Thursday, March 27, 2008

Sixth Pay Commission Pensioners retires after 2006 gets more benefit

Sixth Pay Commission

Sixth Pay Commission recommended a 40 per cent increase in pension and family pension, after subsuming following oilicy will govern defence pensions."the increase on account of merger of Dearness Relief %u2014 equal to 50 per cent of pension as Dearness Pay effective April 1, 2004. This would result in an additional outgo of Rs. 1,365 crore for 2008-09"originally the 5th pay commision agreed to the parity in pensions of equal rank - one rank - one pension.now a pensioner who retires now shall get less than one retiring now onwards.there is almost double increase in various military allowances. these will be taken in to account besides performance increment/bonus. finally the existing pensioner will be a looser.it will result in a capt drawing more pension than a brigadier.

Regarding gratuity, the Commission wanted that the ceiling of maximum Rs 3.5 lakh be raised to Rs 10 lakh to help all employees get full benefit of gratuity.

The Commission, headed by Justice B N Srikrishna, proposed that people will get additional 20 per cent of basic pension on attaining the age of 80 years, which will subsequently be raised with the increase in age.

Those who retired prior to January 2006 will get only a 15 per cent hike.
While after this date 40 % hike.
To know more

Gazetted Holiday reduced to 3 from 14, while restricted holiday increase. There is inclusion of grade pay, HRA increase, but about performance nothing to say. Pay annually increase by 2.5 %, while for performer increase by 3.5 %.

Good For
SENIOR CITIZENS - Increasse in pension by age factor.
CUT IN EXCESSIVE HOLIDAYS
LONGER MATERNITY LEAVE - Good for WOMEN
BIAS TOWARDS SENIOR OFFICERS, SAY EMPLOYEE UNIONS - Senior Officer Gets more benefits

IT People say government should reduce staff by being computer savvy and equipped with electronic gadzets, reduce corruption and provide satisfactory service. IT is boon for India but government lacking this skill. Even higher authorites eduactional qualification, learning aptitude doesn't match to optimize the IT potential.
BOGUS
IT people work as a contractual labour, having qualification related to IT but there seniors Non IT, filled position on deputation for IT people by Non IT people. Great Joke.

13 comments:

Unknown said...

It is not correct to say that the post 2006 retirees will get a hike in pension to the extent of 40%. The increase proposed by SCPC on the existing pension amount is only about 28% and not 40% as claimed by the media.

Moreover, there is a recommendation (para 5.1.35)to revise the table of commutation as per table at Annex 5.1.2 of the SCPC report which will drastically reduce the commutation value although the maximum percentage of commutation stands at 40%.

daisy said...

ALL pensioners should get some benefits of sixth pay commission irrespective of the age

simran said...

any age factor also involves in this???

will a retired person of age 82 will get more than a person of age 70 of the same rank???

simran said...

any age factor also involves in this???

will a retired person of age 82 will get more than a person of age 70 of the same rank???

S.SAM DANIEL,,IPS said...

WHY THE DISPARITY IN PENSION WITH EFFECT FROM 1-1-2006 AND DENIAL OF NATURAL JUSTICE TO THE POST 1-1-1996 AND PRE 1-1-2006 PENSIONERS BY THE VI CENTRAL PAY COMMISSION AND THE CENTRAL GOVERNMENT?
1. PARITY IN PENSION OF THE PRE AND POST 1-1-1996 RETIREES AND NATURAL JUSTICE TO THE PRE AND POST 1-1-1986 PENSIONERS BY THE V CENTRAL PAY COMMISSION AND THE THEN CENTRAL GOVERNMENT!
The main demand of the Past Pensioners [Retired before 1-1-1986] was for full parity in pension to those who retired during the period from 1.1.1986 onwards. The V CPC in Para 137.13 (PP 1830) had observed as under:-

"While it is desirable to grant complete parity in pension to all Past Pensioners irrespective of the date of their retirement, this may not be feasible straightaway as the financial implications would be considerable. The process of bridging the gap in pension of Past Pensioners (Pre 1986 Pensioners) has already been set in motion by the Fourth CPC when past Pensioners were granted additional relief in addition to consolidation of their pension. This process of attainment of- reasonable parity needs to be commuted so as to achieve complete parity over a period of time."
In Paras 137.13 and .14 of their Report the V CPC stated that as follow-up of our basic objective of parity, we would recommend that pension of all the Pre 1986 Retirees may be updated by notional fixation of their pay as on 1.1.86 by adopting the same formula as for the serving Employees. This step would bring all the Past Pensioners to a common platform or on the IV CPC pay scales as on 1.1.86. Thereafter, all these Pre 1986 Pensioners can be treated alike in regard to consolidation of their pension as on 1.1.96 by allowing the same fitment weightage as may be allowed to the serving Employees.
The Recommendation of the V Central Pay Commission in making Parity in Pension of Pre and Post 1-1-1996 Retirees and Revising the pension of Pre and Post 1-1-1986 Retirees suitably was accepted and implemented by the then Central Government with effect from 1-1-1996.
Had not both the V Central Pay Commission and the then Central Government had done JUSTICE to the Pre and Post 1-1-1986 Pensioners!


2. DISPARITY IN PENSION BETWEEN THE PRE AND POST 1-1-2006 RETIREES AND INJUSTICE TO THE PRE 1-1-2006 PENSIONERS BY THE VI CENTRAL PAY COMMISSION!

The Disparity in Pension between the Pre and Post 1-1-2006 Retirees and the injustice done by the VI Central Pay Commission and the Central Government to the Post 1-1-1996 and Pre 1-1-2006 Pensioners can be clearly understood by the following facts.

A. Fixation of Revised Pay and Pension in respect of Four Post 1-1-2006 Retirees is given below as per OM FN01/1/2008-IC dt.30-8-2008 and OM FN038/37/08P&PW[A] dt.2-9-2008 of Ministry of Finance,Govt of India.

a.Pre Revised Scale:5500-175-9000 [S10]
Corresponding Revised Scale:9300-34800+Grade Pay
Rs4200 [PB2]

i.Basic Pay:Rs 5500.
Revised Pay: Rs 14430 [10230+4200]
Pension:Rs 7215[50% of Pay]
ii.Basic Pay:Rs.6550.
Revised Pay:Rs16390[12190+4200]
Pension:Rs 8195[50%of Pay].

b.Pre Revised Scale:10000-325-15200 [S19]
Corresponding Revised Scale:15600-39100+
Grade Pay Rs 6600[PB3]
i.Basic Pay:Rs 10000.
Revised Pay:Rs25200 [18600+6600]
Pension:Rs12600[50% of Pay]
ii.Basic Pay:Rs.11950.
Revised Pay:28830 [22230+6600]
Pension;Rs14415 [50% of Pay]

B.Fixation of Revised Pension of Pre 1-1-2006 Retirees by the VI Central Pay Commission as per Memorahdum FNO 38/37/08-P&PW [A] dt 1-9-2008 of the Ministry of Finance,Government of India


The formula fixed by the VI Pay Commission for arriving at the Revised Pension is as follows.

Basic Pay without DP x1.86+40% of the Basic Pay.The Condition is that the Revised Pension should not be less than 50% of the minimum of the Corresponding Revised Scale+Grade Pay.
This Formula could be applied only to Pre 1-1-1996 Retirees.But the Condition that the Revised Pension should not be less than 50% of the minimum of the Revised Pay and Grade Pay cannot be applied to them since they are not covered by the Pay Scales effective from 1-1-1996.
So,the Pay Commission has really intended to apply this formula only to Employees retired from 2-1-1996 to 31-12-2005.
According to the Pay Commission, we are to find out the Corresponding Pay in the Revised Scale by adding the Grade Pay.After finding out the Corresponding Pay,we have to work out 50% of the Revised Pay which will be the Revised Pension effective from 1-1-2006. But the Condition has been wronly worded as ‘The Revised Pension shoud not be less than 50% of the minimum of the Revised Scale+Grade Pay instead of ‘The Revised Pension should not be less than 50% of the Revised Pay + Grade Pay’
So,the Condition has to be modified suitably.

Here,two illustrations are given in respect of Revision of Pension of Four Pre 1-1-2006 Retirees.

1.Basic Pay: Rs 5500.
Pension:Rs. 6215 [2750 [50% of Basic Pay]x1.86+40% of Rs2750]
2.Basic Pay:Rs 6550.
Pension:Rs.7403 [3275[50% of Basic Pay]x1.86+40% of Rs3275]
3.Basic Pay: Rs 10000.
Pension:Rs11300 [5000 [50%of Basic Pay[x1.86+40% of Rs5000]
4.Basic Pay Rs 11950.
Pension:Rs13505.[5975 [50%of Basic Pay]x1.86+40% of Rs 5975]

According to the formula of the Pay Commission, a Pensioner drawing a Basic Pay of Rs 6550 in the Scale of Rs 5500-175-9000[S10] will get only 50% of the minimum of the Revised Scale[Rs 9300-34800-PB 2]+Grade Pay of Rs4200 viz,Rs 7215 and not Rs 8195[Revised for Post 1-1-2006 Pensioner] as Pension!
Similarly,a Pensioner drawing a Basic Pay of Rs 11950 in the Scale of Rs.10000-325-15200 [S19] will get only 50% of the minimum of the Revised Scale [Rs 15600-39100-PB 3]+Grade Pay of Rs 6600 viz,Rs 12600 and not 14415 [Revised for Post 1-1-2006 Pensioner]as Pension!
Why the Pay Commission and the Central Govt have done injustice by applying double standards to the Pre and Post 1-1-2006 Pensioners who belong to the very same Pay Band?

Will not the following variations affect the Pre 1-1-2006
Pensioners permanently?

Basic Pay Rs.5500: Post 1-1-2006 Pensioner will get Rs1000 more per month besides DA!
Basic Pay Rs 6550:Post 1-1-2006 Pensioner will get
Rs 792 more per month besides DA!
Basic Pay Rs 10000: Post 1-1-2006 Pensioner will get Rs 1300 more besides DA!
Basic Pay Rs 11950: Post 1-1-2006 Pensioner will get Rs 910 more besides DA!

CONCLUSION

Is this wide variation between the pensions in the cases of Pre and Post 1-1-2006 Retirees with effect from 1-1-2006 even though they belong to the same Pay Band not against Natural Justice?

Will the Central Government immediately look into this Disparity, do JUSTICE to the Pensioners who retired from 2-1-1996 to 31-12-2005 and issue orders bringing PARITY in Pension of both the Pre and Post 1-1-2006 Pensioners as they belong to the same Pay Band?

Prof.N.Hariharan said...

As token of natural justice to pre 1 1 2006 retired people the following actions are solicited.
The pension should be calculated on the last pay drawn.
THE MINIMUM YEARS OF SERVICE FOR FULL PENSION SHOULD BE 20 YEARS.
THE PENSION MUST BE FIXED AS THE HIGHEST OF THE FOLLOWING THREE
1)AS PER THE FORMULA.
2)50% OF THE MINIMOM OF THR CORRESPONDING REVISEPAYBAND +GRADE PAY.
3)50% OF THE CORRESPONDING REVISED PAY IN THE PROPER BAND +GRADEPAY.
PENSIONERS WHO HAVE CROSSED 70 MUST BE ALSO GIVEN A RISE OF 10% IN PENSION.
N,Hariharan.

Prof.N.Hariharan said...

Iretired in 30th Aprl1996 availed 5th PC GRADE FOR 4 months.
THE 10 MONTHS AVVERAGE SALARY concept has reduced my pension to a level 2 to 3 thousand Rs a month less than my juniors who retired after OCT 1996 and subsequently.For people like me the pension must be based on the last pay.
Iretired at 58 though I represented for serving upto 60 years in 1995.
Got a negative reply.
The GOI passed an order of extension upto 60 years in May 1998 .If the Govt is an ideal employer they should have notionally fixed my pay adding 2 increments to my last pay and given pension based on this raised pay.
My representation on this was of no avail.
Thus in every patcommission the GOVT CREATES 2 CLASSES OF PENSIONERS.
JUST AS OUR POPULATION IS INCREASING SUCH CLASSES ALSO INCREASE IN NUMBER IN EVERY PAY COMMISSION.
I FEEL LIKE APPROACHING THE COUNCIL FOR RIGHT TO INFORMATION AS TO WHY SUCH DISPARITIES ARE CREATED CAUSING HEARTBURN.
REQUEST OTHERS IN THE SAME PREDICAMENT TO SUPPORT ME.
N.Hariharan

Anonymous said...

Sir,
Why this difference in increment in pension befor and after 2006.

As a pensioners we are same and both have to take care of every thing.

Unknown said...

I was retired on 30th April 2006. But i am not understanding about the 6th pay commission's calculation that what amount i will get? Will you help me?
Thanks.
K.S.Joshi
Retired HeadMaster Primary School.

Unknown said...

I retired on 30th April 2006. But i am not understanding the 6th Pay commission's calculation. Will you please help me the above?
thanks.
K.S.Joshi Retired Primary School Headmaster

sisir g said...

i retired 30/09/2006,then my salary was 10990,how much my pension will fix for next new commission?

parveen verma said...

sir i retirment 1994 my basic pay is 1940 how much get benifit plz tell me

parveen verma said...

sir i retirement 1994 i get benifit of 6th pay commission my basice pay 1940