ALL INDIA PENSIONERS’ FORUM FOR RETIRED OFFICERS OF CENTRAL EXCISE,
CUSTOMS & SERVICE TAX DEPARTMENT
A DIVISION OF
INDIAN REVENUE SERVICE (CUSTOMS & CENTRAL EXCISE) PROMOTEE
OFFICERS ASSOCIATION
C.R. BUILDING , BHUBANESWAR-751007
SECRETARY GENERAL
LOKANATH MISHRA
No.P-1/DOP&PW/2014
Dated: 28 11.2014
To
The Under Secretary
Department of Pension &
Pensioners’ Welfare,
Govt. of India,
New Delhi.
Madam,
Sub: Suggestion
for promoting welfare of Pensioners’/Family Pensioners drawing pension / family
pension from Central Government.
Kindly refer to OM No.A/5/2014-P&PW(D)
of Government of India Ministry of Personnel, Public Grievances & Pensions (Department
of Pension & Pensioners’ Welfare) 3rd
Floor, Lok Nayak Bhawan New Delhi-110 003 dated the 18th November, 2014.
On
behalf of the All Indian Pensioners’ Forum for retired officers of Central
Excise, Customs and Service Tax Department a division of IRS(C&CE) Promotee Officers Association, we submit the memorandum for the consideration of the Govt. of India.
As indicated in detail in the
memorandum, we have made certain submissions to elucidate
the views and contentions in respect
of the appropriate pension of
retired officers. We request that the Govt. may consider our submissions.
Particulars of
the Association.
(i). Name: All Indian Pensioners’ Forum for retired officers
of Central Excise, Customs and Service Tax Department a division of Indian Revenue Service ( Customs &
Central Excise) Promotee Officers Association.
(ii). Headquarters: Bhubaneswar.
(iii). Address
for communication: C.R. Building , Bhubaneswar-751007.
(v). Mobile No. 0 9437314941.
(vi). Membership: The Association
presently represents more than 8000 members., who are retired officers and Gr-A promotee officers (Executive Officers)
under Central Board of Excise and Customs , the Department of Revenue of
Ministry of Finance.
MEMORANDUM
Though the Central Board of Excise and Customs (CBEC) deals with
task of policy formulation and administration of indirect taxes through levy
and collection of Customs and Central Excise duties, Service Tax and other
miscellaneous indirect taxes and matters relating to Narcotics, however recent
shift in commodities being smuggled from traditional items like gold, silver,
watches etc. to arms, ammunition, explosive, fake Indian currency, Narcotics
etc. CBEC focused attention on prevention of smuggling of these contraband
goods which are posing a serious threat to national security. The major
responsibility in the area of Central Excise is the prevention of leakages in
revenues and providing smooth and efficient flow of collections. By revenue
points of view, the CBEC is the highest revenue earning source for the Union Govt.,
which has no parallels. The IRS (promote) officers are being posted in
different field offices of CBEC and also posted in CBEC ( Hdqrs) on central
deputation scheme as Central Secretariate Gr-A officers.
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(i)
ONE RANK ONE PENSION:
The
Central Excise and Customs Department has the same structural features, command
& control elements as in Defence forces. The Central Excise and Customs executive
officers also serve under similar harsh service conditions as the Army. In
spite of the similarities in the duties performed by the Central Excise and
Customs personnel and Defence personnel, the former ones are deprived
of privileges extended to Defence and Police services. The command,
control and also rank structure of Central Excise and Customs are similar
to the Army except that the ranks in Central Excise and Customs have
different nomenclature (Chairman, Member, Principal Chief Commissioner, Chief
Commissioner, Commissioner, Additional Commissioner, Joint Commissioner, Deputy
Commissioner, Asst. Commissioner, Superintendent, Inspector, Havildar and
Sepoy).
In accordance with the NDPS Act and the
Central Excise Act, the powers of the Police officers are also vested into
executive officers of Central Excise and Customs. The personnel
of Central Excise and Customs are deployed on the borders (with Pakistan,
Bangladesh, Nepal, China, Myanmar etc.), International Airports and
International Sea Ports. They are also actively engaged in counter
insurgency operations against dreaded smugglers, hard core criminals etc.
within the country. These personnel have suffered heavy casualties while
dealing with trans-border crimes and countering with dreaded smugglers. Their
duties are akin to the Army and they are responsible not only for guarding the
Economics borders of the Country but also for security of the Nation. In fact
in J & K and North Eastern states of India, the Central Excise personnel are
deployed side by side with the Army, BSF, CRPF and ITBP on the same location.
They perform their duties in most adverse conditions coupled with the threat to
the lives of them & their families by enemy action, insurgents, dreaded
smugglers, hard core criminals and the climatic hazards.
The personnel of Central Excise and Customs
are deployed on the borders, International Airports and Sea Ports also being
actively engaged in counter insurgency operations against smugglers and tax
evaders etc. within the country. These personnel have suffered heavy casualties
while dealing with trans-border and other hard core criminals. Their duties are
akin to the Army and they are also responsible for security of the Nation. They
perform their duties in the most adverse conditions coupled with every threat
to the person & property along with their families.
It has been declared under OM F.NO.
8/B/90/HRD(HRM) 2011(Part-I)/4853 dated 21.10.14 and No. 30013/11/2011- Ad.IVA
dated 02.08.13 that the Central Excise Executive personnel perform their duties
in the nature and style of Military and Navy.
The Central Excise and Customs Executive officers, therefore, should also be
granted all benefits to be extended by 7th CPC to the Defence
personnel. The Central Government has decided to introduce ‘One Rank, One
Pension’ for Defence personnel. The executive officers of Central Excise and
Customs are uniformed officers having the same structural features,
command & control elements and also serving under similar harsh service
conditions as the Defence personnel. In spite of the similarities in the
duties, the Central Excise and Customs executive personnel are deprived of the
privileges extended to Defence and Police services. Under these
conditions; if the juniors start getting more pension than the seniors, it
violates not only the hierarchy of command system as is applicable to all Armed
Forces but it is unjustified in general also for the Govt. employees performing
civil duties.
It is a well-established dictum
based on the Supreme Court judgement of 1982 and accepted by the Government
that “pension is not a bounty nor a matter of grace depending upon the sweet
will of the employer. It is not an ex-gratia payment but a payment for past
services rendered”. In another judicial ruling, it has been stated that
different criteria for grant of unequal pay/pension for the same rank on the
basis of cut-off date of retirement violates Article 14 (equality before law)
of the Constitution. Thus, all pensioners irrespective of rank are entitled to
same pension.
In the case of Defence services, the
Government has rightfully realized the truth of this fact and given succour to
the pre-2006 Defence pensioners to come up to the level of their post-2006
retirees of equivalent rank and status by granting them ‘One Rank, One
Pension’. However, the Central Excise executive pensioners having equitable
dispositions, command structure, rank system & nature of duties are grossly
ignored, discriminated & forced to face the ignominy of less emoluments
vis-a-vis their post-2006 retiring juniors.
SUGGESTIONS;
Therefore, we suggest & request for
introduction of the system of ‘One Rank, One Pension’ for the executive cadres
of Central Excise and Customs also like Defence employees.
(ii) RATE OF PENSION:
The rate of pension should kindly be at least 75% of the pay last drawn
or the average of 12 months emoluments last drawn, whichever is higher.
The minimum basic pension fixed by VIthe
CPC was Rs.3500/- which was 50%
of the minimum pay in the pay band (Rs. 5200/-) plus Grade Pay thereon
(Rs.1800/-). The consultants for
Vth CPC, Tata Economic Consultancy Services, taking all micro aspects into scientific consideration had suggested
that 67% of last pay drawn should be allowed as minimum pension. Considering the
passage of time since then, the quantum of increase in the GDP of the Nation, quantum of increase
in the per capita income and the expenses of the daily life, at least 75% of
the last pay plus Grade Pay is the need of the time as minimum pension.
The rate of pension fixed by VIth CPC was 50%
of the pay last drawn. The Hon’ble
Supreme Court of India had in the landmark judgement of D. S. Nakara and others
Vs. Union of India (AIR 1983, SC
130) clarified that a pension scheme must provide that the pensioner should be able to live at a
standard equivalent to the pre retirement level.
Conclusion:
SUGGESTIONS: We suggest & request
that even as a partial compliance to the
observation made by the Supreme Court, that the rate of pension should be at least be 75% of the pay last
drawn (band pay+grade pay) or the average of 12 months emoluments last drawn,
whichever is higher.
(iii) FAMILY PENSION:
The quantum of
the family pension is also required to be equal to the pension as the
unfortunate death of one member noway reduces the respect, decent status &
expenses of daily life of the remaining family in the time of today. It rather
increases the agonies of the family after sudden & unfortunate shock on
account of demise of family head. Untimely death in younger age makes it even
harder requiring more pension even equal to the salary of the deceased. The grant of family pension equal to the
pension will also give a bit consolation to the family of the deceased. At
present, merely 30% of last pay drawn is allowed as family pension.
SUGGESTION: . We, therefore, suggest &
request that the family pension may kindly be equal to the pension.
(iv) ROUNDING OFF AND NOTIONAL DETERMINATION:
We suggest & request that the
pension amount may kindly be computed by rounding to the next multiple of Rs. 10/-. Pay band and grade pay system
introduced by VI CPC caused heavy disparities between pre and post 2006 retirees. The
concept of modified parity introduced by the 5th CPC as a measure to reduce the financial
implications must be replaced with the full parity concept as was made applicable for the personnel
retired prior to 01.01.86. In other words, the pay of every retired person must be
re-determined notionally as if he/she is not retired and then his/her pension computed under the revised
rules. This alone will protect the value of pension of a retired person.
(v) ADDITIONAL RATE OF PENSION:
Additional pension at the rate of 10% is required to be granted from the
age of 65 years and at the rate of 20% from the age of 80 years. According to the present scheme, a
consolidated amount reckoned at the commutation value of 8.194 is disbursed to the pensioner
at the time of retirement whereas recovery is effected
for 15 years, i.e, for approximately double the commutation value. As per a
Note prepared by Ministry of
Personnel, Public Grievances and Pensions, Department of Pension & Pensioners’ Welfare {File
F.No.42/8180/2011-P&PW (G)}, the rate of interest at which commuted value of pension is fully recovered is
20.7% per annum in the case of employees who retired at the age of 60 years after 01.01.06.
This is, in fact, an enrichment of the exchequer at the expense of the poor pensioner which
cannot be justified by any stretch of reasonable argument particularly in a State where
socialism has been declared as the goal.
The pension of Central Government pensioners/family
pensioners undergoes revision only once in 10 years. The pension structure gets
seriously dis-aligned during this period as 50% increase in price takes place
even in less than 5 years. This results in considerable erosion of the
financial position of the pensioner and family pensioner. Dearness Relief does
not adequately take care of the inflation at this level. Working employees are
getting automatic relief by way of 25% increase in their allowances with every
50% rise in Dearness Allowance. As pensioners do not get any allowance, they feel
discriminated. In order to strike a balance, Dearness Relief should be
automatically merged with pension whenever it goes to 50%. Alongwith, 10%
upward enhancement in pension/family pension be granted every five years after
the age of 65 years & up to 80 years. Thereafter, it should be 10% more
than the existing dispensation as in the present scenario of high inflation,
climatic changes, incidence of pesticides & rising pollution old age
disabilities/diseases set in by the time an employee retires and go on
manifesting very fast needing additional finances to take care of these
disabilities and diseases.
Hence, the
restoration of the commuted
portion should be done after 10 years instead of the present 15 years. In the case of pre-2006 retirees, the excess
recovered may be refunded to the pensioners. Senior citizens, during their
advanced age, have to bear additional financial burden due to age related diseases and social &
family obligations. So, additional pension/family pension at the rate of 10% may be granted from 65 years and
at the rate of 20% from 80 years of age after every 5 years. Moreover the
present scheme of additional pension @20% extra after 80 yrs and ...100% after
100 years is denying any hike for the largest chunk of pensioners between 65 to
79 years. Any statistics would show that the largest number of pensioners are
in this age gap. After 65 years ,the pensioners are to face health ailments and
live with medicines. .Considering the extra financial burden on these scores,
there is full justification to review the present system. Hike in once in 5
years @ 10% would be fully justified. Thus, the revised formula should ensure
10% hike after every 5 years .Therefore, at 65 years 10 % hike; after 70 years
20%; after 75 yrs 30% ;after 80 years 40%; after 85 yrs 50%. (In India, the age
barrier of crossing 84 yrs is reckoned as a solemn occasion to have
observed/seen 1000 full moons in life span. This holy occasion should provide
50% hike in pension of all the pensioners.). thereafter again, 20 %each
hike at 90,95, etc should be allowed./envisaged(Admittedly, the
beneficiaries to avail above 50% after
85 yrs will be nominal considering the longevity at present .rather ,it will be
an envisaging provision ,but real takers/beneficiaries will be too minimal).
The reasoning for a truncated gradual hike to 20% at age of 80,with hike after
every 5 yrs is well justified.
SUGGESTIONS: Accordingly, we suggest & request the
following increase in the basic pension/family pension:
Age (in yrs) Increase
in pension/family pension
65 ………………10%
70 ………………20%
75 ………………30%
80--------------------40%
85 ………………50%
85 ………………70%
90 ………………90% and so on.
85 ………………50%
85 ………………70%
90 ………………90% and so on.
(vi) MERGER OF
DA:
It was the well considered suggestion of
Vth CPC that DA should be merged
with basic Pay/pension/family pension whenever DA exceeded 50%. Now the DA has
exceeded 50% w.e.f. 01.01.11 and 100% w.e.f. 01.01.14.
It is, therefore, requested that 50% DA
may kindly be merged with basic pay/pension/family pension retrospectively w.e.f.
01.01.11 and the consequential
arrears may be disbursed to the employees as well as pensioners and family
pensioners.
(vii) HEALTH SCHEMES:
The existing Health Schemes such as
CGHS, ECHS, RELHS etc. are to be strengthened by providing all facilities and extending
to all the District Head Quarters of the
country. The pensioner and family pensioners not covered by the schemes should
be provided with the facility of
claiming medical expenses for indoor treatment under CS (MA) Rules, 1944 as recommended by the Vth CPC. District
level nodal offices under each department may be recommended for reimbursement purpose.
The existing Fixed Medical Allowance in lieu of outpatient treatment is to be enhanced
to Rs. 3500/- per person and should be linked to the increase in Consumer Price Index.
(viii) TAX
EXEMPTION TO SENIOR CITIZENS:
At present, senior citizens are exempted
from Income Tax up to Rs. 3 lakh only. Actually, pensioners/family pensioners
should be exempted from any tax. It is, therefore, suggested that the pensioner
senior citizens may be exempted totally from Income Tax or any other tax and other
(non-pensioner) senior citizens may kindly be exempted from Income Tax for an amount upto Rs. 6 lakh at least.
(ix) FESTIVAL
ALLOWANCE:
Almost all State Governments grant
festival allowance to their pensioners. Actually, the senior citizens are generally
enthusiastic in celebrating every festival of their region/religion. We, therefore,
request the amount equivalent to one
month pension in a year as festival allowance
to the pensioners and family pensioners.
(x) TRAVEL
CONCESSION TO PENSIONERS:
At present LTC is being granted to
working employees only. The
pensioners’ organizations have been consistently and persistently demanding
travel concessions to pensioners
under a rational and reasonable scheme. It is requested that a scheme may kindly be evolved under
which a pensioner/family pensioner along with family members is eligible for reimbursement of the cost of journey
within the country at least once in 2 years reckoned at actual entitlement
while the pensioner was in service. They may also kindly be allowed at least
one Foreign Leave Concession.
(xi) RESTORATION OF COMMUTED VALUE OF PENSION AFTER
10 YEARS:
The
purchase value of pension gets reduced day by day due to continuous high
inflation and steep rise in cost of food items & other requirements making
over all steep rise in living cost. Retired persons/senior citizens do not
enjoy fully public goods & services provided by Government due to lack of
mobility and many other factors. Their ability to pay tax gets reduced from
year to year after retirement due to ever-increasing expenditure on food,
medicines and other incidentals. Their net worth at year end gets reduced
considerably as compared to the beginning of the year. Inflation is much more
than any tax for a pensioner. It erodes the major part of the already
inadequate pension. To enable pensioners to live in minimum comfort at the far
end of their lives and to cater for ever rising cost of living, they should be
spared from paying any tax including Income Tax. The commutation value in r/o
the employee superannuating at the age of 60 years between 01.01.96 and
31.12.05 commuting a portion of pension within a period of one year would be
equal to 9.81 years purchase. After adding thereto a further period of two
years for recovery of interest in terms of observations of Supreme Court in its
judgment in Writ Petitions No. 395-61 of 1983 decided in December 1986, it
would be reasonable to restore commuted portion of pension in 10 years instead
of present 15 years. In case of persons superannuating at the age of 60 years
after 31.12.05 seeking commutation within a year, numbers of purchase years
have been further reduced to 8.194. Also the mortality rate of 60+ Indians has
considerably been reduced ever since Supreme Court judgment in 1986 and the
life expectancy stands at 76 years now. Therefore, restoration of commuted
value of pension after 10 years is
fully justified. On the issue of Restoration of Commuted
value of pension ,again, the system was never subjected to a review after the
hike in retirement age from 58 to 60 yrs
from 1998. So the Commutation table as well as the restoration schedule need be
subjected to a fresh evaluation taking into account the inflation rate,
interest rate, etc .The present formula of commuted value, interest earned
thereon as FD in bank, the net benefit (after tax on the interest accrued)
would be less than the case where the full pension is drawn without opting for
any Commutation. If the hike after every 5 yrs as suggested above is acceded
to, ,there will be a definite fall in the no. of pensioners opting for
Commutation. Hence steps must be taken to make the Commutation scheme without
imposing a financial loss to the pensioners. Restoration must be allowed just
after the completion of the commuted period for all pensioners.
(xii) HASSLE
FREE HEALTH CARE FACILITY TO PENSIONERS/FAMILY PENSIONERS:
As
far as health is concerned, it is not a luxury and it should not be the sole
possession of a privileged few only. It is not only a welfare measure but also
a fundamental right of all present & past employees. To ensure the
hassle free health care facility to pensioners/family pensioners, Smart Cards
should be issued to all pensioners, family pensioners and their dependents for
cashless medical facilities across the country irrespective of department.
These smart cards should be valid in all Govt. hospitals, all private & Govt.
Multi Super Specialty hospitals and all CGHS, RELHS & ECHS empanelled
hospitals across the country. No referral should be insisted for medical
treatment or tests. The Doctors/Medical officers working in different
Central/State Govt. department dispensaries/health units should also be
recognized as Authorized Medical Attendant.
The enjoyment of the highest attainable
standard of health is recognized as a fundamental right for all in terms of
Article 21 read with Article 39(c), 41, 43, 48A and all related Articles as
pronounced by the Supreme Court in Consumer Education and Research Centre &
Others vs Union of India (AIR 1995 Supreme Court 922). The Supreme Court has
held that the right to health to a worker is an integral facet of meaningful
right to life to have not only a meaningful existence but also robust health
& vigour. Therefore, the right to health and medical aid to protect the
health & vigour of a worker alongwith family while in service or after
retirement is a fundamental right to make life of a worker meaningful and
purposeful with dignity. All
pensioners, irrespective of pre-retirement class & status, should be
treated as same category of citizens in r/o health. There should be no class or
category based discrimination and all must be provided health care services at
par. To ensure that the hospitals do not avoid providing reasonable care to
smart card holders and other poor citizens, a Hospital Regulatory Authority
should be created to bring all hospitals and diagnostic labs under its constant
monitoring for quality, rates & timely bill payments by Govt. agencies
& Insurance companies. CGHS rates should be revised keeping in mind the
workability and market conditions.
(xiii) FIXED MEDICAL ALLOWANCE TO
PENSIONERS/FAMILY PENSIONERS:
As recorded in Para 5 of the minutes of Committee of
Secretaries (COS) held on 15.04.10 {Reference- Cabinet Secretariat, Rashtrapati
Bhavan No 502/2/3/2010-C.A.V Doc No. CD (C.A.V) 42/2010 Minutes of COS meeting
dated 15.4.2010} discussing the enhancement of FMA and CGHS card estimates for
serving Personnel (since estimates are not available separately for
pensioners), M/O Health & Family Welfare had assessed the total cost per
card per annum in 2007-08 to be Rs. 16435/-, i.e., Rs.1369/- per month for OPD.
Adding to its inflation, the figure today is well over Rs. 2000/- per month.
Ministry of Labour & Employment, Govt. of India vide its letter no.
G-25012/2/2011-SSI dated 07.06.13 has already enhanced FMA to Rs 2000/- per
month for EPFO beneficiaries. Thus to help elderly pensioners to look after
their health, adequate raise in FMA will encourage a good number of pensioners
to opt out of OPD facility which will reduce overcrowding in hospitals. OPD
through insurance will cost much more to the Govt. Thus, the proposal for
raising Fixed Medical allowance to Pensioners is fully justified and is
financially viable. The FMA for all pensioners/family pensioners should be
raised to at least Rs. 2500/- per month without any restriction of
linking it to Dearness Relief for further automatic increase. The FMA should
also be exempted from any tax including Income Tax as it is a compensatory
allowance to reimburse the medical expenses. The actual expenses made in
addition to FMA should be reimbursed in hassle free manner.
The Ministry of Personnel and Pensions
has launched an initiative to route the skill and experience of retired
government employees back into socially useful and constructive work. Retired
Government employees can soon find employment opportunities back in government
departments and other social organisations on a voluntary basis. There are 50
lakh government employees today. But there are also 53 lakh retired employees,
the most of whom can still contribute to Nation building exercise. Govt. should
tap their skills and experience.
It
is suggested for creation of a separate
cell for welfare of retired employees in each and every office and these cells
should kindly be managed by willing retired employees only.
(xv)
HOUSE RENT ALLOWANCE TO PENSIONERS/FAMILY PENSIONERS:
House Rent allowance is also required to
be granted to all pensioners and family pensioners. It is requested to grant
tax free HRA to all pensioners/family pensioners at the rates on which
it is being given to the serving employees in accordance of the status of the
pensioner at the time of retirement.
It is also requested that the
representatives of our Association may also kindly be given an opportunity to present our case in
person and give oral evidence in support of the submissions detailed in this
Memorandum and also to allow
the Association to add, alter, amend or delete any submission made hereinafter
in the interest of its members and to facilitate the Commission to discharge
its duties entrusted with.
