Tuesday, 26 May 2015

One Rank One Pension – The long outstanding demand of the military veterans

One Rank One Pension – The long outstanding demand of the military veterans
The One Rank One Pension (OROP), the long outstanding demand of the military veterans. Unfortunately, the govt has been playing ‘Snakes and Ladders’ with this issue, the only ladder in the board being the announcement regarding acceptance of OROP by the erstwhile finance minister during the Interim Budget 2014 – 15 on 17 Feb 2014, followed by a reiteration of the intent by the present incumbent in his budget speech on 10 Jul 2014.
Modi, as the Prime Ministerial candidate, made a promise to implement OROP at his inaugural election rally in Rewari on 15 Sep 2013 in front of a mammoth crowd of military veterans. He followed it up by reiterating the Promise in his election rallies in Himachal Pradesh, Punjab, Haryana, Karnataka and Rajasthan. After assuming office he visited military and naval establishments and went to the extent of stating that ‘OROP has been implemented’ during his visit to Siachen in Oct 2014. Now it is May 2015 and the ‘implemented’ OROP is still hanging fire.

The administration’s ingenuities to delay, confuse and dilute the scheme make an interesting study. To start with it was pronounced that the satisfaction level would be 80% as 100 % satisfaction is never given in real life. Then the bogey of the civil bureaucrats demanding OROP was put out. Next it was announced that the exact cost of OROP to the exchequer was being worked out. The erstwhile FM announced OROP in Feb 2014. Chidambaram is not a slip shod minister who would make an announcement in the Parliament without getting the financial implications JUSTIFY. Subsequently the present FM made the pronouncement in the Parliament. Did he make the announcement without knowing the costs?
Thereafter the cost speculation went wild with assessments ranging from Rs 600 crores to Rs 14000 crores and the DM is on record stating that his own assessment of the cost is between Rs 6000 and Rs 8000 crores. After this narrative had run out of steam, the Veterans were told that the govt letter was being drafted. With a clear definition of OROP and the Service Headquarters putting out a draft implementation orders, one year delay can only be attributed to the perverted thinking of the bureaucracy.

The net result is the allotment of Rs 500 crores made by the earlier govt and Rs 1000 crores in 2014 – 2015 budgets by the present govt have lapsed to the govt probably as intended!!

Take a look at the time delay. The Defence Minister (DM) is on record stating that the scheme will be implemented by Mar 2015. The goal post then got shifted to ‘before the completion of one year in office’ that is by 25 May 2015. A few weeks ago, the target has been further stretched to Jul 2015 through quiet whispers. The latest one heard was the DM stating at a media conference that he cannot commit to a date as the matter is under consideration outside the Defence Ministry. As of today, the OROP issue it seems may not be resolved in the near future. The Finance Minister Arun Jaitley on 22 May 2015 had said that the “methodology of calculation”was still being worked out in consultation with the Defence Ministry.
The aim appears to be to drag the proposal closer to the 7th Central Pay Commission and lob the ball in the Commission’s court. This will force the entire process to start afresh. OROP thus seems to have reached square one – an effect of the Snake in the game that the bureaucracy has been playing.

What is the intention? My own guess is that the bureaucracy has found a way to dilute the benefits to make it ‘One Rank Half Pension.’ Remember some time back the DM had talked about ‘Military Pension?’ He also made a very confusing statement subsequently: “We should have a pay scale kind of scheme, where over a particular period you fix a pension – let us not define the period because we are in active discussion on that with finance ministry – and then at the end of the period they can all get upgraded, or rationalised.” The ‘Military Pension’ plan it appears may be in accordance with the definition of OROP but will fall short of the pensions of the present day retirees and probably delinked from the last pay drawn. In the bargain the new retirees may draw lesser pensions than what they would have, based on their last pay drawn. Is this the reason how the Rs 14000 crore estimates came down to Rs 8300 crores? There seems to be no end to the treachery of the bureaucracy.

Courtesy V.Mahalingam – The Times of India

(The opinions expressed in this article are those of the author, and the article was not intended to represent the views of cgstaffportal.blogspot.in)

Dopt Clarification on 25.5.2015 - Stepping up of pay of direct recruit Assistants at par with promoted UDC

Stepping up of pay of direct recruit Assistants at par with promoted UDC – Dopt Clarification on 25.5.2015

Pay fixation of direct recruit Assistants appointed after 1.1.2006-Stepping up of pay of DRs with reference to the pay of junior promotee Assistants- Clarification by DoPT

G.I., Dept. of Per. & Trg., O.M.F.No.7/7/2008-CS.I(A), dated 25.5.2015

Subject: Pay fixation of direct recruit Assistants appointed after 1.1.2006 – Stepping up of pay of DRs with reference to the pay of junior promotee Assistants – Clarification regarding.

The undersigned is directed to draw attention to the issue of stepping up of pay of direct recruit Assistants, appointed on or after 1.1.2006 at par with the pay of the UDCs promoted and appointed to the post of Assistant between 1.1.2006 to 31.8.2008 Whose pay has been fixed in terms of para 2(c) of Department of Expenditure’s U.O. No.10/1/2009-IC dated 14.12.2009.

2. The matter has been examined in this Department in consultation with the Department of Expenditure and they are of the view that as per the CCS (RP) Rules, 2008, the stepping up of pay is allowed if the anomaly in pay, if at all arising, is a direct outcome of fixation of pay in the revised pay scale from the pre-revised scale to the effect that the senior who was drawing higher pay in the pre-revised scale, starts drawing lower pay in the revised scale. However, in the case of direct recruit Assistants appointed on or after 1.1.2006, the direct recruits never drew the pre-revised pay prior to 1.1.2006. Further, Department of Expenditure’s U.O. dated 14.12.2009 relates to fixation of pay in revised scale from pre-revised scale of pay.

3. All the Ministries /Departments are therefore advised to review all the cases wherein stepping up of pay has been allowed to direct recruit Assistants appointed on or after 1.1.2006 with reference to the pay of their junior promotee Assistants. The pay fixation in revised pay structure of such direct recruit Assistants be revised immediately and action be initiated for effecting recoveries of excess payments, if any, as per extant instructions.

Authority : www.persmin.nic.in

Inter Ministerial committee to hold threadbare discussions with representatives of Central Trade Unions on 10 point charter of demands

Inter Ministerial committee to hold threadbare discussions with representatives of Central Trade Unions on 10 point charter of demands

Press Information Bureau
Government of India
Ministry of Labour & Employment

26-May-2015 11:48 IST

PRESS NOTE

The Government has decided to constitute following Inter Ministerial committee to hold threadbare discussions with representatives of Central Trade Unions on 10 point charter of demands and other issues being raised by them and for recommending measures to address those issues:-

1.Shri Arun Jaitley, Finance Minister
2.Shri Bandaru Dattatreya, Minister of State(I/C) for Labour&Employment
3.Shri Dharmendra Pradhan, Minister of State(I/C) for Petroleum&NaturalGas
4.Shri Piyush Goyal, Minister of State(I/C) for Power
5.Dr.Jitendra Singh, Minister of State in the Prime Minister’s Office

The Secretarial assistance to this committee will be provided by the Ministry of Labour & Employment.

***

Ministry of Labour and Employment
Government of India
New Delhi: May 26, 2015

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=122004

One Rank One Pension (OROP) – Disappointment for Ex-Servicemen as OROP Doesn’t Figure in Modi’s Speech

One Rank One Pension – Disappointment for Ex-Servicemen as OROP Doesn’t Figure in Modi’s Speech

“One more disappointment for the ex-servicemen who have been waiting for years for the implementation of One-Rank-One-Pension scheme”

Hundreds of thousands of ex-servicemen all over the country were eagerly waiting for any mention of the One-Rank-One-Pension scheme in Prime Minister Narendra Modi’s celebratory speech listing the accomplishments of his government in the past one year.

From the morning, websites of almost all the leading Hindi and English newspapers were constantly publishing updates. They expressed hope that the Prime Minister will mention something about the OROP scheme in his Mathura address.

In his lengthy speech, which was delivered in the evening, there was no mention of the OROP scheme.

Ex-servicemen of the Indian armed forces are divided into two classes – those who had retired or resigned before 1996, between 1996-2005, 2005-2008, and those who had quit the services after 2008 – and pensions are being granted to them accordingly. Dissatisfied ex-servicemen have been demanding for uniform pension scheme. The demand was accepted, and in 2014, the then-Congress Government announced the One-Rank-One-Pension scheme.

The then Finance Minister, P. Chidambaram announced that the Government was setting aside a sum of Rs.500 crores for this plan. When the change of rule happened, the new Government set aside a sum of Rs.1000 crores for the scheme. Yet, the scheme hasn’t been implemented to this date.


Monday, 25 May 2015

10th Wage Agreement – IBA (Indian Banks’ Association) Circular

10th Wage Agreement – IBA Circular

Indian Banks’ Association

10th Wage Agreement

Indian Banks Association inked wage settlement with Employee Unions and Officers’ Associations today, 25th May, 2015. The settlement gives 15% increase in salary and Allowances to about 10 lakh bank employees.

Employees and officers from 43 banks including public sector banks, old private sector banks and some of the foreign banks benefit from the wage revision. The current wage revision is effective from 1st November 2012 and will be valid for 5 years. In all 11 All India Employees Unions and Officers’ Associations participated in the wage revision exercise.

The scale pay of Officers has been revised from Rs.14500 – Rs.52000 to Rs.23700 – Rs.85000. (Special allowance for officers ranging from 7.75% to 11% of basic pay along with applicable Dearness allowance has also been introduced)

The scale pay of Workmen – non-subordinate has been revised from Rs.7200-Rs.19300 to Rs.11765-Rs.31540, also the scale pay of Subordinate staff has been revised from Rs.5850-Rs.11350 to Rs.9560-Rs.18545. (Special allowance for workmen @7.75% of basic pay along with applicable Dearness allowance has also been introduced)

Another important feature of the settlement is that a medical insurance scheme is being introduced for families of employees.

The 15% wage revision would cost the Public Sector banks Rs.4725 crores as incremental Salary and allowances in a year. Banks have been making provision for wage revision from November 2012. Mr. T M Bhasin, Chairman, IBA and Mr. Rajiv Rishi, Chairman, Negotiating Committee of IBA led the Management team in the negotiations. IBA expects banks will implement the revision immediately.

IBA expects the salary revision to improve the moral of the bank employees, leading to better productivity.

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