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Thread: Vanishing trick- a practical joke or blunder to plunder

  1. #1
    Senior Member vnatarajan is on a distinguished road
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    Default Vanishing trick- a practical joke or blunder to plunder

    “VANISHING TRICK”- A PREMEDITATED PRACTICAL JOKE ON PENSIONERS? OR A CRUEL BLUNDER TO PLUNDER?
    My Colleague/Co-Pensioner Mr P K Ranganathan is the original author of this “Brain Teasing Puzzle” for the Pensioners! Having been too much taxed on our agonizing fight against the DIRECT piracy of our Pension amounts, we had failed to even think that there could be INDIRECT methods also to make our Pensions vanish slowly- if we are not alert!
    FOR A CHANGE, I THOUGHT WE MUST HAVE A SOMEWHAT DIVERSE TYPE OF ANALYSIS WHERE ONE NEED NOT BE FAMILIAR WITH RULES & REGULATIONS etc.! BUT LET US USE OUR BRAINS TO SEE WHAT IS THE DIMENSION OF THIS VANISHING TRICK!
    ------------------------------------------------------------------------------------------------------------
    Mr PKR writes:
    “I just got involved in this very interesting analysis of the so called 6th CPC largess that is presently ours and the envy of others! The exercise naturally is built up on my personal pension details ; but I have no doubt it can apply to all pensioners, with minor variations (all dealt in Rs):.

    Pension : 9825 , Dearness Pension: 4912 and commutation 3930: And below is the tableread
    (read columns serially 1 to 7)
    From To 5th CPC 6th CPC Increase %Increase %IncPost tax
    1 2 3 4 5 6 7
    Jan 06 Jun 06 14345 19770 5424 37.8 34.02
    Jul 06 Dec 06 15082 20244 5162 34 30.6
    Jan 07 Jun 07 15966 21192 5226 32 28.8
    Jul 07 Dec 07 16850 21903 5053 29.9 26.91
    Jan 08 Jun 08 17735 22614 4879 27.5 24.75
    Jul 08 Dec 08 18766 23562 4796 25.5 22.95


    Note(1) :Col. 3 and 4 indicate nett amounts after deducting commuted portion .Col. 7 considers min tax applicable ( 10%).; Jul – Dec 08, takes into account actual DR wrt 6th CPC and notional DR as per the 5th CPC parameters ( 54%)
    Note(2): Col. 4 figures are based on the Min Pension applicable for S- 29 of 5th CPC.( Rs 23700)
    By now you must have already understood the game! Project the above figures for 3 more years thro six half yearly steps and on the fourth year you will actually end up with a negative increase.I have no reason to believe that this model can change otherwise, given the basic differences of the indices adopted wrt the DR under the 5th and 6th CPC dispensations.By the time you start earning your age based increase of pension you would have lost the effect of Dearness Relief component’s equivalent already . While this is a revelation, one would tend to admire the diabolic ingenuity of the SITTING (BLUNDERING) financial wizards and Ministerial Pundits, who could conjure up this PCSorkar’s VANISHING TRICK., while safeguarding their own future retirement interests, through adroit moves like higher starts in the pay bands, dispensing with 10 month's average and proportionate pension and what not”.

    Mr PKR observes further:
    “The correct and legitimate minimum pension as related to the correct minimum pay , will at least delay the start of the negative impact to the day when the age related increase can offset it.Our efforts in that direction therefore sound perfectly justified”
    -------------------------------------------------------------------------

    Now Pensioner-Gentlemen! Is this a cruel joke or a blunder to plunder?
    How much of the Pensioners corpus fund,which every pensioner, during his service-career has contributed by way of his/her sweat and blood, and which every pensioner is entitled to draw as his/her pension- ( and mind that this is not tax-payers’ money) is being swindled back to the Nation’s kitty, can be worked out by more account-minded pensioners here! I THINK EVEN AN EROSION OF Rs 100 per month say from tax-paying levels of pensioners (ironical that pensioners have to pay taxes on their own Govt. held-up pension corpus) alone ,who may be a few lakhs in number, will result in a sum of more than few hundred crores every year!
    Pl check and offer your comments. Pl make the debate lively and entertaining before we recoup to start our fight for justice!

    vnatarajan in association with Mr PKRanganathan
    Last edited by vnatarajan; 07-11-2008 at 08:04 PM. Reason: typographic

  2. #2
    Junior Member ranganathan is on a distinguished road
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    Default vanishing trick

    below is another exercise from Shri. A Rajagopalan. you can try the formula .

    PKR



    ARajagopalan

    Government's Time Machine Back to the Past.



    Let us travel from VI Pay commission to V Pay commission in Government's Time machine to enjoy the sweet memories!!!

    We must thank Mr Ranganathan for the concept and don't fail to read his mail below.

    Assumptions

    1) Majority of pensioners will be receiving 2.26 times their basic pension of V Pay commission plus 40% of basic pension as per VI Pay commission. This factor has been taken into calculation.

    2) For universal application, commutation, Income tax etc. are not taken into account and they do not contribute much to the arrival of conclusion.

    3) Rs 100 is assumed to be the basic pension as on 1-1-96 (Beginning of V pay commission)

    4) The Government had announced the Dearness relief up to the half yearly period from 1-1-08 in the old formula and they didn't announce dearness relief from 1-7-08 in the old formula. During this period there was abnormal increase of inflation and everybody expected substantial increase in DR. In fact Tamil Nadu Government has sanctioned half yearly increase of 7% recently. But average increase of 4% plus 3% namely 7% increase for the whole year for V and VI pay commission has been adopted uniformly.


    Date DR V Pay DR VI Pay Difference

    in % Commission in % Commission

    -------------------------------------------------------------------------------------------------------

    1-1-96 0 100 - - -

    -----------------------------------------------------------------------------------------------------------

    1-4-2004 50 150 - - -

    -----------------------------------------------------------------------------------------------------------------

    1-1-2006 24 150 * 1.24 0 226 40

    = 186

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    1-1-2008 47 150 * 1.47 12 226 * 1.12

    = 221 = 253 32

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    Suppose after N years Pension as per V pay Commission equals that of VI Pay commission.

    Average yearly increase in DR for both Pay Commissions are taken as 7 % although after VI Pay commission the average yearly increase is 6 %. If 6% is taken, the number of years will further decrease

    150 ( 47 + 7N) = 226 ( 12 + 7N)

    Solving for N, N is approximately equal to 8 years.

    It means that in the year 2015 we will be drawing the same pension as we would have drawn under V pay commission.

    The media and private sector are propagating that the Government servants are paid huge compensation under VI Pay commission.

    I request everyone of you to critically analyse the above calculation so that we can present an unassailable argument before the Government.

    I once again request to send your representation again, to PMO and Department of pension .

    Each one of you should try to bring the woos of pensioners to light by writing letters to the editor or arrange to publisize as news item in local papers

    --------------------------------------------------------------------------------------------------------------------

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