Sunday, 24 January 2016

IESM LETTER TO RM ON OROP ANOMALIES

IESM LETTER TO RM ON OROP ANOMALIES


21st January 2016


The Raksha Mantri
South Block, Ministry of Defence
New Delhi

Urgent Need to Rectify Anomalies in OROP
in Govt notification dated 7 Nov 15


Dear Shri Manohar Parrikar ji

Please refer to Govt executive letter dated 26 Feb 14, press release dated 5 Sep 15, Govt notification dated 7 Nov 15 and 14 Dec 15. Please also refer to the statement made by MOS Defense Sh Rao Inderjit Singh in Parliament on 2 Dec in reply to question asked by Sh Rajeev Chandrashekhar regarding implementation of OROP. (All attached)

One Rank One Pension was approved by UPA Govt in budget dated 17 Feb 14 and then by NDA Govt in their budget dated 10 Jun 14. UPA Government issued an executive order dated 26 Feb 14 for the implementation of OROP dues to veterans at the earliest. This was never implemented by the MOD nor a demand note was ever raised. The approved definition of OROP by two Governments is given below.

    "One Rank One Pension (OROP) implies that uniform pension be paid to the Armed Forces Personnel retiring in the same rankwith the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension to beautomatically passed on to the past pensioners. This implies bridging the gap between the rate of pension of the current pensioners and the past pensioners, and also future enhancements in the rate of pension to be automatically passed on to the past pensioners."

OROP implies that a senior rank soldier should never draw pension less than his junior rank soldier. This cardinal principle is the soul of OROP and must never be violated.

Government issued a notification on 7 Nov 15 for implementing OROP. Government reiterated above-mentioned definition of OROP in the letter but introduced some conditions in the notification that completely destroy the definition approved by two parliaments. These conditions have created four anomalies which completely violates the definition and thereby, the soul of OROP. These anomalies are discussed in detail in succeeding paragraphs.

    1) Fixation of Pension on calendar year of 2013 instead of FY of 2014: Fixation of pension as per calendar year 2013 would result in past retirees getting less pension of one increment than the soldier retiring today. This will result in past retirees drawing lesser pensions than present retirees. This will completely destroy definition of OROP approved by two Parliaments and will also result in loss of one increment across the board for past pensioners in perpetuity.

    2) Fixation of pension as mean of Min and Max pension: Fixing pension as mean of Min and Max pension of 2013 would result in more anomalies wherein same ranks with same length of service will draw two or more different pensions thus violating the very principle of OROP. This issue was discussed with RM in various meetings and after due deliberations it was decided that accepting highest pension of each rank in the year would meet the requirement as base of pension.

    3) Payment wef 1st Jul 14 instead of 1st Apr 14: OROP has been approved in budget of 2014-15 by two parliaments. As per norms of Government, all proposals approved in budget are applicable from 1st April of that FY. In the case of OROP, the Govt had issued specific orders to its applicability wef 1st April 14. Hence implementation date for OROP from 1st July will be against the Parliament approval. Changing the date would result in loss of 3 months emoluments for OROP across the board. However, if OROP implementation date is to be kept as 1st July, then the base pension should also be accepted as per the PPOs of July 2014.

    4) Pension Equalisation every five year: Pension equalisation every five year will result in a senior rank soldier drawing lesser pension than a junior rank soldier for five years thus OROP definition will be violated for five years. This will also result in permanent violation of definition as fresh cases will come up every year.

These anomalies will result in lesser pensions to widows, soldiers, NCOs and JCOs than what will be due to them on approval of OROP. This will result in veterans not getting OROP as per approved definition and will create large discontentment across all ranks.

There is a need to have a relook at the pensions of Hon Nb Subedars, Majors and Lt Cols.

    a) Some Havildars are granted rank of Hon Naib Subedar in view of their exemplary service. These soldiers are not granted pension of Naib Subedar thus making the Hon rank just ceremonial. It is requested that Hon Naib Subedars should get pension of a Naib Subedar rather than that of a Havildar. Similarly, this must be accepted as a principle and it should be applicable to all Hon ranks in case of NCOs and JCOs.

    b) There are only a few Majors as veterans. Moreover no officer is retiring in Major rank now. In the past, officers were promoted to Major rank after completing 13 yrs of service whereas present officers are getting promotion of Lt Col in 13 yrs. It will be justified to grant all pensioners of the rank of Major, minimum pension of Lt Col as they cannot be compared to present retirees as officers are not retiring as Majors any more. Number of such affected officers is not more than 800 and will not cause heavy burden to Govt.

    c) Similarly, all pre-2004 retiree Lt Cols should get the minimum pension of full Col. Presently all officers retire in the rank of Colonel hence all Lt Col equivalents should be granted min pension of Colonels.

In view of above you are requested to rectify these anomalies and issue addendum to notification issued on 7 Nov 15 for implementation of OROP. We strongly believe that there will be no requirement of judicial committee for attending to anomalies creeping up in implementation of OROP. Grant of increase in pension in case of honorary ranks and Majors and Lt Col must also be approved as a good will gesture.

This letter is being signed by three major organizations with the approval of more than 200 organizations. List of such organizations is attached.

sd/-
Lt Gen Balbir Singh
Chairman IESL Advisor UFESM
sd/-
Col Inderjit Singh
Chairman AIEWA Chairman IESM
sd/-
Maj Gen Satbir Singh
Chairman UFESM Advisor UFESM

Copy to:

  1  Mr Arun Jaitley, Finance Minister, North Block, Finance Ministry, Government of India
  2 Mr Jayant Sinha, MoS, Finance, North Block, Finance Ministry, Government of India
  3  General Dalbir Singh, PVSM, UYSM, AVSM, VSM, ADC, Chief of Army Staff
  4 Air Chief Marshal Arup Raha, PVSM, AVSM, VM, ADC, Chief of the Air Staff & Chairman Chiefs of Staffs Committee (CoSC)
  5  Admiral RK Dhowan, PVSM, AVSM, YSM, ADC, Chief of Naval Staff

Source: http://ex-servicemenwelfare.blogspot.in/

EPFO may pay 9% interest on PF deposits for 2015-16

EPFO may pay 9% interest on PF deposits for 2015-16

Retirement fund body EPFO may provide 9 per cent interest on PF deposits for this fiscal, which is higher compared to 8.75 per cent provided in previous two fiscals to its over five crore subscribers.

The Employees Provident Fund Organisation’s (EPFO) finance panel has recommended raising the interest rate on statutory savings of over 5 crore subscribers from 8.75% to 8.95% during the current fiscal.

“The income projection of Rs 34,844.42 crore for the current fiscal is expected to be revised upward. Thus the body can provide 9 per cent rate of interest on PF deposits for 2015-16,” an EPFO trustee and Bharatiya Mazdoor Sangh Secretary P J Banasure told PTI.

The Employees Provident Fund Organisation’s (EPFO) Finance Audit and Investment committee (FAIC) recommended 8.95 per cent interest on PF deposits for the current fiscal in its meeting earlier this week.

Banasure, who is also a member of FAIC said:”If the EPFO provides 8.95 per cent interest rate on PF deposits for 2015-16, it will leave a surplus of Rs 91 crore as per income projections worked out in September last year. But the FAIC will meet again later this month to vet the latest income estimate which is likely to be revised upward.”

According to EPFO income projections worked out in September, providing 9 per cent interest on PF will result in a deficit of Rs 100 crore. “We are expecting that there will be a surplus of Rs 100 crore on providing 9 per cent rate of interest on PF deposits when EPFO will work out the latest estimates. FAIC can change its recommendation in the next meeting and suggest 9 per cent interest rate for 2015-16,” he said.

The proposal has to be endorsed by the Central Board of Trustees (CBT) before the Finance Ministry notifies it.

However, there has been indications from the Finance Ministry that it will slash interest rate on small savings like public provident fund in view of the rate cut by Reserve Bank of India.

The EPFO provides rate of interest from the earning on investments of formal sector workers’ funds without any assistance from the government.

Source: EOT

Age relaxation to the residents of the State of J&K in Railways

Age relaxation to the residents of the State of J&K in Railways


GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)


RBE No.1/2016


No.E(NG)-II/95/RR-1/26

New Delhi, dt.: 6/01/2016


The General Manager (P),
All Zonal Railways/Production Units, CORE/Allahabad,
MTP/Kolkata, Chennai, Mumbai,
CAO (R), DMW/Patiala, COFMOW/New Delhi,
Director General, RDSO/Lucknow, RSC/Vadodra,
Director, IRISE/Secundrabad, IRICEN/Pune, IRIEEN/Nasik & IRIM&EE/Jamalpur, Chairmen, RRBs/RRCs.


Sub: Age relaxation to the residents of the State of Jammu & Kashmir.

Kindly refer to this Ministry’s letter of even number dated 08.6.2012 (RBE No.70/2012) forwarding therewith a copy of the notification No. 15012/6/2011-Estt.(D) dated 30.12.2011 issued by Ministry of Personnel, Public Grievances & Pensions (Department of Personnel & Training) extending the currency of relaxation of age limit limit in favour of the residents of State of Jammu & Kashmir for appointment to Central Civil Services and posts, recruitment to which are made to UPSC/SSC or otherwise by the Central Government up to 31/12/2013.

Department of Personnel & Training have issued a further notifications No. 15012/1/2014-Estt(D) dated 30/9/2014 and 23/10/2015 and accordingly the relaxation of age limit in favour of the residents of the State of Jammu & Kashmir for appointment to Central Civil Services and posts, recruitment to which are made through UPSC or SSC or otherwise by the Central Government stands extended up to 31/12/2017.

Please acknowledge receipt.
(Neeril Kumar)
Director Estt.(N)-II
Railway Board.


Authority : www.indianrailways.gov.in

7th Pay Commission – Government to Factor in Payout of 7th CPC in Deficit Targets

7th Pay Commission – Government to Factor in Payout of 7th CPC in Deficit Targets

“The government will not be generous in the pay out this time as they already are facing pressures from various fronts like disinvestment and poor direct tax collections,” said Dharmakirti Joshi, currently the chief economist at CRISIL.

7th Pay Commission – Government to Factor in Payout of 7th CPC in Deficit Targets – It is expected that the government, while putting a final seal on the recommendations, will keep in mind the tight fiscal position of the country.
The payout of the seventh pay commission recommendations will make finance minister Arun Jaitley walk a tight rope when he announces the fiscal deficit targets for 2016-17.

Expected to incur an additional expenditure of Rs 1.02 lakh crore to pay higher salaries and pensions recommended by the commission, Rs 28,000 crore alone will go for salary hikes of railway employees. In total, the implementation will impact the fiscal deficit by 0.65% of the GDP.

Experts feel that deficit figures shared in the medium-term fiscal policy statement had stated that the fiscal deficit target for FY17 and FY18 is 3.5% and 3.0%, respectively will have a significant impact from the pay commission pay out, leaving the government with higher deficit numbers.

“Achieving these targets in view of the likely acceptance and implementation of the recommendations of the Seventh Central Pay Commission will be difficult. We expect that the fiscal deficit of FY17 to come in at 3.9% of GDP. This will push the attainment of the fiscal deficit target of 3% of GDP to FY19, a year later than envisaged in the fiscal policy statement. In the past also, pay revisions have pushed fiscal consolidation targets. Accordingly, the fiscal deficit targets are likely to be 3.9%, 3.5% and 3.0% in 2016-17, 2017-18 and 2018-19 respectively,” said Sunil Kumar Sinha, principal economist, India Ratings & Research.

However, the pay commission revisions are yet to be accepted by the high-powered panel headed by cabinet secretary PK Sinha. The recommendations have a bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.

An empowered committee of secretaries was being decided to screen the recommendations with regard to all relevant factors of the Commission in an expeditious detailed and holistic fashion.
Though senior finance ministry officials feel that the pay-out which is likely to come only in the middle of 2016, might not be a big burden as the arrears would not be accounting to be much, unlike the past instances.

But, it is expected that the government, while putting a final seal on the recommendations, will keep in mind the tight fiscal position of the country.

“The government will not be generous in the pay out this time as they already are facing pressures from various fronts like disinvestment and poor direct tax collections,” said Dharmakirti Joshi, currently the chief economist at CRISIL.

Finance ministry till now has maintained a stand that it will be able to meet its target despite additional outgo on account of higher pay. But, finance minister Jaitley recently admitted that the impact of implementing the recommendations would last for two to three years.

The seventh pay commission had recommended an average 23.55% increase in salaries, allowances and pension, a move that will benefit 4.8 million staffers and 5.5 million pensioners. The hike will be effective from January 1, 2016.

A minimum pay of Rs 18,000 per month and a maximum of Rs 2.5 lakh has been recommended by the commission, headed by Justice (retired) AK Mathur, that presented its 900-page report to finance minister Arun Jaitley.

Source: Hindustan Times

Flash News

7th Central Pay Commission Higher Allowance - Central Government Employees

7th Central Pay Commission Higher Allowance - Central Government Employees (7CPC Central Govt Memes)