7th Pay Commission Shortcomings – BPS writes to FM
Bharat Pensiners Samaj, one of the oldest & the largest Federation of Indian pensioners writes to Finance Minister regarding the recommendations of 7th Pay Commission. The Federations insists to redress the eight serious shortcomings in the recommendations of 7th CPC.
Particularly in the fitment factor issue, the Federation appeal to provide 2.81 fitment benefit for all employees without any discrimination. Read the detailed letter is reproduced and given below for your kind information...
BPS writes to Finance Minister pointing out 7th CPC shortcomings.
BHARAT PENSIONERS’ SAMAJ
(All India Federation of Pensioner’s Associations)
New Delhi -110014
New Delhi-Dt. 25-11-15
Dear Shri Arun Jaittleyji,
Honourable Minister of Finance
Government of India
Subject : 7th Central Pay Commission report released on 19.11.2015
With deep resentment and pain BHARAT PENSIONERS SAMAJ( BPS) the oldest & the largest Federation of Indian pensioners which is a conglomerate of over 650 Pensioners Associations appeal to you to redress the following issues which 7th CPC failed address:
1. Ratio between minimum and maximum: Instead of reducing it is raised which is against the preamble of the Constitution of Indian Republic.
2. Minimum salary has been intentionally calculated to be lower to keep common fitment factor low. Counting employees’ wife as 0.80 unit is gender biase and is totally unjustified.
Quantities & rates taken for the items in basket are unrealistic for example Rs 524.07 per month is provided Even the lowest category of Govt. accommodation is not available at this rate.
Similarly rate of ‘Dal’ is taken to be 97.84 per Kg. No ‘ Dal‘ is or was available in the market at this rate. Quantity of Milk is taken to be 200 ml per unit per day which is too little for a vegetarian rate of Milk is taken to be Rs 37.40 per Kg which is lower than market rate.
3. According to 7th CPC 2.57 fitment factor is for all employees. But, in fact. 2.81 fitment has been given at Secy level. This is robbing Peter to pay Paul, violative of CPC own recommendation and that of Article 14 of the constitution of India. 2.81 fitment benefit should be provided to all employee without any discrimination.
4. Raising percentage of pension based on sustenance: Analysis given by CPC is silent on sustenance this is unjustified rejection.
5.OROP recommended by 7th CPC for all. But through the jugglery of pay matrix, for promotee officers and group ‘C.‘ it will end up only in modified parity. This needs rectification to ensure absolute parity for all.
6. Additional pension at 75 yrs of age is denied only because Defence Ministry did not agree this is rather absurd. If Defence Ministry does not want to have it, let them not have it. Why make others suffer on this account?
7. Medical facilities : While the Commission’s recommendations regarding merging of all postal dispensaries with CGHS dispensaries and inclusion of non CGHS covered postal Pensioners are welcome.
However, its recommendations regarding Health insurance for pensioners do not suit existing pensioners on account of no coverage of existing disease without lock-in period, no provision of OPD facility , payment of premium and less amount of coverage.
Under signed, wish to draw your kind attention to para 9.5.18 (iii) of the 7th CPC and request you to create without delay a combined entity of CGHS, ECHS-RELHS which in terms of 7th CPC would result in a very strong network of health facilities for the Central Government employees/pensioners across the length and breadth of the country.
8.Scraping of New Pension scheme(NPS) :It has come out through 7th CPC report that though NPS was introduced more than a decade back Govt; to date could not firm up rules in this regard.
With the result over 300000 employee recruited after 2004 may not have enough funds in their accounts at retirement to ensure financial security. Center and state Govt’s share of contribution is insufficient and these governments are not depositing their contribution in time, investments are subjected to service tax & withdrawals are taxable under Income Tax with the result there would not be enough money for reasonable post retirement financial security.
Due to ever rising inflation, this situation will go on worsening year by year and will go out of hand by the time of retirement of the beneficiary. This is more than sufficient reason to scrap NPS & to revert to pre 2004 defined benefit Pension Scheme.
Thanking you in anticipation.
Secy. General Bharat Pensioners Samaj
Major Federations and Unions views on the recommendations of 7th Pay Commission