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  • Thursday 30 August 2018

    THE CUMULATIVE DA ON 7TH CPC BECOMES 9 PERCENT

    Cabinet approves additional 2 percent Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1st July, 2018

    The Union Cabinet, chaired by the Prime Minister Shri Narendra Modihas approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2018 representing an increase of 2% over the existing rate of 7% of the Basic Pay/Pension, to compensate for price rise.

    The combined impact on the exchequer on account of both Dearness Allowance and Deamess Relief would be Rs.6112.20 crore per annum and Rs.4074.80 crore in the financial year 2018-19 (for a period of 08 months from July, 2018 to February, 2019).

    This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners.

    This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

    Saturday 25 August 2018

    7th CPC and OROP: Revision of Casualty Pensionary Awards in respect of Pre-2006 Armed Forces Officer and JCOs/ORs pensioners - Clarification

    OFFICE OF THE PR. CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS) 
    DRAUPADI GHAT, ALLAHABAD- 211014 
    Circular No. 604 
    Dated: 16.08.2018 
    To, 

    1. The Chief Accountant, RBI, Deptt. Of Govt. Bank Accounts, Central office C-7, Second Floor, Bandre- Kuria Complex, P B No 8143, Bandre East Mumbai- 400051 
    2. All CMDs, Public Sector Banks including IDBI Bank 
    3. Nodal Officers, ICICl/ HDFC/ AXIS/ IDBI Banks 
    4. Managers, All CPPCs 
    5. Military and Air Attache, Indian Embassy, Kathmandu, Nepal 
    6. The PCDA (WC), Chandigarh 
    7. The CDA (PD), Meerut 
    8. The CDA, Chennai 
    9. The Director of Treasuries, All States 
    10. The Pay and Accounts Officer, Delhi Administration, RK Puram and Tis Hazari, New Delhi 
    11. The Pay and Accounts Office, Govt of Maharashtra, Mumbai 
    12. The Post Master Kathua (J&K) 
    13. The Post Master Camp Bell Bay 
    14. The Pr. Pay and Accounts Officer, Andaman and Nicobar Administration, Port Blair 
    Sub:- Revision of Casualty Pensionary Awards in respect of Pre-2006 Armed Forces Officer and JCOs/Ors pensioners: Clarification. 
    Ref:- This office Circular No. 569 dated 19.10.2016. 
    There are several representations from various War Veteran Associations demanding the benefit of Maximum of Term of Engagement in OROP as well as in 7th CPC revision quoting the Para-3 of Circular No. 569 dated 19.10.2016. Thus, it appears that there are some misinterpretation /confusion about Para-3 of Circular No. 569 dated 19.10.2016, which needs to be clarified in this regard. 
    Earlier vide Annexure No.-II of MoD letter No. 200847/Pen-C/71 dated 24.02.1972, there was a provision that Service Element of War Injury Pension will be equal in amount to the normal retiring pension of the rank held at the time of disablement for maximum service of rank. It means Service Element of War Injury Pension was admissible for maximum term of engagement subject to restriction that War Injury Pension should not be more than last pay drawn. Prior to 6th CPC the Service Element/ Service Pension was given 50% of the reckonable emoluments for 33 years of Qualifying Service including weightage, and for lesser period it was proportionately reduced. It is pertinent to mention that after evolution of 6th CPC provision concept of pro-rata reduction has been dispensed with. As per 6th CPC orders pension will be 50% of the last pay drawn irrespective of Qualifying Service. Therefore, relevance of Maximum Term of Engagement becomes obsolete. 
    The minimum guaranteed pension after implementation of 6th Central Pay Commission, was initially determined on the basis of minimum of the Pay in Pay Band plus Grade Pay vide MoD letter dated 11.11.2008 (Circular No. 397 of this office). This was further modified with issue of MoD letter No. 1(04)/ 2015 / (1)-D (Pen/ Pol) dated 03.09 .2015 for revision of Service Pension/ Service Element in respect of Pre-2006 Commissioned Officers/JCOs/ORs pensioners on the basis of minimum of fitment table for the Rank in the revised Pay Band as indicated under fitment tables, and accordingly Circular No. 547 and 548 has been issued for PBORs and Commissioned Officers respectively. The ibid minimum guaranteed pension was calculated as 50% of minimum of fitment table for 33 years of Qualifying Service including weightage with pro-rata reduction for lesser period. 
    The minimum guaranteed disability element/war injury element was not covered in the ibid MoD letter dated 03.09.2015. Therefore, .MoD letter No. 16(01)/2014/ D(Pen/ Pol) dated 18.05.2016 was issued (Circular No. 560) for revision of Casualty Pensionary awards in respect of Pre-2006 Armed Forces Officers and JCO/ORs Pensioners/ Family Pensioners, which provides for minimum guaranteed Disability Element/War Injury Element. The clause of pension upto Maximum Term of Engagement in case of War Disabled Pensioners which was admissible prior to 6th CPC was omitted in both the above circulars of minimum guaranteed pension. Therefore, there was a need to clarify this issue and hence the Para-3 has been inserted in Circular No. 569 dated 19.10.2016. After issue of GOI MoD letter No. 1(2)/2016-D(Pen/Pol) dated 30.09.2016 for delinking of qualifying service of 33 years for revision of pension under minimum guaranteed pension, Para No, 3 of Circular No. 569 has become redundant and therefore this Para-3 may be treated as deleted. 
    After implementation of 6th CPC and subsequently also in 7th CPC, pension will be determined on the basis of 50% of last pay drawn irrespective of Qualifying Service, so the relevance of pro-rata reduction for lesser qualifying service become redundant as full pension is admissible for each qualifying service in each rank. Therefore, pension upto term of engagement has also become redundant. Further, the pension as per OROP rates was based on the live data of 2013 retirees where pension was given as per 6th CPC provisions. Therefore, the demand of pension upto term of engagement has also become obsolete. 
    Therefore, it is requested that the issue may be dealt with accordingly and the pensioner approaching for this may be clarified on similar lines duly stating that pension upto term of engagement in case of war disabled pensioners in OROP as well as 7th CPC revision is irrelevant. 
    This circular has been uploaded on official website of this office www. pcdapension.nic.in 
    No. Gts/Tech/05/LXXX 
    Dated: 16.08.2018 
    (Sushil Kumar Singh) 
    Jt. CDA(P) 

    Benefits of MACPs w.e.f. 1.1.2006 - Supreme Court Judgment - Representation to DOP&T

    Grant of financial upgradation under ACP & MACP schemes for the central Government Civilian Employees including Railway employees

    NFIR
    No. IV/MACPs/09/part II
    Dated: 21/08/2018
    The Secretary / DoP&T
    (Department of personnel PG & pension),
    Department of personnel & Training,
    North Block,
    New Delhi.
    Dear Sir,
    Sub: Grant of financial upgradation under ACP & MACP schemes for the central Government Civilian Employees including Railway employees – reg.
    Ref: (i)  Dop&T oM No.35034/1/97-Estt (D) dated 09/08/1999.
    (ii) Dop&T oM No.35034/3/2008-Estt (D) dated 19/05/2009.
    NFIR invites kind attention to the OM dated 09/08/1999 wherein the Government of India (DoP&T) had introduced ‘Assured career Progression Scheme‘ (ACPs) for the central Government civilian Employees pursuant to the recommendation of 5th central pay commission. The ACP Scheme was made effective in the Central Government departments from 1999. The ACP Scheme remained functional until 31/08/2008 (as clarified by the DoP&T vide para 9 its OM dated 19/05/2009) due to the fact that the ‘Modified Assured Carrer Progression Scheme‘ was introduced by the DoP&T, replacing ACPS w.e.f. 01/09/2008, pursuant to the recommendations of 6th CPC.
    The Federation has however been receiving representations from the Central Government civilian Employees, mainly railway employees from all corners of the country to make the MACP Scheme operational w.e.f. 01/01/2006 instead from 01/09/2008, pursuant to the order dated 08th December, 2017 passed by the Hon’ble Supreme Court in Civil Appeal Diary No.3744 of 2016. In this connection, NFIR places following facts for consideration:-
    • on perusal of the order of the Apex court, it is found that the Hon’ble Apex court has held that the MACP is a part of pay structure recommended by the 6th CPC, the same cannot be considerd as allowance which had been given effect from 01/09/2008. The said order has also cited the Resolution dated 30/08/2008 of the Government which was referred in the notification issued by the Ministry of Finance wherein MACP has been defined part of ‘Pay structure‘ and not as ‘Allowance‘ and therefore should be given effect from 01/01/2006.
    • The order dated 8th Dec 2017 passed by the Apex court has already been implemented by the Ministry of Defence, giving effect to the MACPs w.e.f.01/01/2006 through an OM dated 25/07/2018.
    • DoP&T may kindly take note that in para 6.5.2 & 6.5.4 of the report of 6th CPC, the Commission had recommended for implementation of the revised pay structure consisting of Pay Band and Grade Pay w.e.f. 01/01/2006 while the revised allowances were given effect from prospective date i.e. 01/09/2008.
    • Ministry of Finance vide Gazette of India, Extraordinary Notification of Resolution No. 1/1/2008-IC dated 29/08/2008 had implemented revised pay structure (Pay Band & Grade Pay) w.e.f. 01/01/2006 whereas the implementation of MACPS was made effective from 0110912008, Accordingly, Ministry of Railways also implemented revised Pay structure w.e.f. 01/01/2006 vide its order dated 04/09/2008 while the rates of Non Practicing Allowance (NPA) were revised w.e.f. 01/01/2006 vide Board’s order dated 22/09/2008. Therefore, the MACPS which is part of Pay structure as decided by Apex Court should be given effect from 01/01/2006 in railways and all other Central Government departments.
    • Another important fact which cannot be ignored is, that the Apex Court had held that the benefit of ACP granted to an employee is part of the Pay structure which not only affects the pay but also pension of the employee, therefore, decided that the ACP is not allowance but a part of pay. At the same time, the Hon’ble Supreme Court further held that there can be no dispute that grant of ACP is part of pay structure and that the resolution dated 30/08/2008 relating to implementation of 6th CPC recommendations on pay structure, pay bands, grade pay etc have been given effect from 0110112006 and also added that this is the decision of the Cabinet which could not have been modified by issuing executive instructions.
    NFIR suggests that while issuing modified instructions, in compliance with Apex Court order, the DoP&T may allow option opportunity to all those beneficiaries of ACPS as well MACPS to exercise their option for financial upgradation from the dates advantageous to them so as to avoid further grievances.
    Summing up, NFIR urges upon the DoP&T to kindly consider the above points and issue modified instructions for granting financial upgradation under MACPS with effect from 01/01/2006 as was done by the Ministry of Defence. A copy of the instructions issued may be endorsed to this Federation.
    Yours faithfully,
    (Dr.M.Raghavaiah)
    General Secretary


    Thursday 16 August 2018

    7th Pay Commission: No hike in minimum pay, No change in fitment factor and No change in retirement age

    There was a bitter disappointment in store for fifty lakh Central government employees and an equal number of retirees, who have been waiting for a hike in minimum pay and fitment factor beyond the 7th Pay Commission recommendations. There was lot of speculation that PM Narendra Modi may give some good news in his last Independence Day budget in this term as PM. Many believed that looking at good monsoon and positive economic factors, a positive announcement may come months before the general elections. 
    While PM Modi spoke about how Indian economy will be a powerhouse in next three decades, he didn't have any news to offer for the government employees. 
    Minister of State for Finance P. Radhakrishnan earlier in Lok Sabha had said that the Prime Minister's Narendra Modi government is not planning to give any hike in minimum basic salary beyond the recommendations of the seventh pay commission. However, the Haryana government approved pay scale recommendations of teaching and non-teachings staff at government universities, government universities and govt-aided colleges with effect from Jan 1,2016.
    The Maha government also has announced a salary hike under 7th Pay Commission from January 2019 for 17 lakh state employees. . So obviously the Central government employees are also hoping for some positive news. It may be noted that the government at any time can announce such a decision, and it doesn't need to be on a special day. It may come closer in the heels to the election. 
    It is to be noted though that in the hopes of minimum pay hike beyond the recommendations of the 7th CPC might get a blow from the Central Bank itself. Earlier this month, RBI decided to increase the policy repo rate by 25 basis points to 6.5%. The reverse repo rate has been hiked to 6.25%, the RBI announced after its three-day Monetary Policy Committee (MPC) meeting.
    "RBI's Monetary Policy Committee has decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.5% Consequently, the reverse repo rate under the LAF stands adjusted to 6.25% and marginal standing facility rate and Bank Rate to 6.75%," the apex bank said in a statement. 
    RBI in its report mentioned that inflation rates have increased on account of implementation of 7th Pay Commission. The revised HRA structure came into place in July 2017 under the 7th Pay Commission.
    Currently, the Central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this big step is taken, it will come as a massive news for the Central government employees. Fitment factor is a figure used by 7th CPC with which the basic pay in 6th CPC regime (i.e Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (i.e 7th CPC). Fitment factor formulated by 7th CPC is 2.57.
    There were talks about Modi raising the retirement age of central government employees. That also didn't come through

    Monday 13 August 2018

    Increase of fitment factor from 2.57 to 3.68 under 7th CPC - Latest official statement before PM's Independence Day speech

    GOVERNMENT OF INDIA
    MINISTRY OF FINANCE
    RAJYA SABHA
    UNSTARRED QUESTION NO-2273
    ANSWERED ON-07.08.2018
    Increase of fitment factor under 7th CPC
    2273 . Shri Ravi Prakash Verma
    Shri Neeraj Shekhar
    (a) whether Government is contemplating to increase fitment factor from 2.57 to 3.68 under 7th CPC to all pay levels, as demanded by employees associations;
    (b) if so, the details thereof and by when it would be announced; and
    (c) if not, the reasons for betrayal from assurances given by Home Minister and Railway Minister etc. to employees associations in 2016?
    ANSWER
    MINISTER OF STATE IN THE MINISTRY OF FINANCE
    (SHRI P. RADHAKRISHNAN)
    (a) to (c): The Minimum Pay of Rs. 18,000 p.m. and Fitment Factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration.

    Wednesday 8 August 2018

    Dearness Relief to re-employed Ex-servicemen/pensioners – PCDA Clarification


    Office of the Principal Controller of Defence Accounts (Pension),
    Draupadi Ghat, Allahabad-211014

    Circular No.179 
    Date:12.05.2015
    Sub: Payment of Dearness Relief to re employed pensioner: Clarification thereof.
    As per para l(a) of MOD letter No. 7(1)/95/D(Pen/Services) dated 28.8.2000, entire pension admissible to ex-servicemen who held post below commissioned officers (PBOR) at the time of retirement, is ignored and their pay on re-employment is to be fixed at the minimum of the pay scale of the post in which they are re-employed. Such pensioners will consequently be entitled to dearness relief on their pension.
    Deptt. of Pension and Pensioners Welfare, vide their UO No.41/42/2007/P&PW(G) dt. 03.04.2008, reproduced under this office circular No. 386 dt. 19.06.2008, further clarified that if the pay is fixed at a higher stage because of advance increments and no protection of last pay drawn is given, the pay should be treated as fixed at a minimum only for the purpose of ignoring the entire pension and allowing dearness relief on pension. For availing this benefit the ex-servicemen would have retired at post below commissioned officers Rank (PBOR) before attaining the age of 55 years.
    Now representations from the banks, where number of ex-clarify the elements to be taken into account for assessing the last pay drawn by the ex-servicemen for the purpose of last pay protection.
    The dearness relief on re-employment should be regulated by the Pension Disbursing Agencies on the basis of certificate issued by re-employer, clearly stating whether benefit of last pay protection has been given or not. However, on examination of cases submitted by the banks it has been found that pay scale in banks are still on old pattern, whereas ex-servicemen have been retired with Pay in Pay Band, Grade Pay, MSP, Group Pay etc. In such cases it is clarified that for the purpose of assessing the last pay drawn for last pay protection, the elements to be taken into account should be last pay in pay band i.e. Band Pay plus Grade Pay, last drawn before retirement as envisaged vide MOP, PG & P, DOPT OM NO. 3/19/2009 Estt. Pay II dt. 8th Nov 2010 and no other elements should be taken for this purpose.

    In view of the above, it is advised that all the cases of dearness relief where pay of ex-servicemen has been fixed at a higher stage because of advance increments may be reviewed and regulated accordingly.

    No. AT/Tech/263-XVIII 
    Date 12.05.2015
    (A.D. Mishra)
    Asst.CDA (P)

    Source: www.pcdapension.nic.in
    [http://pcdapension.nic.in/6cpc/Circular-179.pdf]

    Benefit of reservation to Ex-servicemen, who applies for various examinations/vacancies before joining civil posts

    No.36034/1/2014-Estt.(Res.)
    Government of India
    Ministry of Personnel, Pubic Grievances and Pensions
    Department of Personnel and Training
    North Block, New Delhi
    Dated the 14th August, 2014

    OFFICE MEMORANDUM
    Sub: Benefit of reservation to Ex-servicemen, who applies for various examinations/vacancies before joining civil posts/ services in the Government job on civil side.
    In terms of this Department’s Notification No.39016/10/79-Estt(C) dated 15th December, 1979 as amended from time to time and which was last amended vide Notification No. 36034/1/2006-Estt (Res) dated 4th October, 2012, the benefit of reservation to ex-servicemen is available at ten per cent of the vacancies in Group C posts and twenty per cent of the vacancies in Group D posts in all the Central Civil Services and posts. Benefit of reservation is also extended at ten per cent of the vacancies in the posts upto of the level of Assistant Commandant in all para-military forces to be filled by direct recruitment.

    2. Vide this Department’s O.M. No. 36034/27/84-Estt.(SCT) dated 02.05.1985, it was decided that once an ex-serviceman has joined the Government job on civil side after availing of the benefits given to him as an ex-serviceman for his re-employment, his ex-serviceman status for the purpose of re-employment in Government would cease. It was also decided that on his joining the civil employment, he would be deemed to be a civil employee and would accordingly be entitled to only such of the benefits like relaxation of age etc. as admissible to civil employees in the normal course. Vide this Department’s O.M. No. 36034/21/87-Estt.(SCT) dated 07.11.1989, it was clarified that the instructions of 02.05.1985 shall not apply to those ex-servicemen who have been re-employed or are re-employed by private companies/autonomous bodies/ public sector undertakings/ government offices on casual/contract/temporary ad-hoc basis and who can be removed from such service at any time by their employer concerned.
    3. An ex-serviceman at the time of his release or discharge from the armed forces normally applies for more than one vacancy, but in case he/she joins any civil employment due to early declaration of results/selection, he/she is ,not entitled for the benefit of reservation for ex-servicemen for subsequent employment. It has been brought to the notice of this Department that the aforesaid instructions are affecting the chances of ex-servicemen in the case of direct recruitment for subsequent suitable employment.
    4. The matter has, therefore, been considered in consultation with Department of Ex-servicemen, Ministry of Defence. It has now been decided that if an ex-serviceman applies for various vacancies before joining any civil employment, he/she can avail of the benefit of reservation as ex-serviceman for any subsequent employment. However, to avail of this benefit, an ex-serviceman as soon as he/she joins any civil employment, should give self-declaration/undertaking to the concerned employer about the date-wise details of application for various vacancies for which he/she had applied for before joining the initial civil employment. Further, this benefit wou’d be available only in respect of vacancies which are filled on direct recruitment and wherever reservation is applicable to the ex-servicemen.
    5.The above Orders shall take effect from the date of issue of this Office Memorandum.
    6.All the Ministries/Departments are requested to bring the above instructions to the notice of all appointing authorities under their control, for information and compliance.
    sd/-
    (G. Srinivasan)
    Deputy Secretary to the Government of India
    Source: www.persmin.gov.in