Justification for pension revision with CPC fitment factor
and
delinking pension revision from pay revision.
Committee of BSNL/MTNL Pensioners’
Associations
H. No 6, G No 12th Street, Jogupalya, Halasuru, Bangalore
560008
Convenor
– P.Gangadhara Rao
Mobile – 09448088404
Annexure I
Justification for pension revision with CPC fitment factor and
delinking pension revision from pay revision
1.
C.G. employees &
BSNL/MTNL employees are covered under CCS (Pension) Rules 1972
2.
Sub-rule 8 of Rule
37-A of CCS (Pension) Rules 1972 states “A permanent government servant who has
been absorbed as an employee of a PSU shall be eligible for pensionary benefits
on the basis of combined service rendered by him in the Govt. & PSU in accordance with the formula for
calculation of pension/FP under these rules as may be in force at the time
of his retirement from the PSU”.
3.
DoP&PW vide its clarificatory letter
No.4/19/2009-P&PW(D) dtd.27/3/2009 to DoT stated “BSNL is the only PSU that has
been granted a special dispensation under sub-rule (21) of Rule 37-A of CCS
(Pension) Rules, 1972 to the effect that the pensionary benefits including
family pension to the absorbed employees of BSNL is paid by the
Government. This Department is of the
view that the change as per DoP&PW’s O.M. dated 02/09/2008 as mentioned in
para 2 above are also applicable to IDA pensioners of BSNL”.
4.
Accordingly, 6th
CPC recommendations with regard to a) emoluments for the purpose of all
pensionary benefits, ) b) DCRG, c) enhancement in maximum limit of DCRG, d) new
commutation table, e) enhanced family
pension for 10 years & f) age-related additional pension (DoT letters dated
15/5/2009, 12/8/2009, 23/6/2011 may be referred) were implemented to BSNL IDA
pensioners from 1/1/2006.
5.
The minimum pay in BSNL from 1/10/2000 is more
than the Central Government pay. It was Rs.4000/-
and Rs.2550/- respectively at that point of time. But the minimum pension for BSNL retirees was
Rs.1275/- (DoT OM
No.40-13/2002/PEN(T) dated 15/1/2003 may be referred) and Rs.3500/- (para 4.4 of DoT OM No.F.No.40-17/2008-Pen(T)-Vol.III
dated 15th March 2011 may be referred). So, the minimum & maximum pension for
BSNL retirees also is related to the minimum & maximum pay of a central
government employee.
6. C.G.Pensioners
& BSNL/MTNL IDA pensioners are getting pension from civil estimate.
7. C.G.Pensioners
& BSNL/MTNL pensioners are eligible for CGHS facilities.
8. BSNL/MTNL
financial position has no relevance for pension revision. Liability of paying
pension/family pension to BSNL retirees lies fully with the Government as per
5/7/2016 cabinet decision and DoT order dtd.20/7/2016 and BSNL has no
liability.
9.
There were 28,791
absorbed executives and 1,36,071
absorbed non-executives as on 1/11/2016
in BSNL out of which 24,117 executives
would retire by 2027 and all non-executives would retire by 2026
(source – BSNL corporate office reply dt.15/11/2016 to RTI query). But pensioners would be alive for a minimum
of another 20 years beyond 2027. By
2027, pay revision in BSNL would be irrelevant and naturally pension revision
cannot be linked to that.
Annexure II
Formula
Let the notional conversion take place from
1/1/2016 i.e. 7th CPC implementation date.
On 1/1/2016 Dearness Relief on CDA pattern was
125% and IDA pattern 112.4%. Take the
pension as 100. Then notional conversion
factor would be
100+112.4 = 212.4 divided by 225 =
94.4
By this factor, basic pension on IDA would be
multiplied by 94.4 and divided by 100.
That amount would become the pre-revised basic pension as on 1/1/2016
and if it is multiplied by 2.57 factor that would be the revised basic pension
from 1/1/2016. Then both CDA pension
& IDA pension would be at par.
Dearness Relief on 1/1/2016 would be zero and thereafter it may be
calculated in CDA pattern for every six months.
For example as on 1/1/2016 basic pension on IDA
was Rs.10,000/-. 94.4% of this would be
Rs.9440/-. This amount would be the
pre-revised basic pension and this should be multiplied by 2.57 factor as
recommended by 7th CPC which would come to Rs.24,261/-. That would be the revised basic pension on
1/1/2016 with zero percent DR. Then
every six months DR may be granted on CDA pattern. This will result in an increase of Rs.3,021/-
in total pension which works out to 14.22%
approximately.
Instead of opening the pandoras box this would be
the hassle-free conversion method which may get the nod of nodal department
also.
Annexure III
Financial Implication
Total expenditure on MH 2071 in 2015-16 for BSNL
IDA pensioners/family pensioners was Rs.5,354.17
Cr. (Source – DoT letter dated 23/6/2016).
MH 2071 includes other retirement benefits like
gratuity, commutation etc. Actual
expenditure exclusively for pension would be approximately 70% of the total
which works out to Rs.3,748 Cr.
14.22% of this works out to Rs.533 Cr.
Approximately per annum. This cannot be
considered as a big liability for the Central Government because it has saved
more from BSNL/MTNL employees viz.
a) pension contribution at the maximum of the
scale instead of actual pay (Rs.90/- crore more than their counterpart in
Central Govt.);
1)
Though they are
entitled to get gratuity as per sec 2 of Payment of Gratuity Act 1972 (this was
upheld by Hon. High Court of Allahabad, Lucknow Bench on 3/8/2017) they got the
gratuity under CCS (Pension) Rules 1972 which is much less.
To illustrate the gain to the Govt. we give the
following 3 examples:-
Employee/ LPD+DA Due asper Recd
asper Gain to the
Q/sce PG
Act CCS (P) Rules Govt.
A 40y Rs.17403 Rs.4,01,608 Rs.2,87,150 Rs.1,14,458
B 39y Rs.15231 Rs.2,51,312 Rs.3,42,698 Rs.91,386
C 34y Rs.29715 Rs.5,82,896 Rs.4,90,298 Rs.92,598
Nearly 1.5 lakh BSNL employees have retired during
this period and Govt. has gained more than thousand crores.
Annexure IV
Number of beneficiaries
Total employees as on 1/10/2000 3,63,000 (Cabinet
Note 25/9/2000)
Not opted for BSNL 3,000
Opted for BSNL 3,60,000
Staff as on 31/3/2015 2,25,512 (BSNL
A/R 2014-15)
So, Pensioners as on 31/3/2015 1,34,488
Add retirees for 9 months upto 31/12
10,820
Add MTNL combined Sce optees
22,000
Total
pensioners upto 31/12/2015 1,67,308
Number of beneficiaries would be approximately
1,68,000. It is to be noted that at the
time of pension revision from 1/1/2007 total pensioners upto 31/12/2006 was
47,000 and the expenditure was Rs.110 crore per annum asper cabinet note.
It is to be noted that nearly 63% among the
non-executives retired from NE-6 to NE-10.
Annexure V
Pension revision for post 1/1/2016 retirees
1) Basic pay as on 1/1/2016 may be divided by 2
2) 94.4.% of that amount may be worked out
3) That amount may be multiplied by a factor of
2.57
4) The difference between the LPD and Basic Pay
As on 1/1/2016 may be worked out
5) 50% of that may be added to the amount with the
amount arrived at in number 3
6) That would be the basic pension at the time of
retirement
7) DR on CDA pattern may be worked out for this
basic pension
X Retired on 31/5/2019 with LPD of Rs.30630/- and a basic pay of
Rs.27820/- on 1/1/2016
1) 27820
divided by 2 = Rs.
13910
2) 94.4%
of that amount = Rs. 13132
3) Multiply
that amount by 2.57 = RS. 33750
4) Difference
between 30630 & 27820 = Rs. 2810
5) 50%
of this amount = Rs. 1405
6) Basic
pension @ the time of retirement = Rs. 35155
7) DR
@ 12% on CDA pattern = Rs. 4219
8) Total
pension with revision = Rs. 39374
9) Total
pension without revision 15315+141.4% Rs. 36971
10)
Net increase in total pension Rs.
2403
Ofcourse,
this requires an amendment to sub-rule 10 of Rule 37-A
No comments:
Post a Comment