ALL INDIA FEDERATION OF PENSIONERS ASSOCIATIONS
CHENNAI-600 015
Memorandum to Seventh Central Pay Commission
CHAPTER-1
1.INTRODUCTION
1.1.APPOINTMENT OF SEVENTH CENTRAL PAY COMMISSION
Usually, the Central Government constituted the Pay Commission, only after great pressure is mounted on the Government by the JCM Staff side and Pensioners Associations. But this time the Government in its wisdom, constituted the 7th Central Pay Commission much earlier. We are greateful to the Government for this gesture.
Government of India has constituted the 7th Central Pay Commission vide Ministry of Finance Department of Expenditure resolution No.1/1/2013-EIIIA dt.28.2.14. Shri Justice Ashok Kumar Mathur (Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal as chairman. Shri Vivek Rae (Secretary, petroleum and Natural Gas) Member full time Dr.Rathin Roy (NIPFP) member, part time and Smt. Meena Agarwal as Secretary. Item b(g) terms of reference (vide-Annexure-I) which is relevant to pensioner is as follows:
“To examine the principles which should given the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of that recommendations, keeping in view that retirement benefits of all Central Government employees appointed on or after 1.1.2004 are covered by the New Pension Scheme (NPS).”
The Commission has been given 18 months time from the date of its constitution. The Commission may send interim reports also.
All India Federation of Pensioners Associations (AIFPA) Chennai heartily welcome the Hon’ble Chairman and members of the commission and hope and trust that the commission would consider the demands of past pensioners sympathetically and recommend to the Government of India suitable proposals for redressal of their long pending demands and allow full parity in pension to the past pensioners with reference to the pension of the retirees of equivalent cadre who retire after the implementation of VII CPC recommendations.
1.2. ISSUE OF PUBLIC NOTICE
The 7th pay Commission has issued a resolution No.1/1/2013-EIIIA dt.28.2.2014 (Vide Annexure II) through electronic and press media calling for response from all interested persons before 31.5.2014.
In response, the AIFPA has already submitted a memorandum (Vide Annexure III) requesting for immediate merger of 50% of Dearness Relief with pension and also for the grant of Interim relief. As per press reports, these proposals were accepted by the cabinet, but no orders were issued by the Government probably because of the Election Commission notification on general elections. The Press reports were also not denied by the Government. Now that the election is over, and a Government has been formed, orders of the Government in consultation with the Pay Commission is sought for in respect of both the issues.
1.3. DATE OF EFFECT OF 7TH CPC RECOMMENDATIONS.
As per the Government notification dt. 28.2.14, the Pay Commission is requested to submit its recommendations by 31.8.2015. This gives the Government enough time to pass its orders on the Pay Commission recommendations to be effective from 1.1.2016. We request the pay commission to keep to this date or submit its recommendations much earlier so that they may be implemented even before 1.1.2016.
CHAPTER 2
2.1. TYPE OF GOVT.SERVICES
Upto the 5th CPC, the Government services were put in 4 groups.
Class I, Class II, Gazetted and Non-Gazetted, Class III and Class IV Services. But the 6th CPC has recommended introduction of running pay bands for all posts in the Government existing in scales below that of Rs.26,000/- (fixed) para 2.2.8 of 6th CPC report.
The Philosophy and the usefulness of the creation of running pay bands however had not been explained by the Commission. According to the Federation, the changes have not been useful to the employees and pensioners.
While implementing the revised scales in respect of each of the four bands, no systematic approach has been made and this had created a large number of anomalies which still, remain unsettled.
As of now, Pay band 1 (4440 to 7440) consists of 3 scales of Pay with different grade pay for each scale Pay Band (Rs.5,200 to 20,200) consists of 5 scales of pay with different grade pay for each scale Pay band 2 (9,300 to 34,800) consists of 7 scales of pay with different grade pay for each scale Pay band 3 (15,600-39,100) consists of 9 scales of Pay with different grade pay for each scale Pay band 4 (37,400-67,000) consists of 7 scales of pay with different grade pay for each scale Pay band 4 (75,000-80,000) two scale of pay each with grade pay of Rs.13,000/-. There are 2 more scales with fixed pay of Rs.80,000/- and 90,000/- without any grade pay. Thus there are 36 scales of pay in 4 Bands.
In order to fix the minimum of each scale pay,in the 7th CPC there has to be 36 scales. We request the Pay commission to do away with the pay bands, and constitute 36 scales of pay and add the grade pay to the minimum of the each of the 34 scales (Two scales without grade pay) while fixing the minimum of each scale. The ratios of conversions of old scale in the revised scale should be uniform and should not be different for different scales of pay.
In case of promotion from one scale to another, the rules for the fixing of pay in the higher post which were in vogue may be revived.
2.2. BASIS FOR PENSION DETERMINATION.
The Pension of a retiring employee is determined taking into account the following factors.
(i) amount of qualifying service
(ii) Average emoluments of last 10 months
immediately before retirement.
(iii) Rate of Pension
(iv) Maximum qualifying service for full pension.
The changes made by the 6th Pay Commission may be continued. But these benefits were made applicable only for those who retired on or after 1.1.2006. AIFPA pleads that these principles may be extended to pre 1.1.2006 also. In fact this issue is still pending in the court.
The AIFPA pleads that the rate of Pension which is 50% now may be revised to 65%
Similarly the ordinary family pension may be made equal to the pension. This naturally will also replace enhanced family pension in case the employee dies while in service or before completing 10 years after retirement.
2.3. MINIMUM SERVICE FOR PENSION
The present status may continue. However the quantum of service gratuity and other benefits for those with more than 5 years of service but less than 10 years may be increased from the present level.
2.4 RESIGNATION FROM SERVICE
Cases of resignation from service after completing 10 years of service may be treated as voluntary retirement and all benefits that are due to those who retire voluntarily may be extended to those who resigned from service.
2.5. AGE OF SUPERANNUATION
The age of superannuation which is 60 years now may be raised to 62 years. In fact, as per press reports the then Government has accepted the proposal in their last cabinet meeting, but no orders have been issued. Perhaps the announcement of general elections by the Election Commission and the moral code of conduct might have prevented the Government to issue orders. We plead to the New Government to look into the matter and issue suitable orders raising the age of superannuation to 62 years. In the case of scientists and other professions the age of Superannuation may be 65 years.
2.6. EMOLUMENTS FOR PENSION
At present basic pay alone is counted for pension. Any special pay for whatever purpose it is given, non practicing allowance in the case of doctors and running allowance granted to certain categories in Railways may be treated as emoluments and included the calculation of pension.
2.7. HIGHER RATE OF PENSION
Taking into account, the representations made by pensioners and after conducting a study by consultants, the 5th CPC has recommended that it may be necessary to ensure a post retirement income equal to about 65% of the gross salary received by the employee at the time of retirement (Para 133-54 of 5th CPC recommendations)
AIFPA requests that 65% of Average emoluments or last pay (instead of salary which includes allowances) may be treated as pension.
2.8 HOUSE RENT ALLOWANCE.
Employees do not get HRA on retirement the rate of HRA drawn by the employees before retirement varies from place to place.
We suggest that the Commission may kindly recommend 10% of pension uniformly to all pensioners, irrespective of the place of residence without insisting on rental receipt.
CHAPTER-3
3.1. MINIMUM PENSION
At Present the minimum pension/family pension is 50% of the minimum of the lowest time scale.
The Federation request that the minimum of Pension/Family pension be made equivalent to 65% of Last pay drawn or the minimum of the Corresponding scale of pay in the 7th CPC.
3.2. GRATUITY
There are different types of gratuity (retirement, death, service gratuity) Earlier the Dearness allowance was not added. But now, D.A is added to the pay for calculation of gratuity. This may be continued.
3.3. PARITY IN PENSION
As per the 5thCPC recommendations, the pension which came into effect from 1.1.96, the pension of the pre-96 retirees has to be revised equivalent to 50% of the notional pay as on 1.1.86 and upgraded upto 1.1.96. This was however subjected to the 50% of the minimum of the corresponding pay in the revised scale of pay corresponding to the scale of pay at the time of retirement.
The 5th CPC has also stated that the similar calculation may be made in future Pay Commission recommendations. But the 6thpay Commission has not accepted the proposal. However, it recommended that the pension should not be less than 50% of the minimum of the pay scale in the 6th CPC revised scales corresponding to the scale of pay of the retirees in the 6th CPC Scale at the time of retirement.
AIFPA requests that full parity be allowed. This would mean that the pension of the retiree should be based at 65% of the notional pay, which is revised at the time of earlier pay commission scales.
Similarly the family pension may be made equivalent to pension.
3.4 COMMUTATION
At Present, the commutation is restored after 15 years from the date of commutation. There is a persistent demand for the restoration of commutation after 12 years. The matter is still pending in the J.C.M. The Pay Commission may look into this issue and recommend restoration of commutation after 12 years from the date of commutation. In case the retirement age is raised to 62, the commutation factor which was 10.46 at 58 years of age and 9.81 at 60 years of age will further be reduced. This is as per the old table. If it is based on the revised table, the factor will be still less. Hence there is a strong argument to restore commutation after 12 years.
3.5. FAMILY PENSION
The various liberalization in the grant of family pension such as extension of family pension to widowed divorced or unmarried daughter is most welcome, such a scheme is not available in any other sector. The Federations only plea is that Family Pension should be the same as pension.
3.6. DEARNESS RELIEF
The merger of Dearness Relief with pension when the cost of living index reaches 50% should be made mandatory. Further there is a lot of delay in the issue of orders by the Pension Ministry. Efforts should be made to avoid delay in the issue of orders.
3.7. NEW PENSION SCHEME
The New Pension Scheme is operative to persons in the Central Government who joined service on or after 1.1.2004. The serving employees as well as pensioners, have been relentlessly opposing the introduction of the Scheme. It may be noted that the defence employees are not covered by the scheme. Recently the Railway minister accepting the proposals of the All India Railwaymens Federations, had written to the Prime Minister to exempt the Railway employees from joining the scheme. If Railway and Defence employees are allowed to opt out of the scheme, the number of other Central Government employees to be affected by the New Pension Scheme will be very much reduced. Further as there was ban on recruitments operating for over two decades now, the number of employees retiring in future will still be reduced. The shortfalls in the scheme have been amply brought out in our earlier representations to the Government. We strongly urge that the scheme is dropped in toto. Infact several Countries who adopted similar Pension Schemes have given up the contributory Pension Scheme.
3.8 BSNL RETIREES
The B.S.N.L. retirees have been allowed the benefits of the Central Government pension rules. The pension liability of BSNL retirees is solely borne by the consolidated fund of India. Hence they have got a stake in the formulation of pension scheme of Central Government. A detailed report regarding the pension liability of BSNL retirees is enclosed.(Vide Annexure- I) Since there is a nexus between the government and BSNL , the Pay Commission is requested to look into the grievances of BSNL retirees and safe guard their pensionary benefits which have been granted to them.
ISSUES RELATING TO RAILWAY PENSIONERS.
(i) The Government has passed orders for the issue of smart Cards and cashless treatment in respect of Railway pensioners and orders have been issued by the Railway Board in this regard. But Zonal Railways have not implemented the orders. Pay Commission may look into the matter and cause expeditious issue of orders by Zonal Railways.
(ii) The validity of Railway passes issued to pensioners is for 4 months only. It is the request of the Federations that the validity be extended upto six months.
CHAPTER 4
HEALTH CARE
4.1 INTRODUCTION
With the advancement of medical technology and availability of abundant information coupled with nutritive food, prophylactic steps,super-speciality treatment the longevity in life of people of India has increased, however it is not without problems due to more complicated diseases caused by depletion in the ozone layer, environmental pollution and natural decay of health due to aging etc.The geriatric-care of senior citizens and pensioner is a more demanding issue today. The pensionary benefits conferred upon the aged people, though expected to take care of the normal and routine expenditure for sustenance, it can hardly meet the medical expenditure, which outweighs all other demands. A number of old pensioners are languishing in pain due to non-affordability of palliative measures. The Union Ministry of Social empowerment had evinced serious concern on the problems of senior citizens and formulated a National policy of Older Persons but not put into operation. Several High Courts and Supreme Court of India have held that the Medicare of pensioners is a fundamental right.Though there are some facilities existing at present for the Central Government pensioners, the service rendered by C.G.H.S is far from satisfactory and the coverage is limited to a limited area and majority are denied the C.G.H.S. facility.Health Care to all citizens is obligatory on the part of the State under Article 41of the Constitution. The “Health for All by 2000 A.D.” Scheme is yet to come even after 14 years. The World Health Organization on Ageing had recommended that “The care of the elderly person should go beyond disease orientation and should involve their total well-being taking into account the interdependence of the physical, mental, social, spiritual and environmental factors. Health care should, therefore involve the health and social sectors and the family in improving the quality of life of elder persons. Health care efforts, in particular, primary health care as a strategy should be directed at enabling the elderly to lead independent lives in their own family and community for as long as possible instead of being excluded and cut off from all activities of Society. This had been endorsed by the U.N to which India is a signatory.
4.2 EXISTING FACILITIES
Central Services (Medical Attendance) Rules
1944 (C.SM.A Rule 44)
Central Govt. Health Scheme (CGHS)
Railway Employees Liberalized Health
Scheme (RELHS - 97)
Ex-Servicemen Contributory Health Scheme
(ECHS)
4.2.1 CENTRAL SERVICES (MEDICAL ATTENDANCE) RULES 1944
It covers only the serving employees and not extended to the Pensioners even though the V CPC had recommended and accepted by Govt. The situation remains the same even after several Central Administrative Tribunals and High Courts have passed orders in favour of extending the scheme to pensioners outside the CGHS areas.
Since the Govt. of India had accepted in principle the VCPC Recommendations and several High Courts and Supreme Court of India have held, the Medicare of pensioners is a fundamental right to them, the reimbursement facility for inpatient treatment should be extended to pensioners living outside CGHS covered areas as in the case of employees.
4.2.2 CENTRAL GOVT. HEALTH SCHEME (CGHS)
This is a benevolent Scheme, though contributory one was first established in Delhi alone, later on extended to different state Capitals. Though many employees / Pensioners are eager to avail this facility it is now extended to those residing in certain areas in State Capitals as well as in the District Headquarters, the Govt. is unable to open new dispensaries. The scheme do not cover majority of pensioners and many are excluded.
At present some central govt. pensioners like Kendriya Vidyalaya, ICMR, Postal, D.O.T. and Food Dept. etc. are denied entry in CGHS after retirement for not being a member prior to retirement etc. It should be extended to all Central Govt. employees without any restriction or discrimination of the department from which one had retired. New dispensaries should be opened as per the norms that exist now. Financial resources should not be a constraint.
A. SPECIALISTS’ OPINION:
At present barring CGHS, Delhi the situation is that only a very few specialists are posted in other State Capital CGHS. As a result the sickly senior citizen beneficiaries are asked to obtain opinion from state Govt. Hospital specialists for cardiology, urology, nephrology, etc. The State Govt. Hospitals in most states are extending free treatment to the poor patients of the state and as a result great ordeal has to be faced the central govt. pensioners in referring to the State Govt. Hospital and they are driven from pillar to post for obtaining an opinion. Sometimes it takes even 4 - 5 visits and at times it is quite fruitless because the CGHS does not have any binding agreement with the State Govt. General Hospitals.
The Govt. of India should recruit specialists covering all disciplines. This may take considerable time. It is therefore our suggestion that
(a) Post more number of specialists in CGHS
(b)Empanel specialists, available in the
neighborhood as done by Southern Railway
Hospital.
(c) Recognize the State Govt. specialists as
A.M.A as for C.G.H.S patients.
(d) Recognize specialists in private clinics as
AMAs as prevailing in Kolkata.
These measures are required to avoid reference to Govt. Hospitals for getting their opinion.
B. IN-PATIENT TREATMENT:
The arrangement of providing in-patient treatment for treatment in Super Speciality Referral Hospitals for certain treatments and in other Referral Hospitals for General purposes is quite appropriate. However timely recognition / extension of contract and fixing of rates and periodical revision is unsatisfactory. This needs to be attended on time and the treatment in these hospitals should be a cashless facility, i.e. without forcing the pensioners to advance huge amount which they can ill - afford. Many hospitals do not admit the beneficiaries on account of non-payment and / or delayed payment of their bills by C.G.H.S.Specialists may refer patients directly to private hospitals instead of Govt. Hospitals. Reference to State Govt. Hospital, to be stopped immediately.
At the same time hospitals and doctors in the private sector who indulge in unfair or corrupt practices, may be severely dealt with.
Wherever there is no Referral Hospital and if the beneficiaries happen to take in-patient treatment in non-recognized private hospitals in the
neighborhood, the medical expenses should be reimbursed at the rates as admissible to the CGHS referral hospitals. As per judgment of the
High Court of Madras (Madurai Branch), the treatment taken in any hospital for compelling reasons is valid and cannot be denied but the
Government will be at liberty to restrict the claim based on the existing norms.
C. OUT PATIENT TREATMENT
Our demand is (a) the procedure should suitably be simplified to reduce the waiting time for consultation,running a reception counter, pharmacy etc. (b) Adequate quantity of essential medicines should be procured and stored for timely supply(c) The existing arrangement of centralized purchase of annual requirement of medicines by Govt. Medical stores. for supplying to the CGHS is getting invariably delayed. It is therefore necessary that the powers for procurement of medicines are decentralized and delegated to the level of Chief Medical Officers - in- charge of Dispensaries as they are also very responsible and highly placed officers and adequate funds made available at their disposal.
D. INFRASTRUCTURE
LABORATORY FACILITIES:
Every Dispensary should have a Laboratory for simple pathological tests. For a pool of every 5 - 6 Dispensaries there should be provision of Auto-analyzers for carrying out more tests simultaneously. This will avoid the exorbitant expenditure charged by the private Laboratories, and speed up the results for commencing the treatment in time.
X-RAY:
Now-a-days portable X-ray Machines are easily available and every Dispensary should be provided with. And for a group of 5-6 Dispensaries there should be one regular X-Ray Unit is made available.
DOPPLER:
The colour Doppler has become a necessary apparatus for evaluating the vascular flows and therefore there should be one Doppler in each CGHS Zone.
OPHTHALMOLOGY:
At present the equipments available in the Ophthalmology Units are out-dated and do not give correct picture as
precisely as modern equipments. Essential equipments for testing glaucoma, retina, field vision, computerized testing for power of eye
lens etc. are not available in most eye clinics.
OUR SUGGESTION:
All eye clinics should be provided modern equipments like Slit lamp, gonioscope computerized eye testing machine etc. Apart from providing equipments, medical and para medical staff should be given practical training to handle the equipments.
GENERATORS AND UPS:
Most Cities in the country are facing load-shedding quite often which results in spoiling the tests and investigations half-way warranting fresh doing in the Laboratory and abrupt stoppage of work in other Units causing hardship not only to the beneficiaries but to the Laboratory technicians as well.
OUR SUGGESTION: The Units like Laboratory, X-Ray, scan’ Dental and Eye Clinic should be provided with generators for un-interrupted power
supply to avoid dislocation of work.
4.2.3 RAILWAY EMPLOYEES LIBERALIZED HEALTH SCHEME (RELHS-97):
The hospitals run by the Railway are very few and their location can be reached only by a few in the neighborhood. Sickly pensioners residing away from it cannot easily reach them in emergent situations for inpatient treatment due to traffic bottle-neck in every metropolis. The predicament of others living in suburbs and far-off is much more. As a result they are unable to avail the facilities. The Railway Administration which has realized the difficulties of their pensioners rightly decided to grant Fixed Medical Allowance to those residing 2.5 Kms away from any dispensary in lieu of out patient treatment. Recently to tide over the paucity of doctors, the age of retirement of Specialists has been raised to 62 years. The remedy lies in attracting qualified doctors by improving the salary structure, raising of age of retirement of doctors and increasing N.P.A.
The same analogy of accessibility should be applied for inpatient treatment also and the Railway Administration should allow their beneficiaries to avail inpatient treatment in a nearby hospital and reimburse the expenditure (b) The pensioners may be allowed to avail inpatient treatment in any other recognized hospital. (c) Those who failed to avail of the RELHS but desirous of joining it now should be allowed notwithstanding the deadline stipulated.
The RELH Scheme should be open ended to facilitate pensioners joining the Scheme at any time.
4.2.4 EX—SERVICEMEN CONTRIBUTORY HEALTH SCHEME
(ECHS) the situation is the same as is prevailing in the RELHS. The hospitals run by the Defence Ministry are very few and their locations
are not easily accessible. They can be reached only by a few in the neighborhood. Sickly pensioners residing away from it cannot easily reach them in emergent situation for inpatient treatment due to traffic bottleneck in every metropolis. The predicament of others living in suburbs and far-off is much more. As a result they are unable to avail the facilities. In addition, unlike the Railways, the ex-servicemen who opt for ECHS are denied the FMA, for out-patient treatment.
The ex-servicemen who reside 2.5 Kms. away from Army Hospitals should be allowed Fixed Medical Allowance as is being done in Railways for out-patient treatment. In case in-patient treatment could not be undertaken in the Army Hospitals due to emergency and distance factor reimbursement of hospital expenditure for treatment in private hospitals should be allowed.
4.3 FIXED MEDICAL ALLOWANCE
The quantum of FMA should be commensurate with average likely burden on the pensioners. The prevailing cost of medicines combined with the continuing rise in the Doctors’ Consulting Charges as also transport charges the FMA should be revised at the rate of 10%of pension subject to a minimum of Rs. 2000/- p.m. Bringing all pensioners under the CGHS fold will augment the resources of the CGHS and who ever wishes may be allowed to join the scheme freely.
It may be mentioned that those covered by ESI Scheme under the Labour Ministry is given FMA of Rs.2,000/-
CHAPTER 5
5. RAILWAY SERVICE
5.1 Indian Railways existed as different companies and were in the private sector for many years. They were nationalized and integrated region wise from April 1943. The employees were on provident scheme and were not eligible for any pension and after nationalization. Pension scheme in the Railways was introduced from 1-4-1957 and that too optional. Employees were allowed to opt either for- pension or provident fund. Pension was made compulsory form 1- 1-1986 only. Thus two types of retirement benefits continued from 1957 to 1985 end. It created discontent among Railway Pensioners who opted for provident fund scheme called as SRPF retirees. SRPF retirees were not granted any pension, though they got petty amount only as provident fund.
5.2 PENSION
Pension calculation for railway retirees is similar to that of other Central Govt. employees. Their pension is to be raised from 50% to 65% of the average emoluments or last pay drawn which ever is higher.
5.3 RUNNING ALLOWANCE
For certain categories of traffic staff, running allowance granted along with pay in consideration of their special duties is added for the purpose of pension as emolument. Till 4th Dec 1988 75% of the running allowance was counted as emolument for pension. Since then it is reduced to 55% on the reason that pay scales were revised after the fourth Pay Commission report. This reduction in the rate has resulted in the reduction of their pension and is not justified. The difficulties they undergo in traffic duty is unimaginable and need better consideration. Most of them do not live a long healthy life after retirement, their post retirement life is short. They require better pension than those in other administrative jobs. Their duty- can be compared similar to that in the defence. service and while on duty they have great responsibility to ensure the safety of the passengers and remain alert always.
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