Pros and cons of raising the retirement age of Central Government Employees

Retirement Age for Central Government employees to enhance by two years from 60 to 62..!

Last week, the important decision was expected by the Cabinet Committee, which was held on 4th June 2013, but no decision taken in the meeting. Though the media and websites are still spreading the news that the "Government has already taken in principle decision to increase the retirement age for two years and the implementation will also be within this year". The intense debate is going on about this issue, a website published an article of advantage and disadvantages of the decision. 

Retirement age 62 for central government employees a exclusive review

Impact of raising retirement age from age 60 to 62

It has been seen that one of the long time waging demand of raising the retirement age of govt employees has finally caught afire...

Through the Medias and blogging sites re abound with news that the cabinet would announce news regarding the retirement age yet it has not been finalizes.

Even then it has been come to known that a favourable decision would be put forth regarding this issue due to the oncoming Lok Sabha and three state assembly elections.

In India the retirement ages of most of the state government employees range from 58 to 60. This is low in comparison to the government employees of foreign nation.

We shall see the effect of raising the retirement age in the following passage

Advantages :-

1. If only 7th pay commission would be implemented in the year 2016 those retiring in the year span 2014 -2016 would be greatly benefitted.

2. Economically the employees would be in better position due to this rise of the age of superannuation

3. The pension amount and the other beneficiaries would also increase along side

4. There this chance of imparting fruitful experience to the subordinates or new recruit by those benefitted by rise in retirement age

5. More over there is chance of getting an additional MACP by the central govt employees

6. A good health psychological effect would prevail in their minds due to this boon of rising their retirement age and thus removing their fatigue

Disadvantages :-

1. Promotion would be greatly affected due to no retirement in the long span

2. Unemployment would come in to being due to the increase in retirement age

3. Output of work would be greatly affected if the retirement age of unhealthy employees would be increased.

This announcement would not be received in praise among those searching for employment in general, Moreover among the retirement employees this decision is receiving a mixed response as some welcome while others detest it.

Voluntary Retirement under Fundamental Rule 56(k), 56(m) and Rule 48 - Amendment orders by DoPT

Government of India 

Ministry of Personnel, Public Grievances and Pensions 

Department of Personnel and Training

North Block, New Delhi-100 001 

Dated : 27th February, 2014

Subject : Voluntary retirement under FR 56(k), etc. and amendment of Rules.

The provisions of Fundamental Rule 56(k), 56(m) and Rule 48 of CCS(Pension) Rules, 1972 relating to acceptance of request of voluntary retirement have been revisited as per the Central Administrative Tribunal, Principal Bench judgement dated 4th August, 2010 in 0.A.No.1600/2009 filed by Shri Gopal Singh Purohit Vs UOI & Others to bring them at par with each other.

2. The matter has ‘been examined in consultation with Department of Pension and Pensioners Welfare and the Ministry of Law. FR 56(k) and 56 (m) have been amended vide Extra Ordinary Gazette Notification No.GSR.27(E) dated 17 th January, 2014. It shall be open to the appropriate authority to withhold permission to a Government servant who seeks to retire under FR 56(k) or 56 (m) in the following circumstances:

(i) If the Government servant is under suspension ; or
(ii) If a charge sheet has been issued and the disciplinary proceedings are pending; or
(iii) If judicial proceedings on charges which may amount to grave misconduct, are pending.

Explanation: For the purpose of this clause, judicial proceedings shall be deemed to be pending, if a complaint or report of a police officer, of which the Magistrate takes cognizance, has been made or filed in a criminal proceedings.

3. Copy of the Gazette Notification No.G.S.R.E.(27) dated 17.1.2014 amending FR 56(k) and FR 56(m) is enclosed.

4. All Ministries/Departments are requested to bring the contents of this O.M. to the notice of all concerned.

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS

(Department of Personnel and Training )

NOTIFICATION

New Delhi, the 17th January, 2014

GS.R. – 27(E) In exercise of the powers conferred by the proviso to article 309 of the Constitution, and in consultation with the Comptroller and Auditor General in relation to persons serving in the Indian Audit and Accounts Department, the President hereby makes the following rule further to amend the Fundamental Rules, 1922, namely :-

I. (1) These rules may be called the Fundamental (First Amendment) Rules, 2014. 

(2) They shall came into force on the date of their publication in the Official Gazette.

2. In the Fundamental Rule, 1922, in rule 56, – 

(a) in clause (k), in sub-clause ( I), for item (c), the following, shall be substituted namely :-

"(c) it shall be open to the Appropriate Authority to withhold permission to a Government servant, who seeks to retire under this clause, if,- 

(i) the Government servant is under suspension: or
(ii) a charge sheet has been issued and the disciplinary proceedings are pending; or
(iii) if judicial proceedings on charges which may amount to grave misconduct, are pending.

Explanation :- For the purpose of this clause, judicial proceedings shall be deemed to be pending, if a complaint or report of a police officer, of which the Magistrate takes cognizance, has been made or filed in a criminal proceedings.";

(b) for clause (m), the following shall be substituted, namely : –

"(m)A Government servant in Group ‘C’ post who is not governed by any pension rules, may, by giving notice of not less than three months in writing to the Appropriate Authority, retire from service after he has completed thirty years service :

Provided that it shall be open to the Appropriate Authority to withhold permission to a Government servant, who seeks to retire proceedings." 

(i) the Government servant is under suspension: or
(ii) a charge sheet has been issued and the disciplinary proceedings are pending; or
(iii) if judicial proceedings on charges which may amount to grave misconduct, are pending.

Explanation :- For the purpose of this clause, judicial proceedings shall be deemed to be pending, if a complaint or report 

of a police officer, of which the Magistrate takes cognizance, has been made or filed in a criminal proceedings.";

[No.25013/3/2010-Estt. (A-IV)] 

MAMTA KUNDR A, Jt. Secy.

7th Central Pay Commission NEWS

The Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC) as follows:- a)      To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-                          i.                   Central Government employees-industrial and non-industrial;                        ii.                    Personnel belonging to the All India Services;                      iii.                    Personnel of the Union Territories;                      iv.                   Officers  and   employees   of  the   Indian  Audit  and   Accounts Department;                        v.                   Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and                      vi.                    Officers and employees of the Supreme Court. b)      To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel. c)      To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework. d)     To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity. e)      To review the variety of existing    allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account. f)       To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS). g)      To make recommendations on the above, keeping in view: i.                     the economic conditions in the country  and need for fiscal prudence; ii.                    the need to ensure that adequate resources are available for developmental expenditures and welfare measures; iii.                  the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications; iv.                  the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and v.                    the best global practices and their adaptability and relevance in Indian conditions. h)      To recommend the date of effect of its recommendations on all the above. The Commission will make its recommendations within 18 months of the date of its constitution.  It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised. The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission. Background             Central Pay Commissions are periodically constituted to go into various issues of emoluments’ structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.

Cabinet approved the proposal of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.1.2014

The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2014, in cash, but not before the disbursement of the salary for the month of March 2014 at the rate of 10 percent increase over the existing rate of 90 percent. Hence, Central Government employees as well as pensioners are entitled for DA/DR at the rate of 100 percent of the basic with effect from 01.01.2014. The increase is in accordance with the accepted formula 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 Rs. 11074.80 crore per annum and Rs. 12920.60 crore in the financial year 2014-15 ( i.e. for a period of 14 months from January 2014 to February 2015).  PIB

Health workers of Directorate of Health Services of A & N Administration, goes on a two-day protest on Feb 20 and 21 for Patient Care Allowance

          The Association of Word Attended, Aayah, Safai Karamchari & other Health  workers of Directorate of Health Services of Andaman & Nicobar administration, goes on a two-day protest on Feb 20 and 21 from 12 noon to 12.30 pm in front of DHS office to press for their demand for extending Hospital Patient Care Allowance/Patient Care Allowance (HPCA/PCA). Member of the association was performed  their duties in the hospital wearing black badges. A peaceful rally / mass procession organized on 20^th  & 21^st February 2014, at 1230 hrs. and its route was started from vehicle perking of G.B.Panth Hospital, M. S. office, Cellular jail junction, DHS office, Ayush Hospital Bus Stand and conclude at mortuary of G. B. Pant Hospital.
          
    This demonstration guided by  "Government Employees Federation" under the leadership of Shri P. Kannan , President  and Shri S. K. Majumdar, General Secretary, of Government Employees Federation of these islands and also extended their full support to the affiliated above Health orkers  Association.

The Government is likely to take the decision of increasing the retirement age of Central government employees

The Business Standard reports that the Government is likely to take the decision of increasing the retirement age of Central government employees by two years, from 60 to 62 this week. This would be applicable from March 1.

The decision to be taken by the Cabinet will be one of the major and last one before the model code of conduct for the general elections kicks in. In the Thursday meeting, the Cabinet is also likely to recommend dates for the elections. These could be notified on March 5.

"The government may clear the increase in age this week," said a source. It is likely to be a part of the terms of reference of the Seventh Pay Commission, expected to file its report in 2017. The panel, however, can recommend an interim relief through the move.

The increase in retirement age would be happening after 15 years. In 1998, it was increased to 60 from 58 following implementation of the Fifth Pay Commission. Experts said it would defer payment of retirement benefits. However, sources confirmed this would not be applicable for employees retiring on February 28.

Double the normal Rates of Transport Allowance granting to Deaf and Dumb Employees

 Finance Ministry issued orders on granting of Transport Allowance to Deaf and Dumb Employees working in Central Government departments at double the normal Rates …

A parliamentary panel has urged the Centre to raise the retirement age to 65 years

The standing committee of Parliament on social justice and empowerment have recommended the government to raise the retirement of the employees age to 65 years. The recommendations is based on the fact that growing lifespan was adding to the need for "productive ageing". 

The recommendation for increase in retirement age comes with a reminder that senior citizens would form 12.4% of the total population in 2026 from 7.5% in 2001. 

"The committee feels that with the increase in life expectancy and relatively better state of health of people, the government needs to look at continuity of employment up to 65 years," said the report.

It also recommended that government look at greater post-retirement opportunities for senior citizens and create greater financial support. 

While suggesting immediate redressal for the ageing population, the panel sought to train the government's focus on the 60-plus group by pointing out that its growing numbers would be a serious challenge in health and social care. 

Specifically, it underlined that as per population projections, the 80-plus bloc, the most-vulnerable group, would see a sharper rise in numbers. 

The urgency of parliamentarians towards senior citizens comes amid growing global realization that increasing lifespan is creating a new demographic bloc requiring state intervention. 

Seeking government attention, the committee noted that senior citizens comprised 7.5% of the total population in 2001 but their share is likely to increase to 12.4% in 2026. Importantly, UN projections say while India's population will rise by 55% by 2050, that of 60-plus would increase by 326% and that of 80-plus would go up by 700%. 

The panel said special focus should be on the octogenarian bloc. "This age group is the most vulnerable and runs the risk of getting dementia, Alzheimer's disease, Parkinson disease, depression in their older years," it said, and asked the Centre to constitute an expert group of relevant government departments to devise specialized healthcare programme for them

Source : Times of india

GEF mourns Advocate A.S.ROY's demise...

                               

                                 The Patron, Shri Kuldeep Rai Sharma, President, Shri P. Kannan,  General Secretary, Shri S. K. Majumdar, Office bearers and all affiliated Associations of Government Employees Federation, Andaman & Nicobar Islands, have condoled the demise of Advocate,  A. S. ROY, of Calcutta High Court. He passed away at his residence at Kolkata on thursday the 6th February 2014. Advocate Roy was the senior legal advisor of GEF for more than a decade and his valuable advises and contribution extended for the development of Government Employees federation shall be remembered forever. In his demise, the GEF has lost a sincer, dedicated and admirable legal advisor.                                  The office bearers of Government Employees Federation have expressed their sorrow and observed two minutes silence in the Federation office at Gandhi Bhavan, Port Blair for the departed soul and prayed the almighty to give strength and courage to bear the irreparable loss to the family members.  

GEF has expressed its heartiest gratitude to Hon'ble Prime Minister, Dr. Manmohan Singh for has approved composition of the 7th Pay Commission

Prime Minister Approves Composition of 7th Central Pay Commission Under the Chairmanship of Justice Ashok Kumar Mathur, Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal                                                                                                                    

                                                                                                                     04-February-2014 13:27 IST

The Finance Minister Shri P. Chidambaram has issued the following statement:

            “The Prime Minister has approved the composition of the 7^th Central Pay Commission as follows:

1.         Shri Justice Ashok Kumar Mathur                            -                          Chairman           

            (Retired Judge of the Supreme Court and Retired

            Chairman, Armed Forces Tribunal)

2.         Shri Vivek Rae                                                             -                          Member (Full Time)

            (Secretary, Petroleum & Natural Gas)

3.         Dr. Rathin Roy                                                             -                          Member (Part Time)

            (Director, NIPFP)

4.         Smt. Meena Agarwal                                                   -                          Secretary

            (OSD, Department of Expenditure,

            Ministry of Finance)”

Source: PIB 

                                                                          ************

                               Prime Minister Manmohan Singh has approved composition of the 7th Pay Commission, which will revise the salaries of over 50 lakh central government employees. "The Prime Minister has approved the composition of the 7th Central Pay Commission," the finance ministry said in a statement on Tuesday.

Former Supreme Court Justice Ashok Kumar Mathur has been appointed as chairman of the Commission, with oil secretary Vivek Rae as full time Member. Rathin Roy (Director, NIPFP) will be part-time Member and Meena Agarwal (OSD, Department of Expenditure) its secretary.

Earlier in September 2013, the Prime Minister had approved setting up of the 7th Pay Commission.

The Commission has been mandated to submit its report in two years time and its recommendations would be implemented from January 1, 2016. The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the general elections.

The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.

The sixth Pay Commission was implemented with effect from January 1,2006, the fifth from January 1, 1996 and fourth from January 1, 1986.