.  Consequently, Pre-2006 Pensioners will get revised Pension from 1st January 2006 instead of 24.09.2012.

This is the order for which Pre-2006 Pensioners were battling since 2008. On implementation of 6th PayCommission report, Pension of Pre-2006 Pensioners was revised as per Office Memorandum F.No.38/37/08-P&PW(A) 01.09.2008 and F.No.38/37/08-P&PW(A).Pt.1 dated 03.10.2008. As per Concordance Table in these OMs many Pre-revised pay Scales were bunched and fitted into a single 6th CPC Pay Band and pension all Pensioners retired in these pre-revised pay scales were fixed in the minimum of revised 6th CPC Pay band, which caused huge anomaly in Pension of Pre-2006 Pensioners. For instance Pre-revised Pay Scale S-9 (5000-8000) to S-15 (8000-13500) were fitted in to PB-2 (9300-34800). So, a Pensioner who retired at the highest level in S-15 received same pension fixed for a Pensioner whose last drawn pay was at the minimum of pre-revised pay scale S-9.

Many of the pensioners filed case against these OMs before Administrative Tribunal and were granted favourable orders. However, Department filed appeals before Hon’ble High Courts.

A thread relating to this issue started in 07.10.2008 by Senior Member of GConnect discussion boardMr.V.Natarajan which has more than 1500 replies and 2.40 lakh views as on date, would reveal entire facts of legal recourse right from Central Administrative Tribunal to Apex Court.

This is the link of the related GConnect discussion Board thread on this issue:

(http://www.gconnect.in/forums/showthread.php?213-Injustice-to-pre-2006-pensioners-in-old-s-29-amp-30-scales(18400-22400-amp-22400-24500)

While Pre-2006 Pensioners got favourable Verdict in all Forums, Department filed appeals in the next higher forums which got dismissed subsequently.

At last Govt issued Office Memorandum No.38/37/08-P&PW(A) dated 28.1.2013, in which Pension of Pre-2006 Pensioners was revised with effect from 24.09.2012 as per revised concordance table annexed in OM dated 28.01.2013 which was based on fitment table used for Central Government Empolyees in Office Memorandum No. 1/1/2008-IC dated 30.08.2008.

However, the demand of pre-2006 pensioners that they are entitled to revision of Pension as per revisedconcordance table with effect from 1st January 2006 since 6th CPC was implemented from the said date was not fulfilled in the said order. Hence, Pre-2006 Pensioners persisted with legal recourse which was finally decided in favour of Pensioners by Hon’ble Supreme Court by providing 4 months time for implementation of CAT’s decision for all Pre-2006 Pensioners with effect from 1st January 2006.

Now, in compliance of Apex Court’s decision, Department of Pension and Pensioners’ welfare has issued OM dated 30.07.2015 for revision of Pension of Pre-2006 Pensioners as per revised concordance table annexed to OM dated 28.01.2013, with effect from 01.01.2006.

The full text of Office Memorandum No.38/37/08-P&PW(A) dated 30.07.2015 is as follows

No.38/37/08-P&PW(A)

Government of India

Ministry of Personnel, PG & Pensions

Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan

Khan Market, New Delhi

Dated the 30th July, 2015

Office Memorandum

Sub:- Revision of pension of pre-2006 pensioners – reg.

The undersigned is directed to say that as per Para 4.2 of this Department’s OM of even number dated 1.9.2008 relating to revision of pension of pre-2006 pensioners w.e.f. 1.1.2006, the revised pension w.e.f. 1.1.2006, in no case, shall be lower than 50% of the sum of the minimum of pay in the pay band and the grade pay thereon corresponding to the prerevised pay scale from which the pensioner had retired. A clarification was issued vide DoP&PW OM of even number dated 3.10.2008 that the pension calculated at 50% of the minimum of pay in the pay band plus grade pay would becalculated at the minimum of the pay in the pay band (irrespective of the pre-revised scale of pay) plus the grade pay corresponding to the pre-revised pay scale.

2. Several petitions were filed in Central Administrative Tribunal, Principal Bench, New Delhi inter alia claiming that the revised pension of the pre-2006 pensioners should not be less than 50% of the minimum of the pay band + grade pay, corresponding to the pre-revised pay scale from which pensioner had retired, as arrived at with reference to the fitment tables annexed to Ministry of Finance, Department of Expenditure OM No.l/1/2008-IC dated 30th August, 2008. Hon’ble CAT, Principal Bench, New Delhi vide its common order dated 1.11.201lin OA No.655/2010 and three other connected OAs directed to re-fix the pension of all pre-2006 retirees w.e.f. 1.1.2006 based on the Resolution dated 29.8.2008 of the Department of Pension & Pensioners’ Welfare and in the light of the observations of Hon’ble CAT in that order.

3. The above order was challenged by the Government by filing Writ Petition No.1535/2012 in respect of OA No. 655/2010 and WP No.2348-50/12 in respect of the three other connected OAs in the High Court of Delhi. The Hon’ble High Court in Its common Order dated 29.4.2013 noted that the DoP&PW had, in the meanwhile, issued an OM No.38/37/08-P&PW (A) dated 28.1.2013 which provided for stepping up of pension of pre2006 pensioners w.e.f. 24.9.2012 to 50% of the minimum of pay in the pay band and grade pay corresponding to pre-revised pay scale from which the pensioner had retired. Hon’ble High Court observed that the only issue which survived was, with reference to Paragraph 9 of OM dated 28.1.2013 which makes it applicable w.e.f. 24.9.2012 instead of 1.1.2006. Hon’ble High Court of Delhi dismissed the Writ Petition No.1535/20 12 along with three other Writ Petitions vide its order dated 29.4.2013. Special Leave Petitions (No.23055/2013 and No.36148-50/2013) filed against the said order dated 29/412013 of the Hon’ble Delhi High Court have also been dismissed by the Hon’ble Supreme Court.

4. Accordingly, in compliance with the above judicial pronouncements, it has been decided that the pension/family pension of all pre-2006 pensioners/family pensioners may be revised in accordance with this Department’s OM No.38/37/08-P&PW(A) dated 28.1.2013 with effect from 1.1.2006 instead of24.9.2012. Further, this benefit has already been granted to the Applicants in OA No. 655/2010 vide OM of even No. dated 26/08/2014 read with OM dated 19/09/2015 following dismissal of SLP (C) No.23055/2013 by the Hon’ble Supreme Court.

5. In case the consolidated pension/family pension calculated as per para 4.1 of O.M. No.38/37/08-P&PW (A) dated 1.9.2008 is higher than the pension/family pension calculated in the manner indicated in the O.M. dated 28.1.2013, the same (higher consolidated pension/family pension) will continue to be treated as basic pension/family pension.

6. All other conditions-as given in OM No. 38/37/08-P&PW (A) dated 1.9.2008, as amended from time to time shall remain unchanged.

7. Ministry of Agriculture, etc. are requested to bring the contents of these orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and subordinate Offices under them on a top priority basis. All pension disbursing offices are also advised to prominently display these orders on their notice boards for the benefit of pensioners.

8. This issues with the approval of Ministry of Finance ID Note No. 1(9)/EV/2011Vol.1I dated 24.7.2015.

9. Hindi version will follow.

(Harjit Singh)

Deputy Secretary to the Government of India

{  Taken from gconnect.in )

APJ : Not just a Missile man

Dr. APJ Abdul Kalam

Someone sent me two short videos on Dr.APJ. I have given them below , for your view.

Our great Kalaam sir

ISROfef  have  No words .  Let's all pray for our "Kalaam sir" . 

May his sacred soul rest in peace.

Abdul Kalam, father of India's missile programme, dies at 84

OROP and Anna Hazare

And finally, Sri.Anna Hazare is on the dias. What Annaji can do is a big question. He says he will hold rallies !  But I am sure of one thing. This mole cannot move the mountain !

(news item from THE HINDU )

It's better if you downsize your hopes !

Today's reports on "Minimum Wages" demand by the Labour Unions is quite disappointing, not only for our Labour forces but also for the Government employees and pensioners.
Please read the report below taken from "TheHindu".

May be, our National economy now doesn't permit to raise the minimum wages for the labour. Or, is it anything to do with politics, or with the "Rulers' attitude" ? I am not sure. But I can clearly read the message. The message related to our Pensions !

7CPC is not going to increase the salaries or pensions.  At most, they are likely to merge the DA with Basic pension (salary) and thats all !  They are also likely to rework on the half-yearly DA increases. (read.... don't expect  annual  average 12% DA increase as of now...)

The message also says, not to hope for anything like "Full Parity" and the like.  The new manthra will be "No parity, Never parity".

Are all these messages loud and clear ??

Serious thoughts put to 7CPC

7th Pay Commission must rationalise India’s obese and unwieldy bureaucracy – Times of India article

The four-member Seventh Central Pay Commission, led by former Supreme Court Justice Ashok Kumar Mathur, will soon come up with its recommendations to determine a salary structure for central government employees. As always, the salary structure is supposed to be linked to “the need to attract the most suitable talent to government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system”.

Salaries in government must perforce be benchmarked to the income of the general population as also those of private sector employees. According to a World Bank survey, the average salary of a government employee in the UK during 1995-2000 was £19,000 per year – 1.4 times the average income of British citizens. This ratio was 1.0 in Indonesia, 1.2 in China, 1.4 in the US, 1.5 in South Korea and so on. The average annual income of government employees in India on the other hand was as much as 4.8 times the average income of the Indian citizen.

A disproportionately liberal remuneration package in comparison with the private sector generates an unhealthy clamour for government jobs and distorts the labour market. The bureaucracy also enjoys a plethora of perks such as residential bungalows, cars, a retinue of personal staff and so on, all of which put additional burden on the state exchequer.

An obese and unwieldy bureaucracy is the single most pernicious malady afflicting governance. Itclogs the channels of communication, leads to delays, diffusion of responsibility, and spiralling costs. Foreign investors find it harrowing to do business in India on account of what Arun Shourie calls multiple silos in which ministries function, thereby creating a sclerotic system.

Thanks to regular cadre restructures and inter-service competition, the bureaucracy has seen a steady expansion. In 1947 the number of secretariat departments at the Centre was 18. Today, the number of Secretary level officials is over 150. There are as many Additional Secretaries or equivalent, not to speak of a battalion of Joint Secretaries. The authorised IAS cadre strength now exceeds 6,150 – up from 1,230 in 1951.

In the corporate world slimming a workforce by a tenth of its size is standard practice. Why shouldn’t governments do it too if needed? Sweden and Canada have done it and yet managed to retain effective public services. In 1993 then US President Bill Clinton had laid out a blueprint aiming at reducing the federal work force by 2,52,000, designed to bring about a savings of $108 billion over a five-year period.

Recommendations of the Fifth Central Pay Commission (CPC-V) had included a 30% reduction in government jobs over a period of 10 years; reduction of the number of Secretary level posts from 90 to 30; abolishing 3,50,000 vacant posts; pruning the current five to six administrative layers to not more than two; functional multi-tasking and so on. But these recommendations got a quiet burial.

The Indian state today has a lopsided staff structure. Ninety-five per cent of its employees belong to categories ‘C’ and ‘D’. In most states, almost three-fourths of all government employees are parasitical support staff such as peons, chowkidars, drivers and clerks. Nothing has really happened on CPC-VI’s recommendation to phase out Group ‘D’ staff, most of whom are unskilled and sometimes even illiterate.

Government today needs more specialists, fewer generalists. Several senior positions can be better filled by short-term contracts, enabling lateral entry of technocrats, professionals and entrepreneurs to supplement and strengthen a system dominated by the general elite.

Pay panels impose no small burden on the country’s finances. The central fiscal deficit under the impact of CPC-VI jumped from 2.5% in 2007-08 to 6.5% in 2009-10. Post-CPC-V, the annual wage bill of central government employees rose from Rs 21,885 crore in 1996-97 to Rs 43,568 crore in 1999-2000. Likewise, state governments’ expenditure on salaries increased from Rs 51,548 crore to Rs 89,813 crore during the same period, compelling 13 states to seek central help to pay staff salaries.

Again, post CPC-VI, and between 2007-08 and 2013-14, the annual wage bill of central employees more than doubled to Rs 1,15,000 crore. The wage bill of government staff in the states jumped to Rs 2,86,000 crore from Rs 1,36,000 crore. A World Bank study revealed that “employees have effectively captured control over state spending in health and education, and diverted most of it to themselves through salaries, with negative consequences for service delivery”.

While the aam admi – the peasant, the stone breaker, the daily wage earner, the rural landless, the urban slum dweller – toils, these entitled babus take their place in government for granted. No hearts should bleed for privileged government employees battening on their inflation-indexed dearness allowance installments.

Is the Seventh Central Pay Commission listening?

The writer is former Managing Director, Container Corporation of India

This article is from gConnect  << Click here to go to gConnect

No OROP for paramilitary forces

Government on Tuesday said it is not formulating any policy for implementing ‘One Rank One Pension Scheme’ for paramilitary forces.

The principle of OROP for the armed forces has been accepted by the government, Minister of State for Defence Rao Inderjit Singh said in a written reply in Rajya Sabha.

He added that the modalities for implementation were discussed with various stakeholders and are presently under consideration of the government.

It will be implemented once the modalities are approved by the government, he said.

On a question whether the government is formulating any policy for implementing this scheme for paramilitary forces also, he said, “No”.

The reply comes in the backdrop of the ongoing agitation by the ex-servicemen community seeking implementation of the long-pending OROP.

A section of the paramilitary forces’ personnel have also started demanding OROP.

Condolences

Our  colleague Arjunan V, formerly with Admn/LPSC is no more. He expired on 15 th July.  ISROfef  records its deepest condolences to his family.


His address :

Revathi, CVRA-115, Venchavodu,

Sreekariyam-PO,  Thiruvananthapuram-695 017

Senior getting less than Junior ?

It seems there are many cases of a Senior man (at a higher grade) getting more pension than a junior (lower grade).  One such case, from Patna, is reported in the latest issue of  Pensioners Link.  Given below is the excerpts of the Court Order , for rectification of this anomaly. 

The following statement in the Court ruling is very important . It reads :

The principle of law , as decided by the Hon'able Apex Court , is plain and simple ;  that a senior officer cannot get pension less than his junior. If that be, the effect of pay fixation than the pension would have to be stepped up to avoid such hostile discrimination.

This information may be useful for ISRO retirees  facing such issue .

Patna Court ruling  << click here for the Court Judgement

Kerala State Pay Commission - The media barks

As you may know, Kerala State Pay Commission has presented its report and recommendations last day. It is a pay revision after 5 years, and now offers about (not less than) 12 % increase in the net salary. That's not too bad.

The most interesting to note is the response of the Media. They, without understanding what is what ,  report that the salaries are doubled ! They kept on barking the whole day that Govt employees are draining off the exchequer.

OROP for Judges

These are two sides of the same coin !

Side 1 :  A special Bill is being presented to award OROP to HighCourt Judges.

Side  2 :    Ex Service men continue to be on an agitation ( dharna and hunger strike).  Next week, a Nation-wide hunger strike will commence. 

Yet, there's no light at the other end !

OROP - an opportunity for politicians

The latest is that Marxist Party leader Mr. Seetharam Yechuri  is batting for ( read :  capitalising )  OROP.    But, whoever bats, OROP should happen immediately !

Heaviest payload

Best wishes on the occassion of the "heaviest payload" launch .

State Pay Commission to imitate Central

Kerala State Expenditure Review Committee just made a few recommendations. But alas, it's just  opposite to the Central employees suggestions to 7CPC.

Kerala wants Pay Commission in every 10 years (as in Centre now), against the present 5 years in the State.   Central employees suggests pay revision every 5 years (against 10 years now ).

There are many more such recommendations. What's wrong with this Committee ?

Making it every 10 years is not going to reduce the fiscal shocks. Infact, making it every 5 years (or even less !) would smoothen the fiscal loads. That would make it more realistic and less shocking to the exchequer.

Good news ?

CHSS - Specialists

The new and revised list of Specialist Doctors under CHSS is now available. Please click below to read/download the list.

Specialists - Revised List from VSSC

Pensioners ? Who cares ?

ExService men are on   a  relay hunger strike on the issue of OROP implementation.  It's the 22nd day  today.  But who cares !
They are attempting to meet Mr.Parrikar this week. He may give an appointment. The ExServicemen leader says " We are hoping to meet the Minister, whenever he gives us time ... and we are hopeful of a positive outcome".

The moral of the story is :   No one cares for the Pensioners !

The only hope left is that the present Employees and Soldiers ( realising that they will become pensioners a day in the future) may raise a voice. That voice, if sufficiently loud, would be heard by Parrikars and Modis !

Let's hope the best ! 

Please also read this News    <<< Click here

If you don't get your pension ?

What's your connection with Greece ?  May be , most of you , I am sure, would relate it  now with your pension. Infact, I wanted to remind you of the "Economic issues and Pension worries of Greece" much earlier. But my worries made me not to write on that. But today, I must bring your notice on to this,  Just because this is an eye opener for all "Pensioners" of the world.

Remember, Greece is a developed country, a member of the European Union. They ran into an economic crisis, "Pension payments" being one of the prime reasons !!   Today, the pensioners in Greece are not paid their pensions. The Senior Citizens are in real problem, The problem of survival !!

Also remember, we are a developing country , with lot many economic issues (though experts say we are growing and developing). But Pension payments are not an issue for our economic woes . Here again, our Politicians and some Bureaucrats are trying to magnify it . The problems are but elsewhere.

Did you at any moment of time, think about this?  Probably not ! Because, the pension - a decent sum - reaches our bank accounts every 29th or 30th of the month. Rest is all simple! Use the ATM card to draw money as you like. Thank God, our system gives us this fortune.  We must  also be aware that a good amount of money (as its percentage) is being given to all of us from the National exchequer.

Why I tell you all this today ?  See the photograph appeared in the newspaper (TheHindu) . The foot note and title tells you all.   I am sad,  and  I am scared !!  I don't dare to think further on my pension.

100 % Pension hike for you !

Our MPs have decided themselves to hike their salaries and pension by double. That's very good. Afterall, they make the rules and laws for all of us. So, they have the right to make it for themselves too.  But, can I, a Central pensioner,  hope for a 100 % increase in my net pension now (from 7CPC) ?

No way !  You dream anything. And that will remain a dream for ever !  At most, expect a 10 % increase in your net pensions. Rest all will be a game of complex numbers and formulae. And that's certain to  put all of us in utter confusion !

(The Hindu)

Natarajan S, RPP

Natarajan S, formerly with RPP, VSSC is no more.

ISROfef  is saddened to hear this loss.  May his soul rest in peace.