Saturday, 6 August 2016

7th Pay Commission – DA Merger Would have been more Beneficial

7th Pay Commission – DA Merger Would have been more Beneficial – Whether enough organizational pressure was there to get the demand accepted is now an academic issue for discussion only.

The 7th Pay Commission submitted its report in November 2015. The Empowered Committee of Secretaries blocked it for 7 long months. Finally the cabinet approved the report without any modification, The Gazette Notification on the pay and allowances of employees was issued on 25-07-2016. The same minimum pay of Rs.18000/- The same multiplication factor of 2.57. Absolutely no change.

Let us now analyse what would have been the case, had 50% of Dearness Allowance / Dearness Relief been merged with pay / pension with effect from 01-11-2011. DA merger had taken place before implementation of 5th and 6th CPC Recommendations.

Though we had demanded it this time also, it was not agreed to. Whether enough organizational pressure was there to get the demand accepted is now an academic issue for discussion only. The DA / DR was 51% in January 2011. The percentage rates of DA/DR were 58, 65, 72, 80, 90, 100 107, 113, 119 and 125 during subsequent six monthly periods up to January 2016.

Now we shall workout the financial implication of the 50% DA/DR merger notionally.  A person with a basic pay / pension of Rs. 10,000/- would have got Rs. 1,06,500/- as difference in DA/DR for the period 01-01-2011 to 31-12-2015. That is the notional loss. It is easy to workout. For every 1,000 rupee as pay / pension, the benefit would have been Rs. 10650/- We cannot even dream of such an amount as pay revision “bonanza”.

The pay + DA of the lowest paid employee who was drawing Rs. 7,000/- (5,200 +1,800). On 01-01-2016 would have been Rs. 1,8375/- In that case, no Pay  Commission would have dared to recommend Rs. 18000/- as minimum pay as it would have been less than the actual pay + DA drawn by the employee.
Even if we accept the 14.29% increase recommended by the 7th pay commission, the minimum pay would have been Rs. 21,000/- and so the multiplication factor would have increased to 3 instead of 2.57.
Employees and pensioners would have been benefitted significantly.

We were after the euphoria of a Pay Commission. We thought the 7th pay commission and the Government will deliver us good. It was a folly on our part in not clinching the demand of merger of 50% DA with effect from 01-01-2011. We shall blame ourselves for that. This is a lesson for us to be cautious in future.

Source: CGPA Kerala

DA for bank employees – Dearness Allowance (DA) for Workmen and Officer Employees in banks for the months of August, September & October 2016

DA for bank employees – Dearness Allowance (DA) for Workmen and Officer Employees in banks for the months of August, September & October 2016

DA for Bank employees for the months from August, September and October 2016 has been announced.

Indian Banks’ Association
HR & Industrial Relations
No.CIR/HR&IR/76/D/2016-17/768
August  1,  2016
All Members of the Association
(Designated Officers)


Dear Sirs,
Dearness Allowance for Workmen and Officer Employees in banks for the months of August, September & October 2016 under X BPS/ Joint Note dated 25.5.2015

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Basel 960 -100) for the quarter ended June 2016 are as follows:-

April20166185.82
May20166277.12
June20166322.77

The average CPI of the above is 6261.90 and accordingly the number of DA slabs are 455 (6261.90-4440 1821.90/4= 455 Slabs) The last quarterly Payment of DA was at 420 Slabs. Hence there is an increase in DA slabs of 35, i.e 455 Slabs for payment of DA for the quarter Aug, Sep & Oct 2016.

n terms of clause 7 of the 10th Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees for the months of Aug, Sep & Oct 2016 shall be 45.50% of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.
We advise banks to pay the difference between the old and revised salary and allowance to officers on an ad hoc basis, pending amendments to Officers’ Service Regulations.
Yours faithfully,
K S Chauhan
Senior Vice President
Download Circular No.CIR/HR&IR/76/D/2016-17/768 dated 01.08.2016

Dearness Relief payable to Pensioners for the period August 2016 to January 2017

Dearness Relief payable to Pensioners for the period August 2016 to January 2017

IBA circular on Dearness Relief for Bank Pensioners.

Indian Banks’ Association
HR & INDUSTRIAL RELATIONS
No.CIR/HR&IR/D/G2/2016-17 /772
August 1, 2016
Designated Officers of all Member Banks which are parties to the Bipartite Settlement on Pension

Dear Sirs,
Dearness Relief payable to Pensioners for the period August 2016 to January 2017 

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base 1960= 100) for the quarter ended June, 2016 are as follows:-

Apr 20166185.82
May 20166277.12
Jun 20166322.77

In terms of Regulation 37 of Bank Employees’ Pension Regulations, 1995 Dearness Relief is payable to pensioners at rates specified in Appendix II to the Regulations.

Pending amendments to Pension Regulations, Banks may pay on ad hoc basis, the Dearness Relief payable to pensioners for the period August 2016 to January 2017 as per Annexure.

Yours faithfully,
K S Chauhan
Senior Vice President
Indian Banks’ Association
PART-I
Dearness Relief to pensioners who retired on or after 1st day of January,1986, but before the 1st day of November,199211st July, 1993
BASIC PENSIONDearness relief for the monthsSlabs
Auaust 2016 to January 20171415
Average Index6261
(i)Upto Rs.1250948.05 per cent.
(ii)Rs.1251 to Rs.2000Rs. 11850.62 plus 778.25 percent of basic pension in excess of Rs.1250.00
(iii)Rs.2001 to Rs.2130Rs.17687.49 plus 466.95 percent of basic pension in excess of Rs.2000.00
(iv)Above Rs.2130Rs. 18294.52 plus 240.55 percent of basic pension in excess of Rs.2130.00
PART-II
Dearness Relief to pensioners who retired on or after 1st day of November,1992  / 1st July, 1993
BASIC PENSIONDearness relief for the monthsSlabs
Auaust 2016 to January 20171278
Average Index6261
(i)Upto Rs.2400948.05 per cent.
(ii)Rs.2401 to Rs.3850Rs.10735.20 plus 370.62 percent of basic pension in excess of Rs.2400.00
(iii)Rs.3851  to Rs.4100Rs. 16109.19 plus 217.26 percent of basic pension in excess of Rs.3850.00
(iv)Above Rs.4100Rs.16652.34 plus 115.02 percent of basic pension in excess of Rs.4100.00
PART-III
Dearness Relief to pensioners who retired on or after 1st day of April, 1998.
BASIC PENSIONDearness relief for the monthsSlabs
Auaust 2016 to January 20171144
Average Index6261
(i)Upto Rs.3550274.56 per cent.
(ii)Rs.3551 to Rs.5650Rs. 9746.88 plus 228.8 percent of basic pension in excess of Rs.3550.00
(iii)Rs.5651 to Rs.6010Rs. 14551.68 plus 137.28 percent of basic pension in excess of Rs.5650.00
(iv)Above Rs.6010Rs. 15045.88 plus 68.64 percent of basic pension in excess of Rs.6010.00
PART-IV
Dearness Relief to pensioners who retired on or after 1st day of November, 2002.
Average Index (CPI) for quarter ended June 20166261
No. of Slabs993
Rate of dearness relief on pension for the months August
2016 to January 2017
178.74 % of basic pension
PART-V
Dearness Relief to pensioners who retired on or after 1st day of November, 2007.
Average Index (CPI) for quarter ended June 20166261
No. of Slabs856
Rate of dearness relief on pension for the months August 2016 to January 2017128.40% of basic pension
PART-VI
Dearness Relief to pensioners who retired on or after 1st day of November, 2012
Average Index (CPI) for quarter ended June 20166261
No. of Slabs455
Rate of dearness relief on pension for the months August
2016 to January 2017
45.50% of basic pension

Download IBA Circular No.CIR/HR&IR/D/G2/2016-17 /772 dated 01.08.2016

Dearness Relief for Pre-1986 Bank Pensioners from August 2016

Dearness Relief payable for the period August 2016 to January 2017 to surviving pre 1.1.1986 retirees of banks (b) surviving spouses of pre 1.1.86 Retirees who are in receipt of Ex-gratia

IBA circular on DA for Pre-1986 Bank Retirees and Surviving Spouses

Indian Banks’ Association
HR & INDUSTRIAL RELATIONS

No.CIR/HR&IR/D/G2/2016-17/774
August 1, 2016

Designated Officers of all Nationalised Banks and Associate Banks of State Bank of India

Dear Sirs,
Dearness Relief payable for the period August 2016 to January 2017 to surviving pre 1.1.1986 retirees of banks (b) surviving spouses of pre 1.1.86 Retirees who are in receipt of Ex-gratia

As per the directive contained in the Government of India, Ministry of Finance Department of Economic Affairs (Banking Division) letter F.No.11/2/2012-IR dated 17. 12.2013, the Dearness Relief payable to surviving pre 1.1.1986 retirees of banks for the period August 2016 to January 2017 on Ex-gratia will be as under:

Applicable CPI
Average
Amount of  Ex-gratia per monthRate of Dearness Relief per monthAmount of Dearness Relief per monthTotal Ex-gratia amount including Dearness Relief per month
6261Pre 1.1.86
Retirees
350948.0533183668
Surviving
spouses of pre 1.1.86 retirees
175948.0516591834

Yours faithfully,
K S Chauhan
Senior Vice President
Download IBA Circular No.CIR/HR&IR/D/G2/2016-17/774 dated 1.8.2016

Availing of Home Town LTC for other places

Availing of Home Town LTC for other places

Vide DoPT’s O.M. No. 31011/3/2014-Estt.(A-IV) dated 26.09.2014, Government employees have been allowed to convert their Home Town LTC to visit Jammu & Kashmir, North-East Region and Andaman & Nicobar Islands under the present scheme upto 25.09.2016.

Government servants entitled to travel by air can avail this LTC from their Headquarters to the destination. While, the Government servants not entitled to travel by air may travel by air in Economy class in the following sectors:

(a) Between Kolkata/Guwahati and any place in NER

(b) Between Kolkata/Chennai/Bhubaneswar and Port Blair.

(c) Between Delhi/Amritsar and any place in J&K.

Journey for the non-entitled employees from their Headquarters up to Kolkata/ Guwahati/ Chennai/ Bhubaneswar/ Delhi/ Amritsar will have to be undertaken as per their entitlement.

Reimbursement under the Leave Travel Concession scheme does not cover incidental expenses and expenditure incurred on local journeys.

This was stated by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr. Jitendra Singh in a written reply to a question by Shri Pramod Tiwari in the Rajya Sabha today.

PIB

Committee to Review Representation for Compulsory Retirement

Committee to Review Representation for Compulsory Retirement

Review of performance is a continuous process under FR 56(j), Rule 48 of CCS (Pension) Rules and the AIS Rules. Recently, all cadre authorities have been asked to constitute Representation Committees in case of receipt of representation from any Government servant, whom the Appointing Authority has decided to retire. Two members of the Committee are nominated by the Cabinet Secretariat and the third member will be nominated by the Cadre Authority.

This was stated by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr. Jitendra Singh in a written reply to a question by Shri A. K. Selvaraj in the Rajya Sabha today.

PIB

Change in criteria for benchmarking of ACR

Change in criteria for benchmarking of ACR

The Government of India has accepted the recommendation of the Seventh Pay Commission with regard to Modified Assured Career Progression (MACP) scheme and withholding of annual increments as under:-

(i) Benchmarking for performance appraisal for promotion and financial upgradation under MACPS to be enhanced from ‘Good’ to ‘Very Good’.

(ii) Withholding of annual increments in the case of those employees, who are not able to meet the benchmark either for MACP or a regular Promotion within the first 20 years of service.

This was stated by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr. Jitendra Singh in a written reply to a question by Shri Rajeev Shukla in the Rajya Sabha today .

PIB

Goa to implement 7th Pay Commission recommendations from Nov 1

Goa to implement 7th Pay Commission recommendations from Nov 1

Panaji: Goa Chief Minister Laxmikant Parsekar has said the 7th Pay Commission recommendations would be implemented in the state from November 1.

“We have decided to implement the recommendations of Seventh Pay Commission from November 1 onwards. The pending arrears from January to October 2016 would be deposited in the employee provident fund (PF) and National Pension System (NPS),” Parsekar told the state Assembly yesterday while talking on the demand for grants.

He also said the order on implementation of the seventh pay commission would be issued around Ganesh Chaturthi, scheduled on September 5.

“The Ganesh Chaturthi will come with good news to the government employees. We will issue the order during that time. The implementation would be from November 1,” he said.

The chief minister said the government will have to spend an additional Rs 72 crore monthly towards salaries and pensions of government employees for implementation of recommendations of the new commission.
A provision of Rs 2,553 crore has been made towards seventh pay commission implementation in the state budget, Parsekar said.

The Chief Minister had a few days back informed the House that as per the revised pay scale, the state government will have to pay Rs 272 crore per month as against Rs 213 crore per month as per the existing scale, which will be an additional burden of Rs 59 crore.

During 2015-16, Rs 1,946 crore were earmarked for the salaries and pensions, which has now been hiked to Rs 2,553 crore to make up for the liability created by seventh pay.

PTI

Let all pre 2016 pensioners individually / collectively, Pensioners Federations and Association

Let all pre 2016 pensioners individually / collectively, Pensioners Federations and Association send representation to the Secy. ARPG/Chairman & to other members of the committee constituted to study feasibility. 

Recommendations of the Seventh Central Pay Commission relating to principles which should govern the structure of pension and other terminal benefits and the decisions of the Government thereon

Item 11 Recommendation:
Revision of Pension of pre 7th CPC retirees The Commission recommends the following pension formulation for civil employees including CAPF personnel who have retired before 01.01.2016

(i) All the Civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations ) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he / she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.

(ii) The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.

(iii) Pensioners may be given the option of choosing whichever formulation is beneficial to them. It is recognized that the fixation of pension as per formulation in (i) above may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. It is therefore recommended that in the first instance the revised pension may be calculated as at (ii) above and the same may, be paid as an interim measure. In the event calculation as per (i) above yields a higher amount the difference may be paid subsequently. (Para 10.1.67 and Para 10.1.68 of the Report)

Decision of the Government Of India
Both the options recommended by the Central Pay Commission as regards pension revision be accepted subject to feasibility of the implementation. Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made applicable if its implementation is found feasible after examination by the Committee comprising Secretary (Pension) as Chairman and Member (Staff). Railway Board, Member (Staff), Department of Posts, Additional Secretary & Financial Adviser, Ministry of Home Affairs and Controller General of  Accounts as Members .

BHARAT Pensioners SAMAJ Remarks:
Recommendation is feasible & can be easily implemented:

1.Level 6 to 16 at  index 1 can be implemented w/o any difficulty as only revised PPO after 6th CPC  is required.

Lacs of 6th CPC modified parity beneficiaries will get benefited.

Example
PB 3 15600-39100  GP 6600 minimum pension= 12600 as per 6th CPC modified parity modified multiplied by 2.57 i.e. option II will give revised pension =Rs32382/- But as per option I minimum level index 1 considering that Nil increment was drawn in the retiring scale minimum pension comes to 67700/2=Rs 33850/ i.e. Rs 1468/PM more than what he/she will get by multiplying basic pension as on 1.1.16 by 2.57

  1. Service record is a permanent one and if it to be destroyed, proper permission from the
Competent Authority is to be obtained. In any case, service record can always be reconstructed
taking the details from various sources available in the department and the material collected from the Pensioner. This has been done in the past while implementing parity enunciated by fifth CPC and even while implementing modified parity of 6th CPC. In this regard attention is also drawn to recent CAT Bombay Nagpur Bench judgement dated 09.03.2015 in case of Smt. Saija v.General Manager, Central Railway O.A.No. 2131 of 2011(CAT Bombay Bench at Nagpur)

3 Rejection of the above recommendation on the ground of feasibility will not only cause wide spread discontent against the Govt but also lead to spate of Court cases.

4.Let all pre 2016 pensioners individually / collectively, Pensioners Federations and Association send representation to the Secy. ARPG/Chairman & to other members of the committee constituted to study feasibility.

S.C.Maheshwari
Secy Genl. Bharat Pensioners Samaj

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