Ms Meena Agarwal
Secretary GOI Seventh Central Pay Commission
Post Box No 4599 Hause Khas
P.O. New Delhi -110016
Subject: 7th QuestionnaireReference: D.O. No 7cpc/15/questionnaire dated 9th April 2014
‘Bharat Pensioners Samaj’. One of the identified Pensioners Federation by GOI M/O Personnel, PG & Pensions-DOPPW and a stake holder. In its capacity as one of the oldest & largest Pensioners Organization with over 500 Affiliated associations, submits here under reply to items Nos 10.1 & 10.1.2 under the head ‘Pension’ in the questionnaire
However, as Pension is not independent of Salary suggestions for basic are for Salary/Pension.
Item No 10.1 New pension Scheme i.e The retirement benefits of all Central Government employees on or after 1.1.2004 are covered by the New Pension Scheme (NPS). What has been the experience of the NPS in the last decade?
Withdraw : for following reasons:
(i) Pension of Govt. employees is a deferred wage. Since wage paid out to them during of work tenure is kept low by design, to cater for pension.
(ii) He/She forgoes with interest 8.33% of govt. to PF.
(iii) Pension is a social security measure & cannot be subjected in any way to Market risks (iii) It does not guarantee minimum return & thus lacks the basic fiber of Social Security Scheme (iv). It is in no way better than the existing Scheme (vi)It does not provide guaranteed Family Pension to dependents & disabled siblings which exist in present scheme, even in case of spouse & dependent parents where death of the employee occur in early years of service there is no adequate social security.
Item 10.1.2 i.e. As for as pre 2004 appointees are concerned, what should be the principles that govern thestructure of pension and retirement benefits?
Basic structure of Pay/ Pension
1. Keeping in view the Socialistic structure of the country , constitutional provisions & to reduce vast inequality between have & have lots, it is proposed: The Ratio between maximum & minimum of Salary/ Pension be brought down to 9:1. Ensuring uniformly equal rise in Salary/Pension of all employees/pensioners, irrespective of pre- retiral status. By adopting common multiplication factor for revision of Pension/Pay, as raising the ratio between minimum & maximum of salary/pension to 1:12.85 by 6thCPC , instead of reducing it, was unconstitutional .
In order to cater to the need of talent attraction in all cadres 7th pay commission is requested to first workout the top most revised salary/pension, divide it by 9 to arrive at the minimum revised salary & then derive a uniform multiplication factor by dividing minimum of revised Salary/Pension by minimum of pre-revised salary/Pension for revision of Pay & Pension with the condition that Pension shall not in any case be less than 65% & family Pension 45% of the last Pay in Pay Band i.e. Pay in Pay Band+ GP / or of average of last 10 months emoluments (Whichever is more beneficial) as was worked out & recommended by TECS (Tata Economic Consultancy Services) consultant to Vth CPC (Para 127.9 Vol III 5th CPC report)