Monday, May 31, 2010

State Pulse: Madhya Pradesh: Dignity of Mantralaya

OP Sharma
I read editorial "Improving work culture" (CC 24.05.2010) in which it has been said that the government of Madhya Pradesh is making efforts to induct new work culture in Mantralaya- the seat of administration. In this editorial it is also said that govt. had tried many experiments for improving the work culture but the recommendations could not be applied due to unknown reasons.

I would like to spread light on Mantralaya, its work culture and on the recommendations of JPS Associates who studied on secretariat manpower and work culture. Mantralaya (previously secretariat) is a large organization having 53 departments. The various posts are sanctioned in Mantralaya as 19 of Principal Secretaries, 20 of Secretaries, approx 120 of Deputy and under secretaries, 153 of section officers, 329 of Assistant grade-I, 321 of assistant grade-II, 586 of assistant grade-3 and 606 of Class Four employees. Except these posts, there are 127 posts for PA, 18 for staff officer and 60 for private secretaries. About 100 posts of technical and other staff like lift operator, mechanic, house-keeper, computer operator, drivers, receptionist etc are sanctioned in Mantralaya. Unfortunately I am forced to say that about 30 principal secretaries and 32 secretaries are posted in Mantralaya against 19 and 20 sanctioned posts but the situation of lower class officers and employees is different. There are only 141 section officers in position instead of 153. Assistant grade-I in position are only 274 although sanctioned posts is for 321; similarly assistant grade-II and III are 281 and 389 instead of 321 and 586. These figures show that the ratio of senior officers' and employees' is not proper according to the sanctioned posts. JP Associates studied only junior officers and short salaried employees who always work hard in Mantralaya but did not get any opportunity to get any recognition to their works from government side. The recommendations of agency are in 52 points and made no comments on discrepancy between two same important pillars of government.

We all know that many state governments have adopted the policy of Central government for giving pay and allowances according to Central govt but in Madhya Pradesh there is no decision taken by the Govt on allowances like travelling allowance, HRA, conveyance allowance and others. When a Class Three employee goes on government tour, he gets only Rs 32/- per day as DA. Can he eat food and live for a day with this amount? State Govt always discriminates with junior employees. It should become practical. IAS, IFS and IPS officers in the State have no need of any order for getting increased Dearness Allowance but others have no option except folding their hands before the Govt. Are these junior officers and employees of MP not able to get their rights timely? or they have no value in the eyes of the government? If Hon. Chief Minister wants to fulfill his dream of golden Madhya Pradesh, his government must stop discriminatory practices to its employees. Nobody can give hundred per cent output without getting all his rights. I appreciate one recommendation of JP associates about forming a new department of "Personnel, training and administrative efficiencies" which may be carved out of the General Administration Department to look after not only the secretariat services but other services of secretariat too because Mantralaya is Mantralaya, and it has a dignity, which must be maintained.

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NPS Tier 2 Account would work exactly as Low cost mutual fund

To make the New Pension System (NPS) more attractive, PFRDA (Pension Fund Regulatory and Development Authority) has introduced the concept of Tier-2 account. This is to provide for withdrawals to meet financial contingencies.
Opening the Tier-1 account is compulsory for everyone opting for NPS. However, the Tier-2 account is optional for the investors, as it is a voluntary savings account from which the investor can withdraw money, any time and any number of times.
The Tier-2 enables people build savings through investments over and above those in the Tier 1 pension account. Only those having an active Tier 1 account can open the Tier 2 account. The best part is that now both Tier 1 and Tier 2 account can be opened simultaneously with just Rs 1500/-. Withdrawal from Tier-2 account can be done freely anytime and it acts actually a cheap mutual fund where you would be paying Fund Management Charges of just .005% compared to 1.5% in Balanced Mutual Fund.
Considering the recent changes done by SEBI in Life insurance Pension plan where life cover is made mandatory and no withdrawal is allowed (Full or Partial), it makes more sense to opt for NPS (New Pension Scheme) as charges in this are thousand times lesser than Pension Plan from Life insurance companies.
The Central Record-keeping Agency (CRA) will not levy additional maintenance charges on the Tier 2 accounts, other than the nominal Rs. 10 for each transaction, as is the case with Tier 1 account. Investors can choose separate fund managers, separate pattern of investment and appoint separate set of nominees. If one wishes, he/she can transfer money easily from Tier 2 to Tier 1 account too
Minimum amount for opening Tier 2 account is Rs. 1,000. Minimum remittance is Rs. 250 and minimum balance at the end of a financial year is Rs. 2,000. Minimum number of contributions in a year is four. The Tier 2 savings can be added to pension corpus at the time of retirement to increase monthly pension.


source;assettreat.com
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All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of April, 2010

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of April, 2010 remained stationary at 170 (one hundred and seventy).

During April, 2010, the index recorded an increase of 4 points in Bangalore centre, 3 points each in Tripura, Rourkela, Asansol, Labac Silchar, Howrah, Durgapur and Mariani Jorhat centres, 2 points in 18 centres and 1 point in 18 centres. The index decreased by 2 points in Coimbatore, Ludhiana and Puducherry centres and 1 point in 12 centres, while in the remaining 19 centres the index remained stationary.

The maximum increase of 4 points in Banglore centre is mainly on account of increase in the prices of Goat Meat, Dairy Milk, Milk (Cow), Vegetable items, Snack Saltish, Cigarette, Saree (Synthetic), etc. The increase of 3 points each in Tripura, Rourkela, Asansol, Labac Silchar, Howrah, Durgapur and Mariani Jorhat centres is due to increase in the prices of Rice, Poultry, Goat Meat, Fish Fresh, Vegetable items, Cigarette, Firewood, etc. However, the decrease of 2 points each in Coimbatore, Ludhiana and Puducherry centres is due to decrease in the prices of Rice, Wheat, Wheat Atta, Onion, Sugar, etc.
The indices in respect of the six major centres are as follows :

1. Ahmedabad 164             2. Bangaluru 179       3. Chennai 156

4. Delhi 158                       5. Kolkata 168          6. Mumbai 167




The point to point rate of inflation for the month of April, 2010 is 13.33% as compared to 14.86% in March, 2010.
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The Staff Side’s Suggestion on MACP’s Core Issue

The First Meeting of Joint committee on MACP was held on 25-5-2010 . Altogether 8 issues related MACP anomalies were discussed in the meeting.

The MACPS (Modified Assured Career Progression Scheme) order was issued on 19-5-2008. Since then all the Central Government Employees Federations, confederations are demanding that Grade Pay of the next Promotional Post to be granted under the new MACP Scheme instead of granting next higher Grade Pay in the revised Grade Pay Hierarchy.

Now it has been informed through the circular published by confederation that the above said core issue of MACP was taken for discussion in the meeting. Staff side pressed for placement in the Grade Pay of the Promotional Post instead of next higher Grade Pay in the hierarchy of revised Pay Band and Grade Pay. It was insisted because the career progression only means the promotion in the hierarchy and not to a Grade Pay which is not present in the hierarchy of the respective department.

But after that, it is believed that the Staff Side also gave an alternative that first two MACPs after 10 and 20 years should be to the next promotional post as per the hierarchy of respective department as under the erstwhile ACP scheme and thereafter the third MACP in the next Grade Pay of the Revised Pay Band and Grade Pay.

Why should the Staff Side compromising their position of demanding promotional Grade Pay under MACP,by suggesting that first two MACP should be in promotional hierarchy and third MACP can be in Grade Pay hierarchy?

source; gservants.com
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Sunday, May 30, 2010

Gratuity Act raises unions’ hackles

The Payment of Gratuity (Amendment) Act, 2010, which was passed by Parliament in its last session, has raised the hackles of various trade unions.

The Act has raised the maximum limit of gratuity payable to an employee from Rs 3.5 lakh to Rs 10 lakh. Then why are the trade unions angry? It is the date of implementation of the Act, which has annoyed workers engaged in the private sector, public sector undertakings and the banking sectors, among others.

The upper limit of the gratuity for government employees was raised to Rs 10 lakh with effect from January 1, 2006, when the recommendations of the Sixth Pay Commission came into effect.

Immediately after that various trade unions demanded that a similar provision should be made for the employees of the private sector and public sector undertakings.

Conceding the demand, the government introduced the Payment of Gratuity (Amendment) Bill in Parliament. While passing the Bill, Parliament said the Act would come into force on such date “as the Central Government may, by notification in the official gazette appoint.”

The Act received the assent of the President on May 17 last and the Union Ministry of Labour and Employment notified it on May 24, stating that the Act would become effective from that day.

The trade unions say the notification is discriminatory. While for the government employees the maximum limit of gratuity has been revised with effect from January 1, 2006, for those of the private sector and the public sector undertakings it would be from May 24. Thus, the employees of these sectors, who retired between January 1, 2006 and May 24, 2010, would be sufferers.

SR Khatri, general secretary of the State Bank of India Employees Organisation, said the government had yielded to the pressure of various organisations of private employers, who did not want to pay enhanced gratuity to their employees retiring before May 24. He said the trade unions would agitate against this discrimination.

TN Goel, president of the State Bank of Indian Officers Federation, said it was highly unfair to the employees of the public sector banks, whose pay was revised with effect from November 2007. The notification should have taken care of this fact.

State secretary of the Haryana CITU Surender Malik said the enhanced gratuity should be payable to all with effect from January 1, 2006. He also demanded that various retirement benefits should not be subject to income tax.

source:tribuneindia.com

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Saturday, May 29, 2010

New Pension Scheme (NPS) latest news

NEW DELHI: The interim pension regulator has sought tax relief on investments in the New Pension Scheme (NPS) to make it more attractive to employees of private sector firms.

The Pension Fund Regulatory and Development Authority (PFRDA) has written to the finance ministry seeking level playing field for NPS with other long-term savings schemes that will get tax benefits under the proposed Direct Taxes Code. “All we want is equal treatment,” a PFRDA official said.

NPS is currently under the Exempt-Exempt-Tax system, which means investment will be taxed when it is withdrawn. Provident fund and many of the small savings schemes are under the Exempt-Exempt-Exempt (EEE) regime, and are not taxed at any point.

“If the finance ministry plans to continue with the EEE regime for long-term saving schemes, we want the NPS also to get the same treatment,” the official said, requesting anonymity. “Several multinational companies are talking to us. We need more clarity on the tax treatment,” he said.

The pension regulator has, in its letter to the central board of direct taxes (CBDT), said tax benefits will make the scheme more attractive and will help increase its share.

While a few public sector units such as Nalco and Damodar Valley Corporation have already transferred a portion of their superannuation funds to the NPS, many private sector companies and public sector banks are also exploring the option as it would rid them of the headache of administering and managing the funds.

“This would be a good step. It would allow private companies to move their superannuation funds to the NPS,” said Amit Gopal, vice-president of pension consultant India Life Capital.

The PFRDA has further requested for an additional window under Section 80C of the Income Tax Act for contributions by subscribers’ employers.

Investments in specified schemes up to Rs 1 lakh are exempt under Section 80 C of the Income Tax Act. The budget for this year has given an additional exemption of Rs 20,000 for investments in infrastructure schemes.

Under Indian laws, companies with over 100 employees have to contribute 12% of an employee’s salary to the provident fund with an equal contribution from the employer.

The NPS, a defined contribution superannuation scheme for government employees, was thrown open to the private sector in May last year. The scheme offers subscribers the flexibility to decide their investment portfolio as well as choose between fund managers.

With weighted returns of over 12% annually, NPS is expected to be the ideal long-term saving instrument for workers in the unorganised sector. Its low fund management fees of 0.009% make it attractive.

The scheme, however, has managed only 6,500 private subscribers, partly because it does not enjoy some tax benefits given to private provident fund and private super annuation funds.

Source; Economictimes
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Friday, May 28, 2010

New ULIP norms would reduce Surrender Charges drastically on ULIP in initial years


Holders of unit-linked policies(ULIP) will in future get more of their money back if for any reason they are forced to surrender their policy within a couple of years.

New norms by the Insurance Regulatory & Development Authority (IRDA) now provide very strong incentive to insurers to ensure that policies do not lapse.

On 25th may 2010, the regulator unveiled new regulations on unit-linked insurance plans, capping the surrender charge on policies that are returned after a year at 15%.

This is a huge benefit for the customer as today there are several plans where the customer gets nothing if s/he surrenders her/his long-term policy after paying the first year premium.

Lets consider an example, If the policyholder paid Rs 100 in the first year, a big chunk of around 40% is deducted by way of various charges. The remaining 60% is allocated to the Ulip fund. If for any reason the policyholder fails to pay the renewal premium, the insured would get back 85% of Rs 60 thereafter, i.e., Rs 51 after the lock-in period.

The maximum surrender charges, which is 15% for first year surrenders, reduces year after year and comes down to 5% for the fourth year and 2.5% for the fifth year.
The new guidelines will benefit customers. It also directly incentivises companies to position their product for long-term and improve persistency. Insurance regulator should allow the development of single premium plans as well as look into the large segment of policyholders, who do not want to commit money for the long term.

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Grant of Fixed Medical Allowance (FMA) to the Central Government Pensioners residing in areas not covered under CGHS.


N 0.4/25/2008- P&PW (D )
GOVERNMENT OF INDIA

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS

(DEPARTMENT OF PENSION & PENSIONERS/ WELFARE)

3rd Floor, Lok Nayak Bhawan, Khan Market,
 New Delhi-110 003, Dated the 26 May 2010.

OFFICE MEMORANDUM

Subject: Grant of Fixed Medical Allowance (FMA) to the Central Government Pensioners residing in areas not covered under CGHS.

The undersigned is directed to say that in pursuance of Government's decision on the recommendations of Fifth Central Pay Commission, the Govt. had issued instruction vide this Department's O.M. No.45/57/97-P&PW(C) dated 19.12.97 for grant of Fixed Medical Allowance @ Rs.100/- per month to the Central Government pensioners/family pensioners residing in areas not covered under Central Government Health Scheme administered by the Ministry of Health & Family Welfare and corresponding health schemes administered by other Ministries/Departments for their retired employees for meeting expenditure on their day-to-day medical expenses that do not require hospitalization. Further clarifications were issued vide this Department's O.M. Nos. 45/57/97-P&PW(C) dated 24.8.98, 30.12.98 and 18.8.99.

2. The demand for enhancement of FMA has been under consideration of the Government for some time past. Sanction of the President is hereby conveyed for enhancement of the amount of FMA from Rs.100/- to Rs.300/- per month. The other conditions for grant of FMA shall continue to be in force.

3. These orders will take effect from 01.09.2008.

4. These orders are issued with the concurrence of the Ministry of Finance (Deptt. of Expenditure) vide their I.D. Note No 347/E.V/2010 dated 14.5.2010 and in consultation with the Comptroller and Auditor General of India vide their UO No. 36-Audit (Rules)/28-2-9 dated 26.5.2010.

6. Hindi version will follow.

(Rajsingh)
 Director

To

All Ministries/Departments (as per mailing fist)
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Eligibility conditions for promotion from Group’C’ to Group ‘B’ posts in the major departments having ‘Organised Services


GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)


RBE No. 46 / 2010
No.E(PG)/99/2/22
New Delhi, Dated 29-03-2010
The General Manager,
All Zonal Railways and PUs.
(As per Mailing lists)


Subject:- Sub.: Eligibility conditions for promotion from Group’C’ to Group ‘B’ posts in the major departments having ‘Organised Services’ (except Accounts Department).

Ref.: Railway Board’s letters No. E(GP)99/2/22 dated 22.7.2004, 26.12.2008 and 29.04.2009.

*****

In terms of instructions contained in Board’s letter of even number dated 22.7.2004, Group’C’ employees with 03/05 year of non-fortuitous service in the grade the minimum of which is Rs.5000/- and in higher Group’C’ grades (Vth CPC) are eligible for being considered for appearing in the 70% Selection/30%LDCE for promotion to Group’B’ in the major departments having ‘Organised Services”. Consequent upon implementation of the pat scales recommended by the VI Pay Commission, instructions contained in Board’s letter of even number dated 18.11.2004 regarding eligibility conditions for promotion to 70% quota of Group’B’ posts of Assistant Personnel Officers have since been modified vide Board’s letter of even number dated 26.12.2008.

2. Now, consequent upon implementation of the pay scales recommended by the VI Pay Commission, the matter regarding eligibility conditions for appearing in the Selection/LDCE for promotion to Group ‘B’ posts in the major departments having ‘Organised Services’ (except Accounts Department), has been considered by the Board and it has been decided that :

i) For Group ‘B’ selections (70% quota),Group’C’ employees working in pay Band PB-2 (Rs.9300-34,800) with Grade Pay of Rs.4200 and above with 3 years of non-fortuitous service in the grade (including non-fortuitous service rendered in the corresponding pre-revised grades) will be eligible.

ii) For Group’B’ selections (30% LDCE quota), Group’C’ employees working in pay Band PB-2 (Rs.9300-34,800) with Grade Pay of Rs.4200 and above with 5 years of non-fortitous service in the grade (including non-fortuitous service rendered in the corresponding pre-revised grades) will be eligible.

iii) In the integrated seniority of Group’C’ employees eligible for Group’B’ selections (70% quota), employees in Pay Band PB-2 (Rs.9300-34,800) with Grade Pay of Rs. 4600 will be placed above those in Pay Band PB_2 (Rs.9300-34,800) with Grade Pay of Rs. 4200. In either category, the relative seniority of employees coming from different streams will be determined with reference to length of non-fortuitous service in the Scale of PB_2 + 4200, as the case may be.

3. Selections to Group’B’ which are already in progress may be proceeded with and finalized as per the existing principles. All fresh selections including those which have been initiated but where the written examination has not ben held, should be held in accordance with the instructions contained herein. The LDCE, wherever the same is in force, is a part of the process of filling vacancies in Group ‘B’. Therefore, whatever is followed in the case of 70% Selection, may also be followed in the case of corresponding LDCE.



(B. MAJUMDAR)
DIRECTOR/ESTT.(GP)
RAILWAY BOARD

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grant of Children Education Assistance and Reimbursement of Tuition Fee.


No.12011/03/2008-Estt. (Allowance)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances and Pensions

(Department of Personnel & Training)


New Delhi, the 13th Sep 2008

OFFICE MEMORANDUM
Sub: Recommendations of the Sixth Central Pay Commission- implementation of decisions relating to the grant of Children Education Assistance and Reimbursement of Tuition Fee.

Consequent upon the decisions taken by the Government on the recommendations made by the Sixth Central Pay Commission and in supersession of all earlier orders on the subject of Children Education Allowance and Reimbursement of Tuition Fee, the President is pleased to issue the following instructions: -

(a) Children Education Allowance and Reimbursement of Tuition Fee which were hitherto payable separately will be merged and will henceforth be known as 'Children Education Allowance Scheme'.

(b) Under the Scheme of Children Education Allowance reimbursement can be availed by Government Servants upto to a maximum of 2 children.

(c) Reimbursement as indicated above will be applicable for expenditure on the education of school going children only i.e., for children from classes nursery to twelfth,including classes eleventh and twelfth held by junior colleges or schools affiliated to Universities or Boards of Education.

(d) Henceforth, the reimbursement of Children Education Allowance shall have no nexus with the performance of the child in his class. In other words, even if a child fails in a particular class, the reimbursement of Children Education Allowance shall not be stopped.

(e) Reimbursement for the following items can be claimed under this Scheme:
Tuition Fee, admission fee, laboratory fee, special fee charged for agriculture, electronics, music or any other subject, Fee charged for practical work under the programme of work experience, fee paid for the use of any aid or appliance by the child, library fee, games/sports fee and fee for extra-curricular activities . This also includes reimbursement for purchase of one set of text books and notebooks, two sets of uniforms and one set of school shoes which can be claimed for a child, in a year.

(f) The annual ceiling fixed for reimbursement of Children Education allowance is Rs.12000.

(g) Under this scheme, reimbursement can be claimed once every quarter. The amount that can be claimed in a quarter could be more than Rs.3000, and in another quarter less than Rs.3000, subject to the annual ceiling of Rs.12000 per child being maintained.

(h) In case both the spouses are Government servants, only one of them can avail reimbursement under Children Education Allowance.

(i) Hostel subsidy will be reimbursed upto the maximum limit of Rs.3000 per month per child subject to a maximum of 2 children. However, both hostel subsidy and Children Education Allowance cannot be availed concurrently.

(j) The above limits would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by50%.

2. In order to ensure that Government servants have no difficulty in claiming reimbursement, the procedure under this Scheme is being kept simple. Reimbursement should henceforth be made on the submission of original receipts on the basis of self-certification by the Government servant.

3. These orders shall be effective from 1st September, 2008.

4. Insofar as persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller and auditor General of India.





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Thursday, May 27, 2010

Government gives extended time to visit NER areas on Leave Travel Concession by Air...


F.No. 31011/4/2007-Estt.(A)
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel and Training)


New Delhi, dated 20th April, 2010


OFFICE MEMORANDUM


Subject: CCS (LTC) Rules, 1988 – Relaxation for travel by air to visit NER.


The undersigned is directed to refer to this Department O.M. of even No.dated 2.5.2008 on the subject mentioned above and to say that the relaxation for travel by air to visit North Eastern Region under CCS (LTC) Rules, 1988 is extended for further two years beyond 1st May. 2010

Smt.Raj Bala Singh
Under SecretarY to the Government of India


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The 2nd National Anomaly Committee meeting - Decisions and Discussion

The 2nd National Anomaly Committee meeting - Decisions and Discussion



Conf No.9/2010
Dated: 27th March, 2010.
Dear Comrade,
Sub:- National Anomaly Committee meeting And decisions.
The 2nd meeting of the National Anomaly Committee was held today under the Chairmanship of the Secretary Personnel. The Confederation was represented by Com.Vyas, President and Com. K.K.N. Kutty, Secretary General.

The Chairman in his initial opening remarks said that it would be the endeavour of the Government to finalise the issues of anomaly as fast as possible. Since there had been difference in perception on certain issues, they had to be gone into in detail and would take time more than expected. He said that the National Council meeting which was scheduled to take place last month had to be postponed for reasons beyond. He added that the same has now been scheduled to take place in May,15, 2010 and the notices have been issued. He expressed his happiness that the last meeting had been held in a very conducive atmosphere and hoped that all problems would be able to be settled through dialogue. Since the Official side representing the Pension department had to attend another meeting, he suggested to discuss the issues pertaining to Pensioners first before the other issues are taken up. The Staff Side agreed to this suggestion.

Com. Raghavaiah, Leader Staff Side while thanking the official side for convening the second meeting thanked the Chairman for the assurance of a speedy settlement of the issues. He hoped that the official side, having not circulated the Action Taken Statement on the issues discussed at the last meeting, would indicate of the progress registered on those issues. He then dealt with various problems emanating from the implementation of the MACP. While the MACP assures three financial up gradation for every employees, it has resulted in certain difficulties for the existing employees. The liberalization that is stated to have been done to the Assured progression scheme, he said, has resulted in the de-liberalization in the case of certain employees. H expressed the hope that the official side would be ale to appreciate these problems and resolve them.

Com. Purohit thanked the Chairman for his statement of finding settlement to all problems through discussions. He added that the JCM was in fact formulated for that purpose and it has worked very well, through there had been aberration in the past in the periodicity of meeting etc. He said that the 6th CPC has treaded a path different than those of all other earlier Pay Commission, as they have introduced a new concept in the Pay structure of Central Government employees. Initially the employees have only looked at the financial benefit but later they have realized that there had been certain basic changes effected. He then reiterated his statement made at the last meeting over the definition of the term anomaly. The understanding reached was to have the same definition for the term anomaly as was given at the time of setting up of the anomaly committee after the 5th CPC recommendation. That was on the basis of an agreement reached between the Staff Side and the Group of Ministers. Since the Government functions are mostly on the precedence, he was afraid that the present definition would be quoted in future too. He,therefore wanted this fact to be properly recorded so that the present definition afforded to the term anomaly would not be a dilution of what it was earlier. He then pointed out that while all allowance in general had been doubled by the 6th CPC for which there had been a specific recommendation, in some cases, the Commission had recommended for replacement of such allowances by another scheme viz. insurance etc. The Insurance scheme has still not been introduced whereas the allowances were withdrawn. He was of the opinion that these allowances must be continued till such time the alternative scheme is ushered after consultation with the Staff side and the same should be appropriately doubled. He cited the issue pertaining to Patient care allowance and the risk allowance. He said that the insurance scheme envisaged would not be easy for being settled as many issues emanating there from will have to be discussed threadbare.

Regarding the issues emanating from the MACP scheme, he requested the Chairman, to set up a separately committee with a few from the official side and staff side where all issues could be discussed and then brought to the Committee for its final approval or rejection as the case may be He also referred to the issue of merger of CCA with transport allowance and the repercussion especially in the matter of overtime emoluments of industrial workers. He expressed the hope that the Committee would be able to address all issues and settle them in an amicable manner.

The Chairman, in reply to the initial remarks made by the Leader and Secretary said that:
(a) Joint Committee may be set up for discussing the MACP related issues;
(b) Reiterated his request that all problems and difficulties faced by the employees in implementation of the 6th CPC may be brought to the notice of the Department of Personnel and these could be addressed and placed on website of the Department, so that it could obviate reference to various nodal departments of the Government. The employees could be given the clarification on these issues.

Com. Vyas said that the proposed insurance scheme would not take care of the risk factor both of industrial workers and health workers, who are covered by the risk allowance and the patient care allowance. These allowances ought to have been doubled, whereas the risk allowance has been totally stopped without introducing the insurance scheme and PCA has been continued but at old rates. No assurance was forthcoming from the official side either on the continuation of the risk allowance or doubling the PCA, as the 6thCPC has suggested for the withdrawal of these allowances.

The following issues were discussed, thereafter.

(I) Pension related issues. Agenda Item No. 8. Item closecd as having been settled in the last meeting.

(II) Item No. 9. Anomaly in pension for Govt. employees retired/died between 1.1.2006 and 1.9.2008. Having been permitted to opt which is beneficial i.e. last pay drawn or 10 months' average and full pension after 20 years, the matter stands settled.

(III) Item No. 10 dropped as per the minutes of the last meeting.

(IV) Item No. 15. The official side stated that this was not acceptable even though they had examined it on the basis of the detailed submission by the Staff Side.

(V) Item No. 16. (*) and 21

The official side stated that it would not be possible for them to concede the demand of the staff side as orders have been issued strictly in accordance with the recommendation of the 6th CPC, which the staff side contested. They also did not agree to extend the benefit of last pay drawn and full pension after 20 years qualifying service in respect of pre 2006 retirees.

(VI) Item No. 17.(*). The official side did not agree for the reasons they had stated against item No. 16

(VII) Item No. 18. (*) This anomaly has been removed by allowing the last pay drawn as the basis of pension computation for those retired on and after 1.1.2006.

(VIII) Item No. 19 (*)The anomaly has been removed in the case of all those retired between 1.1.2006 and 1.9.2008 but did not agree to remove the anomaly in the case of persons retired prior to 1.1.2006

(IX) Item No. 22.(*) The issue stands settled by O.M. NO. 38/37/08-P& P W (A) Pt.I dated 3rd October, 2008. clarification at Para 5.1.

(X) Item No. 23.(*) The matter is under examination. The Staff Side will submit a specific case for illustration of the issue. Relevant orders in similar matter after the 5th CPC recommendations were implemented will also be examined,

(XI) Item No. 24(*) and 25 &26.( same issues) Not agreed. But clarificatory orders issued stating that no retrospective deduction should be made in respect of additional commuted value of pension. The reduction in pension must start from the date of payment of additional commuted value of pension.

(XII) Item No.36. After some detailed discussion, it was decided that the Office side would examine this issue further. However, they have pointed out that the amount of Rs. 3500 fixed by them would automatically undergo change as when Dearness relief is grnted the partents/dependents. The Staff Side pointed out that every dependent or parent need not necessarily be a pensioner or a worker in the Govt. establishment or other institutions which pays periodical DA.

(XIII) Item No. 40(*) not agreed.

(XIV) Item No. 45(*) The issue is under Examination.

(XV) Item No. 48. Restoration of commutation after 15 years. After some discussions, it was agreed that the calculation made by the Staff Side would be examined and decision taken thereafter.

(XVI) Item Nos. 54 to 59 have been transferred to the Committee, which has been set up by the Government of Puducherry and therefore stand deleted from the list of National Anomaly Committee. The committee so set up ( as per the order given to the Staff side at the meeting) has only official side members. The representatives of the Association have only been permitted to present their case before the said committee. We are of the opinion that it should be a joint committee consisting of official side and staff side on the pattern on National Anomaly Committee.

(XVII) Discussion on Action taken on items already subjected to discussion in the last meeting of the National Anomaly Committee.

(i) Item No. 1 to 4 and 5(iii) The Department of Expenditure after having looked into this matter as per the suggestion of the Chairman, in the last meeting, have stated that it was not possible to agree to the staff side demand.

(ii) Item No. 5(i) Option. This is stated to be still under examination for delegation of power to the administering Ministry to allow the second option.

(iii) Item No. 5(iv) The Staff Side pointed out the statement made by the JS(Per) which is incorporated in the minutes (as under)

"in case where a promotee and post 1.1.2006 direct recruits are borne on the same seniority list and the senior is drawing less basic pay,than the junior, the pay of the senior can be stepped up." The Staff Side pointed out that orders have been issued only in respect of Railways in this regard. The Staff Side therefore, requested for issuance of an order by the Department of Expenditure to cover the employees of other Ministries/Department. The Official Side however, insisted that such orders should only be issued by the concerned departments after obtaining necessary consent from the Department of Expenditure. It was pointed out by the Staff Side that the nodal department for issuance of such orders being the Department of Expenditure, the stand taken by the official side in the matter was not in order. After some discussion it was agreed that the Department of Expenditure will examine this issue further and if orders are to be issued by them, they would do so before the next meeting or else would report their stand in the matter to the next meeting.

The issue per se i.e. A person who is promoted cannot be fixed on pay less than the minimum of the pay scale was raised by the Staff Side further. Normally a directly recruited person to a post is given the minimum of the pay scale or pay band to which he is appointed. The 6thCPC has recommended the minimum to which every directly recruited person was to be fixed. That being so, a promotee under the extant fundamental rules cannot be fixed less than such prescribed minimum. The Official side argued that the CCS(RSP) 2008 has modified the above provisions of FR for all time to come. The Staff side stated that no rule can be amended unilaterally which would adversely affect the service conditions. It cannot therefore, be unilaterally implemented. It will be further discussed in the next meeting.

(iv)Item No. 5(v) Rule 9 Date of next increment. The preponement of increment in the case of those employees whose increment dates falls between 1.2.2006 to 1.6.2006 to 1.1.2006 in the pre- revised scale of pay as has been done in the case of persons whose increment date was on 1st January, 2006 would be considered further and decision taken before next meeting as a one time measure.

(v)The Department of personnel has asked all administering Ministries to take up with them the matter of fixation of Grade pay at Rs. 1800 in the case of Temporary Status employees. They have also informed that wherever such reference has been received the same has been disposed of.. The organizations are, therefore, requested to take up the issue with the Heads of departments and ensure that a reference is made to the Department of Personnel so that the temporary status employees are imparted training and granted Rs. 1800 Grade pay with effect from 1.1.2006

(vi)Item No. 47(*) This issue was discussed at length. The problem of postponement of increment by one year in respect of persons availing extra ordinary leave on private affairs even for a day between 1st January and 30th June was highlighted by the Staff Side. The Official side explained that the clarification issued by them to the Ministry of Defence was on the basis of the extant instructions in the matter .After some discussion, the staff side proposed that if an employees has completed six months service during a particular year, he should be entitled to get his increment on Ist July. The Official side has agreed to consider this proposal and after such consideration they will issue appropriate orders before next meeting.

The next meeting of the Anomaly Committee would be in the month of June, 2010.

With greetings,



Yours fraternally,
sd/
K.K.N. Kutty.
Secretary General.
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National Anomaly Committee Meeting Conclusions and Discussions

National Anomaly Committee Meeting Conclusions and Discussions

Staff Side Leader Mr. M.Raghavaiah has written in his website regarding the second anomaly committee meeting conclusions on important issues and discussions briefly to the General Secretaries of affiliated unions of National Federation of Indian Railwaymen.

The full text of conclusions as reported by the National Anomaly committee Leader in his website is reproduced below...

FAX/Letter
No. IV/NC/JCM/NAC/09
dated 27.3.2010

The General Secretaries of
affiliated Unions of NFIR.

Dear brothers,

Sub:- National Anomaly Committee Meeting held at North Block, New Delhi on 27.3.2010

***
Conclusions on important issues pertaining to Anomalies as a result of discussions in to-day’s meeting are mentioned below:-

1.Anomaly due to postponement of increment in the case of those whose increment has fallen from February to June, 2006:-:

After discussions, it was agreed to issue orders for rectifying the anomaly. We have suggested that in all those cases the annual increment may be pre-dated to 1.1.2006. We are hopeful that order as demanded will be issued.

2. Various aberrations in the Modified Assured Career Progressive Scheme (MACPS):-

The Chairman of the National Anomaly Committee has decided to constitute a Joint Committee to deal all such aberrations and submit its report for the Government to take decision. Very soon a Joint Committee will be constituted. Affiliates are free to furnish the deficiencies of the scheme to NFIR immediately.

3. Junior drawing higher pay than the Senior :-

The Chairman has advised Railways to collect data and furnish to DOPT and Ministry of Finance for taking appropriate corrective steps.

4. Health Insurance Scheme recommended by VI CPC – Implementation of the recommendations:-

The Chairman has assured that without prior consultations, the scheme shall not be finalised and allowances such as Risk Allowance, Patient Care Allowance etc. will continue till the final decision is taken.

5. VI CPC pay fixation – Grant of another option to the staff:-

The Chairman said that the proposal for delegation of powers is under process and very soon this will be finalised.

6. Revision of medical allowance to the Pensioners :-

Under consideration. The issue is now before the Committee of the Secretaries. The Chairman has assured to see that processing is speeded up.

7. Denial of increment due to absence without pay:-

We have explained the grave implications of the Government’s. decision and demanded that the increment should be granted when the employee has put in six months qualifying service in a year. It was agreed to consider and rectify the anomalous situation.

Yours fraternally,
s/d
(M. Raghavaiah)
General Secretary
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Minutes of the Second Meeting of the National Anomaly Committee held on 27th March, 2010.


Minutes of the Second Meeting of the National Anomaly Committee

F.N0.11/2/2008-JCA
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel & Training)

North Block, New Delhi
Dated the 4th May, 2010

OFFICE MEMORANDUM


Subject: Minutes of the Second Meeting of the National Anomaly Committee held on 27th March, 2010.

The undersigned is directed to forward a copy of the minutes of the Second Meeting of the National Anomaly Committee held on 27thMarch, 2010 in Conference Hall (Room No. 119), North Block, New Delhi under the Chairmanship of Secretary (Personnel) for information and necessary action.


(Dinesh Kapila)
Deputy Secretary (JCA)

MINUTES OF THE SECOND MEETING OF
NATIONAL ANOMALY COMMITTEE HELD ON
27TH MARCH 2010

*****
The Second meeting of the National Anomaly Committee (NAC) was held on 27th March 2010 in Conference Room No.119, North Block, New Delhi under the Chairmanship of Secretary (Personnel). A list of participants who attended the meeting is annexed.

 
2.At the outset, the Chairman welcomed the representatives of the Staff Side and Official Side. Referring to the interesting and fruitful discussions held during the first meeting of the NAC on 12th December 2009, the Chairman stated that some progress has been made and stated that action taken on the decisions taken in the first meeting shall be shared with the staff side. The Chairman then suggested that issues pertaining to pensions may be taken up first for discussions as the representatives of the Department of Pension & Pensioners' & welfare had to attend another meeting, although that meeting had been postponed. The Chairman also informed that the 46th Meeting of the National Council (JCM) has been scheduled to be held on 15th May 2010 under the Chairmanship of Cabinet Secretary. The Chairman also reiterated the resolve of the Government to ensure early resolution of all the anomalies by holding meaningful discussions with the staff side. Thereafter, the Chairman invited the Leader and Secretary of Staff Side to make the opening remarks before moving to the agenda items.

 
3. Leader of the Staff Side Shri M. Raghaviah thanked the Chairman for convening the second meeting of the National Anomaly Committee. He further stated that employees are anxiously waiting for the NAC to produce results. Referring to the anomaly in the date of next increment, Shri. Raghaviah stated that this anomaly should be removed without any further delay. He further stated that action taken on the minutes of the First meeting of NAC should be discussed. Thereafter, Shri Raghaviah drew the attention of the Committee towards the problems emanating from the modified ACP Scheme and requested for early rectification of the same.

 
4. Secretary of the Staff Side Shri Umraomal Purohit thanked the Chairman and stated that the report of the 6th Pay Commission is absolutely new and therefore, there are certain concerns which must be addressed suitably. Referring to the issue of change in the definition of anomaly which was raised during the first meeting of the NAG, he stated that the Terms of Reference for the NAC constituted after the 5th CPC were jointly agreed. He further stated that this agreed definition of anomaly was changed after the 6th CPC and the Chairman had assured in the last meeting that this should not lead to any problems. However, another related problem anticipated by the staff side is that the present definition would form the basis for formulating the Terms of Reference of the NAC after the 7th CPC and this could lead to problems at that time. Therefore, while currently there may not be any problem due to deletion of the particular para from the definition of anomaly. but in future there could be some dispute regarding the agreed definition of anomaly as generally, the government works on the basis of precedents. He, therefore, requested that this aspect should be recorded in the minutes of the meeting so as to obviate problems I disputes in future. He then referred to the general recommendation of the 6th CPC that all such allowances, in respect of which there was no specific recommendation, should be doubled. He further stated about the recommendation of 6th CPC to discontinue certain allowances like the Patient Care Allowance and Risk Allowance and to introduce new schemes in lieu thereof in consultation with the staff side. He referred to a specific recommendation of the 6th CPC regarding introduction of the Risk Insurance Scheme to replace the Risk Allowance. He suggested that until the new schemes are formulated by the Government, in consultation with the staff side, such existing allowances should be continued and their rates must be doubled in view of the general recommendation of the 6th CPC. Regarding the suggestion the Chairman to first discuss the issues related to pensions, Shri Purohit stated that the staff side has no objection to the same.Regarding the anomalies in the MACP, Shri Purohit suggested that a Joint Committee comprising of members or the official and staff side may be constituted to thoroughly examine the anomalies in the MACP. The recommendations of the Joint Committee can be placed before the NAC for a final decision in the matter. Referring to the various agenda items before the NAC, Shri Purohit also stated that there is a need to work a little faster. Shri Purohit also drew the attention of the Committee to the fact that CCA has been abolished by the 6th CPC by merging it with the Transport Allowance. He stated that prior to this, CCA was treated as ‘Pay’ for all purposes, particularly for calculation of overtime in respect of industrial workers. He was of the view that these kinds of unintentional problems emanating from the 6th CPC report should not be overlooked. In the last, he once again thanked the Chairman and stated that he was sure that all the anomalies would be resolved under the leadership of Secretary (P).

5. The Chairman stated that the government also recognise the need for faster resolution of all anomalies. The Chairman agreed to the suggestion for creation of a Joint Committee to look into the anomalies related to MACP. The Chairman while acknowledging the new structure and approach of the report of the 6th CPC, re-iterated the suggestion given by him in the first meeting of NAC that in case certain problems and difficulties are being faced due to insufficient understanding with regard to ecommendations of the report of the 6th CPC, the same may be brought to the notice of the Department of Personnel & Training so that these could be appropriately addressed and clarifications / explanations may be issued / uploaded on the website of the Department in order to obviate the need for future references on such matters. With respect to change in the definition of the agreed definition of anomaly,the Chairman stated that this aspect had already been recorded in the minutes of the first meeting of the NAC and if needed, the same can again be recorded for posterity that the staff side had taken up this issue in the NAC and it was agreed that it would be the endeavour of the Government to ensure that this change does not lead to any problems now or in the future. Regarding the new schemes to replace some of the allowances like Patient care Allowance and Risk Allowance, the Chairman assured the staff side that it would be the endeavour of the Government to ensure that new schemes are introduced only afler consulting the staff side. Regarding continuation of the risk allowance at old rates till the new Risk Insurance Scheme is finalised, the Chairman agreed that this matter will be examined.

6. Thereafter, the staff side raised the issue relating to the revision of the Fixed Medical Allowance (FMA). ‘The representatives of the Department of Pensions and Pensioners’ Welfare informed that a proposal to revise the FMA has been moved and presently the same is under consideration of the Committee of Secretaries. The Chairman stated the he will take up the matter with the cabinet secretary regarding an early decision on the matter.

7. Thereafter, the anomalies as per the agenda were taken up for discussion:

Item No 9: Anomaly in pension for government servants who retired/died in harness between 1 .1.2006 and 1.9.2008

Director,Department of Pension informed that during the first meeting of the NAC, under this item, the issue of non release of second instalment of arrears to the pensioners was raised. It was agreed that Department of Pension will take necessary steps to sort out the problem. Director, Department of Pension informed that in this connection, Secretary (P) took up the matter with the Secretary, Department of Financial Services and the Department of Pension took up the matter with the concerned authorities and now the problem has been resolved. Regarding the issue of release of life time arrears to the family pensioners, director,Department of Pension informed that suitable instructions in this connection already exist. The Chairman suggested that oncerned instructions should be reiterated to ensure speedy release of life time arrears to family pensioners. The item was treated as closed.

ltem Nos. 15. 16, 17 & 21:- Parity/ modified parity in pension/revised pension/familypension of all pre-1996 retirees with those who retired on or after 01 .01.2006.

The Official Side stated that the matter has been examined in detail on the basis of note given by the Staff Side. However, it has not been found feasible to agree to the demand of the Staff Side as revised pension has been fixed strictly in accordance with the rinciples enunciated by the 6th CPC for the same. Director, Department of Pension further informed that the matter was taken up with the Department of Expenditure and it has been decided that the modified parity adopted will stand as the same method was adopted after the implementation of the recommendations of the 5th CPC. However, even after a prolonged discussion in the matter, there was difference of opinion between the Official and the Staff Side. In view of this deadlock, the Chairman stated that the view point the staff side has been understood by the official side and that the official side will take a stand in the matter after taking into account the views expressed by the staff side. He then suggested moving on to the next agenda item.

 
ltem No.18: Anomaly in Pension of those retiring within the first 9 months of the year 2006..
Director, Department of Pension and Pensioners’ Welfare informed that suitable instructions have already been issued to allow the last pay drawn as the basis of pension calculation for those who retired on or after 1 .1,2006. As the anomaly has already been resolved, it was decided to treat the item as closed.

 
Item No.19: Revision of pension of those who retired during the period 1.1.2006 to 1.9.2008.
Director, Department of Pension and Pensioners’ Welfare informed that suitable instructions have already been issued to the effect that the benefit of full pension on retirement after 20 years of service has also been extended to employees who retired between 1.1.2006 to 1.9.2008. As the anomaly has already been resolved, it was decided to treat the item as closed.

ltem No.22:- Revision of pension of those who are receiving two pensions.

Director, Department of Pension and Pensioners’ Welfare informed that suitable instructions have already been issued vide O.M. dated 12th 0ctober 2009 to the effect that in respect of persons receiving two pensions, the floor ceiling of basic pension of Rs.3500/- per month shall apply individually. Therefore, it was decided to treat the item as closed.
ltem No.23:- Special provision for those who retired on or after 1.1.2006 but retained pre revised scale of pay.
Director, Department of Pension and Pensioners Welfare informed that although such a case has not come to the notice of that Department, however, the matter has been taken up with the Ministry of Finance and the same is under consideration. After detailed discussion, it was decided that the staff side will try to provide specific cases where problems are being faced due to retention of prerevised pay scale. It was also decided to look into the modalities adopted in such cases after the implementation of the recommendations of the 5th CPC.

ltem Nos.24.25 & 26:-Commutation of pension / additional pension
The staff side stated that the additional amount of pension commutation due to retrospective revision of pay of post 31” December 2005 retirees, should be done on the basis of the then existing (old) commutation table whereas the government has decided that this should be done on the basis of the New Commutation Table recommended by the 6thCPC. The staff side further stated that this dispensation is anomalous and the then existing table should only be used to calculate the amount of the additional commutation of pension becoming due on account of the revision of pay scales. The official side stated that the 6th CPC has recommended that if a pensioner opts for additional commutation of pension due to retrospective revision of pay, then the amount of additional pension commutation should be calculated on the basis of the New Commutation Table. It was further clarified by the official side that if the concerned pensioner did not opt for additional commutation, then the issue of using the new or old table would not come into being. Therefore, the alternative of not opting for the additional commutation is already available to the concerned pensioners if they feel that the revised commutation table is not favourable to them. Moreover, the official side also clarified that as per the scheme of things approved by the cabinet, the revised commutation table is to be used for calculating only the future commutation of pension and will not be applied to the past commutation. In respect of pensioner who has already commuted the pension, the revised commutation table shall be used only to compute the amount of pension that has become additionally commutable due to retrospective implementation of the revised pay scales. After detailed discussion on the matter, it was decided that as the new dispensation has been formulated strictly in accordance with the recommendations of the 6th CPC However, there was no consensus on the item and it was decided to move to the next agenda item.

ltem No 36; Income criteria in respect of parent and widowed/ divorced/ unmarried daughters.
The staff side demanded as everyone does not get Dearness Allowance (DA), the limit of Rs.35001- plus DA should be converted into a fixed amount for deciding the income criteria in respect of parent and widowed1 divorced1 unmarried daughters. After detailed discussion, it was agreed that the official side will re-examine the issue.

ltem No.48- Restoration of commutation of pension after 12 years instead of 15 years.
Director, Department of Pension and Pensioners’ Welfare informed that after examining the matter in detail, the 6th CPC has recommended that the existing 15 years period for restoration of pension should be maintained. However, the staff side was of the opinion that the commuted portion of pension is actually recovered by the Government within 12 years and therefore there is a need to have a relook in the matter. The staff side also referred to their calculations in this regard and requested the Official Side to reconsider the matter. After detailed discussion, it was decided that Official Side will re-examine the calculation given by the Staff Side and also the calculations used by the 6th CPC.

 
ltem Nos.54 to 59
The official Side informed that item nos. 54 to 59 relate to anomalies pertaining to Union Territory of Puducherry. It was further informed by the Official side that the administration of Puducherry has constituted an Anomaly Committee at the local level. Therefore, it was agreed that these items may be dropped from the agenda of the National Anomaly Committee. However, the staff side also stated that the Anomaly Committee constituted by the Administration of Puducherry should be on the pattern of the departmental anomaly committees and staff side should also be given due representation in the same.

ltem Nos.52 & 53
The Official Side informed that these two items relate to anomalies pertaining to the Union Territory of Andaman & Nicobar Islands and therefore suggested that the same may also be dropped from the agenda of NAC. The Staff Side agreed with the suggestion subject to the condition that some mechanism should be evolved at the local level to discuss these anomalies. The Official Side agreed to take up the matter with the Ministry of Home Affairs.


Aqenda Item Nos. 1 to 4 & 5(iii)- Anomaly in Pay Fixation in case of merger of various Pay Scales.

The Staff Side reiterated their demand that since the pre-revised Pay Scales of Rs.5000-8000/-, Rs.5500-9000/- were merged with the pay scale of Rs.6500-10500, the pay of the incumbents holding the pay scales of Rs.5000-8000/- and Rs.5500-9000 should have been fixed with effect from 1.1.2006 by applying the multiplying factor of 1.86 at Rs.6500/-. The Official Side informed that incumbents in the pre revised pay scale of Rs.6500-10500 have been granted Grade Pay of Rs.4600/- and hence now, there is no justification for this demand. The staff side, however, stated that it would be incorrect to presume that the anomaly has been resolved by granting grade pay of Rs. 4600 to employees in the pre-revised scale of Rs. 6500-10500. The staff side stated that pre-revised pay scales of Rs 5000-8000/- and Rs 5500- 90001- have been merged with the pre-revised pay scale of Rs 6500-10500/- and therefore, employees in these pay scales should be given the minimum of Rs 6500/- multiplied by 1.86 as basic pay in the pay band.

Agenda Item No.5- Revised Pay Rules
(i) Regarding finalisation of option to be given by the employees for the purpose of pay fixation,it was informed by the representatives of the Department of Expenditure that matter regarding delegation of powers to the administrative Ministries/ Departments to allow the revised option is under consideration.

(iv) Regarding anomaly in fixation of pay between direct recruits and promotees, the Staff Side reiterated that while applying Rule 8 of the CCS (RP) Rules, 2008, the pay of direct recruits and new entrants is fixed at a higher stage when compared to the existing employees who were promoted in the same grade.The Staff Side demanded that this anomaly should be rectified by incorporating a provision that in case after 1.1.2006, if a promotee’s pay is getting fixed at a stage lower than that of a direct recruit as given in Section 2 of the First Schedule of the CCS (RP) Rules, then the pay of the promotee should be fixed at the same stage as that of a direct recruit/ new entrant so that the existing employees’ pay is protected at par with the pay given to a new entrant. The Staff Side referred to the orders issued by) the Ministry of Railways for stepping up of the pay of a senior employee who is after promoted after 1.1.2006 and if his / her pay is fixed at a stage less than that of a junior employee who is recruited after 1.1.2006 and requested that Department of Expenditure should issue similar order / clarification in respect of employees of other Ministries/ Departments. The Official Side, however, was of the opinion that such orders should be issued only by the concerned Ministries/ Departments after seeking approval of the Department of Expenditure. Representatives of the Department of Expenditure also informed that the order issued by the Ministry of Railways is not applicable to all the cases and also that the same is applicable only in certain cases subject to fulfilment of certain conditions. Therefore, Representatives of the Department of Expenditure were of the view that a general order in this regard might create more confusion and hence it would be prudent to deal with the issue on case to case basis. In response to the suggestion of the staff side to re-examine the matter, representatives of the Department of Expenditure stated that the matter has already been examined and in cases, where the conditions of stepping up are met, there is no difficulty. However, in cases, where certain conditions are not met,it may not be possible to accommodate the demand of the staff side with the broad principles envisaged by the 6th CPC in this regard. The staff side than stated that as per the relevant provisions of the Fundamental Rules, anybody who is promoted, his / her pay cannot be fixed at a stage lower than the minimum of the pay scale in which he /she has been promoted. The staff side further stated that any person, who is appointed afresh to a post, is normally appointed at the minimum of that pay scale. Therefore,whatever pay has been prescribed for a direct recruitee, has to be treated as the minimum of that particular post in the concerned pay band. On this basis, the staff side stated that pay of a promotee should not be fixed lower than that of a direct recruitee in a particular pay band. The representatives of the Department of Expenditure stated that as a general preposition, this is not in line with the scheme of things envisaged and implemented as result of the recommendations of the 6th CPC. Therefore, agreeing with the demand of the staff side would mean departing from the general recommendations of the 6′h CPC and therefore additional information is required before taking any decision on this matter. In this regard the staff side contended that it is a question of relevant Fundamental Rules and not regarding the recommendations of the 6th CPC. The Staff Side insisted that provisions of the Fundamental Rules are statutory and therefore, they are above the recommendations of the 6th CPC and would prevail over them. Representatives of the Department of Expenditure stated that as per Rule 15 of the CCS (RP) Rules, 2008, the provisions of CCS (RP) Rules 2008 shall prevail in case there is any inconsistency between these rules and Fundamental Rules and therefore, the contention of the Staff Side regarding inconsistency with the Fundamental Rules and provisions regarding fixation of pay on promotion is not correct. After a prolonged discussion on the matter, it was decided that the Official Side will re-examine the matter.

(v) Regarding the anomaly relating to Rule 9 of the CCS (RP) Rules, 2008, concerning the date of next increment, the Staff Side reiterated their demand that employees whose date of next increment falls between 1st February to 1st June may be given an increment, as a onetime measure, in the pre revised pay scales on 1.1.2006 as has already been done in respect of employees whose next date of increment was 1.1.2006. The representatives of the Department of Expenditure stated that it is important to first examine the repercussions of granting an increment w.e.f 1. 1. 2006 in the pre revised pay scale because such a decision may eventually lead to certain other anomalies. After a long discussion, it was agreed that the Official Side would re- examine the matter and either suitable clarification in this regard will be issued before the next meeting of the National Anomaly Committee or if there is a need, the Department of Expenditure shall discuss the matter again with the representatives of the Staff Side.

(vii) The issue regarding temporary status casual labourers was discussed. The Staff Side stated that the temporary status casual labourers should be imparted the requisite training and granted grade pay of Rs.1800/- w.e.f. 1.1.2006. In this connection, the Official Side informed that the Department of Personnel & Training has already taken up the matter with all Ministries/ Departments and information has been called from all Ministries / Departments regarding the number of temporary status casual labourers and the proposals relating to three Ministries/ Departments have already been cleared. It was also informed that no proposal of any Ministry/ Department is pending with the Department of Personnel & Training. Therefore, the required action has already been initiated in this regard. Agenda Item No.47: Date of Annual Increment in EOL cases The Staff Side stated that after the implementation of the recommendations of the 6′h CPC, the date of annual increment in respect of all the employees has been fixed as 1st July every year. In this regard, the Staff Side drew attention towards a clarification given by the Department of Personnel & Training to the Ministry of Defence that in case of qualifying service of less than six months has been rendered between 1st January and 30′ June of every year on account of EOL, this will have the effect of postponing one’s increment to 1′ July of next year. The Staff Side stated that this is quite an anomalous situation and requested that this anomaly should be removed at the earliest. After a detailed discussion on this subject, it was agreed that if an employee has rendered minimum of six months of qualifying ’service during a particular year, he or she should be entitled to get the annual increment on 1st July. It was also agreed that Official Side would issue appropriate instructions in this regard at the earliest.

8. In the end, the chairman thanked the members of the staff side for their help and cooperation for a rigorous and fruitful discussion. The Chairman reemphasised that the staff side should proactively share with the official side the queries about the report of the 6th CPC so that explanatory notes / clarifications etc. could be prepared and uploaded on the website of the Department of Personnel and Training. The Chairman also requested the Staff Side to quickly forward the names of the representatives of the staff side to be nominated as members in the Joint Committee on MACP so that the order regarding constitution of the Joint Committee could be issued. The Chairman then suggested that the next meeting of the National Anomaly Committee could be convened in the last week of June 2010. The staff side agreed with this suggestion.



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National Council meeting Agenda and Discussion points from Confederation of Central Government Employees and Workers - General Secretary


National Council meeting Agenda and Discussion points from Confederation of Central Government Employees and Workers - General Secretary


The 46th meeting of the National Council, JCM was held today at Rail Bhawan, Conference hall under the Chairmanship of Shri K.M. Chandrasekhar, Cabinet Secretary. The 45th meeting was on 14th October, 2006. The 46th meeting was thus held after two and half years, whereas the provisions of the JCM stipulate that the meetings are to be convened once in every four months. i.e. three meetings in a year.

The Chairman welcomed the members and stated that there had been a long delay in convening the meeting. However, he said that the Government had been interacting with the staff side frequently and cited the meeting of the Standing Committee had with him immediately after the 6th CPC recommendations were notified; convened the Standing Committee thereafter under the Chairmanship of the Secretary, Personnel; Government issued orders on the recommendations of the 6th CPC in record time, and ensured that the Anomaly Committee is set up without much loss of time and discussions were held with the Staff side twice in the Anomaly Committee and has agreed to set up a small committee to look into the problems of the MACP. He also stated that the Government's endeavour to resolve the disputes and problems faced by its employees through mutual discussion would continue with a view to maintain cordiality. He then requested the Leader and Secretary, Staff Side to make their initial remarks before the Agenda is taken for discussion.

The Leader, Staff Side thanked the Cabinet Secretary and the Government for taking expeditious decision on the 6th CPC suggestions and expressed his gratitude for his intervention to make improvements in the recommendations of the Commission. However, he touched upon the following issues seeking a resolution;

(a) Child Care leave:- The clarificatory orders issued by the government have in effect nullified the benefit extended to the Women employees by the Commission and the Cabinet. He wanted the clarificatory orders in this regard to be rescinded. He added that if the Government has any practical difficulties in implementing the orders issued in this regard, the same may be discussed with the Staff Side. He assured the Cabinet secretary that the Staff Side will take a very constructive attitude in the matter.

(b) Children Education allowances:- He said that the allowance has been restricted to two eldest surviving children. He wanted the Govt. to reconsider this matter.

(c) MACP Scheme:- The MACP scheme is supposed to be an improvement over the ACP which was in vogue. However in view of the promotion to the next grade pay stipulated in the new scheme, it has turned out to be less advantageous to many employees. He hoped that the Sub Committee would look into the matter and resolve the issue to the satisfaction of the employees.

(d) Pay band and Grade Pay:- The new concept of Pay band and Grade Pay has created a situation in which the Senior Persons would be drawing lesser pay than their juniors. This matter has been the subject matter of discussion at the Anomaly Committee meeting. Though the Railways by issuing an order have partially set right this anomaly, the issue has not been fully addressed. Since this has created resentment amongst the employees, he wanted the Govt. to look into this matter and resolve the issue.

(e)Income Tax:- Normally after every Pay Commission Govt. used to raise the income taxable limit. This was not done this time, with the result even the low paid employees have come within the ambit of taxation.

(f) National Council and Departmental Councils:- The inordinate delay in convening the National Council and Departmental Councils was pointed out and requested that steps are needed to ensure that the meeting do take place within the stipulated periodicity.

The Staff Side Secretary while speaking raised the following issues for consideration and resolution.

(a) He said that the harmonious relationship could only be maintained with a continuous dialogue. The JCM was conceived with that idea. Initially the employees were against the idea of JCM but at the insistence of the then Home Minister, they had agreed and the track record has shown that it has helped in maintaining industrial peace in the Governmental sector. He therefore pleaded that the Council meetings should be convened within the stipulated period of time. He added that most of the Departmental Councils have become defunct and anomaly committee were not being set up at that level with the result all items of anomaly which are normally to be addressed at the Departmental levels were being referred to the National Council. He pleaded that the Govt. should take a serious view of this matter and ensures that the Departmental Councils of all Ministries are periodically convened and the National Council apprised of the functioning of the Departmental Councils as it used to be done in the past.

(b) Arbitration Awards:- Arbitration was inbuilt in the JCM scheme. Issues on which agreements could not be reached are to be referred to the Board of Arbitration. Both the Parties are supposed to abide the decision of the Arbitrator. The Govt. is vested with the power of referring the Parliamentary approval for rejection of the awards on certain specific circumstances like the expenditure on implementation of such awards would have a serious deleterious effect on the economy of the country. Of late the government had been referring every award to the Parliament for rejection. Even though it was agreed that such reference would be intimated to the Staff Side well in advance, the same had not been adhered to. He added that recently he was informed of such a rejection of an award being considered by the Parliament on 4th May, 2010. The Staff side was informed of this only on 3rd May, 2010. It was agreed at the National Council that all such awards which had been referred to the Parliament would be recalled and subjected to negotiation with the Staff Side. Two or three rounds of discussions were held with the Staff Side. But no conclusions were arrived at despite the Staff Side agreeing for the modification of these awards. He, therefore, wanted these awards to be re-subjected to further negotiations and decisions taken by mutual consent.

(c) DOPT has issued recently questionnaire on the functioning of the JCM. The members of the Staff Side had given reply to the said questionnaire. In the light of that he suggested to set up a joint committee to review the scheme with a view to improve its functioning.

(d) The Grade Pay and Pay band system introduced by the 6th CPC for improving the productivity of Government Services was a revolutionary concept and the same had not been fully grasped by the employees. Therefore, all the grievances that arise from the implementation of the 6th CPC had not been catalogued and presented at one go. He requested that the Govt. should continue to consider the problems of the employees as and when it is presented.

(e) He said that the recommendation of the 6th CPC was to double all the allowances. He complained that the Government has not done this in some cases for one reason or the other. What is needed is to double this allowance and then work on alternatives. As and when the alternatives are worked, this allowance could be withdrawn. He then enquired about the delay in revising the Medical Allowance for outpatient treatment for pensioners. The Official side intervened and said that the said allowance would be revised to Rs. 300 p.m. and the orders would be issued soon. The entire Staff Side resented this decision in the light of the fact that even the Health Ministry's suggestion was to raise it to Rs. 500/-.on the basis of the per capita OPD expenses.

(f) He then referred to the orders issued by the Government to the effect that future promotion to the cadre of LDC would only be from among those who are qualified in the XII Std. Examination. He said that while this could be a stipulation for future recruitees, it cannot be applied for the existing employees as it would be impossible for them to acquire the said qualification.

(g) Even though the Fast Track Committee has done a commendable job in the case of Master Craftsmen, the same has not been implemented in Defence so far.

(h) He wanted the Govt. to waive the bonafide transport allowance granted to the employees of Lucknow and Jaipur which has been ordered to be recovered on the basis of the audit objection, especially in the background that in the case of those who had gone to the Court, the relief has been granted.

(i) He specifically drew the attention of the official side to the letter the Staff Side had written in the case of those Group D employees died or retired before getting the benefit of training and assignment of Grade pay of Rs. 1800. He wanted them to be treated as deemed to have been trained and benefit of Grade pay of Rs. 1800 extended to them with effect from 1.1.2006

The Chairman, responding to the points made out by the Secretary and leader stated that the same has been noted and necessary action would be taken by the Govt. and communicated. In the case of convening the Departmental Council meetings, he said that he would write to All Secretaries of the Govt. of India to immediately convene the Departmental Council meetings/Anomaly Committee meeting.

The agenda items were taken up then for discussion. We give hereunder the decisions taken on each of the items that came up for discussion.

Item No.1. Reimbursement of Ayaa charges – delegation thereon: Agreed. Orders issued.

Item No.2. Reimbursement of expenditure towards implantation of special types of stents like cipher stent etc. in case of CS(MA) beneficiaries – delegation thereon:. Orders issued delegating powers to the HODs

Item No.3. Pathological and diagnostic procedures: Diagnostic centres identified and recognized for the City of Jaipur.

Item No. 4. Grant of FMA in lieu of out door treatment facilities. The facility of extending FMA benefit to CGHS Card holders who are beyond the age of 70 would be considered. It was also stated that the Govt. would be issuing orders shortly raising the FMA from Rs. 100 to 300 for all pensioners covered under CSMA rules.

Item No.5.Relocation of one CGHS dispensary in Wadi area under the jurisdiction of Municipal Corporation Nagpur. Decision in the matter would be taken soon.

Item No. 6. Specialized consultation in PU hospital like Ispat Hospital, HEC Hospital and CCL Hospital, Ranchi. The matter is under consideration to permit the CGHS beneficiaries to avail the treatment in the above mentioned hospitals subject to an overall ceiling.

Item No. 7. Supply of free diet to employees and their dependant under treatment for TB Leprosy, Mental, Illness, Cancel and HIV/AIDS, Renal Dialysis therapy, Thalsaema. Orders issued

Item No. 8. Sanction of incentive allowance to Central Government employees working in extremists infested areas. Not agreed

Item No.9 Declaration of Gandhinagar as Link City of Ahmedabad. Final decision by the next meeting

Item No. 10. Up-gradation of Jamnagar as B.2. Town with effect from 14.2.2006. The Department of Expenditure will reconsider the matter.

Item No.11. Up-gradation of Bangalore City with effect from 16.1. 2007. The Department of Expenditure will reconsider the matter

Item No.12. Anomaly in fixation of revised pension. Not agreed.

Item No.13. Eligibility of Family pension to Widow/Divorcee Daughter/unmarried Daughter who are now eligible for payment of family pension for inclusion of names in PPOs issued much earlier. Govt. will issue a general clarification order soon.

Item No.14. Grant of family pension in case of Missing Pensioners after two months. Instead of two months, Govt. has agreed to reduce the period to 6 months.

Item No.15. Grant of half day casual leave facility for industrial employees. It was agreed that the condition imposed in the order would be removed.

Item No. 16. Relaxation of Upper age limit for departmental candidates for appointment to Group C Posts. In the light of extension of superannuation age to 60 years, the upper age ceiling for this purpose would be raised by two years

Item No. 17. Rate of Stitching charge of liveries requires to be increased. Agreed to be considered and raised in 2011

Item No.18. Casual labourers (Grant of Temporary Status and Regularization) scheme- on implementation of. The matter is under consideration.

Item No. 19. Restricted holidays for Industrial workers. Not agreed to

Item No. 20. Applicability of CCS(RSA)Rules 1993 to the workers employed in Defence Establishments. The Defence Ministry will seek legal opinion and would take appropriate decision

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