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View Full Version : Anomaly in pension fixation-future repurcations for serving employees



vvenkateswarrao
19-10-2010, 10:43 AM
After IVCPC, Government has created two classes of pensioners viz pre VICPC and post VICPC. Earlier, the pensioners’ pension is fixed based on the minimum of the corresponding/equivalent pay scale. Thus while the serving Government employees got slightly higher pension based on the pay at the time of their retirement, the retired Government employees got half of the minimum of the equivalent pay scale. Thus the difference in the pension of serving and retired employees at the time of implementation of pay commission recommendations were more or less getting same amount of pension. The VICPC has merged many pay scales and started pay band system. With this, all Group C scales are merged as payband1, Group B a pay band2, Group A as paybands3 and 4. Though, earlier also when pay scales were merged by pay commissions, the starting of the revised pay scale is always equivalent or higher to the fixation arrived to the minimum of the prerevised scale. But, with the creation of paybands, this principle is ignored. Now such principle is applied only with reference to the prerevised lowest scale of the corresponding payband and not to the other higher scales in the new paybands. Some of the examples in each pay band are:
In pay band 1, the minimum pay to be fixed for the pre revised scale of Rs.4500-7000/- as per the equivalent fixation table of the VI CPC is Rs.8370/- (plus grade pay of Rs.2800/-) in pay band Rs.5200-20200/-.. This is applied to the serving employees. Thus, if the serving employee retires at the minimum of the prerevised scale immediately after getting into VICPC scale, he gets a pension of Rs.4185/- (plus half of grade pay i.e. Rs1400/-). The total minimum pension thus works out to be Rs.5585/- for the employee who was in this scale but retired after VICPC. Now coming to the employee who was in this scale, but retired before VICPC, he gets a pension of Rs.2600/- (plus half grade pay i.e.1400/-) The total pension thus works out to be Rs.4000/- The difference thus works out to be RS.1585/- i.e. almost 40%.

In pay band 2, the minimum pay to be fixed for the pre revised scale of Rs.8000-13500/- as per the equivalent fixation table of the VI CPC is Rs.14880/- (plus grade pay of Rs.5400/-) in pay band Rs.9300-34800/-.. This is applied to the serving employees. Thus, if the serving employee retires at the minimum of the prerevised scale immediately after VICPC scale he gets a pension of Rs.7440/- (plus half of grade pay i.e.Rs2700/-). The total minimum pension thus works out to be Rs.10140/- for the employee who was in this scale but retired after VICPC. Now coming to the employee who was in this scale, but retired before VICPC, gets a pension of Rs.4650/- (plus half grade pay i.e.2700/-) The total pension thus works out to be Rs.7350/- The difference thus works out to be RS.2790/-.

In pay band 3, the minimum pay to be fixed for the pre revised scale of Rs.12000-18000/- as per the equivalent fixation table of the VI CPC is Rs.22320/- (plus grade pay of Rs.7600/-) in payband Rs.15600-39100/-. This is applied to the serving employees. Thus, if the serving employee retires at the minimum of the prerevised scale immediately after VICPC scale he gets a pension of Rs.11160/- (plus half of grade pay i.e.Rs3800/-). The total minimum pension thus works out to be Rs.14160/- for the employee who was in this scale but retired after VICPC. Now coming to the employee who was in this scale, but retired before VICPC, gets a pension of Rs.7800/- (plus half grade pay i.e.3800/-) The total pension thus works out to be Rs.10,600/- The difference thus works out to be RS.3560/-.

In pay band 4, the minimum pay to be fixed for the pre revised scale of Rs.18400-22400/- as per the equivalent fixation table of the VI CPC is Rs.44700/- (plus grade pay of Rs.10000/-) in payband Rs.37400-67000/-. This is applied to the serving employees. Thus, if the serving employee retires at the minimum of the prerevised scale immediately after VICPC scale he gets a pension of Rs.22350/- (plus half of grade pay i.e.Rs5000/-). The total minimum pension thus works out to be Rs.27350/- for the employee who was in this scale but retired after VICPC. Now coming to the employee who was in this scale, but retired before VICPC, gets a pension of Rs.18700/- (plus half grade pay i.e.5000/-) The total pension thus works out to be Rs.23,700/- The difference thus works out to be RS.4450/-.
These anomalies are to be addressed and necessary remedial measures taken by fixing the pension always with reference to the V Pay Commission Scales.
If we do not wake up now, The IAS babus may combine all paybands gradually and beat us with lowest pension.
SERVING EMPLOYEES OF ALL PAY BANDS BE WARE. WHAT HAPPENED TO PRE 2006 PENSIONERS MAY HAPPEN TO YOU TOMORROW.