AIBSNLPWA TN CIRCLE

PENSION @ 50% OF LAST PAY DRAWN14/01

The Sixth Pay Commission did not do justice to the pensioners. A person in service drawing Rs 5000 as basic pay was granted increase in the form of Grade Pay of Rs 4200.It comes to 84% of the pay. Whereas, a pensioner drawing Rs 5000 as Basic Pension was granted increase of Rs 2000 (40%) only. This injustice, in every pay scale, is still continuing for eleven years.

Another major anomaly was about rate of pension. Those who retired on or after 1-1-2006 were granted pension at the rate of 50% Last Pay Drawn, provided they rendered a minimum of ten years qualifying service. Those who retired before 1-1-2006 continued to get pension at the rate of 50% of ten months average pay and that too on rendering qualifying service of 33 years. This disparity continues for the last eleven years.

Seventh CPC gave two options to undo this injustice and bring parity in pension of old pensioners and new pensioners. While Government accepted both the options, Option No 2 was implemented. Pension was multiplied by 2.57. Net benefit got is 32% of the existing basic pension. Though government accepted Option 1, subject to feasibility, it was not implemented. Instead, the Allowance Committee was asked to examine the ‘feasibility’. It is understood that the Committee has almost rejected Option 1. They have suggested a new method to bring parity in pension. It is not yet announced officially. It is presumed that pay of the retirees will also be revised notionally in the new pay matrix. Then pension will be granted at 50% of the notionally fixed pay. It will remove the disparity to some extent. There is some indication as gained in the SCOVA meeting on 12-1-2017. [Please see the second Email received from Com. Krishna Rao, GS of Karnataka P&T Pensioners Association, given below.]

Question is about date of effect. If the new proposal is implemented with effect from 1-1-2016, then the senior pensioners will be losing arrears for ten full years.

We wrote to all organisations participating in SCOVA requesting them to demand pension at 50% of Last Pay Drawn to all who retired prior to 1-1-2006. Com. Krishna Rao only took up the item. But, it was not included in the Agenda by Government Side.

Email from Com. K B Krishna Rao, GS Karnataka P&T Pensioners Association, Bangalore:

DoP&PW this time did not include any item in the "Fresh Items" of the Agenda which has financial implications or requires amendement to pension Rules. In fact the Agenda was given to us in the meeting.We pointed out this and told them that the Agenda could have been atleast emailed to all SCOVA Members in advance for which the Secretary agreed.

Fresh items of the Agenda were of general nature.

Items suggested by KP&TPA (mailed to you earlier)which wolud benefit a large number of pre-2006 pensioners Viz. pension at 50 % of LPD, Stepping up of pro rata pension consolidated as per para 4.1 of OM dated 1-9-2008 to 50 % of the LPD , Grant of Family pension to unmarrried sisters, Increase in ex gratia to CPF beneficiaries were not included in the Agenda.

However, the Secretary DoP&PW who was the Chairman of the High Power Committee constituted to examine the feasibility of implementation of Option-1 recommended by the 7th CPC informed us that the Committee has submitted its report to the Govt and the Cabinet has to take decision in the matter. When we wanted to know about the nature of the "REPORT" the Secretary remarked that it is "Positive". When asked further , he said " it is as per your suggestion" . We understand that the report is about granting of parity in pension as recommended by the 5th CPC extended up to 7th CPC. .............................

........ If the report of the Committee on parity in pension is accepted by the Govt , then all pre 2016 pensioners will have their pension revised at 50 % of the Notional pay under 7th CPC and our demand regarding grant of pension at 50% of LPD will be met though may be from 1-1-2016 instead of from 1-1-2006, provided the amount of pension revised as per option-2 (application of multiplication factor 2.57) is lower than 50 % of the notional pay under 7th CPC.

Let us hope that the orders would be issued early