Saturday, November 2, 2019

Some Questions concerning VRS of BSNL / MTNL


Some Questions concerning VRS

  1. Whether VRS Idea is bolt from blue in BSNL?
No. This has been a talk in the corridors of BSNL, DOT, GOM of ‘Congress Govt’ and the present BJP Govt  and as per the various recommendations right from Pitroda committee, BRPSE recommendations, BCG- Deloitte, BSNL Core Committee and finally IIM Ahmadabad. VRS becomes part of the revival plan as a measure of cost cutting expenditure on staff item. The present Govt has taken the decision to pump financial support for VRS expenditure and so the realized VRS.

  1. Is there any change in tone in communicating the decisions of cabinet between PIB release and DOT OM?
Yes. DOT OM prioritise VRS as its first item where as PIB has given 4G as its first item

  1. Whether VRS decision can be stopped?
It is near impossible to stop unless all refused in one tone- like a kind of non cooperation to avail the offer.

  1. Whether Trade Unions can give guidelines for wholesale acceptance or rejection of the VRS proposals?
It is not possible to give any ‘one size fit formula’. They can share and express their collective experiences in various industries. But individual alone should take responsibility of availing or unavailing the offer after knowing the details of the offer. TUs would help them to understand the offer and the pros and cons.

  1. Whether Trade Unions address the grievances of VRS optees?
Definitely, it is the duty of TU to address the grievances / issues that the VRS optees are subjected to face

  1. Whether Gujarat Model is correctly followed in calculating the exgratia and restricting the eligible exgratia?
Yes and NO. The calculation was done as per Gujarat Model. But restrictive clause limiting the eligible amount is not according to DPE guidelines. The eligibility amount that they are proposing finally is less than Gujarat formula. They are managing  to fine tune the exgratia by linking pension of initial years in calculation and restriction.

  1. Whether the concept of 125 % is based on any existing guidelines?
No. It is violation of Existing guidelines restricting the eligibility criteria linking with lump sum Pension. There is no concept like lump sum pension except the form of Commutation. Exgratia payment is a lump sum concept. Pension payment is monthly concept.

  1.  Whether VRS optees get pension?
Yes but up to 60 years (without commutation) full pension that is 50 % of your last pay after that according to your availing of Commutation.

  1. Whether deferring Commutation is as per any guideline?
No. It is violation of the existing guidelines.   One can postpone upto the period of one year only

9.a Whether the family can be given the benefit of 40 per cent commutation if a pensioner dies before exercising option?
 Since the commutation does not become absolute in such cases the benefit cannot be given to the family

  1. Whether Gratuity can be delayed or deferred?
Yes -  but they have to pay GPF interest for the delayed period but with the concurrence of  Secretary GOI level.  Action will be taken against those who are all causing the delay. This one is the existing guideline.

  1. Whether GOI is having right to modify the guidelines / rules of commutation, Gratuity etc?
Yes, they are having right to modify. But modification should be notified publicly before it  is implemented .

  1. Whether VRS is compulsory to those 50 and above aged employees?
No. It is voluntary and availing the offer  is as per the wisdom of the individual

  1. Whether Exgratia is to be paid by GOI/DOT?
No. BSNL will pay it in two installments after getting money from GOI. DOT should seek that as budgetary amount from MOF for this current year and for the next year. Exgratia is guaranteed one as it has a backing and sanction of cabinet.

  1. Whether VRS is good for the employees in the current scenario?
It is good and bad. Good as they are going to be relieved from the day to day concern of BSNL, its viability etc and they are assured of monthly Pension as per 37A. It is bad because of the psychological pressure mounted to leave  earlier to their  date of superannuation  from the organisation that has been dear to them all along and it is a kind of assault on their Job security

  1. Whether VRS is good for BSNL?
It is good and bad again. It is good because as a loss making organisation it is being relieved from the burden of higher staff cost. Even if 40 % of the targeted gone on VRS , cost will be reduced to that extent. It is bad because, it is going to be denuded of best and skilled manpower which one is need of the competitive environment. Danger of more outsourcing would loom large.

  1. Whether the conditions for paying pension for the absorbed employees – 37 A is applicable to VRS optees?
    Yes.  But Govt/ BSNL should spell whether VRS optees are being allowed to take    VRS as that of   sub rule 11A of 37 A or as 8 of 37 A.  As per the DPE guidelines and as per DOPT guideline for Spl VRS for CG Employees the compensation under VRS will be addition to terminal benefits.

  1. Whether VRS optees are eligible for wage revision and pension revision?
Yes, they are eligible. It is better to get assurance from the concerned authorities. But as per DPE 20th July 2018 “ Arrears of wages due to revision etc will not be included in computing the eligible amount”. This was the stand of  of DPE  in earlier guidelines also. So no extra exgratia if any wage revision.

  1. Whether availing Commutation is a must at 60 years or 2024-25?
Not necessary. If willing then they have to prefer the relevant form for that otherwise they can continue with the same Pension as fixed on their date of VR as per VRS.

  1. Whether Post VRS situation is tough to the remaining Employees?
Talks may be like that by the management/ DOT/GOI.  But as on date no change in service condition is spelt either in Transfer rules or CDA etc.

  1. Whether any new Manpower planning would be there after VRS?
There may be chance for that to share the work load judiciously and they may try for even distribution of manpower. Organizational structure may be changed.
  1.  Whether financial viability will be restored immediately after VRS as there are 4G market and reduction of staff cost?
It is difficult to give any assurance on the financial viability of BSNL immediately after VRS. Assurance can be possible only when we find improvement in revenues.

22. Why DOT OM dt 29-10-19 is spelling 60 years as current retirement age? Is there any agenda for reduction of retirement age to 58 years?
Intention is not revealed transparently.  Earlier Draft Cabinet Note was having that 58 proposal but there is no official pronouncement regarding this as on date - that is in the Cabinet note dt 22-10-19  whether any approval sought for the same - any  decision given is not known publicly.

  1. After VRS Abolition of vacancies due to VRS?
Already the GOI abolished all the posts while transferring the employees to BSNL on absorption during oct 2000. In the case of Non Executives in 2003 itself all the posts like SrTOA P stands abolished as and when they retire. In 2011 almost 19 cadres were declared as wasting cadres and their posts abolished as and when they retire. Again now they are going to abolish the posts when VRS optees vacate.

  1.  Whether 80000 /90000 in number  is possible to avail VRS?
It means a big ticket VRS- unless doubts are well clarified it is difficult to implement. Even if 40000 availed VRS, it will be construed as a big victory for the promoters and planners.

  1. Tax exemption?
For Exgratia IT exemption is 5 lakh

  1. Whether wage revision is part of revival plan?
As per the DPE Guidelines issued on 24-11-2017 ( 8th round for workmen) it is spelt in para 2 iii " In those CPSEs for which the Govt has approved a restructuring / revival plan, the wage revision will be done as per the provisions of the approved restructuring/ revival plan only"  It is not publicly known whether this guideline was taken into account while approval was given  by cabinet . It seems that DPE has given some positive comment to DOT to examine the issue of 3rd PRC . But DOT OM issued communicating the decision of Cabinet about revival was silent on this matter.

  1. Is there any social impact because of  big number VRS?
Yes. Studies on VRS are galore. Experiences are different.  Making ‘working people’ idle will have its own social effect.

More questions may arise after seeing the order for VRS issued by BSNL. More light can be seen once we obtain the cabinet note and approval copy.  Let us hope for the best.

2-11-19      23.30 hours

61 comments:

  1. Sir
    Good elobration in each point
    PL give guidance after tomorrow meeting with our minister any new assurances.

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  2. Concept is very good in time . H SAMSUDHEEN

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  3. Good analysis, it is the need of the hour. Many doubts have been cleared. Remaining rest with the decision of Govt/CPSE /DOT/corporation.

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  4. Good analysis, it is the need of the hour. Many doubts have been cleared. Remaining rest with the decision of Govt/CPSE /DOT/corporation. - Ch.Chandrasekhara Rao, CS,NFTE,AP

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  5. Very nice analysis.GPF payment will be paid on date of vrs ?

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    1. The Official communication as on date is not telling GPF would be deferred

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  6. Will PRC will applicable fir those who will opt VRS

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  7. Whether vrs is from DOT/BSNL service or only from BSNL service?

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    1. combined service would be taken for exgratia calculation

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    2. Pls clarify whether the offl can ask for repatriation to DOT, as the terms of corporatisation have been violated in the new schemes. Whether this violation can be challenged in court of law?

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  8. 2nd instalment in 1st quarter of next year means by June will entire exgratia payment be settled? How much tax after 1st 5 lakhs

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  9. In the case of central govt.employee pension of retired person up to 31-12-2016 had already revised w.e.f.1.1.2017 but incase of BSNL the case is still pending how much time will take the govt to revised the pension of retiery of BSNL.

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    Replies
    1. As on date Govt stand is Pension Revision after Pay revision

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  10. Sir What would be the medical scenario after retirement it is must to know and clear all things because after the age of 50 most of the employees /families would depend on it Only.

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  11. Well done sir.A very good exercise.
    If possible publish in Tamil too

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  12. Sir What would be the medical scenario after retirement it is must to know and clear all things because after the age of 50 most of the employees /families would depend on it Only.

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  13. I have completed 58 years. Whether it will be benefit or not if I took VRS.

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    Replies
    1. Kindly calculate and decide as per your family condition . You only can be the best judge

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  14. If financial upgradation of any employee is pending but is granted after 31/1/2020 , will he get arrear of exgratia ..or is there any move to settle such cases at the earliest, so as to enable them to take decision ?

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    Replies
    1. your pay as on the date of retirement will only be taken for calculating exgratia.. why it is pending

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  15. If we opt for vrs at 52 years of age will the pension will start right after vrs.. plzz do reply

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  16. Excellent reply on each question. We may expect more after issued by BSNL

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  17. Sir Good suggestions but I don't come to know whether leave encashment is taxable or not?

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    1. Leave encashment for DOT period leave balance is FULLY tax free. Leave encashment for leave earned in BSNL is taxable for amount exceeding 3 lakhs.

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  18. As it is proposed to pay the exgratia in 2 instalments, whether the exempted limit of 5 lakhs is available for 2019-20 and 2020-21 Financial years separately.

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    1. As per Section 10 (10C) of the IT Act, 1961, any amount received by an employee of a public sector company on voluntary retirement is exempt up to Rs 5 lakh.You have to receive this amount in terms of a scheme of voluntary separation. As you have received Rs 6 lakh, you will be liable to pay tax on Rs 1 lakh. As per second proviso to Section 10 (10C), once this exemption is allowed in an assessment year, no exemption will be allowed thereafter to you in relation to any other assessment year.

      ( This one was given by Economic Times Ap 19,2018)

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  19. Whether any union can challenge the company, in court, to pay exgratia as per Gujarat model Or left over service pay whichever is lower? which is as per DPE guidelines.

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  20. Whether proposed commutation of pension is calculated as per commutation factor on the date of VRS or 60 years?
    because it is not the fault of the VRS optee.

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    Replies
    1. They will do as per 60 years- the next birth day factor

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  21. Sir gd evng doj 01st october 2000 sir how much exgratia and pension amount i get sir,how much amount they are giving to the total exgratia 1st 2nd time and monthly pension.

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  22. Leave encashment for the leave earned in DoT period is not taxable. However, leave earned in BSNL period is taxable and there is an exemption of 3 lakhs available on this also.

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  23. Whether 58 years retirement for BSNL /MTNL and 33 years of maximum service / 60 year retirement for CG employees are on the cards?

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    Replies
    1. No official communication. Govt is having right to modify

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  24. Thanks for kind information pl. Also please intimate whether we got benefit of (non executive ) NEPP Promotion wef oct 2019 which is still due.

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  25. Should oppose the vrs as it will spoil bsnl because of leaving of well experienced team which is reqd by bsnl at this crucial stage.Outsourcing will not help.

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  26. I have 59 yarr complete service kindly advise me i getting vrs or not

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  27. I am completed 30 yr service & 10 years service remaining. Pl. advice VRS is beneficial or not?

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  28. Sir,our E3-E4 upgadation pending since Nov.2018,whether it should be settled before VRS ?.

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  29. I have 36.8 year complete service and 4.4 year left kindly advise me I getting VRS or not

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  30. Very good analysis, point by point explanation cleared all the doubts. What about direct recruited employees who have no pension benefit. Is leave encashment is exempt from Income Tax for BSNL employees recruited after Oct 2000.

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  31. Please clear on provisional pension

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  32. for ex-gratia no tax as per kpmg

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  33. If a person say xyx opted for VRS and due to some reason he will expired before getting 2nd installment of exgratia, then where the balance exgrasia to his family

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  34. Kindly explain about leave encashment and it's disbursement.

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  35. Please provide vrs calculator

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  36. VRS Option is only for employees who attained 50 years age and above. Why not for all employees? Although it is voluntary not Forcible. I am imposing a stay on this Scheme.

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  37. good questions it is to given to all employees who get ex gratia as of this no PSU give exgratia and pension it is agift for BSNL MTNL cake and butter other pSUs no pension

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