Not only Central Government Employees. - Industries, economists wait for 7th pay commission report

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The 6th Pay Commission played a key role in insulating the Indian economy from the shocks of the Lehman crisis of 2008. According to Bank of America Merrill Lynch, higher salaries - resulting from the implementation of the 6th Pay Commission - drove two-wheeler and car sales, and led to a recovery in cement demand.

Salaries of government employees went up by an average of 35 per cent on the back of the 6th Pay Commission recommendations; employees also got arrears for more than 30 months because of the delayed implementation of the 6th Pay Commission in October 2008.

"The arrears resulted in robust demand for consumer discretionary products that resulted in sustained stock performance over 3-5 years," wrote Jai Shankar, chief India economist of Religare.

It is for these economic linkages that the 7th Pay Commission report is being eyed by analysts. The 7th Pay Commission report is likely to be submitted by August-end or in October, according to media reports.

Pay Commissions are meant to review the salary structure of central government employees and are set up every 10 years. The 7th Pay Commission will revise salaries effective January 1, 2016.

According to Religare, nearly 50 lakh central government employees (including 15 lakh defence personnel) and over 1 crore state and local government employees will benefit from the 7th Pay Commission.

There's no consensus about how much salaries will go up -- Bank of America expects a modest 15 per cent increase, while Religare expects salaries to go up by 28-30 per cent. Credit Suisse says salary hikes can be as high as 40 per cent.

Economists, however, agree that the 7th Pay Commission will help kick-start the domestic economy, which continues to be plagued by weak demand and excess capacity.

How the 7th Pay Commission can fire up the Indian economy

1) A 15 per cent salary increase would push up the central government's salary bill by Rs 25,000 crore (or $4 billion), which is 0.2 per cent of India's GDP, says Indranil Sen Gupta of Bank of America Merrill Lynch. This will help in a consumption-driven recovery in the domestic economy, he added.

2) According to Neelkanth Mishra of Credit Suisse, nearly one-third of India's middle class is employed by the government and as the 7th Pay Commission comes through, there will be an improvement in discretionary spending.

"In Tier 3, Tier 4 towns where government employees are 50-60 per cent of the middle class, it is very likely that real estate markets will take off again," he said.

3) Bank of America Merrill Lynch also expects the 7th Pay Commission to double subsidized loans for cars to Rs 3.60 lakh and housing loans to Rs 15 lakh. This will push up demand for autos and housing.

4) According to Religare, "The most important factor is economic activity itself which is gaining pace and, together with greater employment generation and policy reform, the 7th Pay Commission salary hike may help India enter a larger virtuous cycle."

Large-scale salary hikes, however, are also expected to stoke inflation and fiscal pressures.

"Clearly if you see a third or 35 per cent of your middle class getting a 40 per cent or 30 per cent jump in compensation in one shot, the fears of inflation will rise," Mr Mishra warned. He added that expectations of rate cuts can get pushed out and some possible fiscal pressures can emerge.

According to Jai Shankar of Religare, the salary bill (centre plus state combined) will be much higher at $50 billion or Rs 3.12 lakh crore if the Pay Commission recommend a 28-30 per cent salary hike. "The total amount will be in excess of $50 billion, making deficit reduction extremely challenging in FY17," he said.

Source : NDTV Profit

Clarification regarding application of FR 49

Removing Anomaly in Pensions of Ex-Servicemen

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Removal of anomaly, if any, in the pension being given to the various categories of ex-servicemen is a continuous process. Such anomaly is redressed, as and when it comes to the notice of the Government.

The policy of “One Rank One Pension” has been adopted by the Government to address the pension disparities. The modalities for implementation of OROP are under consideration of the Government. It will be implemented once the modalities are approved by the Government.

A Pension Grievance Cell exists in the Department of Ex-Servicemen Welfare. Grievances received by this Cell are examined and redressed in coordination with the agencies concerned in the matter. A system of holding Pension Adalat is in place to provide a credible forum for redressal of grievances of the defence pensioners. Officers concerned of every organisation involved remain present in the Adalats and the grievances are redressed on the spot. A computerized pension enquiry project “Suvigya” has been developed by the Controller General of Defence Accounts (CGDA).

It is an online pension enquiry system which would enable the ex-servicemen to know their entitlements of pension. A pensioners’ grievance cell exists in the Office of Principal Controller of defence Accounts (Pension), Allahabad.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri D.P Tripathi in Rajya Sabha on Thursday, 30 July 2015.

 

Source : PIB News

Pre-2006 Pensioners to get revised Pension from 1st January 2006 – Orders issued

No.38/37/08-P&PW(A)
Government of India
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi
Dated the 30th July, 2015

Office Memorandum

 Sub:- Revision of pension of pre-2006 pensioners – reg.

       The undersigned is directed to say that as per Para 4.2 of this Department’s OM of even number dated 1.9.2008 relating to revision of pension of pre-2006 pensioners w.e.f. 1.1.2006, the revised pension w.e.f. 1.1.2006, in no case, shall be lower than 50% of the sum of the minimum of pay in the pay band and the grade pay thereon corresponding to the prerevised pay scale from which the pensioner had retired. A clarification was issued vide DoP&PW OM of even number dated 3.10.2008 that the pension calculated at 50% of the minimum of pay in the pay band plus grade pay would be calculated at the minimum of the pay in the pay band (irrespective of the pre-revised scale of pay) plus the grade pay corresponding to the pre-revised pay scale.

2. Several petitions were filed in Central Administrative Tribunal, Principal Bench, New Delhi inter alia claiming that the revised pension of the pre-2006 pensioners should not be less than 50% of the minimum of the pay band + grade pay, corresponding to the pre-revised pay scale from which pensioner had retired, as arrived at with reference to the fitment tables annexed to Ministry of Finance, Department of Expenditure OM No.l/1/2008-IC dated 30th August, 2008. Hon’ble CAT, Principal Bench, New Delhi vide its common order dated 1.11.201lin OA No.655/2010 and three other connected OAs directed to re-fix the pension of all pre-2006 retirees w.e.f. 1.1.2006 based on the Resolution dated 29.8.2008 of the Department of Pension & Pensioners’ Welfare and in the light of the observations of Hon’ble CAT in that order.

3. The above order was challenged by the Government by filing Writ Petition No.1535/2012 in respect of OA No. 655/2010 and WP No.2348-50/12 in respect of the three other connected OAs in the High Court of Delhi. The Hon’ble High Court in Its common Order dated 29.4.2013 noted that the DoP&PW had, in the meanwhile, issued an OM No.38/37/08-P&PW (A) dated 28.1.2013 which provided for stepping up of pension of pre2006 pensioners w.e.f. 24.9.2012 to 50% of the minimum of pay in the pay band and grade pay corresponding to pre-revised pay scale from which the pensioner had retired. Hon’ble High Court observed that the only issue which survived was, with reference to Paragraph 9 of OM dated 28.1.2013 which makes it applicable w.e.f. 24.9.2012 instead of 1.1.2006. Hon’ble High Court of Delhi dismissed the Writ Petition No.1535/20 12 along with three other Writ Petitions vide its order dated 29.4.2013. Special Leave Petitions (No.23055/2013 and No.36148-50/2013) filed against the said order dated 29/412013 of the Hon’ble Delhi High Court have also been dismissed by the Hon’ble Supreme Court.

4. Accordingly, in compliance with the above judicial pronouncements, it has been decided that the pension/family pension of all pre-2006 pensioners/family pensioners may be revised in accordance with this Department’s OM No.38/37/08-P&PW(A) dated 28.1.2013 with effect from 1.1.2006 instead of24.9.2012. Further, this benefit has already been granted to the Applicants in OA No. 655/2010 vide OM of even No. dated 26/08/2014 read with OM dated 19/09/2015 following dismissal of SLP (C) No.23055/2013 by the Hon’ble Supreme Court.
5. In case the consolidated pension/family pension calculated as per para 4.1 of O.M. No.38/37/08-P&PW (A) dated 1.9.2008 is higher than the pension/family pension calculated in the manner indicated in the O.M. dated 28.1.2013, the same (higher consolidated pension/family pension) will continue to be treated as basic pension/family pension.
6. All other conditions-as given in OM No. 38/37/08-P&PW (A) dated 1.9.2008, as amended from time to time shall remain unchanged.
7. Ministry of Agriculture, etc. are requested to bring the contents of these orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and subordinate Offices under them on a top priority basis. All pension disbursing offices are also advised to prominently display these orders on their notice boards for the benefit of pensioners.
8. This issues with the approval of Ministry of Finance ID Note No. 1(9)/EV/2011Vol.1I dated 24.7.2015.
9. Hindi version will follow.

(Harjit Singh)
Deputy Secretary to the Government of India

Yearly Increment for Central Government Employees from July 2015…

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As we are in the last six months for the implementation of 7th Central Pay Commission, let us look at the calculation of yearly increment implemented in the 6th CPC.

The 6th Central Pay Commission which came in to effect from January 2006 and fully implemented with allowances like HRA, CCA, etc., from August 2008, presented a totally different look when compared to previous pay commissions. There were different types of decisions, ideas, information and recommendations in it.

The main change was that, it brought a new type of Pay Scales namely Pay in the Pay Band and Grade Pay. In order to maintain records and for easy calculation, the 6th CPC had fixed a common date for the yearly increment irrespective of their appointment date. In the previous pay commissions, the increment was given to an employee on his/her appointment month. For example, if an employee was appointed in the month of January, his/her increment month will be in the same month every year. But the 6th CPC recommended a common date and the month of July every year was fixed as the increment month for all Central Government Employees. This decision was widely appreciated by everyone. A point in the 6th CPC says that, ‘If an employee has completed six months or more in the revised pay structure as per 6th CPC, as on 1st July, he/she will be given one increment…’

In the 5th CPC, an employee’s pay is fixed in the Scale of Pay. If that individual’s scale of pay is – 3050-75-3950-80-4590, he/she gets yearly increment of Rs.75/- up to Rs.3950/- and Rs. 80/- from Rs.4590/-… If the employee reaches maximum of his pay scale, there is no further increment and get stagnated there. There were such instances of employees with no increment for three to four years.

Whereas in the 6th CPC, to remove stagnation, the commission introduced the running pay bands for all posts. If an employee reaches maximum of his pay band, after one year he will be placed in the next pay band providing him one increment. Thus, he/she moves up to the next pay band. It was a good recommendation as far as employees are concerned.

The 6th CPC also recommended that the yearly increment should not be fixed as in 5th CPC, but 3% of the employee’s basic pay should be calculated and added to the basic pay. The increment so calculated, should be rounded off to the next multiple of 10, ignoring the paise, and added to the pay band. For example, if the amount of increment comes to Rs. 1500.80, then the amount will be rounded off to Rs. 1500/- and if the amount comes to Rs. 1501.00, then it will be rounded off to Rs.1510/-.

As of now, no one can predict what will be the recommendations in the 7th CPC…The Commission in its website, said that it had stopped all type of interactions, meetings etc. and it is ready to submit its report to the Central Government in September 2015…

Will the 7th CPC continue the same formulae adopted by the 6th CPC, or it brings any changes in to it…!

Let’s all hope for the best……!

Source: govt staff news

DOPT instructions on issue of Charge-Sheets under Central Civil Services (Classification, Control and Appeal) Rules, 1965

F. No. 11012/17/2013-Fstt.(A)

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Personnel & Training

Establishment A-III Desk

North Block, New Delhi — 110001

Dated July 3rd 2015

OFFICE MEMORANDUM

Subject: Central Civil Services (Classification, Control and Appeal) Rules, 1965 — Instructions regarding timely issue of Charge-sheet regarding.

The undersigned is directed to refer to DoP&T O.M. of even no. dated 2nd January, 2014 regarding consolidated instructions on suspension and to say that in a recent case, Ajay Kumar Choudhary vs Union of India Civil Appeal No. 1912 of 2015 dated 16/02/2015 the Apex Court has directed as follows:

We, therefore, direct that the currency of Suspension Order should not extend beyond three months if within this period the Memorandum of Charges/ Chargesheet is not served on the delinquent officer/ employee;

2. It is noted that in many cases charge sheets are not issued despite clear prima facie evidence of misconduct on the ground that the matter is under investigation by an investigating agency like Central Bureau of Investigation etc. In the aforesaid judgement the Hon’ble Supreme Court has superseded the direction of the Central Vigilance Commission that pending a criminal investigation departmental proceedings are to be held in abeyance.

3. In this connection, attention is invited to this Department G.M. No. 35014/1/81- Estt.A dated 9.11.1982 which contained the guidelines for timely issue of charge-sheet to Charged officer and to say that these instructions lay down, inter-alia, that where a Government servant is placed under suspension on the ground of “Contemplated” disciplinary proceedings, the existing instructions provide that every effort would be made to finalise the charges, against the Government servant within three months of the date of suspension. If these instructions are strictly adhered to, a Government servant who is placed under suspension on the ground of contemplated disciplinary proceedings will become aware of the reasons for his suspension without much loss of time. The reasons for suspension should be communicated to the Government servant concerned at the earliest, so that he may be in a position to effectively exercise the right of appeal available to him under Rule 23 (i) of the CCS (CCA) Rules, 1965, if he so desires. The time-limit of forty five days for submission of appeal should be counted from the date on which the reasons for suspension arc communicated.

4. All Ministries/ Departments are requested to bring the above guidelines to the notice of all concerned officials for compliance.

(Mukesh Chaturvedi)

Director (E)

Delay in Finalisation of Pension due to Common Mistakes in Pension and Family Pension Claims – PCDA Circular to rectify mistakes at application level

Office of the PR.Controller of Defence Accounts has issued a circular summarising the common errors/mistakes found in the Pension/Family Pension claims.

OFFICE OF THE PR. CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS)
DRAUPADI GHAT, ALLAHABAD- 211014

Circular No: C-143                                                                           No. G1/C/MISC/ Vol-X/Tech
                                                                                                            O/o the PCDA (P), Allahabad
Dated: 23/06/2015

To,

(All Head of Department under Min. of Defence)

Sub: – Delay in finalization of Pension/Family Pension claims due to common errors/mistakes found therein.

Ref :- This office important circular no. 131 dated 19.01.2015.

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Please take cognizance of above cited circular dated 19.01.2015, under which a list of common errors/ mistakes found in pension/family pension (copy enclosed), was circulated with a request to ensure that said errors/mistakes may be avoided while initiating/ forwarding the pension/family pension claim to this office. But; it is being observed that, in spite of these instructions the same errors/ mistakes are being repeated while initiating/ forwarding the pension /family pension claims, resulting into avoidable delays.

2. Therefore, it is, once again requested that suitable instructions along with copy of this circular may be issued to allthe Head of Offices under your administrative control for strict compliance in this regard.

(Dr. Upinderbir Singh)
Dy.CDA (P)

No: G1/C/MISC/ Vol-X/Tech
Dated: 23 /06/2015

Annexure-A

Common Errors Relating to Superannuation Cases

1. It has been observed that in several cases only pay particulars of LPC-Cum-Data Sheet are being verified by LAO/PAO, while as per instructions issued by this office time to time “All columns of LPC-Cum-Data Sheet should be verified by the LAO/PAO.”
2. Organization Code & Organization name should be correctly filled in Col. 1 & 2 of the Data Sheet respectively.
3. GPF Statement (CC0-9) having clear and full GPF A/C No. should be enclosed with pension claim.
4. Complete address with PIN Code of office/Unit and HOO should be filled in Col. 4 & 5 of the Data Sheet respectively.
5. Nature of pension in Col. No. 15 of Data Sheet should be supported with part-II Office Order.
6. Audit report for counting of former service should be enclosed in support of Col. 18 of Data Sheet.
7. Col. No. 21 of the Data Sheet should be properly filled with as per Medical Option attached with pension claim.
8. Complete details of EOL statement should be attached with the claim and 10 months average should be calculated on the basis of last 300 days for which individual has actually drawn payment (excluding EOL Period).
9. Each kind of demand pending against the claimant and interest thereon should be shown separately in “No demand Certificate for Govt. dues”, and it should be specified to which Controller Credit is to be passed on for the demand.
10. No demand certificate for Govt. Accommodation should be enclosed, in the absence of which an amount of Rs. 1 lakh may be withheld from gratuity payment.
11. No judicial certificate that no judicial/disciplinary proceeding is pending.
12. All the three parts of Commutation Application should be attached duly completed and Col. No. 36 and 37 of Data Sheetshould be filled accordingly.
13. In Col. No. 47 of the Data Sheet, name of district in which PDA is situated should be filled.
14. No prefix or suffix as Zero is required in Bank Ale No. in Col No. 54 of the Data Sheet. It should be exactly same as provided by Bank and it should be supported by Bank details also.
15. Details of single PDA (Bank or DPDO) should be filled in Data Sheet and other document attached with claim.
16. In support of Col. NO. 62, Certificate on proper format as prescribed in Cir. No. 106 dated 18.03.2013 of this office should be attached.
17. Calculation Sheet should be verified by LAO and all the documents of the pension claim should be verified by concerned HOO.
18. HOO remarks on Page No. 5 of IAFA-356 should be filled completely and service rendered by claimant should be established.

Annexure-8

Common Errors/Mistakes observed in claim for Family Pensioner

1. It has been observed that in several cases only pay particulars of LPC-Cum-Data Sheet are being verified by LAO/PAO, while as per instructions issued by this office time to time “All columns of LPC-Cum-Data Sheet should be verified by the LAO/PAO.”

2. Death certificate in respect of deceased govt. Servant and an extract of DO Pt-II 00 notifying the causality should be enclosed.

3. Nomination of DCRG in original executed by deceased govt. servant during his life time should be enclosed.

4. Statement showing non qualifying service and dates of availing EOL should be enclosed.

5. DCRG/Family pension claim on IAFA 356 A should be duly completed in all respect.

6. Option for fixed medical allowance/only widowhood certificate should be enclosed.

7. Marital status certificate should be duly countersigned by the HOO

8. Date of Birth certificate must be issued from school/college/municipal corporation/gram panchayat duly countersigned by HOO.

9. (a) A certificate stating that “the claimant is suffering from …….disorder and is not curable permanent nature and also stating that the claimant is unable to earn his livelihood due to the stated handicapped nature” by a medical board comprising of a Medical Supdt. Or a principal or a director or a Head of Institution or his Nominee as Chairman and Two other members, out of which at least one shall be a Specialist in the particular area of Mental or Physical disability including mental retardation (Rule 54 (6) (iv) to (vi) under CCS (P) Rules 1972) should be enclosed in case of disabled claimant.9. (b) A similar certificate is also required to be submitted by the HOO along with above certificate regarding income from all sources including self employment for examining the admissibility of family pension to the claimant.

10. For Dual family pension, confirmation from concerned Record Office or PPOs copy of Army side family pension, is required to ascertain eligibility of Dual family pension claimant.

11. Date of Birth of claimant of family pension must be agreed with the record as given in service book i.e. with the family details executed by individual/pensioner.

12. It has been observed in several cases that the dependency of claimant is being shown his/her relatives whereasclaimant children should be dependent on his/her parents. Therefore, dependency certificate be issued/ forwarded accordingly to this office.