New Pension System – Snatching pension like taking away right to live from pensioners.

| February 19, 2015

New Pension System – Snatching pension like taking away right to live from pensioners.

Government employee when gets retired has only source of income in the form of pension. If pension is denied to pensioners that means something inhuman has been slapped on pensioners. Moreover government jobs are preferred over private jobs only because of Pension. But with the implementation of New Pension Scheme government sector has taken away the right to live from government employees. Bharat Pensioners Samaj in their meeting with 7th CPC gave presentation on the pension and tried to convince the 7th CPC; why pension should be continued and what problems pensioners are facing due to less emoluments in pension.

Quantum of pension

Pension of Govt. employees need to be 65% of last drawn as per 5th CPC study (TECS ). Correspondingly Family Pension to be 45% of last drawn.Fitment benefit exactly same as for employees. BPS urge 7th pay comm. to recommend accordingly to do justice .

Emoluments for Pension

DA of Govt. employees is part of salary. It compensate fall in purchase value of salary. Should be taken into account for calculation of pension as it affects commutation & future DR

Parity in Pension

Pension of pre & post retired SC,HC judges, CAG, Cab. Secy.& Secy. is at par. One rank one pension has been acceded to Defence forces retirees . Others too are citizens of this Country, then why disrimination.BPS Plead for 100% parity to all Pensioners

Full and modified parity will be meaningless unless the actual grades and grade pays implemented to serving employees on revision are taken into consideration. For some categories especially at lower and middle levels, grades higher than those actually recommended by the Commissions were implemented for employees in service. They were not extended for modified and full parity to those who retired prior to revision in the corresponding posts on the pretext that what were implemented were improved grades and grade pays. This resulted in invidious discrimination against and grave injustice to past retirees. The gap in pensions due to this ever widens not only with every subsequent revision but also whenever additional installment of DR and when additional quantum based on advanced age are granted. Parity, full or modified, will be meaningful and confer real benefit on past retirees only when the actual grades and grade pays implemented for serving employees are taken for this purpose. This injustice is happening only when a higher grade or grade pay is given to a certain category after revision. We respectfully submit that certain sections of past pensioners are not able to get justice in the matter of full/modified parity due to the above discriminatory treatment. A Group-B officer, who retired in III CPC scale had been brought down one scale lower w.e.f., 1.1.96 and to Rs.4200/- GP w.e.f., 1.1.2006 whereas a IV CPC Group-B officer got Rs.4600/- GP w.e.f., 1.1.2006 and a V CPC Group-B officer got Rs.4800/- GP in revision. This injustice has occurred to many categories of pre-2006 retirees. We appeal to the Commission to do full justice to all past retirees in the above regard by making suitable recommendations.

Pre-2006 pensioners were given 40% fitment benefit whereas serving employees were given grade pay. This resulted in grave imbalance between pre and post 2006 pensioners. In order to rectify this, notional fixation has to be extended w.e.f., 1.1.2006 to pre 2006 pensioners taking 50% of corresponding grade pay into account so that they will be brought on a common platform with post 2006 pensioners and they will all get equal justice in the next revision as per VII CPC. We urge the Commission to recommend same fitment benefit to employees as well as pensioners to avoid imbalance between past and future pensioners and also same multiplication factor for revision to one and all to ensure equal treatment

No cut off dates
Revision of Pension by Pay comm. is to neutralize inflationary effect . Inflation affects all equally with- out cut off date. Then why cut off dates for implementation of Pay comm. recommendations?

7th CPC recommendations should apply to all pensioners without cut-off dates .All new benefits to apply to present pensioners. Pension of all should rise by equal % to ensure equality

Minimum-Maximum Ratio

Ratio mini- max. emoluments i.e. Basic + DA+IR was down to 1:8 on 1.7.96 prior to Vth CPC implementation. 7CPC must bring it back to that level.

Gulf between highest & lowest paid

Huge gulf between lowest & highest pension need to be narrowed, should not be more than 1:8.Revise pay/pension of top person first, divide it by 8 to calculate minimum.

Any attempt to increase highest & lowest paid ratio in Govt jobs will be disastrous and against the preamble to constitution

Additional old age pension

100 yrs of age for a pensioner is illusionary BPS requests the Hon’ble comm. to review existing dispensation & to recommend 10%upward increase in pension every 5 yrs from 65yrs to 75yrs , 20% every 5yrs from 75- 85yrs & finally increasing pension to 100% at 90 yrs of age. As in the present scenario old age disabilities/diseases set-in right from 60 yrs of age & go on manifesting v. fast needing additional medical & caregiver expenditure.

Pension to be net of Income Tax

Purchase value of pension gets reduced day by day due to steep rise in food, medical & transport cost. Net worth of a pensioner gets considerably reduced at year end compared to the beginning of the year. To enable a pensioner in the evening of life to live with minimum comfort, BPS appeals that Pension may be exempted from Income tax.

DR Merger

BPS requests the pay comm. to recommend merger of Dearness allowance with basic pension whenever it goes 50% or beyond.

Due to inherent flaws in the method of inflation index calculation which is based on WPI. DR is never sufficient to afford 100% neutralization. Whenever DR rise to 50% & above, it results in considerable erosion of financial position of Pensioners

Ex- servicemen status

Defence civilian are paid from defence budget. Are accorded Rank equivalency. BPS urge pay comm. To recommend ex- servicemen status to retd. Defence civilians

BSNL pensioners

BSNL pensioners are governed by Rule 137A of CCS (Pension)Rules 1972. BPS pleads that they be treated at par with C .G. Pensioners for pension fixation.

Family pensioners other than spouse

Family pension is restricted to daughters who become divorcee or widow during the life time of Parents. Social Structure always force a widow or divorced lady to return to parental home. In the absence of parents illiterate ladies have to feed themselves & children by doing menial jobs & living as destitutes. Removal of present restriction will help these ladies to lead honorable life. BPS appeals to hon’ble comm. to consider the issue on humanitarian grounds & to recommend removal of this restriction .

Injustice to those born on Ist jan & on Ist july

Modified FR56(a) requires every one whose date of birth is the first of month to retire from service on the afternoon of last day of preceding month on attaining superannuation age. As a result, those born on Ist of Jan loose pay & pension revision benefits due to pay comm. recommendations and those born on Ist july loose benefit of one increment. They are deprived of equality of status. Hon’ble pay comm. is requested to set right the discrepancy.


We suggest that the gratuity may be calculated on the basis of 26 effective days as against 30 days in a month.

The ceiling of 16.5 times should also be removed.

Health care

Healthcare is not a luxury to be in possession of privileged few. All Govt. pensioners must be issued smart cards for cashless treatment in emergencies in any empanelled/NABH accredited hospital in the country. BPS requests the Honourable commission to recommend accordingly

Quality healthcare

To ensure quality healthcare to pensioners . Periodically upgrade CGHS rates, to keep these compatible to market rates. Exercise rate & quality control on Govt. empanelled hospitals

Hospital Regulatory authority

Constitute hospital regulatory authority to monitor quality & rates of empanelled & NABH /NABL accredited hospitals / Labs to ensure quality healthcare at affordable rates.

Fixed Medical allowance

As is recorded in Para 5 of the minutes of Committee of Secretaries (COS) held on 15.04.2010. OPD cost per CGHS card holder was Rs1369/ PM in 2007-8. With inflation, it is well over Rs 2500/PM now.EPFO baneficiaries already getting RS 2000/PM FMA wef June.013. Hon’ble comm. is requested to recomend Rs 2500/FMA w/o distance restriction, net of Income Tax and allowingDR on it.

Grievance redressal

There should be an effective redressal mechanism with a strict Time line & punitive clause for violation of time line. Any court judgement involving a common policy matter of Pay/Pension should be extended automatically to similarly placed employees/Pensioners without driving every affected person to court of Law.BPS, therefore, appeal to Hon’ble Comm. to recommend accordingly.

Immediate relief

Pending submission of commission’s report & implementation of its recommendations . As an immediate measure to partially mitigate sufferings of pensioners, BPS appeal to the Hon’ble comm. to immediately recommend merger of 50% DR with basic pension & an interim relief of 20% of existing pension.


1.Federations of C.G. Pensioners’ associations be granted recognition by Government. 2.Pensioners’ representatives should be included in various Committees & Forums wherein issues relating to pensioners’ are discussed & decided. 3.SCOVA may be upgraded to JCM level. 4.Scope of Pension Adalats be widened to include Genl.Grievances& Pensioners associations may be permitted to present pensioners cases in Pension Adalats.


Category: Seventh Pay Commission

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