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7th CPC: Fitment Factor 2.81 for All, Minimum Family Pension 9,000 and various demands related to Pensioners – BPS writes to Cabinet Secretary


(All India Federation of Pensioners’ Associations)
New Delhi – 110014
No SG/BPS/11/2015 
Dated 13.12.2015

Dear Shri. Pradeep Kumar Sinha,
Cabinet Secretary GOI
Cabinet Secretariat, Government of India,
Rashtrapati Bhawan,
New Delhi – 110 004

Reg: Pension related benefits of civilian employees Chapter 10.1 of 7th CPC report

Ref: Bharat Pensioners Samaj(BPS) representation to Shri Arun Jaittley ji. Honourable Minister of Finance Government of lnda vide its No SG/BPSI10/2015 dtd.25-11.15 copy attached)
ln continuation of BPS representation vide No SG/BPS/10/2015 dd.25-11.15 (copy attached) to the honorable Minister of Finance GOI following few points are put forth for the consideration of Empowered Committee of Secretaries under your chairmanship:

1 .Fitment benefit (5.1 .27) & {10.1 57(3)} 2.57 Fitment factor has been recommended for uniform application to all employees & Pensioners arrived by dividing revised minimum pay by existing minimum salary Minimum revised salary has been worked out on the principle of need base minimum wage following Dr Aykroyed fonnuia .01 503 which is out dated & smells of colonial mindset . The “Normative Family” is taken to consist of a spouse and two children below the age of 14yrs.(Husband 1 unit. wife 0.8 unit and chiiden(2) at 0.6 unit each). Considering wife to be .80 unit is nothing but gender bias .In the present scenario a wife too put in the same amount of physical work rather may be more as compared to husband. She needs more nutrients to keep herself fit to be a mother & needs more clothing. A lady whether she is a wife of a labourer or a Secretary to Govt. oi India has a basic right to keep her reasonably presentable for which she needs some minimum add-ons as such treating her to be less than a unit is goss injustice. 

Similarly growing Children of less than 14 yrs need more of proteins. fats & carbohydrates, with sufficient exercise & field activities for healthy growth .Today they need much better & more clothing compared to 50s. Today Nation needs healthy & stout young citizens. It is against the national interest to restrict their need base minimum requirement to .6 units.

The basket of items taken does not take care of digital India‘s minimum requirement i.e. a smart mob. phone & internet connection. The quantities of consumption & rates taken for the items in the basket are unrealistic compared to actual retail market rates. 

In the light of above mentioned facts it is felt that minimum salary has been intentionally calculated to be lower to keep common fitment factor low. BPS. therefore. appeal that minimum revised salary be raised upwards to make it realistic.
According to 7th CPC recommendations, 2.57 fitment factor is for all employees and pensioners. But, in tact, 2.81 fitment has been given at Secy level by raising existing Salary of 80,000/PM to 2,25,000/ per month. This is robbing Peter to pay Paul, violative of CPC own recommendation and that of Article 14 of the constitution of India. BPS. therefore, appeal that 2.81 fitment benefit be provided to all employee and Pensioners without any discrimination 

2.Minimum Pension/family pension (1 0.1.24)(1 0.1 .26):As per 7th CPC recommendations revised minimum pension will be 50% of the minimum revised salary of Rs 18,000/- & Family pension will be 30% of it i.e. Minimum Pension will now be =Rs.9,000/- p.m. & Family Pension=5400/- So far minimum pension &Family pension have been the same i.e.Rs.3500/-. If existing minimum family Pension of Rs. 3500/- is multiplied by 2.57 fitment benefit, it comes to Rs. 8995/-PM BPS request that the matter be looked into to ensure that minimum pension family Pension remains the same.
3. Parity in Pension between Pre & Post seventh CPO retirees (10.1.53): The pension formulation under para 10.1 .670) option 1 recommended by the Commission is that all past pensioners shall first be fixed in the Pay Matrix being recommended by it, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised. to arrive at the notional pay of the retiree, by adding the number oi increments he had earned in the corresponding pay scale from which he had retired, at the rate of 3 per cent. Fifty per cent of the amount thus obtained would be the revised pension. 

It would be seen that the Commission has recommended fixation of the revised pension of the past pensioners (without rectifying anomalies 6th CPC), on the basis of the pay scale, after 31-12-2005/ Pay Band and Grade Pay from which they had retired and not on the basis of the revised pay of the post from which they had retired. The concept of full parity implies that it is the rank or post held by the pensioner which determines his pension and not the pay scale. In many cases the pay scales have been upgraded alter the retirement of the pensioners as a result oi Pay Commission’s recommendations or otherwise without any change in the rank or in the nomenclature of the post held previously by them. Advantage of these upgraded pay scales was denied to those who retired earlier to such up gradation creating disparity in Pension.

The formulation proposed by the 7th CPC will not remove the existing disparity between the pension of the pre 01-01-2006 pensioners and those retiring after this date. Such a disparity will continue even after the implementation of the formulation recommended by the 7th CPC tor the fixation of the pension of the past pensioners since their pension will be fixed on the basis 01 the pay scale from which they had retired and the benefit of revised scale upgraded after their retirement will not be admissible to them.

The principle of full parity implies that the uniform pension should be paid to all pensioners retiring in the same rank with the same length of service. irrespective of the date of their retirement. Since the formulation recommended by the Seventh Pay Commission will not bring about uniformity in the pension of the past pensioners retiring in the same rank on different dates, 7th CPC recommendation thus will not ensure till parity for all civil pensioners.
Another glaring anomaly relating to pensioners in the new Pay Matrix which the Commission has proposed alter dispensing with the existing system of Pay Bands and Grade Pay introduced on the recommendations of the Sixth Pay Commission. In the proposed Pay Matrix in place of the existing Grade Pay, there are 18 distinct Pay Levels which would henceforth be status determiner. Each Level lays down the minimum pay, the annual pay progression of 3 per cent. and the maximum pay. It is seen that the maximum pay in each Level exceeds the minimum pay in the next higher Level. This is likely to create a situation in which a person retiring from a higher Level will receive pension less than a person retiring from a lower Level. A situation may arise where a junior may draw more pension than a senior in the level above him. 

BPS appeals for the removal of the anomalies discussed above while taking a decision on the Commission’s recommendation. 

4. Ratio between minimum and maximum: Instead of reducing it is raised which is against the preamble of the Constitution of Indian Republic. issue may be revisited.
5. Raising Percentage of pension, based on sustenance (10.1 24 to 27) Analysis given by CPC is silent on sustenance-this is unjustified rejection and may be reconsidered.
6. Additional pension at 75yrs of age(10.1.28 to 30) is denied only because Defence Ministry did not agree. this is rather absurd. if Defence Ministry does not want to have it. let them not have it. Why make others suffer on this account? 

7. Medical facilities : (9.5.18 The Commission’s recommendations regarding merging of all postal dispensaries with CGHS dispensaries and inclusion of non CGHS covered postal Pensioners are welcome.

However, its recommendations regardng Health insurance for pensioners do not suit existing pensioners on account of no coverage at existing disease without lock-in period, no provision of OPD facility payment of premium and less amount of coverage.

BPS , wish to draw your kind attention to para 9.5.1 8 (iii) of the 7th CPC and request you to create without delay a combined entity of CGHS. ECHS-RELHS which in terms of 7th CPC would result in a very strong network of health facilities for the Central Govemment employees/pensioners across the length and breadth of the country.
8. Fixed Medical Allowance (FMA ) (8.1.51) it is granted to pensioners for meeting expenditure on day to day medcai expenses that do not require hospitalization. Keeping in view the high cost at medicines & ever rising consultation fee of Doctors, BPS urge that the issue be revisited to reconsider the demand for raising FMA to Rs 2000/ PM.
Thanking you in anticipation.
With warm regards
Yours sincerely,
Er. S.C. Maheshwari

Source: BPS Blog

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  • Anonymous 8 years ago

    Fitment factor is required to be 2.81 as the fitment factor is to be the common for all the employees active or inactive i.e. pensioners as it is the base for all the categories of employees whether he is IAS or a peon due to the fact that the sustenance level in the world is one and the same. No difference is to be introduced at the base level while fixing the pay or pension of the central employees. Men at the higher echelons are to be positive in this aspect so the disparity at the root level will not be allowed to be simmering and the common fitment factor satiates all the employees without grouse or grief among the employees.

  • At present no body is sure of what is in the store for the pensioners and the family pensioners. Lot of rumours are in the air with lot of different interpretations.Better to make the things clear at the earlist by the Govt.