Pension
Revision- DOT Meant What..
It
is our bounden duty to go through the available slides of DOT presented to the
Association of pensioners during the meeting on Oct 17th 2022. The
copy of full presentation of DOT must be obtained and placed in the public
sphere to study it better. Let us take the two important slides that have
immediate connection with our pension of revision. One should discern not miss that the slides carry the mind of DOT.
For pre-2017
pension revision DOT slide says the following:
“Pension
of the Pre 1-1-2017 retirees would be fixed by taking half of notional pay, as
derived from merging their IDA as on
1-1-2017 with LPD and placing it with the scales of 3rd PRC.
It would be ensured that, no notional pay such derived be less than the minimum
of the corresponding 3rd PRC scale. It would also be ensured that
there be no loss in notional pay on account of bunching of pay”
Here
the contention is about zero fitments, though no such word was mentioned in
that para but can be easily inferred and the demand is about fitment by some associations
for 7th CPC and others for PRC. DOT is categorical that no 15 % fitment
is possible and it was told that it may
be in between 0 to 15 %. So neither zero nor 15 it is cleared. This one is
connected with PRC only. So the options are 5 and 10 accordingly, if we read
between lines.
If
all the associations with all vigil move together and press that the fitment
which is closer to 15 % that is not less than 10 % then the relief for
pensioners will be good though not the best. It may be nearer to 7th CPC’s 14 plus percent also.
For Post 2017
Pension revision DOT slide says the following:
“
Pension of post 2017 retirees would be fixed by taking half of notional pay as
derived from merging their basic pay on 1-1-2017 with IDA on 1-1-2017 and
placing it with the scales of 3rd
PRC and subsequent updation of such notional pay by way of annual
increments/stagnation increments (if any) till one’s retirement. However, it
would require relaxation in Rule 37 15 a of CCS PR 2021.
I
have given below the relevant sub rules of 37 that is 12 b ,14, 15 a and 26 for
our understanding.
Let
us take post 2017 slide of DOT. DOT is very clever. It is made as open ended.
There is no such provision when this ‘notional ends and actual starts’. For
this we have to learn from its 78.2
order dated 18-7-2016. For post 2017 retiree half of notional pay
derived from merging, say even merging and fitment ( if fitment is settled) and
such derived notional pay on the 3rd PRC scales by way of eligible
increments will be taken for his or her pension fixation. Here like the one
given to 78.2 %, no ‘actual date of
benefit’ is shown. It is left open ended and it may suit DOT.
Suppose
DOT issues pension revision order on 10th May 2023 ( if earlier happy) in the slide
said manner then those retire after that date will also be covered by this
order, because they also come under post 2017 retirees. They will not get the
actual benefit even after that order issued date say 10th may 2023,
(though they may continue after that order date as employees). For employees
those who are going to serve beyond the order date , the benefit of enhancing their pay from 1-1-2017 notionally
till 9-5-2023 ( say if order issued on 10th may 2023) and actual
from that date is shadowed here. Some may entirely have to go for the
ten years in notional pay only (regarding for pension fixation) , if
retirement is on dec 2026. This will continue till a change is obtained either
thro 4th PRC or thro 8th CPC.
This
means no pay revision for them, even though they take 3rd PRC
scales. This is the outcome of the so called great delinking.
So
now DOT suits its proposal with those demanding benefit for post 2017 retirees
from their date of retirement and pre 2017 from the date of 1-1-2017. DOT
modified the date of effect as it knows correctly that can be only from
1-1-2017 for both pre and post 2017.
As
per 78.2 order of DOT (10-6-2013) for post 2017 retirees retired between 1-1-2007 to
9-6-2013 because of notional pay the following impact we found
“..However,
these pensioners do not get actual benefit of increase in pay/ pension during
the period between 1-1-2007 to 9-6-2013, and they would get increase in the
amount of DCRG, leave encashment and commutation of pension on this account”. This one is not clear in the DOT slide for
Post 2017. That is notional pay means no pay arrears but increase of DCRG,
leave encashment and commutation. This point also is to be taken care of.
Summing up the mind of DOT from these
proposals:
·
DOT
is willing to consider Pension revision without Pay revision
·
Pension
revision would as per 3rd PRC
·
Date
of Effect as per 3rd PRC that is 1-1-2017
·
IDA
merger as per 3rd PRC 119.5 %
·
Fitment
neither 0 percent nor 15 % but in
between- if as mentioned by 3rd PRC means then it would be either 5
or 10 %
·
It
is 3rd PRC scales linked Pension revision not 3rd
PRC Pay revision linked Pension Revision
·
DOT
slide is silent about increased DCRG, Leave encashment and Commutation
·
For
this they may have escape gate from the DPE guidelines for 3rd PRC
implementation regarding pay revision. But they take its factors like date of
effect, merger point, fitment and scales of PRC without allowing Pay revision or
seeking exemption from DPE for BSNL/MTNL
Pay revision
For
this they seek relaxation of rule 37 15 (the rule is given below) and it seems a
sort of concurrence obtained from DOPPW- that pension fixation based on
notional pay. This tantamount ‘giving up the right pension /family pension
shall be calculated in the same manner
as calculated in the case of a Central Govt servant retiring or dying on the
same day. The emoluments or average emoluments for this purpose shall be based
on the pay drawn in the PSU as per IDA pattern’.
Com
O P Gupta fought a very long drawn struggle to get that explanation appended
with the rule 8 of 37 A the present 15 A
of 37
. We are all enjoyed this rule
when we get our pension fixed . But now at the cost employees who are going to continue
in BSNL even after if any Pension
Revision order , we are striving our best to get Pension revision in the name
of delinking.
I
appeal to the recognized Unions that they should be doubly careful by studying
the situation and DOT’s mind carefully and clinch the issue of Pay revision as
early as they can in the negotiating committee and sending the same to the
administrative ministry. Executive scales are based on 15 % and naturally on
that standard NE scales need to be constructed and approved. Pressing to seek
exemption from DPE for the Pay Revision is the way. Kindly miss not the time.
BSNL
may place its hindrances on the plea of increased pension contribution. If BSNL is exempted to pay the increased
contribution from 1-1-2017 to the date of DOT’s approval or from 1-1-2017 to
the date of 31-1-2019 ( that is the date of VRS- so that to reduce its burden
of paying to some 80000 people more), then the increased pension contribution
issue will not be that much a burden to BSNL.
The
only best way to all stake holders- pre 2017, post 2017 and employees of BSNL
to get some benefit with their interconnectedness is simultaneous pension revision
and pay revision. If pension revision alone means, the recognized means may
face the wrath of the employees. I am confident that their wisdom will take
things in a better way and help them to clinch the issue. The time is ripe to
act with all steadfastness.
I
wish good luck to both the Associations of Pensioners and TUs of Employees.
Sorry
to bother you all. Diwali wishes!
Post
script
37 of CCS
Pension Rules 2021
Sub
Rule (12)
A
Government servant who has been absorbed as an employee of a public sector
undertaking shall be entitled to exercise option either,-
(a)
to receive pension or service gratuity, as the case may be, and retirement
gratuity from the Government for the service rendered under the Central
Government in accordance with rule 44 and rule 45; or
(b)
to count the service rendered under the Central Government in that public
sector undertaking for pension and gratuity.
Sub
Rule (14)
A
Government servant who has exercised option under clause (b) of sub-rule (12)
and his family shall be eligible for pensionary benefits (including commutation
of pension, gratuity, family pension or extra-ordinary pension), on the basis
of combined service rendered by the employee in the Government and in the
public sector undertaking in accordance with the formula for calculation of
such pensionary benefits as may be in force in the Central Government at the
time of his retirement from the public sector undertaking or his death
Sub
Rule (15)(a)
On
retirement from the public sector undertaking or on death of an absorbed
employee who has exercised option under clause (b) of sub-rule (12), the amount
of pension or family pension shall be calculated in the same manner as
calculated in the case of a Central Government servant retiring or dying, on
the same day.
Explanation.-
The emoluments or average emoluments for this purpose shall be based on the pay
drawn in the public sector undertaking as per Industrial Dearness Allowance
pattern.
(b)
The pensionary benefits of such employee shall be drawn and paid in the manner
specified in sub-rule (18) to sub-rule (26).
Sub
rule (26)
Nothing
contained in sub-rules (18) to (25) shall apply in the case of conversion of
the Departments of Telecom Services and Telecom Operations into Bharat Sanchar
Nigam Limited and Mahanagar Telephone Nigam Limited, in which case the
pensionary benefits including family pension shall be paid by the Government.
78.2
Experience
DOT
OM dt 18-7-2016 for BSNL
After
employees got 78.2 fitment benefit actual from 10-6-2013, the same was given to
pensioners also
4.The
issue regarding revision of pension, FP of BSNL IDA Pensioners/Family
pensioners who retired prior to 10-6-2013 has been considered by the Govt, and
the following has been decided:
a.
The pension/FP of BSNL IDA pensioners/family pensioners prior to 1-1-2007, may
be revised as on 1-1-2007 notionally with acyual benefit w.e.f 10-06-2013 by
adding together
i.
existing basic pension/Fp including commuted portion of pension if any
ii.
DR IDA @ 78.2 %
iii.
Fitment weightage @ 30 % of the existing pension/FP and DR IDA thereon.
The
amount so arrived will be regarded as consolidated pension/family pension w.e.f
10-6-2013
4.b
The
pension/FP of BSNL IDA pensioners/family pensioners, who retired between
1-1-2007 and 9-6-2013, their pay may be revised notionally w.e.f 1-1-2007 by
allowing the benefit of merger of 50 % DA/DR with Basic pay/Pension effectively
amounting to 78.2 % IDA for the purpose of fitment, and consequential revision
of pension on notional pay with actual benefit w.e.f 10-6-2013, at par with the
serving employees of BSNL. However, these pensioners do not get actual benefit
of increase in pay/ pension during the period between 1-1-2007 to 9-6-2013, and
they would get increase in the amount of DCRG, leave encashment and commutation
of pension on this account
16hrs
22-10-22 - R. PATTABIRAMAN
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