‘Bharat
Pensioners Samaj’. One of the identified Pensioners Federation by GOI
M/O Personnel, PG & Pensions-DOPPW and a stake holder. In its
capacity as one of the oldest & largest Pensioners Organization
with over 500 Affiliated associations, submits here under reply to items
Nos 10.1 & 10.1.2 under the head ‘Pension’ in the questionnaire.However, as Pension is not independent of Salary suggestions for basic structure are for Salary/Pension.Item
No 10.1 New pension Scheme i.e The retirement benefits of all Central
Government employees appointed on or after 1.1.2004 are covered by the
New Pension Scheme (NPS). What has been the experience of the NPS in the
last decade? Withdraw New Pension Scheme: for following reasons:
(i) Pension of Govt. employees is a deferred wage. Since wage paid out to them
during
the course of work tenure is kept low by design, to cater for pension.
(ii) He/She forgoes with interest 8.33% of govt. matching contribution
to PF.
(iii) Pension is a social
security measure & cannot be subjected in any way to Market risks
(iii) It does not guarantee minimum return & thus lacks the basic
fiber of Social Security Scheme (iv). It is in no way better than the
existing Scheme (vi)It does not provide guaranteed Family Pension to
dependents & disabled siblings which exist in present scheme, even
in case of spouse & dependent parents where death of the employee
occur in early years of service there is no adequate social security.
Item
10.1.2 i.e. As for as pre 2004 appointees are concerned, what should
be the principles that govern the structure of pension and retirement
benefits?
Basic structure of Pay/ Pension
1.Keeping
in view the Socialistic structure of the country , constitutional
provisions & to reduce vast inequality between have & have
lots, it is proposed: The Ratio between maximum & minimum of
Salary/ Pension be brought down to 9:1. Ensuring uniformly equal rise
in Salary/Pension of all employees/pensioners, irrespective of pre-
retiral status. By adopting common multiplication factor for revision of
Pension/Pay, as raising the ratio between minimum & maximum of
salary/pension to 1:12.85 by 6thCPC , instead of reducing it, was
unconstitutional .In
order to cater to the need of talent attraction in all cadres 7th pay
commission is requested to first workout the top most revised
salary/pension, divide it by 9 to arrive at the minimum revised salary
& then derive a uniform multiplication factor by dividing minimum
of revised Salary/Pension by minimum of pre-revised salary/Pension for
revision of Pay & Pension with the condition that Pension shall not
in any case be less than 65% & family Pension 45% of the last Pay
in Pay Band i.e. Pay in Pay Band+ GP /Pay scale or of average of last
10 months emoluments (Whichever is more beneficial) as was worked out
& recommended by TECS (Tata Economic Consultancy Services)
consultant to Vth CPC (Para 127.9 Vol III 5th CPC report)
2.One
Rank one pension: ‘Justice must be equal for all’. Otherwise, it breeds
contempt, discontentment, inefficiency, corruption & finally the
insurgency. We have seen it happening in Tribal areas of N.E,
Chhatishgarh, Jharkand, Orisa, MP etc.
Vast
inequality of income and wealth between lowest & the highest paid,
violation of Article 14 has already induced contempt, discontent,
inefficiency & corruption, in Civil services.
Govt.
granted One Rank One Pension (OROP) to Armed forces, Judges granted it
to themselves even a period of private practice of lawyer judges, to be
counted towards qualifying service. Higher Bureaucracy got it through
modified parity. All other Central Govt. employees & Pensioners
are definitely not the 2nd grade citizens! One Rank one Pension to all
retirees is constitutional requirement to ensure equality.
Defence
Pensioners: As far as Armed forces are concerned they do the supreme
sacrifice for the country & must be the highest paid .For them the
ratio between highest & lowest paid must not be more than 1:5 and
instead of being thrown out at an early age they must be transferred to
paramilitary/police force after active tenure in armed forces.
Otherwise, if these retired army personnel trained in all sort of
weaponry are left uncared, they may fall prey to undesirable anti
National outfits. In their case it is also essential that retirees from
uniformed cadre & civilian defence Pensioners are treated at Par for
all purpose
2.Dearness relief :
100% neutralization with automatic Merger with Pension whenever it goes
to 50% :The Pension of Central Government Pensioners undergo revision
only once in 10 years during which period the pension structure gets
seriously dis-aligned; 50% increase in price takes place even in less
than 5 years. This results in considerable erosion of the financial
position of the pensioner. DR does not adequately take care of 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 allowances, they feel
discriminated against. In order to strike a balance, DR may be
automatically merged with Pension whenever it goes to 50% .
3.Additional
old age Pension : 5% upward enhancement in pension be granted every
five years’ after the age of 60 years & upto 80 years &
thereafter as per existing dispensation. As in the present
scenario of climatic changes, incidence of pesticides and 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, especially as the cost of
health care has gone very high.
4.Pension
to be net of Income Tax : The purchase value of pension gets reduced
day by day due to continuously high inflation and steep rise in cost of
food items and medical facilities. Retired persons/Senior citizens do
not enjoy fully public goods and services provided by Government for
citizens 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 and medicines and other incidentals.
Their net worth at year end gets reduced considerably as compared to
the beginning of the year. Inflation, for a pensioner is much more than
any tax. It erodes the major part of the already inadequate pension. To
enable pensioners, at the far end of their lives, to live in minimum
comfort and to cater for ever rising cost of living, they may be spared
from paying Income Tax.
5.
Restoration of commuted value of Pension in 12 years: Commutation value
in respect of employee superannuating at the age of 60 years between
1.1.1996 and 31.12.2005 and 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 observation of Supreme Court in their judgment in writ petitions No
395-61 of 1983 decided in December 1986, it would be reasonable to
restore commuted portion of pension in 12 years instead of present 15
years. In case of persons superannuating at the age of 60 years after
31.12.2005 and seeking commutation within a year, numbers of purchase
years have been further reduced to 8.194. Also, the mortality rate of 60
plus Indians has considerably reduced ever since Supreme Court judgment
in 1986; the life expectancy stands at 76 years now. Therefore,
restoration of commuted value of Pension after 12 years is fully
justified.
6.
The 6th Central Pay Commission’s improved benefits, e.g. full pension
for 20 years of service/10 years in superannuation cases, last pay drawn
or average of last 10 months’ pay whichever is beneficial to the
retiring employee as emoluments for computation of pension etc., have
been limited only to post-1.1.2006 retirees. This is in violation of
the letter and spirit of Hon’ble Apex Court judgment in Nakara Case.
We
appeal to the 7th CPC to extend the above benefits to all pre-1.1.2006
retirees with monetary benefit from 1.1.2006 to do them equal justice.
And that new/improved benefits which 7th CPC may recommend, too be made
equally applicable to present & past pensioners.
7..Medical
facilities: “Health is not a luxury” and “not be the sole possession of
a privileged few”. It is a Fundamental Right of all present & past
Employees!
To ensure hassle free
health care facility to Pensioners/family pensioners, Smart Cards be
issued irrespective of departments to all Pensioners and their
Dependents for cashless medical facilities across the country. These
smart cards should be valid in
• all Govt. hospitals
•
all NABH accredited Multi Super Specialty hospitals across the
country which have been allotted land at concessional rate or
given any aid or concession by the Central or the State govt.
• all CGHS, RELHS & ECHS empanelled hospitals across the country.
·
Medical attendants. For reimbursement of bills for treatment
& for hospitalization . No referral should be insisted in case of
medical emergencies. For the purpose of reference for hospitalization
& reimbursement of expenditure thereon in other than emergency cases
Doctors/Medical officers working in different Central/State Govt.
department dispensaries/health units should be recognized as Authorized
medical attendant.
The
enjoyment of the highest attainable standard of health is recognized as
a fundamental right of all workers 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 and vigour. Therefore, the right to health, medical aid to
protect the health and vigour of a worker while in service or post
retirement is a fundamental right-to make life of a worker meaningful
and purposeful with dignity of person. Thus health care is not only a
welfare measure but is a Fundamental Right.
We
suggest that, all the pensioners, irrespective of pre-retiral class and
status, be treated as same category of citizens and the same homogenous
group. There should be no class or category based discrimination and
all must be provided Health care services at par .
8.
Hospital Regulatory Authority: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
NABH-accredited hospitals and NABL-accredited diagnostic Labs under its
constant monitoring of quality, rates for different procedures &
timely bill payments by Govt. agencies and Insurance companies. CGHS
rates be revised keeping in mind the workability and market conditions.
9.Fixed
Medical allowance (FMA): As is recorded in Para 5 of the minutes of
Committee of Secretaries (COS) held on 15.04.2010 (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) which discussed
enhancement of FMA: 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 p.a. in 2007-2008 =
Rs 16435 i.e. Rs.1369 per month for OPD. Adding to its inflation the
figure today is well over Rs 2000/- PM. Ministry of Labour &
Employment, Govt. of India vide its letter no. G-25012/2/2011-SSI dated
07.06.2013 has already enhanced FMA to Rs 2000/- PM 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. As such the
proposal for raising Fixed Medical allowance to Pensioners is fully
justified and is financially viable.
We
suggest that FMA for all C.G. Pensioners be raised to at least Rs
2000/- PM without any distance restriction linking it to Dearness Relief
for automatic further increase. We further demand that FMA be exempted
from INCOME TAX: Fixed Medical Allowance (FMA) is a compensatory
allowance to reimburse the medical expenses. As Medical Reimbursement is
not taxable, FMA should also be exempted from Income Tax.
10.Grievance
redressal Mechanism: Pensioners/Family Pensioners are exploited,
harassed and humiliated by their own counterparts in chair, who at the
sight of an old person adopt a wooden face and indifferent attitude.
Pensioners do not have representation even in Forums & Committees
wherein pension policies and connected matters are discussed. The forum
of Pension Adalat too is not of much avail as it meets only once a year
which is too long a period for an elderly nearer to his end. Moreover,
these Adalats deal with settlement claims only. SCOVA too meets only
twice a year for about 3 hours at each occasion. Moreover, the scope of
SCOVA is limited to feedback on Government policies. DOP (P&PW) is
perceived as a toothless authority which lacks direct Service Delivery
Capability. It has been striving over the years to redress the
Pensioners’ grievances through the ‘Sevottam’ model of the Department of
Administrative Reforms & Public grievances; in the absence of
strict timeline with punitive clause it is, however, proving to be a
failure. Grievances are either not resolved for years or closed
arbitrarily without resolving.
We therefore, appeal that for resolving Pensioners complaints of all pensioners,
(i) A strict time line with punitive clause be introduced in “Sevottam model”
(ii) Grievances are not allowed to be closed without resolving.
(iii) SCOVA be upgraded to JCM level covering all Pensioners by introducing suitable legislative amendment if required.
11.
Representations in various committees : As recommended vide Vth CPC
report Vol III para 141.30 Pensioners’ representatives should be
included in various committees & other Fora of Govt where issues
relating to the welfare of pensioners are likely to be discussed
&debated :
Discussing,
debating and deciding the matters / Policies relating to Pensioners,
with representatives other than those of pensioners, is unfair &
against the Rules of ‘Natural Justice’. At present various Committees
like National Anomaly Committee (NAC) and JCM (on Pensioner matters),
are there wherein matters / policies relating to pensioners’ welfare are
discussed and decided, but they do not have pensioners’ representatives
with the result their viewpoints, hardships & anomalies are not
properly represented. As pensioners are a homogenous class, there is an
urgent need to constitute separate Committees for pensioners wherein
matters / policies / anomalies relating to pensioners of all Groups,
categories &departments may be discussed.
With regards
Truly Yours,
ER.S.C.Maheshwari
Secy.Genl. Bharat Pensioners Samaj
NOO
Copy: Sh.Shiv Gopal Mishra Secretay JCM (Staff side) for necessary favourable action.
S.C.Maheshwari
Secy. Genl. BPS
