Wednesday 10 September 2008

Pensioners Complain against Sixth Pay Commission Pension Recommendations

As per the news, the Central Government pensioners have been voicing their anger against disparities in the 6th Pay Commission recommendation as well as actual notification issued by central government. They feel that they have been cheated both by the government and the Sixth Pay Commission. Reference: Wikipedia on Sixth Pay Commission

It seems that Central government pensioners are very dissatisfied with the implementation due to disparities and anomalies in 6th Pay Commission and they have been voicing their anger and frustration openly.

The common concerns of Pensioners against the Sixth Pay Commission are as follows:
Pensioners Pension Sixth Pay Commission
- The government must correct the mistakes for which Major Dhanapalan had fought a legal battle and won it. It mostly concerns the pension paid to pensioners of 1996 or before.

- Many posts and pay scales have been streamlined into one single common payband. This has lead to persons with higher grade into lower pension range as earlier payscales were distinct narrow and while fixation of pension , even starting of scale was not affecting the pension of employees so widely.
Now with wider band, the senior grade officers pension will suffer so badly. However, officers of additional secy and above have for this purpose carved off as HAG+ grade with a miniumum of RS 75500/ starting pay getting them of assured pension of 37750/- while next lower grade officer get a pension of Rs 37000+12000 divide by 2ie 24500/- . Earlier the difference in pension was on less than 5 % which is now 50%. In fact pay commission has devised to affect systematically the pension of all ranks except secy and additional secy. bad work.

- The common demand is that Government must devise minimum pension in same proportion as per earlier ratos.

- Same is the case for pre-2006 and post-2006 pensioners. It appears to be more glaring in PB4. This is due to faulty interpretation of Para 4.2 of pre-2006 pensioners' OM.

'The minimum of pay in PB plus gde pay corresponding to pre-revised scale of the retiree' should be interpreted as min of pay in PB corresponding to pre-revised scale plus gde pay corresponding to pre revised scale.

Instead it is unjustly being interpreted as min of Payband plus only grade pay corresponding to pre-revised scale.

For S-29 scale this wrong reading means (37600+10000)/2 =23700 as the min limit instead of (44700+10000)/2 =27350.

Thus leading to a loss of 3650 in pension for pre-2006 pensioners.

Hope the authorities clarify and make correct interpretaion so that this anomaly is immediately removed. Otherwise this is bound to lead to totally avoidable

- The condition of ex- servicemen is much worse. To cite an example a sergeant of technical group retired from Air force after 15 years of service draws a basic pension of 1892+ 946 DP +47% OF 2838 as DR toalling R.4172 as on 1.9.2008 and the same will be revised to Rs. 4962. However a sergeant of tech. group retiring now after 15 years of service will get a total pension of RS.7830. Similarly the civilian employees who are in the pay scale of 5000- equivalent to the pay scale of sergeant will also receive Rs.7830 as pension. In the bargain the similarly placed defence pensioners like me will lose 2888 per month.

- It is not correct to say that those who retired after 1-1-2006 are getting 50 percent of their last pay drawn as pension. According to the O.M. dated 2-9-2006, para 5.2. and 5.3 of these orders are only prospectively effective from the date of issue of the order. i.e. 2-9-2008. Those who retired between 1-1-2006 and 1-9-2008 are entitled to pension based on their 10 months average emoluments and length of service as per old rules. The position of those retiring within 10 months from 1-1-2006 is still worse. Their average pay includes old basic pay+D.P+24% D.A. for certrain months plus revised pay after 1-1-2006 to the date of retirement. They are neithe coming under the fitment formula of pre- 1-1-2006 for getting the fitment of 40% of basic pension nor coming under the new scheme to get grade pay for all the months for fixation of pension based on average emoluments. All most all such employees retired within 10 months from 1-1-2006 are losing in their pension compared to the pension fixed under pre-revised scales.

- Why disparity with employees of PSU so for as equal pension for equal pay is concerned, This principal has been accepted by the pay commission. It seems the managements of these PSU are waiting for the retired employees to go to courts and get the awards. Let the managements of these PSU such as GIC, LIC and its subsidiaries accept the same and follow the recommendation of the pay commission.

Link: Sixth Pay Commission: Income Tax on Pay Arrears

Link: Risk Allowance Withdrawn: Life Insurance offered in place of Risk Allowance

New Pay Band of Defence Force Officers: Sixth Pay Commission

State Wise Salary Hike details are covered in the links of the article: State Wise Salary Hike Details of Sixth Pay Commission. Please refer to the article and click on your respective state wise link for news and other information.

Link To: Dearness Allowance: Sixth Central Pay Commission Recommendation

Link To: Revised Pay Scales, New Pay Bands Finalized by the Government

Link To: Sixth Pay Commission: Perks, Arrears, Increments & Key Points

5 comments:

krishanabrol said...

It has wrongly mentioned that addl. secy. scale has been raised to 75500---80000. there were two scales starting at 22400.These officers were till now getting same pensions (Pre 1996 officers). but now illogically enough the 22400--24500 scale has been put in PB4 while 22400--26000 scale has been raised to 75500---80000. the second group of officers will now draw pension 12000 more than the unfortunate first.

Anonymous said...

I think ,for the officers of PB-4,the order seems to be quite clear. The pension should be 50% of
minimum pay in the pay band corresponding to the pay in the pre-revised scale+grade pay.

Several bloggers have given wrong interpretation by taking the minimum
of band pay+grade pay. If it were true,all the officers from S-24 to S-29 or S-30 will get nearly the same pension,because the minimum grade pay is the same i.e. 37,400. That an officer who is about more than 10 years senior will get the same pension as the junior one.And that is ,of course,absurd.

krishanabrol said...

anonymous is right as far as pay commission recommendation is concerned but the govt. table for revised pension unambiguously states that those getting 11200 ie half of 22400 (S30)as pension shpuld now get 25312 as pension and not 31312 which will be the case as per Anonymous interpretation.
My point also was that S30 and S31 had the same start ie 7300 pre 1996 and 22400 post 96 but now suddenly start of Scale corresponding to S31 has been raised to 75500 while that of S30 is 37500+12000. the retirees from these two scales getting same or nearly same pensions will now draw pensions differing by 12500 nearly.

Anonymous said...

Dear Krishan Abrol,

You are partly right.The table shows the pension arrived at using one technique. This pension is less than 50% of the minimum pay in the pay band corresponding to the pre-revised scale+grade pay. Hence, the retiree shall get higher of the two figures.That is the rule. There is no doubt about that.

If the Govt. wants to cheat the retirees,then,that is another matter.

In my opinion that is very clear.

nishchenko said...

I have got a doubt. I took technical resignation from government service and joined a public sector undertaking. I was drawing pro-rata pension. My service was 19.5 years at that time. How the pension will be calculated now? Will it be 50% of the scale from which I retired or is it 50% x (19.5/33) or is it 50% x(19.5/20)? can somebody clarify?


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