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OROP issues will be resolved

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OROP issue will be resolved in 2 months: Parrikar

PTI | 2016-11-03 10:29:00 +0000

BUDGAM(J&K): Defence Minister Manohar Parrikar on Thursday said only one lakh ex-servicemen were facing problem in getting pension as per One Rank One Pension scheme and it will be resolved within two months.

"Only one lakh ex-servicemen (out of over 20 lakh) are not getting pension as per OROP scheme due to some technical difficulty or documentation problems. We will resolve these problems in coming two months," he said addressing army veterans here.

The Defence Minister, accompanied by Army Chief General Dalbir Singh, was here to pay homage to Major Somnath Sharma, the first Param Vir Chakra awardee of independent India, and other soldiers who laid down their lives while pushing back an offensive by Pakistani raiders to control Srinagar Airport in 1947.

Parrikar said the government is sensitive to OROP issue as it was not implemented for the past 43 years.

"We did it. Every year Rs 7,500 crore (will be incurred) and Rs 11,000 crore arrears have been paid. There has been 23 to 24 per cent average increase in pension," he added.

After interacting and listening to the problems of the ex-servicemen, Parikkar assure them that their grievances would be resolved.

"Whatever (problems) has been conveyed to me today will be resolved by the time I come again. Today, I was given 10 minutes for an interaction with you but I extended it to 40 minutes. Next time, I will spend half a day with you," he said, adding he will make all efforts to resolve the problems of the ex-servicemen.

"Several of these (problems) will be resolved at the local level. I know that the reservation (benefits) and facilities of the state government have not been fully extended to you.

"I will seek a report from the state government on this issue. The facilities of central government will also be extended to you. I will look into it. I will find solution to the Ex-Servicemen Contributory Health Scheme (ECHS) problem also," he said.

Differences on perfect definition of OROP … Defence ministry has remained a labyrinth – not easy to tame: Major Navdeep Singh

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On civilian side too situation is as bad as that perhaps worst than this.There is no real participation in decision making. NC JCM is defunct mtgs do not take place fr yrs,decisions taken r nt implemented. For pensioners SCOVA is equally defunct all large federations,all India level Assn's including NC JCM (staff side) r shunted out.'Yes Master' r inducted. DOP & PW is now always pitched against pensioners interest.

November 4, 2016, 2:00 AM IST  in Academic Interest | Edit PageIndiaQ&A | TOI 
With political parties trading charges on the suicide of ex-soldier Ram Kishan Grewal on OROP, emotions are running high on both sides. Major Navdeep Singh, advocate in Punjab and Haryana high court, who was a member of the defence minister’s committee of experts to review service and pension matters which submitted its report in 2015, talked to Nalin Mehta about the OROP controversy and why the ministry of defence needs urgent reforms:
What is the current problem with OROP implementation which could have led to this suicide? 
There are conflicting reports about the sad demise of the veteran. Some seem to suggest that he was perturbed about non-release of the approved pension under the OROP scheme by his bank. If that is the case, then it is really unfortunate since that would mean that an amount legally approved by the government was not disbursed to him.
Overall the ministry of defence claims to have disbursed Rs 5,507 crore in two instalments for OROP. Apart from other issues, the problem also seems to be in the distribution mechanism down the chain, particularly at the level of bank branches. This needs to be fixed.
Government is implementing OROP but what about the larger veteran demand that what they have got is one rank many pensions, not one rank one pension?
Various sides have differed upon the perfect definition of OROP. Many veteran organisations have interpretational differences with OROP as notified, including the periodicity of revision. Then there were serious anomalies in OROP tables which were being looked into by a judicial committee. The committee has submitted its report. I think all sides should hold their horses till this is processed. In case, there still are problems, tackle them through remedies provided under law rather than politicise a sensitive subject. A democracy provides full opportunity to exercise legal rights in case of dissatisfaction. I personally do not agree to an approach of excessive emotional rhetoric which has the propensity of stoking discontent.
What about disability pensions and the controversy on downgrading of status? How does that square with the pedestal armed forces are being put on?
The disability pension controversy was shockingly unfortunate and its origin was the twisted data and a sadistic interpretation provided to the 7th Pay Commission on disabled soldiers. In case disabilities in the defence services are increasing due to a higher stress and strain of military life, the answer is to take steps to check the deteriorating health profile and increase the payouts to compensate loss of health, not to slash disability pensions! Ditto for status issues since such moves are unilaterally imposed and result in deleterious effect on morale.
Chest thumping and governmental downgrading can’t go hand in hand. Does government’s left hand not know what it is doing?
Irrespective of the party in power, the ministry of defence has remained a labyrinth which is not easy to tame. There are structural problems wherein the defence services or even other stakeholders are not a part of the decision-making process and a one-sided view is provided to the higher layers. There is no opportunity granted to rebut or check the veracity of what is put up to decision-making authorities. It is not that one hand does not know what the other is doing, actually one hand does not let the other know what it is doing.
What kind of reforms do we need to fix the problems in MoD? 
Two very simple suggestions without tinkering with the basic structure. First, the decision-making should be collegiate: probably by a ‘Defence Board’ chaired by the defence minister with a total of three-five members, with inputs of neutral personalities and experts wherever required. When files move up, these should be referred to all stakeholders for their comments so that nobody is able to hoodwink the decision-makers by mischief. Second, there is no institutional mechanism currently for the political executive to know the pulse of the problems of serving defence personnel and veterans, like there is for civil employees and pensioners. This assumes even higher importance since defence personnel (rightly) cannot form associations. Hence, a participative system akin to the Joint Consultative Machinery (JCM) for civil employees should be constituted to resolve grievances.
Similarly, the government had admirably constituted a standing committee for veterans in October 2014 which was to meet after every three months, but the lower bureaucracy has ensured that not even one meeting has taken place till date. The current defence minister appears to be keen to take the bull by the horns, but all personalities should support him in a politically neutral manner rather than pinpricking him all the time.


Restoration of Commutation of pension and payment of Additional Pension: CPAO seeks compliance report by 7th November, 2016

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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI-110066
PHONES : 26174596, 26174456, 26174436

CPAO/IT&Tech/Simplification/2016-17/11.vol-V/162
31.10.2016


Office Memorandum

Subject: Automatic Restoration of Commutation of pension and payment of Additional Pension.


Attention is invited to this office OM No. CPAO/Tech/Bank Performance/2015-16/45 dated 02.06.216 para No. (ii) & (iii) followed by minutes of the meeting with all Banks held on 21.08.2016 para 11 (c) wherein all Banks were advised to restore the commuted portion of pension after 15 years from the date of payment of commutation and pay additional pension on attaining the age of 80 years both automatically. Now, all CPPCs are directed to submit the compliance report of the above instructions by 7th November, 2016 by e-mail on e-mail id vijay.cpao@gmail.com for onward transmission to DP&PW.

This issues with approval of CC(P)

sd/-
(Vijay Singh)
Sr. Accounts Office (IT & Tech


Dearness Allowance from July, 2016 @ 2%:Order issued

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No. 1/2/2016-E-II (B)
Government of India 
Ministry of Finance 
Department of Expenditure 

New Delhi, the 4th November, 2016. 

OFFICE MEMORANDUM 
Subject: Recommendations of the Seventh Central Pay Commission — Decision of Government relating to grant of Dearness Allowance to Central Government employees — Rates effective from 1.7.2016. 

The undersigned is directed to say that consequent upon the decision taken by the Government on the recommendations of the Seventh Central Pay Commission relating to Dearness Allowance, the President is pleased to decide that the Dearness Allowance (DA) to all categories of Central Government employees shall be admissible at the rate of 2 percent of basic pay per month, w,e.f. 01.07.2016. 

2. The revised pay structure effective from 01.01.2016 includes the Dearness Allowance of 125% sanctioned from 01.01.2016 in the pre-revised pay structure. Thus, Dearness Allowance in the revised pay structure shall be zero from 01.01.2016. 

3. The term 'basic pay' in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix but does not include any other type of pay like special pay, etc. 

4. The Government vide Resolution No. 1-2/2016-IC. dated 25/07/2016 has decided that till a final decision on Allowances is taken based on the recommendations of the Committee constituted under the Chairmanship of Finance Secretary & Secretary (Expenditure), all Allowances will continue to be paid at existing rates. 

5, The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21). 

6. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored. 

7. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively. 

8. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India. 

(Annie George Mathew) 
Joint Secretary to the Government of India 


Status Report on implementation of OROP benefits (as on 15.9.2016)

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  • Beneficial Pensioners (pre-jul'14)-20,63,763
  • Cases paid  (1st installment and lump sum payments) -19,12,520
  • Amount disbursed (Rs. In crore)- ₹3,866.88
  • Pending with PSAs - 77,971
  • Pending with PDAs - 72,342
  • Cases paid 2nd installment - 11,33,100
  • Amount disbursed (Rs. In crore) - ₹1,640.59
Status Report on implementation of OROP benefits (as on 15.9.2016)
Sl NoName of PDABeneficial Pensioners (pre-jul'14)Cases paid (1st installment and lump sum payments)Amount disbursed (Rs. In crore)Pending with PSAsPending with PDAsCases paid 2nd installmentAmount disbursed (Rs. In crore)
1DPDOs3,74,8343,37,871647.7524,50912,4542,27,704368.47
2IE Nepal80,85667,308102.453,23410,31400
3Gujrat Treasuries1,9781,2643.4822249200
4Allahabad Bank19,77517,18146.632,594000
5Andhra Bank7,7534,89712.241,5241,33200
6Axis Bank5624821.83621800
7Bank of Baroda23,74120,17057.5703,57100
8Bank of India41,46434,608101.771,2755,58100
9BO Maharashtra23,54218,31351.1605,22914,71723.56
10Canara Bank30,30629,01874.461,288000
11Central Bank59,18657,648231.361092800
12Corporation Bk1,3101,3083.522000
13Dena Bank2,7722,4735.67022900
14HDFC Bank9349344.06008532.93
15ICICI Bank1,1841,1603.924000
16IDBI Bank1051030.6220880.46
17Indian Bank16,80015,64338.061,157000
18IOB15,04513,93130.771,114000
19OBC5,4965,49613.370000
20Punjab National Bank2,42,3572,36,548489.032,7881,9081,96,466274.67
21Punjab Sidh Bank6,5256,18517.022449600
22SB Hyderabad9,3688,94818.67420000
23SB Mysore5,8275,63013.59197000
24SB Patiala33,11732,74271.51055800
25SB Travancore42,18439,11079.243,074000
26SBBJ59,15157,597145.731,554000
27State Bk of India8,63,6238,14,3841397.3924,57224,6676,93,272970.5
28Syndicate Bank31,48928,79697.292,6494400
29UCO Bank21,50518,40336.182,70639600
30Union Bank24,97522,80746.272,0709800
31United Bank14,84710,41020.95104,42700
32Vijaya Bank1,1521,1523.470000
Total20,63,76319,12,520₹3,866.8877,97172,34211,33,100₹1,640.59


i) Missing information in approx 80,000 cases have been provided by PSAs. Further updates from PDAs are awaited. 

ii) SBI alone has been supplied information in about 32000 cases for updation of missing information cases. Further feedback awaited. 

iii) Out of 72,342 cases pending with PDAs, 23,517 cases (DPDOs-10076, SBI-12883, SBP-558, IENepal-305) are pending as payment discontinued due to non-identification.

Source: Mod/DESW [Click here for pdf]

One Rank One Pension to the Defence Forces personnel.

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No 12(1)/2014/D (Pen/Policy)-Part-H
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare


New Delhi, Dated: 03 February, 2016

To
The Chief of Army Staff
The Chief of Navy Staff
The Chief of Air Staff

Subject: One Rank One Pension to the Defence Forces personnel.
*****
Sir,

The undersigned is directed to refer this Ministry’s letter No 12(1)/2014/D (Pen/Policy)¬Part- II dated 7th November, 2015 notifying One Rank One Pension (OROP) scheme for Defence Forces personnel. Salient features of the scheme have been mentioned at Para 3 & 4 of above said letter with the provision that the benefit of the scheme shall be implemented from 1.7.2014 to all pre-1.7.2014 pensioners. Para 6 of the letter provides that detailed instructions relating to implementation of OROP along with tables indicating revised pension for each rank and each category, shall be issued separately for updation of pension and payment of arrears by Pension Disbursing Agencies concerned.

2. The undersigned is directed to say that in order to quicken the process of revision of pension/ family pension, total 101 pension tables indicating rates of pension/family pension under OROP scheme notified vide this Ministry’s order dated 7th Nov, 2015, are appended to this order. The appended tables indicate revised rates of Retiring/Service/ Special/ Disability/ Invalid/ Liberalized disability/War Injury Pension including disability/war injury element and ordinary/ special/ liberalized family pension of Commissioned Officers, Honorary Commissioned Officers, jC0s/ORs and Non-Combatants (Enrolled) of Army, Navy, Air Force, Defence Security Corps & Territorial Army retired/discharged/invalided out from service/died in service or after retirement. The existing pension of all pre- 1.7.2014 pensioners/family pensioners shall be enhanced with reference to applicable table for the rank (and group in case of JC0s/ORs) in which pension with reference to the actual qualifying service as shown in Column-I of the tables subject to maximum term of engagement for each rank as applicable from time to time. The rate of pension of pensioners/ family pensioners drawing pension more than the rate of revised pension/ family pension indicated in annexed tables, shall remain unchanged.

3. The undersigned is also directed to convey that full pension of PSU absorbees who had opted for 100% commutation of pension, shall also be revised under this order with reference to revised pension of the rank determined for regular category of pensioners. However, there shall be no change in restored amount of pension already notified by respective PSAs in their case.

APPLICABILITY


4. The provisions of this letter shall be applicable to all pensioners/family pensioners who had been retired/discharged/ invalided out from service/died in service or after retirement in the rank of Commissioned Officers, honorary commissioned officers, KO s/ORs and Non-Combatants (Enrolled) of Army, Navy, Air Force, Defence Security Corps, Territorial Army & Ex-State Forces and are in receipt of pension/ family pension as on 1.7.2014.

4.1 The provisions of this order, however, do not apply to UK/HKSRA/KCIO pensioners, Pakistan & Burma Army pensioners, Reservist pensioners and pensioners in receipt of Ex-gratia payments.

METHODOLOGY FOR IMPLEMENTATION

5. All Pension Disbursing Agencies (PDAs) handling disbursement of pension to Defence ensioners are hereby authorized to carry out revision of Retiring/Service/ Special/Disability/Invalid/Liberalized disability/War Injury Pension including disability/war injury element and ordinary/special/liberalized family pension of all pre- 1.7.2014 pensioners drawing pension as on 1.7.2014 in terms of these orders with applicable rates of dearness relief without calling for any applications from the pensioners and without any further authorization from the Pension Sanctioning Authorities concerned.

6. Where the revised pension as on 1.7.2014 worked out in terms of these orders, happens to be less than the existing pension/ family pension as on 1.7.2014, the pension shall not be revised to the disadvantage of the pensioner.

7. Arrears on account of revision of pension from 1. 7 .2014 till date of its implementation shall be paid by the Pension Disbursing Agencies in four equal half yearly installments. However, all the family pensioners including those in receipt of Special/Liberalized family pension and all Gallantry award winners shall be paid arrears in one installment.

8. The initial Pension Payment Order (PPO) or its Corrigendum PPO (Corr PPO) indicates rank,group and qualifying service for which the individual has been pensioned. This information is available with Pension Disbursing Agencies as they have revised pension of all such pensioners in the recent past in terms of Government orders issued for implementation of recommendations of Sixth CPC, CSC-2009 & CSC-2012. In case, however, any information regarding qualifying service, rank, group etc., is not available with Pension Disbursing Agencies, such cases may be referred to Pension Sanctioning Authority concerned on the proforma enclosed as Annexure-A. The Pension Sanctioning Authorities concerned will provide the requisite information from the available records within 15 days of the receipt of request from the Pension Disbursing Agencies.

9. In case of any doubt relating to revision of pension in terms of this order, pension disbursing agencies may immediately take up the matter with nodal officers of respective PSAs details of which shall be notified by Pr.CDA(P) Allahabad in their implementation instructions.

10. The OROP shall be basic pension from 1.7.2014 and therefore, additional pension as applicable to the old age pensioners/ family pensioners on attaining the relevant age (80 years and above) shall also be enhanced by the PDAs from 1.7.2014 or the date from which the pensioner attains the age of 80 years or more, whichever is later.

PAYMENT OF LIFE TIME ARREARS (LTA)


11. If a pensioner to whom the benefit accrues under the provisions of this letter has died/dies before receiving the payment of arrears, the Life Time Arrears of pension (LT A) shall be paid in the following manner: –

a) If the claimant is already in receipt of Family Pension or happens to be the person in whose favour Family Pension already stands notified and the awardees has not become ineligible for any reason, the LTA under the provisions of this letter should be paid to such a claimant by the PDA on their own.
b) If the claimant has already received LTA in the past in respect of the deceased to whom the benefit would have accrued, the LTA under the provisions of this letter should also be paid to such a claimant by the PDA on their own.
c) If the claimant is a person other than the one mentioned at 11(a) & 11(b) above, payment of LTA shall be made to the legal heir/heirs as per extant Government orders.
12. The following elements shall continue to be paid as separate elements in addition to the pension revised under these orders-
i) Monetary allowance attached to gallantry awards viz. Param Vir Chakra, Ashok Chakra etc.
ii) Constant Attendance Allowance, where admissible.
iii) Dearness relief as sanctioned by the Government from time to time.

MISCELLANEOUS INSTRUCTIONS

13. No arrears on account of revision of pension/family pension shall be admissible for the period prior to 1.7.2014.

14. No commutation of pension shall be admissible on revised/additional amount of pension accruing as a result of revision of pension under these orders. However, the existing amount of pension, if any, that has been commuted will continue to be deducted from the revised pension.
15. As a result of these orders, there will be no change in the amount of gratuity already determined and paid with reference to the rules in force at the time of discharge/invalidment/ death.
16. Any overpayment of pension coming to the notice or under process of recovery shall be adjusted in full by the Pension Disbursing Agencies against arrears becoming due on revision of pension on the basis of these orders.

METHODOLOGY FOR REPORTING


17. An intimation regarding disbursement of revised pension shall be furnished by the Pension Disbursing Agencies to the Office of the Pr. CDA(P) Allahabad in the format prescribed as Annexure¬B to this letter in the following month in which revision takes place. PDAs shall also ensure that an intimation regarding revision of pension is invariably conveyed to the pensioners concerned for their information irrespective of the fact the same is beneficial to them or not. The Public Sector Banks who are disbursing defence pension through Central Pension Processing Centres (CPPC), the progress report shall be furnished by the CPPC of the bank directly to the office of the PCDA (Pensions) Allahabad through electronic scrolls.

18. All other terms and conditions which are not affected by this order shall remain unchanged.
19. This issues with concurrence of Finance Division of this Ministry vide their ID No PC. 1 to 10(11)/2012/FIN/PEN dated 2.2.2016 .

(Manoj Sinha)
Under Secretary to the Govt. of India

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Annexure A

orop+order+annexure-a

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Annexure-B 

orop+order+annexure-b

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APPENDIX 
TO
GOVERNMENT OF INDIA
MINISTRY OF DEFENCE 
LETTER
No. 12(1)/2014/D(PEN/POL) - (PART-II)
Dated 03 February, 2016

OROP Table Index Page-1 

orop+table+index+page1

OROP Table Index Page-2

orop+table+index+page-2

OROP Table Index Page-3 

orop+table+index+page-3


OROP-Table-Index.pdf 


OROP

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OROP: Only 5 per cent army veterans unhappy; those in politics creating trouble, says Parrikar

Defence Minister Manohar Parrikar held those ex-servicemen, who have joined politics, responsible for OROP row saying that 95 per cent of the veterans are happy with the scheme.

IndiaToday.in  | Edited by Prabhash K Dutta 
Panji, November 5, 2016 | UPDATED 19:31 IST 
Manohar Parrikar

BHIGHLIGHTS

  • 1
    Manohar Parrikarhas claimed that 95 per cent army veterans are happy with OROP.
  • 2
    Parrikar blamed those ex-soldiers, who have joined politics, for OROP row.
  • 3
    Parrikar blamed implementation procedures for inconsistencies in OROP.

Defence Minister Manohar Parrikar on Saturday said that 95 per cent of retired defence personnel have benefited from the implementation of the One Rank, One Pension (OROP) scheme.

OROP: Only 5 per cent army veterans unhappy; those in politics creating trouble, says Parrikar

Defence Minister Manohar Parrikar held those ex-servicemen, who have joined politics, responsible for OROP row saying that 95 per cent of the veterans are happy with the scheme.

Parrikar claimed that only remaining 5 per cent faced problems with the current OROP.  The defence minister further said that all the issues relating to OROP would be resolved in the next two months.
IndiaToday.in  | Edited by Prabhash K Dutta 
Panji, November 5, 2016 | UPDATED 19:31 IST 
Manohar Parrikar

HIGHLIGHTS

  • 1
    Manohar Parrikarhas claimed that 95 per cent army veterans are happy with OROP.
  • 2
    Parrikar blamed those ex-soldiers, who have joined politics, for OROP row.
  • 3
    Parrikar blamed implementation procedures for inconsistencies in OROP.

Defence Minister Manohar Parrikar on Saturday said that 95 per cent of retired defence personnel have benefited from the implementation of the One Rank, One Pension (OROP) scheme.

Parrikar claimed that only remaining 5 per cent faced problems with the current OROP.  The defence minister further said that all the issues relating to OROP would be resolved in the next two months.

ORP-correctly implemented?


NPS- No pension scheme

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New Pension System – It’s No Pension Scheme

nps pfrda

New Delhi:- Discontent is simmering among the government employees and teachers over the Contributory Pension Scheme also called the National Pension Scheme that was launched in 2003 by the then NDA government. The united Andhra Pradesh government and later the Telangana State governments have also adopted the scheme.

The existing employees in 2003 did not react much as it did not impact them.  But, as the government recruitments continued after 2004, the ranks of government employees denied the defined benefit pension and brought under this contributory pension scheme started to swell. They are realising its ill-effects on them. There are about 1.15 lakh such employees in Telangana and another 1.56 lakh in Andhra Pradesh, who are affected by the New Pension Scheme.

As per this scheme, the central government employees appointed on or after January, 1, 2004 will come under this scheme. Until then, the government employees were getting pension as an additional post-retirement benefit. But, the new scheme provides for pension based on the contributions from the employees accrued in a fund set up for the purpose.

The Pension Fund Regulatory Development Authority Act (PFRDA) was enacted by the then UPA government in 2013 with the support of the major opposition, NDA. In accordance with the Act, the pension funds will be invested in the stock market and the quantum of pension being subject to its vagaries.  The lives of the retirees would therefore swing as per the bulls and bears of capital market.

The government and the promoters of PFRDA Act argued that the retired employees are to be benefited immensely by the New Pension Scheme as the markets would yield them wealth. But, this wealth perceived is actually market capitalisation. Its estimates are just notional. In the previous scheme, the pension benefit was defined and calculated based on the last drawn pay. Apart from this defined pension, the retired employees in the old scheme would also get other benefits like gratuity and commutation.

But, in the new pension scheme, the quantum of pension is completely dependent on the price fluctuations in the market. If the market plunges due to one sentiment or the other, then the retirees would be losing heavily for no fault of theirs. Stock markets across the world are prone to either manipulation or speculation. The uncertainties deprive the government employees the luxury of planning their retired life as they become vulnerable to the peculiar behaviour of stock markets.

The origins of PFRDA are in the Project OASIS (expert       committee) Report (December, 1999), which was constituted by the first NDA government. However, the tripartite Central Board of Trustees of the Employees Provident Fund had, in a special meeting held on February 8, 2000 and was chaired by the then labour minister, unanimously held: “the (said) report is investment centric and not social security or social insurance centric and contains a number of recommendations and suggestions, which are inconsistent with the ground reality or practical considerations.”

The CBT was “unanimously of the opinion that the proposals in the report … would seriously jeopardise the safety and future savings of the workers as well as the whole concept of social security and social insurance.” Even the Bhattacharya Committee, appointed by the NDA government, did not recommend only a ‘defined contribution’ scheme, which is the case with the New Pension System. It recommended a hybrid Direct Benefit /Direct Contribution or mixed scheme.

The policy of pension reforms emerges out of the World Bank report titled, “Averting the Old Age Crisis”. This report advocated pension sector reforms. The essence of the World Bank report  was not to tackle the crisis  faced by the elderly in their old age  as professed in the title of the report , but , to resolve the ‘crisis’ of the pension pay out burden of the governments world over.

This new scheme works out as follows. The gratuity and commutation amount are paid out of the 60 percent withdrawn from the accumulated contribution of the employees during their service. The remaining 40 percent will be invested in the annuities. The income yielding out of this would be paid as pension.

In the old pension scheme, the amount was essentially dependent on the maximum wage one reaches by the time of retirement. The other benefits like gratuity, commutation availed in the old Pension Scheme are non-taxable but 60 percent withdrawals at the time of retirement under the New Pension Scheme are subject to taxation.

The pension amount earlier was guaranteed. But, now, it is left to markets. When the UPA government defended the New Pension Scheme stating that it would yield more returns than the pension obtained otherwise, Members of Parliament asked the government to ensure a minimum guaranteed pension in the PFRDA act itself.

The then prime minister Manmohan Singh simply replied how it can be guaranteed as it was dependent on market movements. Infact Section 20(2)(g) of PFRDA Act  inter-alia, provides: “there shall not be any implicit or explicit assurance of benefits except market based guarantee mechanism”.
The government employees under this new pension scheme will be deprived of the government Provident Fund account. Thus they will be losing the interest on the GPF accruals and the facility of partial withdrawals from the GPF.
All the government employees appointed on or after January, 1, 2004 were contributing 10 percent of their pay into the contributory pension scheme. The government would contribute a matching amount. This money is in the National Securities Depository Limited (NSDL). The fund managers, who operate this fund, are investing the same in the markets.

The experience so far suggests that the net asset value accrued on these contributions is not even matching the bank interest. Thus, the employees who have earlier failed to comprehensively comprehend the implications of the New Pension Scheme started feeling the pinch of it. Hence, the disgruntlement!

Even the government is not going to benefit much as it has to contribute 10 percent as a matching grant. It is not therefore relieved of the pension burden. However, the industry gets access to massive public savings. The   magnitude of the public resources available for the private sector is evident from the following statistics. By the end of November, 2015, about 16 lakh central government employees were brought under this scheme.

The total amount accumulated accounts for about 44,000 crores. Similarly all the state government employees enrolled in the new scheme accounted for over 28 lakh. The  total amount was to the extent of over Rs 50,000 crore. This accrual will increase each passing year.

Even the Supreme Court held that pension is a social security measure and is the fundamental right.  The apex court in D.S. Nakara & Others vs. Union of India, 1982   stated that Pension is a right; not a bounty or gratuitous payment.

Pension also has a broader significance in that it is a social-welfare measure rendering socio-economic justice by providing old-age economic security to those who toiled ceaselessly in their youthful heyday. Privatising pension funds tantamounts to privatising social security and depriving the protective freedom enjoyed by the employees, who contributed to the government service for decades.

The PFRDA Act applies to those appointed after 2004. However, the pace with which pension reforms are implemented across the world leaves no guarantee that the Act will not be mandatorily extended to the employees recruited prior to 2004, who are now in the old defined benefit pension scheme.

In case, if the government does so, it is unlikely that the courts will strike it down as Supreme  Court in many judgements held that when  the State  considered  it  necessary  to liberalise the pension scheme   in order  to augment  social security in  old age  to government  servants it  could not grant the  benefits of liberalisation only  to  those who retired subsequent  to the  specified date and deny the same to those who had  retired prior  to that date.

The government can escape judicial scrutiny claiming that New Pension Scheme benefits employees. Investing public savings in the stock markets should be the option of those who save. But, the New Pension Scheme makes it mandatory. Each employee will have his or her own priorities of expenditure in life. The economic necessities differ from person to person.

How can one be deprived of choice of spending one’s surplus income? Even if the government ascribes to itself the parental role, the mandatory savings should yield minimum guaranteed and better returns. The risk-absorbing capacity of a retiree will be limited and it varies from individual to individual.

Under this New Pension Scheme, the employees will not get any family pension facility. Besides, service charges will be collected from the employees for managing their pension funds.  As per the PFRDA Act, the government gives a matching grant. But, this may not stand as evident from the experience of pension reforms in other countries like in many East European countries.

The governments often implement fiscal austerity regime. They are legally mandated to control expenditure under Fiscal Responsibility and Budget Management (FRBM) Act. In such a situation, the possibility of government slashing its share of the contribution by amending the Act cannot be ruled out.  Noble laureate and former chief economist of World Bank, Joseph Stiglitz warned that pension privatisation can lead to worsening of economic crisis as evident from the experience of Argentina.

Source:- Hans India


Seema Bansal: How to fix a broken education system ... without any more money

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I watched this TED Talk and thought you would find it interesting.

Seema Bansal: How to fix a broken education system ... without any more money
https://go.ted.com/Cymy

Learn more about watching TED Talks on all of your favorite platforms: https://www.ted.com/about/programs-initiatives/ted-talks/ways-to-get-ted-talks

Implementation of the recommendation of the 7th CPC – option regarding commutation of additional amount of pension.

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PC-VII No.08/2016
RBE No.128 /2016
GOVERNMENT OF INDIA. (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)
No. 2016/F(E)III/1(1)/8
                               New Delhi, Dated: 02.11.2016.
The GMs/FA&CAOs,
All Zonal Railways/Production Units.
(As per mailing  list)
Subject: Implementation of the recommendation of the 7th CPC – option regarding commutation of additional amount of pension.
A copy of Department of Pension and Pensioners’ Welfare (DOP&PW)’s No.O.M. No.42/14/2016-P&PW(G) dated 24th October 2016 on the above subject is enclosed for  information and compliance.  These instructions shall apply mutatis and mutandis  on  the  Railways also. Rule 10 of of CCS (Commutation of Pension) Rules, 1981 corresponds to Rule 11 of Railway Services (Commutation of Pension) Rules, 1993 DOP&PW’s O.M. dated 04.08.2016 referred to in the enclosed O.M., was adopted on Railways vide letter of even number dated 12.08.2016.
2. Since, DOP&PW’s O.M. dated 04.08.2016 was circulated on Railways vide Board’s letter of even number dated 12.08.2016 the option mentioned in Para 3 of O.M. dated 24.10.2016 may be given to Railway employees who retired between the period 01.01.2016 and 12.08.2016.
3. Please acknowledge receipt.
(Sanjay Prashar)
Deputy Director  Finance(Estt.) III,
Railway Board

Implementation of the recommendation of the 7th CPC – Option regarding commutation of additional amount of pension. The undersigned is directed to state that in pursuance of G

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F.No.42/14/2016-P&PW(G)
Government of India
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners Welfare
3rd Floor, Lok Nayak Bhawan
khan Market, New Delhi-110003
Date:- 24th Oct, 2016
OFFICE MEMORANDUM
Subject:- Implementation of the recommendation of the 7th CPC – Option regarding commutation of additional amount of pension.
The undersigned is directed to state that in pursuance of Government’s decision on recommendation of 7th Central Pay Commission, orders have been issued for revision of provisions regulating pension/gratuity/commutation of pension etc. vide this Department’s OM 38/37/2016-P&PW(A) dated 04.08.2016. In para of the said OM, it has been mentioned that there will be no change in the provisions relating to commutation values, the limit upto which the pension can be commuted or the period after which the commuted pension is to be restored.
2. As per Rule 10 of CCS (Commutation of Pension) Rules, 1981, an applicant who has commuted a percentage of his final pension and after commutation his pension has been revised and enhanced retrospectively as a result of Government’s decision, the applicant shall be paid the difference between the commuted value determined with reference to enhanced pension and the commuted value already authorised. For the payment of difference, the applicant shall not be required to apply afresh.
3. References have been received in this Department that many pensioners who retired after 01.01.2016 and have drawn pension/commuted value of pension based on their pre-revised pay/pension do not wish to commute the pension which has become additionally commutable on revision of pay/pension on implementation of recommendations of 7th CPC. the matter has been examined in consultation with Ministry of Finance (Department of Expenditure), It has been decided that those pensioners who retired from 01.01.2016 till 04.08.2016 i.e. the date of issue of orders for revised pay/pension based on the recommendations of the 7th CPC may be given an option, in relaxation of Rule 10 of CCS (Commutation of Pension) Rules, 1981, not to commute the pension which has become additionally commutable on revision of pay/pension on implementation of recommendations of the 7th CPC. The Cases where the additional pension after 7th CPC has already been commuted will not be re-opened.
4. In their application to the employees of Indian Audit and Accounts Department, these orders issue in consultation with Comptroller and Auditor General of India.
5. This issues with the concurrence of Ministry of Finance, Department of Expenditure ID No.192/E.V/2016, dated 30.09.2016.
(Suiasha Choudhury)
Director(Pension)
Railway Board.

Automatic Restoration of Commutation of pension and payment of Additional Pension.

Deposits over 2.5 lac

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Deposits above Rs 2.5 lakh to face tax, 200% penalty on income mismatch

PTI | 2016-11-09 16:18:00 +0000

NEW DELHI: The government on Wednesday warned that cash deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 per cent penalty in case of income mismatch.

"We would be getting reports of all cash deposited during the period of November 10 to December 30, 2016, above a threshold of Rs 2.5 lakh in every account.

"The (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow," revenue secretary Hashmukh Adhia said tonight.

Any mismatch with income declared by the account holder will be treated as a case of tax evasion.

55327651
"This would be treated as a case of tax evasion and the tax amount plus a penalty of 200 per cent of the tax payable would be levied as per the Section 270(A) of the Income Tax Act," he said.

The government has allowed citizens to deposit in their bank accounts old currency of Rs 500 and Rs 1,000 denominations , which had been declared invalid in the nation's biggest crackdown on blackmoney, corruption and counterfeit notes, between November 10 and December 30.

Adhia said small businessmen, housewives, artisans and workers who had some cash lying as their savings at home should not be worried about any tax department scrutiny.

"Such group of people... need not worry about such small amount of deposits up to Rs 1.5 or 2 lakh since it would be below the taxable income. There will be no harassment by the Income Tax Department for such small deposits made," he said.

On people resorting to buying of jewelery, he said persons buying jewelery has to provide the PAN number.

"We are issuing instructions to the field authorities to check with all the jewellers to ensure this requirement is not compromised.

"Action will be taken against those jewellers who fail to take PAN numbers from such buyers. When the cash deposits of the jewellers would be scrutinised against the sales made, whether they have taken the PAN number of the buyer or not will also be checked," he added.

Removal of state-wise jurisdiction of Banks for disbursement of Central Government (Civil) Pensioners: Clarification regarding.


Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation —reg.

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GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. E(P&A)-II/2012/F.E.2/4.
New Delhi, dated 31/10/2016.

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi — 110 055.

Sub.:- Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation —reg.


Ref.:- 1. NFIR’s letter No. 1/5(c )/Part I dated 22/02/2016.
2. NFIR’s letter No. 1/5(c )/Part I dated 25/04/2016.

I am directed to refer to your letters quoted above. The subject item (No. 40/2012) refers to admissibility of HRA in the event of non-acceptance or surrender of Railway residential accommodation. While this is governed by Railway Board’s letter No. E(P&A)-II/99/HRA-2 dated 16/03/2000; the Federation vide their letter No. 1/5(c) Pt. I dated 09/04/2012 had asked for review of the clause mentioned in Board’s letter ibid that HRA will not be admissible to railway employees for whom railway accommodation is specifically earmarked or to those employees, whose occupation of railway quarters is essential for easy accessibility during emergencies and efficient discharge of their duties etc. (“essential staff’).

2. Subsequently, as recorded in the PNM meeting held on 30-31 January, 2014, it was explained to the Federation that wherever there is a house earmarked the employee cannot be allowed HRA. Federation contended that administration cannot deny HRA when earmarked quarters are not fit for occupation and wanted that a clarification be issued in the matter.

3. The item was further discussed by the Federation with the Board on 15/07/2015 and it was recorded as “As decided in the earlier meeting, a clarification after reviewing the matter is to be issued. Official Side stated that they propose to issue instructions in consultation with Civil Engineering Directorate. Federation stated that while they do not understand the need for a consultation with the Civil Engineering in this case, they requested the clarification be issued quickly. It was agreed to do so. The item to be closed thereafter” .

4. Accordingly, the matter had seen referred to Land & Amenties Dte. who confirmed that instructions were in place (issued vide RB/L&A No. 009/2011 dated 19/09/2011 to all Zonal Railway, PUs etc.) regarding dismantling of condemned/abandoned quarters, and that quarters declared condemned are not made available for allotment.

5. In line with the assurance recorded at para 3 above, letter No. E(P&A)- II/2012/F.E.2/4 dated 12/10/2015 was issued to all Zonal Railway and Production Units etc. that before allotment of Railway quarters, it should be ensured that such quarters are fit for occupation. Copy of this letter was also endorsed to the Federation.

6. It is, therefore, submitted that the letter dated 12/10/2015 referred to had already been issued by the time minutes of the discussions on the item held with NFIR on 8th and 9th October, 2015 were finalized/received and this was also explained in the meeting with NFIR in 18/01/2016. There has, therefore, been no deliberate violation of the assurance given to the Federation.

7. As, in terms of extant instructions, quarters unfit for occupation are not to be allotted, the question of allowing HRA against such allotment does not arise, in general. Any violation of the extant instructions can be taken up with the concerned field formation for appropriate remedial action.

For Secretary/Railway Board

Get ready for I Tax notice

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Depositing black money? Here are the income tax notices you should get ready for

 | Updated: Nov 10, 2016, 11.50 AM IST

De-monetisation of the Rs 500 and Rs 1000 notes is a massive blow for those who have unaccounted money as they will face various penalties.De-monetisation of the Rs 500 and Rs 1000 notes is a massive blow for those who have unaccounted money as they... Read More
NEW DELHI: Black money refers to the sum that you own which is unaccounted i.e. which you have not declared to the income tax department as having earned or received. In simple words, the amount on which tax was payable to the government as per the income tax laws, but, the sum was hidden or not disclosed to the department in order to evade the tax payment.

De-monetisation of the Rs 500 and Rs 1000 notes is a massive blow for those who have unaccounted money as they will face various penalties and prosecution proceedings under the Income Tax Act.

Consequences for people depositing unaccounted money:

CASE-I: Someone who has never filed a return deposits unaccounted money

"Let's start with a case study, in which a person has unaccounted money (Black money) with him, and he has not filed any Income Tax Return (ITR) in earlier years. Say, this man has not received any notice from the Income tax department and has been successful in concealing his income so far.

The possible consequences he might have to face as per the provisions of current Income tax laws if he is found to have deposited unaccounted money are as follows:

Launch of new currency notes and ban on old notes of Rs 500 and Rs 1000 will force the assessee to get his cash exchanged or deposit it in banks. While depositing the unaccounted cash into his bank account or exchanging he will have to submit his PAN and other details to the banking officials. This would make the likelihood of his case being caught by the Income tax Department very high As a result, he would be likely to get notices from the income tax department asking him the source of this amount deposited by him in the bank.

1. Notice under section 142(1): 
This notice would require him to furnish his ITR within the time period allowed in the notice which is normally 15 days. Further the Assessing officer (A.O) would require him to produce his books of account, other documents and information. You might be astonished but here the A.O has powers even to enquire about your personal belongings and can ask you to submit your personal books of accounts. This notice can ask for information relating to the 3 years immediately preceding the financial year for which assessment is to be made.
Generally this notice would come along with a notice under section 144, 148 or 153A.

Also Read: Tax+200% penalty in case of cash mismatch! Modi govt plans scrutiny over deposits

If you don't comply with notice under section 142(1): 
If the assessee does not comply with the directions, conditions specified in the notice, then he might have to face best judgement assessment under section 144 - this means that the A.O will assess your income and impose tax and penalty as per his own judgement. Also, in this case the A.O would not be liable to issue you any show cause notice under section 144 meaning that you would not be given any opportunity to convince the AO that section 144 should not be imposed on you.

Further, not complying with the notice directives would lead to a minimum fine of Rs 4 per day which may extend up to Rs 10 per day for each day the failure continues. Apart from this you might end up in prison for up to 1 year.

Also a penalty of Rs 10,000 will be levied on you for not complying. However, this penalty would not be imposed in case you satisfy your A.O. that there were reasonable causes for not complying with the notice directives in time (such as death in family)

2. Notice under section 148: 
You might receive a notice under this section in which case you would be subject to 'income escaping assessment.' This assessment is done under section 147 and the A.O has very wide powers while doing this assessment.

Here the A.O can open your assessment for the last 6 financial years i.e. he can ask you to explain source of your income , provide income related proofs etc for the last 6 years.

The A.O can ask for all the documents he thinks are necessary for him to compute your true income and finally assess your correct income and thereafter issue you a notice under section 156 demanding the amount of tax payable by you (as re-calculated by him), along with interest and penalties and prosecution.

3. Assessment under section 153A i.e. income tax raid: 
After detecting your unaccounted income deposits, the tax department may decide to conduct an income tax raid at your place to find out other assets like gold, property papers, benami transactions etc in your possession/ ownership. In such a case you would not get any advance notice. Such search and seizure proceedings are the most aggressive step which can be taken by the income tax department and hope that you are not the one who gets in its ambit.

4. Directions under section 144A: 
If your income tax return for any year is already being assessed under any section other than the normal self assessment, then your case could be hurt if you are detected depositing unaccounted income. The tax law permits the joint commissioner to instruct your A.O to take a stricter view of your case pending before him.

CASE-II-Someone who has not declared full income in returns filed

Let us take the case of a person who has filed the ITR for earlier years but the income declared in his returns is way less than what he was actually earning/receiving. Consequently, he has been evading tax. The consequences these people might have to face as per the provisions of current Income tax laws are 

Allowance committee - Notes

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Draft minutes of Allowance Committee meeting held on 25th Oct, 2016


No.6/8/2016-CPC
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
(CPC Section)

North Block, New Delhi

Dated the 7th November 2016

To

Shri Shiv Gopal Mishra

Secretary, Staff Side
National Council Staff Side (JCM),
13-C, Ferozeshah Road
New Delhi – 110001

Subject: Draft minutes of the meeting held on Tuesday the 25th October 2016, under the Chairmanship of Secretary (P) with the representatives of Staff Side, National Council (JCM) on issues relating to the DoPT- Specific Allowances.
Sir,
Please find enclosed a copy of the Draft Minutes of the meeting held under the Chairmanship of Secretary (P) on Tuesday the 25th October 2016 with the representatives of Staff Side on issues relating to the DoPT- Specific Allowances. You are requested to send your comments on the draft minutes by 15/11/2016 positively.

Yours faithfully,
(D.K. Sengupta)
Deputy Secretary (CPC)

RECORD NOTE OF THE DISCUSSION ON DOPT-SPECIFIC ALLOWANCES, HELD WITH THE STAFF-SIDE, NATIONAL COUNCIL (JCM) AT 3.00 P.M. ON 25.10.2016 UNDER THE CHAIRMANSHIP OF SECRETARY(P).

A discussion on the DoPT-specific allowances with the Staff-Side National Council (JCM) was held at 3.00 p.m. on 25.10.2016 under the Chairmanship of Secretary(Personnel) in Room No. 119, North Block, New Delhi in compliance with the direction contained in the minutes of the 2nd meeting of the Committee on Allowances held on 01.09.2016 that every Ministry/Department should firm up its views/comments on allowances relating to the Ministry/Department after holding discussion with their Staff Associations.

  1. List of participants is at Annexure.
  2. At the outset JS(JCA) welcomed all the members of the Staff side of the National Council of JCM to the discussion on department specific allowances. JS(JCA) informed that in the second meeting of the Committee on Allowances it was decided that all the department specific allowances will be discussed with the JCM. After a brief introduction it was decided to discuss the following department specific allowances on which DOPT has received the comments for Staff-Side.
  • Children Education Allowance (CEA)

The Staff-Side has stated that the benefit of Children’s Education Allowance should be extended to the Graduate and Post Graduate levels also. They have informed that the private institutions are charging exorbitantly. So, subject to a ceiling on tuition fees and hostel fees, the CEA should be extended to the Graduates and Post Graduates level. Staff-Side has informed that they had also represented to the Pay Commission for simplifying the procedure wherein they had suggested that reimbursement should be based on the bonafide certificates from the schools where the children are studying. This suggestion has been accepted by the Pay Commission and the Staff-Side has requested that it should be implemented.

On the issue of DOPT’s circular on e-receipt, Secretary, DoPT clarified that this circular had been issued before the government accepted the 7th Pay Commission recommendation.

(Action: JS(Estt.)

  • Night Duty Allowance (NDA)

Staff-Side has pointed out that the Night Duty Allowance (NDA) is still being paid at the 4th CPC rate. Even though there is a Board of Arbitration award in favour of employees that from 01.01.1996 it should be given in the 5th CPC pay scale, the government did not accept the arbitration award and even today employees are getting it at the same rate as it was prevalent during the 4th CPC period.

In the Ministry of Defence a lot of litigation had taken place and the matter went up to the Supreme Court. Hon’ble Supreme Court directed that it should be paid on the basis of the actual pay drawn and that NDA should be revised w.e.f. 01.04.2007 at the 6th CPC pay scale which has been implemented by the government. However, the audit authorities came up with an objection that there is a ceiling for it which has been objected to by the Staff-Side.

Apart from that, the 7th Pay Commission has recommended that it should be worked out with the actual pay of the employee being the criterion. However, in spite of that, except for the Ministries of Defence and Railways, employees working in other Ministries/Departments are getting it at 4th CPC rate. Thus, the absence of uniformity on this allowance across Ministries/Departments is very glaring which, according to the Staff-Side, is a principal source of litigation and will continue to remain so. Therefore, the Staff-Side has suggested that an early revision of the NDA without ceiling, and on the basis of the actual basic pay, and extending it to whoever is asked to do night duty will go a long way in reducing litigations in the future.

(Action: JS(Estt.)

  • Over Time Allowance (OTA)

Staff-Side has pointed out that there are two types of over time duty. One is covered under the Factories Act, 1948, and the other is for the office staff. In the first case, since it is a statutory obligation, the Pay Commission has not recommended anything on it. But for those Central Government employees who are not covered under the statutory provisions of the Factories Act, OTA is paid at a single rate of Rs.15.85/- only and, that too, for the first hour immediately after the scheduled office closing time, it is Nil. In case of OTA there is also an arbitration aw-ld from 01.01.1996 that it should be at par with the 5th CPC pay scale. However, neither it has been implemented nor have the rates been revised.

The Staff-Side has stated that if an employee is asked to work after hours the rate of OTA should be as per 7th CPC pay scale. Staff-Side is of the opinion that overtime means working after office hours, and asking an employee to work beyond office hours automatically entitles him/her to this allowance. The over time rates should also be above the normal level. It was pointed out by them that as per 7th CPC, an MTS is paid @ Rs.75/ hour; whereas overtime allowance is @ Rs. 15.85/- only. Even an outsider employed on casual basis is being paid hourly wages which are more than OTA. The Staff-Side is strongly of the view that if government is deploying a person on overtime work then he has to be paid at least according to the rate of salary which he is getting

(Action: JS (Estt.)

  • Cash Handling Allowance (CHA)

Staff-Side has informed that the 7th CPC recommendation on its abolition is based on the fact that in most of the offices today salary disbursement is not made in cash. It is credited to the individual bank accounts. But cash transactions do take place in certain offices like the Post Offices where cash handouts are made under the Mahatma Gandhi National Rural Employment Guarantee Act. PLI is also another example. Therefore, if it is stopped all of a sudden, no person will show interest in working as cashiers and take the additional responsibility of handling huge amounts of cash. Therefore, the Staff-Side has contended that till all cash transactions are eliminated, CHA should continue.

It was also pointed out by them that this allowance depends on the amount of cash transaction; when the volume of cash transaction comes down, the allowance will also proportionately come down.

(Action: JS(Estt.)

  • Uniform related allowances subsumed in a single Dress allowance (including shoes)

Staff-Side has informed that the 7th Pay Commission has recommended that Persons Below Officers Rank (PBOR) should be given Dress Allowance @ Rs.10,000/- per month. There are 5 Ordnance Factories under Ministry of Defence where persons are exclusively deployed to produce special high altitude dresses for the combat forces of the army. 12000 employees are working in these 5 factories. Therefore, if a uniform rate like this is maintained, it will have an adverse impact on the quality of these high altitude uniforms and will thus jeopardise the safety of the armymen and the nation as a whole. Staff-Side is stated to have already made a request to M /o Defence not to implement this recommendation. Army has also taken a stand that this will result in substandard or sub quality material. So this recommendation on the Dress allowance for PBOR should not be implemented.

As far as Civilian employees are concerned, it has been stated that the 7th CPC has recommended four slabs of Dress Allowances for various categories. One of the categories is called ‘others’. Whereas, in the Department of Posts there are about 75,000 postmen and Multi Tasking Staff wearing uniform. There is no mention about these postmen and multi tasking staff in any of the categories shown by the Pay Commission. If it is presumed that they come under ‘Others’, then they will be getting Rs. 5,000 whereas at present they are getting around Rs. 7,000 plus washing allowance. As such a separate category should be there for postmen and MTS also and the allowance should be Rs.10,000/-

It has also been pointed out that there are many categories like canteen employees, security staff, chowkidars which have not been mentioned and who are eligible for uniform or uniform allowances. It has to be clarified whether these categories will be covered under ‘others’. Staff-Side has stated that whosoever is getting Dress Allowance as on today should continue to get that. Staff-Side has also informed that the recommendations on Dress Allowance have created a lot of discrimination among staff working in similar circumstances.

Staff-Side has also drawn attention to the Dress Allowance with respect to the Nursing Staff. It has been stated that earlier also Nursing Staff were not given normal washing allowance or dress allowance considering the importance or the peculiar conditions prevailing in hospitals. Now they have also been bracketed in the general category. They were getting Rs.750 as Uniform Allowance and Rs. 450 as Washing Allowance per month. Now there is no separate category that has been given to them. For them a different dispensation was made taking into account their special requirements because they work in such an environment where their uniforms require regular washing entailing a substantial expenditure. As these have not been accounted for in the 7th CPC, the nursing staff should have a special dispensation, as is strongly felt by the Staff-Side.

JS (JCA) has requested Staff-Side to submit a note on the justification or break-up of the amount of Rs.32,400(maximum) as suggested by them and the Staff-Side has agreed to provide the same.

Secretary, DOPT summed up the demands of the Staff-Side by observing that those who were getting Dress Allowances, their allowances should not come down. And the categories of the employees which had special dispensation in the past and have not been mentioned this time or have been clubbed together with other categories need clarification.

(Action: JS(JCA)/Staff-Side)

  • Risk Allowance

The Staff-Side has informed that Ministry of Defence is engaged in arms and ammunitions manufacturing etc. In the process of manufacturing them, the staff engaged for this purpose, have to handle hazardous chemicals, acids and so many other poisonous combinations. Cabinet has approved 45 risk operations pertaining to Defence civilian employees. Apart from that, because of the technological developments taking place fast and as the requirement of the armed forces is increasing for getting modern equipments, ammunitions and explosives, new risk operations have also come into existence of which Ministry of Defence is aware and have recommended also accordingly. In spite of this, the existing Risk Allowance has been abolished by the Pay Commission. It has been pointed out by the Staff- Side that it has not been subsumed under the risk and hardship matrix. Rather it comes in the abolition list. In no matrix are the risk operations of Defence civilians are covered. Staff-Side has informed that they have discussed this with Defence Secretary and Defence Ministry is going to recommend in favour of its inclusion in one of the matrix.

In response to the query of Secretary, DOPT as to whether the activities which have been considered to be risky have all been identified, Staff-Side has clarified that it has been identified by a high level committee and approved by the Cabinet. 45 risk operations have been identified and approved. But within a period of 2 decades, lot of new ammunitions and new explosives have come in the arsenal, alongwith a lot of hazardous chemicals and acids. So, M/o Defence has again appointed a committee and they have identified that all these are additional risk operations over and above the 45 identified, where Defence Civilian employees are actively involved. But the Pay Commission has abolished Risk Allowance. So this has to be incorporated in one of the risk matrix.

(Action: JS(Estt.)

  • Other Items

Staff-Side has pointed out that in the 7th CPC report it has been stated that any allowance not mentioned and hence not reported to the Commission shall cease to exist immediately. They have requested that this recommendation should be rejected. On the contrary, the administrative Ministries should come forward and recommend for their abolition or retention.

Staff-Side has also stated that 7th CPC has abolished all advances completely. Noting that we regularly celebrate a number of festivals like Diwali, Holi, Eid and keeping the general sentiment in mind, they are of the view that advances are very necessary. Moreover, these advances are required to be paid back to the government.

On Family Planning Allowance, the Staff-Side has stated that since the Government has not changed its Family Planning policy, the allowance should be continued. At least in the case of those people who were getting it they should continue to get as they have fulfilled all conditions when the allowance was granted. Otherwise there will be drop in their emoluments.

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Implementation of recommendation of 7th CPC - Fixation of Pay and payment of arrears in respect of (a) Autonomous Organisations (b) Central Government Employees who are working in Autonomous bodies on deemed deputation : reg

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7th CPC Pay Revision for Autonomous Bodies: DR.A SAMPATH, MP writes to FM

Dr. A. SAMPATH, M.A., LL.M., Ph.D. 
MEMBER OF PARLIAMENT 
(LOK SABHA) 
ATTINGAL, KERALA
 MEMBER: 
•Standing Committee on Personnel, Public Grievances, Law and Justice
•Consultative Committee for Ministry of Finance
•Committee on Official Language 

CHAIRMAN: 
• Dist. Level Vigilance & Monitoring Committee
No.ATL-MP/94/CG/2016 Dated. 14.10.2016

Dear Shri. Arun Jaitely ji,


Sub: Implementation of recommendation of 7th CPC - Fixation of Pay and payment of arrears in respect of (a) Autonomous Organisations (b) Central Government Employees who are working in Autonomous bodies on deemed deputation : reg 

May I write the following for your kind consideration and necessary action. Recently Government of India have revised the pay of central Government Employees and issued necessary orders citing recommendation to be implemented on 25th July 2016. 

I am given to understand that the usual practice is to implement the pay benefits to the employees working in Autonomous Organisations, such as Sree Chitra Tirunal Institute of Medical Sciences and Technology and to the Central Government Employees who are working in Autonomous bodies on deputation. 

The disbursal of bonus to Group B, C and D employees are also awaited. 

Since the above mentioned employees are awaiting formal orders from the Government, may I request your good-self to look into the matter and do the needful. 

Yours faithfully,
sd/- 
Dr. A. SAMPATH. M P 

To
SHRI.ARUN JAITLEY
HON'BLE UNION MINISTER FOR FINANCE & DEFENCE
GOVERNMENT OF INDIA
NEW DELHI
7th-cpc-autonomous-body-letter-by-mp

Source :  confederationhq.blogspot.in

Rate of Dearness Allowance applicable w.e.f. 1.7.-2016 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th Central Pay Commission

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7% hike in 6th CPC Dearness Allowance from July, 2016 @ 132%: Order issued

No. 1/3/2008-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 9th November, 2016.

OFFICE MEMORANDUM

Subject:- Rate of Dearness Allowance applicable w.e.f. 1.7.-2016 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th Central Pay Commission


Consequent upon acceptance of the recommendations of the Seventh Central Pay Commission by the Government, this Department vide O.M.No. 1/2/2016-E.II(B) dated 4th November, 2016 had. issued orders on rate of Dearness Allowance (DA) payable to Central Government employees based on the revised pay structure that came into effect from 01.01.2016.

2. The above rate, however, is not applicable to- those Central Government employees who had exercised an option to continue in the pre-revised scales of pay based on 6th CPC’s recommendations or to those whose pay and allowances had not been revised, for different reasons.

3. Further, as the recommendations of 7th CPC have not been made applicable to the employees of Central Autonomous Bodies as of now, they continue to draw their pay in the pre-revised pay band/grade pay as per 6th CPC recommendations. Therefore, the above rate of DA is also not applicable to these employees also.

4. The rate of DA w.e.f.01.01.2016 for Central Government employees and employees of Central Autonomous Bodies in pre-revised scale of pay, were issued by Department of Expenditure vide O.M.No. 1/1/2016-E.II(B) dated 7th April, 2016.

5. Accordingly, the rate of DA admissible to employees of Central Government and Central Autonomous Bodies who continue todraw their pay in the pre-revised pay band/grade pay as per 6th CPC recommendations, shall be enhanced from the existing 125% to 132% w.e.f. 01.07.2016.

6. The contents of this Office Memorandum may also be brought to the notice of the Organisations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay.

sd/-
(Nirmala Dev)
Deputy Secretary to the Govt. of India

6cpc-da-july-2016

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