Rs.2300 crore approved to meet the demands of Ex-servicemen pensioners

The Union Cabinet has approvedthe recommendations of the Committee headed by Cabinet Secretary for benefits to ex-servicemen on four issues.   The financial implications of the improvements made as per the Cabinet decision on the four items are broadly estimated at Rs.2300 crore per annum.  The details are as follows:

  1. I.             One Rank One Pension:

On One Rank One Pension, the demand of the Defence Forces and Ex-Servicemen Associations is that uniform pension be paid to the Defence Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension be automatically passed on to the past pensioners.

The difference in the pension of present and past pensioners in the same rank occurs on account of the number of increments earned by the defence personnel in that rank.  There is also a difference between the pension of pre 1.1.06 and post 1.1.06 retirees belonging to a particular rank.  The UPA Government on two previous occasions has taken decisions to narrow the gap between the present and past pensioners, particularly those belonging to the ranks of JCOs and Other Ranks.

On the issue of One Rank One Pension, the following have been approved by the Cabinet:

(i)         Bridging of the gap in the pension of pre 1.1.06 and post 1.1.06 JCO/OR retirees by determining the pension of pre 1.1.06 retirees on the basis of notional maximum for ranks and groups across the three Services as in the case of post 1.1.06 retirees.  In addition, the weightage of qualifying service in the ranks of Sepoys, Naik and Havaldar would be increased by two years for both pre and post 1.1.06 retirees.

(ii)        The pension of pre 1.1.06 Commissioned Officer pensioners would be stepped up with reference to the minimum of fitment table for the ranks instead of the minimum of pay band.

These are expected to largely meet the demands of the defence pensioners on one rank one pension.

  1. II.                   Enhancement of Family Pension :

 (i)                   The pension of pre – 1.1.2006 family pensioners(Commissioned Officers, Honorary Commissioned Officers, JCOs/ORs ) be stepped up based on the minimum of the fitment table instead of the minimum of the Pay Band;

(i)            Establishing linkage of the family pension with the pension of JCOs/ORs, in those cases where the death takes place after the retirement of the JCO/OR since such a JCO/OR drew a pension based on the maximum of the pay scales, 60% of the pension applicable to JCO/OR pensioners would be granted to the family pensioner in case of normal family pension calculated a 30% of last pay drawn. Accordingly, based on the rank, group and length of service of the deceased JCO/OR pensioner, his pension would first be determined on notional basis. In cases where death of JCO/OR took place after retirement, the family pensioners in receipt of normal family pension would become entitled to 60% of the said pension determined on notional basis and those in receipt of enhanced family pension will be entitled to 100% of this pension. Similar entitlements would be determined in the case of Special Family Pension; and

(ii)                 The family pensioner of the JCO/OR would be granted pension arrived at on the basis of the family pension worked out as per the formulation at (i) above or the pension on the basis of stepping up with reference to the minimum of the fitment table, whichever is beneficial. Further, the linkage of family pension with retiring pension be applied in the case of post 1.1.2006 family pensioners of JCOs/ORs also.

 III.           Dual Family Pension:

Dual family pension would be allowed in the present and future cases where the pensioner drew, is drawing or may draw pension for military service as well as for civil employment.

IV.          Family pension to mentally / physically challenged children of armed forces personnel on marriage:

Grant of family pension to mentally/physically challenged children who drew, are drawing or may draw family pension would continue even after their marriage.

The above recommendations made by the Committee on pension issues of Ex-Servicemen may be implemented from a prospective date and payment made accordingly.

Source: PTI

Service pension for Other Ranks shall now be the following:

Add two years in the existing tables which can be accessed by clicking here. For example, to get to know the basic pension  now admissible at 15 years, the amount reflected at 17 years may be seen.

To give an illustration a  GP.I Sergeant retired prior to 01.01.2006 with 15 years of service will now be eligible for a basic pension of Rs 6015/- instead of his existing basic pension of 5519/-( 5492/- shown in the table 111 but stepped up with reference to Gr I LAC’s pension wef 01.07.2009).

Cabinet approves 72% DA /DR for Central Government Employees / Pensioners effective from 01.07.2012

The Union Cabinet today approved to release additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2012, representing an increase of 7 per cent over the existing rate of 65 per cent of the Basic Pay/Pension, to compensate for price rise.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of Rs.7408.24 crore per annum and Rs. 4938.78 crore in the financial year 2012-2013 i.e. for a period of 8 months from July, 2012 to February, 2013.

Posted in Uncategorized.

Cabinet meetings Scheduled on 21st Sept, postponed – Cabinet approval for Dearness Allowance increase likely to be Delayed

The meeting of the Union Cabinet, which was scheduled to consider a 7 per cent hike in dearness allowance to 80 lakh central government employees and pensioners, has been put off to next week.

“The Cabinet, CCEA (Cabinet Committee on Economic Affairs) and CCI (Cabinet Committee on Infrastructure) meetings scheduled for Friday, have been postponed,” an official announcement said.

Cabinet meetings usually take place on Thursdays, but they have been postponed apparently in view of the rapid political developments in the aftermath of the government’s decision to hike diesel prices and operationalise its earlier move to allow foreign direct investment (FDI) in multi- brand retail.

Increasing DA from 65 per cent to 72 per cent to provide relief to 50 lakh central government employees and 30 lakh pensioners was on the agenda of the meeting. It is now likely to be taken up next week.

Once approved, the hike in dearness allowance will be effective from July 1, 2012, and the employees would be entitled to arrears from that date.

The additional burden on exchequer on account of increase in DA would be around 5,000 crore for the eight-month period between July, 2012 and February, 2013. It will be Rs. 7,400 crore for the full financial year.

The government had last increased DA in March this year from 58 per cent to 65 per cent, which was effective from January 1, 2012.

The government periodically hikes the DA, which is linked to consumer price index for industrial workers.

The consumer price index (CPI) based on movement in retail prices, soared to 10.03 per cent in August, from 9.86 per cent in July.

Source: NDTV

BSNL announced discount scheme for serving / retired Govt. / PSU employees

BSNL has announced  Special discount scheme for serving / retired Govt. / PSU employees and visually impaired persons under postpaid Wireless Broadband Services (WiMAX).

From 01-April-2012 BSNL has announced the special discount scheme of 20% Special Discount on usage and rental charges on Wireless Broadband (WiMAX)  Post-Paid  connections provided under WI 750 (Limited 4GB upto 2 Mbps) and HOWI 750 (Unlimited- 512 Kbps) to Central Govt./ State Govt./PSUs employees, visually impaired, BSNL staff and retired Govt./PSU employees under postpaid Wireless Broadband service (WiMAX) as a regular measure.

In continuation of the same discount, BSNL extended to offer the same 20% discount on usage and rental of WiMAX postpaid connections under Post-Paid (WI 220, WI 350, HOWI 999) plans also, as a promotional measure for 90 days with effect from 01-October-2012.

This  20% Special Discount on Usage and Rental charges of Postpaid connections on Wireless Broadband (WiMAX) should not be clubbed with any other special discount / concession, and this special discount and  The credential of the customer is to be verified before. and there is no discount applicable on WiMAX Prepaid Plans and CPE Price

The Customer he/she who wants to apply for 20% Special Discount scheme for Government employees on Usage and Rental charges of Postpaid connections on Wireless Broadband (WiMAX) shall submit the following to concerned BSNL Service Center.
1. Prescribed application form for 20% special discount.
2. Employee (Serving Employee) Identity Card Attested Copy.
3. Government Employee if retired from services shall submit  Pension Payment Order photo copy (or) Pensioner Identity Card.

Download BSNL Order 29.09.2012 for discount scheme for serving, retired and PSU employees

DOPT publishes the minutes of MACP Joint Committee Meeting held on 27.7.2012

The official summary record of discussins of the MACP Joint Committee, which was held on 27th July, 2012 has been issued by DOPT on 13.9.2012. As per the decision taken in the National Anomaly Committee meeting, the separate meeting was held on 27.7.2012 charied by the Joint Secretary of DoPT. We placed the official record note of the meeting of MACP Joint Committee…

Summary Record of discussions of the meeting held on 27th July, 2012 with the Staff Side on the issues relating to Modified Assured Career Progression Scheme (MACPS)
In the meeting of the National Anomaly Committee, held on 17/07/2012, it was decided that Joint Secretary (E), DOPT will hold a separate meeting with the Leaders of Staff Side to discuss the issues relating to MACP Scheme which formed Agenda Item No 42 of the National Anomaly Committee. Accordingly a meeting was held on 27/07/2012 in Room No. 190 at North Block, New Delhi. The list of participants of this meeting is at Annexure IV.
Joint Secretary (E) DoPT welcomed the participants and stated that the Joint Committee which was set up by the National Anomaly Committee to discuss the issues relating to Modified Assured Career Progression Scheme (MACPS) met thrice and based on the discussions in those meetings a Report of the Committee was prepared and was placed before the National Anomaly Committee in its meeting held on 5th January,  2012. However due to shortage of time this item could not be discussed fully. In the meeting of the National Anomaly Committee held on 17th July,  2012, the Chairman had desired that since the issues involved in MACP Scheme are complex, another round of consultation through a meeting with the Staff Side under Joint Secretary (E) DoPT may be held soon. This meeting was held in pursuance of that decision. Thereafter the report of the Joint Committee was taken up for discussion.
1. Grant of MACP in the promotional hierarchy:- 
The  Staff Side stated that under ACP Scheme, financial up gradation was granted in promotional hierarchy and therefore it had become part of service condition of the employees. Under the MACPS, financial up gradations is permitted in Grade Pay hierarchy only, thereby adversely affecting the service conditions. Therefore, under MACPS also the financial up gradations should be granted in promotional hierarchy.
The Official Side stated that there was no such recommendation of the 6th CPC and in fact the Commission in its report, while discussing this issue, had mentioned that although the ACPS had, by and large, alleviated the problem of stagnation and also allowed higher rate of increments in the higher scale extended under it, it had, however, given rise to other problems. The financial up gradations in that scheme followed the then existing promotional hierarchy which gave rise to uneven benefit to employees falling in the same pay scale since several Organisations adopted different hierarchical pattern. Consequently, employees working in organizations having greater number of intermediate grades suffered because financial upgradation under ACPS placed them in a lower pay scale vis-a-vis similar]) placed employees in another organization that had lesser intermediary grades.
The 6th CPC therefore, recommended a systemic change in the existing scheme of ACPS whereby all employees, irrespective of the hierarchical structure as prevalent in their organization/cadre, would get the same benefit under it.
This was accepted by the Govt with further modification to grant three financial upgradations under the MACPS at intervals of  10, 20 and 30 years of continuous regular service in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given in Section 1, Part-A of the first schedule of the CCS (Revised Pay) Rules, 2008. In fact while accepting the recommendations of the  6th  CPC on this issue there was no such demand by the Staff Side.
The Staff Side stated that the employees who were in service prior to 1.1.2006 had the right to retain first two financial upgradations in the promotional hierarchy and the Government cannot alter the existing service conditions adversely. The Official Side however stated that since MACPS is in supersession of earlier ACP scheme, this cannot be agreed to.
The Staff Side insisted that at least option be given to individual employees in this regard to facilitate him/her to opt for either ACP or MACP for availing benefit of financial upgradation. The Staff Side was insistent that either MACPS should be in promotional hierarchy or individual options should be given to the employees.
The Official Side stated that it was not possible to agree to individual options and if they have any alternate suggestions, the Staff Side could come back with them. 
2. Date of effect of MACP Scheme: 
The Staff Side stated that those employees who retired during the period between  1.1.2006  and 31.8.2008 could not get the benefit of MACPS and therefore the MACPS should be made effective from 1.1.2006. It was pointed out by the Official Side that during the  5th  CPC also the ACPS was made effective from a later date.The Staff Side suggested that in respect of those who had retired/died prior to 1.9.2008, the MACP scheme could be made effective from 1.1.2006. It was pointed out that there is also the issue of some of the employees, who got the benefit of ACPS during this intervening period, may be adversely affected because of this demand.

Thus the staff Side was advised to reconsider their demand for giving effect to the MACP Scheme w.e.f. 01.01.2006.
3. Counting of 50% of service rendered by Temporary Status Casual Labour for reckoning 10/20/30 years under MACP Scheme:
It was reiterated by the Official Side that as per para 5 (v) of Appendix pertaining to Casual Labourers (Grant of Temporary Status and Regularization) Scheme, 50% of the service rendered under temporary status is to be counted only for the purpose of retirement benefits after their regularization. Since under MACPS only continuous regular service is taken into account for allowing 1st, 2nd and 3rd financial upgradations on completion of 10, 20 & 30 years of continuous regular service respectively, the demand of the Staff Side cannot be accepted for MACPS.
It was decided that this issue may be taken up by the Staff Side in National Council separately.
4. Treatment of employees selected under LDCE/GDCE Scheme: 
It was decided that treatment of such cases would be on the lines as was under the ACP Scheme and Ministry of Railways would examine the matter accordingly
5. Promotion in the identical Grade Pay: 
The Official Side stated that they will issue instructions for granting one increment for fixation of Pay in cases of promotion to the same Grade Pay if they were granted such a benefit post 5th CPC also. Such a dispensation would then apply while considering financial upgradation under MACPS.
6. Financial Upgradation under MACPs, in the case of staff who joined another unit/organisation on request:
The Staff Side pointed out that OM dated 01/11/2010 should be suitably amplified/amended covering the staff that was transferred on request on reversion to the Unit/Organisation so that the total service rendered in the previous Unit/Organisation, ignoring the past promotion, may be counted for MACPs.
The Official Side agreed to issue necessary clarificatory instructions in this regard. The Staff Side also pointed out that in certain offices the promotion in the original Unit/Organisation from which an employee got reverted/transferred to the lower post, was also being counted against MACPS which is not warranted.
The Official Side agreed to look into this issue. 
7. Extension of benefit of MACPS to an employee appointed in Grade where direct recruitment element is there while ignoring service and promotion rendered prior to his appointment in that post: 
The Official Side reiterated that suitable clarifications bearing No.5 in OM dated 09/09/2012 have already been issued and matter stands resolved.
8. Stepping up of Pay of Senior incumbents at par with Junior incumbents as a consequence of ACP/MACPs 
It was stated by the Official Side that stepping up of pay in the pay band or grade pay with regard to junior getting more pay than the senior on account of pay fixation under the MACP Scheme can be considered as a special dispensation and suitable clarificatory instructions will be considered to deal with such situations.
The Staff Side also raised the issue of injustice being meted out particularly in the Accounts Department of Indian Railways wherein the incumbents who cleared the Appendix examination are drawing less pay as compared to those who could not qualify the said examination and got the benefit of MACPs. The Staff Side stated that this led to de-motivation among qualified staff and urged for rectifying such an anomaly.
It was agreed to examine this separately and Ministry of Railways was advised to send the proposal in question. 
9. Benchmark for MACP 
It was decided that suitable instructions will be issued to specifically clarify that wherever promotions are given on non-selection basis (ie seniority cum fitness), the prescribed benchmark, as mentioned in para 17 of Annexure I of MACPS dated 19.5.2009, will not be applicable and the benchmark for promotion will apply for the purpose of MACPS.
10. Grant of ACP benefit to Artisan Staff of Ministry of Defence:
The Staff Side insisted that based on Fast Track Committee recommendations, the then existing Highly Skilled grade (in the Pre revised pay scale of Rs 4000-6000) was split equally in the ratio of 50:50 and redesignated as Highly Skilled Grade II (GP 2400) and Highly Skilled Grade I (GP 2800) with effect from 1.1.2006.
The Staff Side stated that such placement of employees in Highly Skilled Grade I (GP 2800) with effect from 1.1.2006 to 14.6.2010 cannot be treated as promotion for the purpose of grant of financial upgradation under MACP Scheme.
The Official Side stated that on the issue of Artisan Staff of the Ministry of Defence, the matter has already been examined on file and Ministry of Defence has been advised accordingly.
The Staff Side insisted that this should be reconsidered so that placements in higher Grade may not be taken as promotion for the purpose of grant of financial upgradation under MACP.
The Official Side stated that this has repercussions on the employees working in Railways and therefore it is not amenable to acceptance.
(11).  The rest of the items of the Report of the Joint Committee, as indicated below, were closed as appropriate action had been taken with respect to the issues raised therein.
(1) Applicability of MACPS to Group D employees who have been placed in the grade pay of Rs.1800/- in PB-i.

(2) Grant of financial up gradation under old ACP Scheme between 1.1.2006 and 31.8.2008
(3) Counting of services rendered prior to re-appointment for the purpose of MACP.
(4) Accounting of services rendered before Removal/Dismissal from service and subsequent reinstatement in service for the purpose of MACP Scheme
(5) Counting of service rendered in State Govt/PSUs etc.
(6) Regulation of Probation period under MACPS
(7) Application of MACPS to the Surplus Staff Re-deployed to lower posts in other Cadres/Organisations.
(8) Entitlement of the privileges after financial upgradation under MACP Scheme
(9) Extension of ACP/MACP Scheme to Staff Car Drivers /Civilian Motor Drivers/MT Drivers/Fire Engine Drivers etc.
(10) Pay Fixation on promotion subsequent to grant Of MACPs
(11) Notional Classification for CGE1S consequent upon MACPs.

(12) The Staff Side raised the following issues though they were not part of the MACP Joint Committee Report.


Employees who got one pro motion prior to 01/09/2008 and completed over two decades of service without benefit of promotion and are denied third ACP under MACPs: The Staff Side raised this issue and insisted that in such cases, third MACP should be straight away given to staff from the date subsequent to the date of completion of two decades of service after promotion. After discussions, the Official Side while appreciating the position stated that this is a peculiar situation and agreed to consider this issue on the basis of a reference to be made by the Ministry of Railways in this regard.

Modification of recruitment rules particularly in Railways and upgradation granted by abolition of Pay Scale-Implementation of MACPs 
Though this was not a part of the MACP Report, the Staff Side raised this issue in the meeting and explained that in the Railways, the lower pay scales were abolished and posts were upgraded to higher pay scales with revision of recruitment qualification and designation. In such cases the Staff Side insisted that entry Grade Pay as a result of upgradation consequent upon abolition of lower Pay Scales should be taken into consideration for reckoning 10/20/30 years of service for granting MACP.

The Official Side decided that the Railway Board may send an appropriate proposal to the DoP&T in consultation with the Staff Side. 
13.  The Official Side reiterated that MACP Scheme is a fall-back option and the Ministries have to conduct Cadre Restructuring in right earnest for ensuring that promotional avenues are available to the staff within a reasonable time frame. It was agreed that Ministry of Finance would issue instructions to all Ministries/Departments/Cadre authorities to undertake Cadre restructuring of Group B & Group C formations in a time bound manner.
The Staff Side pointed out that the Ministry of Railways is citing the instructions of Ministry of Finance issued some years back that only one third of the Cadre could be disturbed, for revising the percentages for the purpose of Cadre restructuring, the Official Side stated that this would be examined and if required, necessary clarificatory instructions will be issued to the Ministry of Railways so that the Cadre Restructuring could be carried out.

Expected DA from 01January 2013 : AICPIN for the month of July 2012

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of July, 2012 increased by 4 points and stood at 212 (two hundred and twelve).

If the same trend continues for the remaining 5 months of the year (or even if it goes down by a point or  two in those months) then the expected increase in DA/DR from 01 Jan  2013 will be 7% taking the total DA/DR payable to 79%.