Tuesday, September 1, 2015

7CPC - Why delayed ?

Now you are aware that 7CPC report will be available only by end December 2015.  This assumes that there is no further extension for the Committee. Government may , based on forthcoming issues, give additional assignment to the 7CPC for a study and further recommendations. The OROP issue is one such (and already referred to 7CPC)  which may demand more time.  That means, the 7CPC Report is likely to get further delayed.

On submission of the Report,  Govt have to constitute a Ministerial Committee to study and  recommend on its implementation. It is likely to take more  than 6 months for this purpose. That said, the likely announcement of implementation , by Govt, is  beyond July 2016.  This will most probably get further delayed.

Being aware of this problem, many Associations demand  an immediate merger of DA/DR with the Basic pension ( wef  1-1-2014) .  But this has been rejected outright by 7CPC.

Why is the Report being delayed so ?  Govt  wants the implementation of recommendations (and inevitable pay rises) delayed further on. Govt is also adament this time that  pay/pension rises will be effective from the day of  implementation only (and not wef 1-1-2016 ! ). The idea is certainly to push the implementation further , so that some crores are saved !

Govt is likely to frame certain rules, such that legal recourses  are not available to the employees/pensioners for  implementing the salary/pension hikes earlier (than the date Govt decides).

Govt and 7CPC is also likely to rework on the DA methodologies. The argument by Govt that wages/pensions have already been increased by 120 %  over the last 10 years (that's 12% average increase per year ! ) stands here.

Such issues are likely to make serious confrontations between the Govt and the Employees. Let's wait and watch. But, we pensioners, must be prepared for the "Buraa dins".

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