Why the disparity in pension under Sixth Pay Commission?

Why the disparity in pension under Sixth Pay Commission?

By S. Sam Daniel

Why the disparity in pension under Sixth Pay Commission with effect from 1-1-2006 and denial of natural justice to the post 1-1-1996 and pre 1-1-2006 pensioners?
1. Parity in pension of the pre and post 1-1-1996 retirees and natural justice to the pre and post 1-1-1986 pensioners by the v central pay Commission and the then central government! The main demand of the Past Pensioners [Retired before 1-1-1986] was for full parity in pension to those who retired during the period from 1.1.1986 onwards. The V CPC in Para 137.13 (PP 1830) had observed as under:-

"While it is desirable to grant complete parity in pension to all Past Pensioners irrespective of the date of their retirement, this may not be feasible straightaway as the financial implications would be considerable. The process of bridging the gap in pension of Past Pensioners (Pre 1986 Pensioners) has already been set in motion by the Fourth CPC when past Pensioners were granted additional relief in addition to consolidation of their pension. This process of attainment of- reasonable parity needs to be commuted so as to achieve complete parity over a period of time."

In Paras 137.13 and .14 of their Report the V CPC stated that as follow-up of our basic objective of parity, we would recommend that pension of all the Pre 1986 Retirees may be updated by notional fixation of their pay as on 1.1.86 by adopting the same formula as for the serving Employees. This step would bring all the Past Pensioners to a common platform or on the IV CPC pay scales as on 1.1.86.

Thereafter, all these Pre 1986 Pensioners can be treated alike in regard to consolidation of their pension as on 1.1.96 by allowing the same fitment weightage as may be allowed to the serving Employees. The Recommendation of the V Central Pay Commission in making Parity in Pension of Pre and Post 1-1-1996 Retirees and Revising the pension of Pre and Post 1-1-1986 Retirees suitably was accepted and implemented by the then Central Government with effect from 1-1-1996. Had not both the V Central Pay Commission and the then Central Government had done JUSTICE to the Pre and Post 1-1-1986 Pensioners!

2. DISPARITY IN PENSION BETWEEN THE PRE AND POST 1-1-2006 RETIREES AND INJUSTICE TO THE PRE 1-1-2006 PENSIONERS BY THE VI CENTRAL PAY COMMISSION!


The Disparity in Pension between the Pre and Post 1-1-2006 Retirees and the injustice done by the VI Central Pay Commission and the Central Government to the Post 1-1-1996 and Pre 1-1-2006 Pensioners can be clearly understood by the following facts.

A. Fixation of Revised Pay and Pension in respect of Four Post 1-1-2006 Retirees is given below as per OM FN01/1/2008-IC dt.30-8-2008 and OM FN038/37/08P&PW[A] dt.2-9-2008 of Ministry of Finance,Govt of India.

a.Pre Revised Scale:5500-175-9000 [S10]
Corresponding Revised Scale:9300-34800+Grade Pay Rs4200 [PB2]

i.Basic Pay:Rs 5500.
Revised Pay: Rs 14430 [10230+4200]
Pension:Rs 7215[50% of Pay]
ii.Basic Pay:Rs.6550.
Revised Pay:Rs16390[12190+4200]
Pension:Rs 8195[50%of Pay].

b.Pre Revised Scale:10000-325-15200 [S19]
Corresponding Revised Scale:15600-39100+
Grade Pay Rs 6600[PB3]
i.Basic Pay:Rs 10000.
Revised Pay:Rs25200 [18600+6600]
Pension:Rs12600[50% of Pay]
ii.Basic Pay:Rs.11950.
Revised Pay:28830 [22230+6600]
Pension;Rs14415 [50% of Pay]

B.Fixation of Revised Pension of Pre 1-1-2006 Retirees by the VI Central Pay Commission as per Memorahdum FNO 38/37/08-P&PW [A] dt 1-9-2008 of the Ministry of Finance,Government of India


The formula fixed by the VI Pay Commission for arriving at the Revised Pension is as follows.

Basic Pay without DP x1.86+40% of the Basic Pay.The Condition is that the Revised Pension should not be less than 50% of the minimum of the Corresponding Revised Scale+Grade Pay.

This Formula could be applied only to Pre 1-1-1996 Retirees.But the Condition that the Revised Pension should not be less than 50% of the minimum of the Revised Pay and Grade Pay cannot be applied to them since they are not covered by the Pay Scales effective from 1-1-1996. So,the Pay Commission has really intended to apply this formula only to Employees retired from 2-1-1996 to 31-12-2005.

According to the Pay Commission, we are to find out the Corresponding Pay in the Revised Scale by adding the Grade Pay.After finding out the Corresponding Pay,we have to work out 50% of the Revised Pay which will be the Revised Pension effective from 1-1-2006. But the Condition has been wronly worded as 'The Revised Pension shoud not be less than 50% of the minimum of the Revised Scale+Grade Pay instead of 'The Revised Pension should not be less than 50% of the Revised Pay + Grade Pay' So,the Condition has to be modified suitably.

Here, two illustrations are given in respect of Revision of Pension of Four Pre 1-1-2006 Retirees.

1.Basic Pay: Rs 5500.
Pension:Rs. 6215 [2750 [50% of Basic Pay]x1.86+40% of Rs2750]
2.Basic Pay:Rs 6550.
Pension:Rs.7403 [3275[50% of Basic Pay]x1.86+40% of Rs3275]
3.Basic Pay: Rs 10000.
Pension:Rs11300 [5000 [50%of Basic Pay[x1.86+40% of Rs5000]
4.Basic Pay Rs 11950.
Pension:Rs13505.[5975 [50%of Basic Pay]x1.86+40% of Rs 5975]

According to the formula of the Pay Commission, a Pensioner drawing a Basic Pay of Rs 6550 in the Scale of Rs 5500-175-9000[S10] will get only 50% of the minimum of the Revised Scale[Rs 9300-34800-PB 2]+Grade Pay of Rs4200 viz,Rs 7215 and not Rs 8195[Revised for Post 1-1-2006 Pensioner] as Pension!

Similarly,a Pensioner drawing a Basic Pay of Rs 11950 in the Scale of Rs.10000-325-15200 [S19] will get only 50% of the minimum of theRevised Scale [Rs 15600-39100-PB 3]+Grade Pay of Rs 6600 viz,Rs 12600 and not 14415 [Revised for Post 1-1-2006 Pensioner]as Pension! Why the Pay Commission and the Central Govt have done injustice by applying double standards to the Pre and Post 1-1-2006 Pensioners who belong to the very same Pay Band?

Will not the following variations affect the Pre 1-1-2006 Pensioners permanently?

Basic Pay Rs.5500: Post 1-1-2006 Pensioner will get Rs1000 more per month besides DA!
Basic Pay Rs 6550:Post 1-1-2006 Pensioner will get Rs 792 more per month besides DA!
Basic Pay Rs 10000: Post 1-1-2006 Pensioner will get Rs 1300 more besides DA!
Basic Pay Rs 11950: Post 1-1-2006 Pensioner will get Rs 910 more besides DA!

CONCLUSION

Is this wide variation between the pensions in the cases of Pre and Post 1-1-2006 Retirees with effect from 1-1-2006 even though they belong to the same Pay Band not against Natural Justice?

Will the Central Government immediately look into this Disparity, do JUSTICE to the Pensioners who retired from 2-1-1996 to 31-12-2005 and issue orders bringing PARITY in Pension of both the Pre and Post 1-1-2006 Pensioners as they belong to the same Pay Band?


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