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DATE:     6/ 7

WEDDING BELL:
Our Member Shri P.V. Siva Sankaran son Selvan:S.Bharat  WEDS  Selvi:C.Preethi
on 11.07.2016 (Monday) at Chennai.

RECEPTION: On 10.07.2016 at  6.00  PM
VENUE:Thirumal Thirumagal Vasanth Mahal,
           No.07--B, M.T.H. Road, Padi, Chennai--50
           (Near saravana Stores)


DPE order on IDA w.e.f. 01-07-2016

DATE:     6/ 7

Department of Public Enterprises issued  IDA orders on 4.7.2016  enhancing  IDA to 114.8%  effective from 01.07.2016.

Union Cabinet approves Revision of pension of BSNL Pensioners Removing Anomalies:

DATE:     5/ 7

Official Press release from Cabinet secretariat after today’s cabinet meeting

Cabinet approves Revision of pension of BSNL Pensioners Removing Anomalies The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the revision of pension of BSNL pensioners and family pensioners, who retired prior to 10.06.2013 by allowing the benefit of merger of 50% DA/DR with Basic Pay/ Pension, effectively amounting to 78.2% DA/DR for the purpose of fitment, and (ii) Modifying the liability of BSNL towards the payment of pensionary benefits to the retired employees.

The pension of BSNL pensioners/family pensioners, who retired prior to 10.06.2013 has been revised w.e.f. 01.01.2007 notionally with actual benefit w.e.f. 10.06.2013, by allowing the benefit of merger of 50% DA/DR with Basic Pay/ Pension, effectively amounting to 78.2% DA/DR for the purpose of fitment at par with the serving employees of BSNL. However, increase in the amount of DCRG, leave encashment and commutation of pension in respect of these pensioners shall not be increased on this account.

The pension liability in respect of employees of Department of Telecommunications (DOT) / Department of Telecom Services (DTS) / Department of Telecom Operations (DTO) who retired prior to 01.10.2000 is solely borne by Government of India and the BSNL will have no liability in respect of these employees. In respect of employees who are absorbed in BSNL, the liability on account of pensionary benefits shall be fully borne by Government while BSNL will continue to discharge pension liability by way of pension contribution in accordance with FR-116 for the period they so work/worked.

The revision entails an estimated recurring annual expenditure of approximately Rs 129.63 crore for pensioners and Rs 24.93 crore for family pensioners and arrears from 2013-14 would be Rs 239.92 crore approximately for pensioners and Rs 44.62 Crore approximately for family pensioners. Approximately118500 pensioners all over India will be benefitted by this revision.

This revision will fulfill the long pending demand of revision of pension of BSNL absorbed employees who retired prior to 10.06.2013 and will bring the pensioners at par with the serving employees of BSNL by removing the anomalies. It will help in reducing the financial burden of BSNL and removing prospects of industrial unrest in BSNL while fulfilling the commitment of Government.

Background:

The decision of the Cabinet has come in the wake of an anomalous situation created in the difference of pension formula among the BSNL retirees who retired before and after 10.06.2013. Further, the decision regarding pensionary liability is on persistent demand from various quarters and a series of deliberations at different levels to fulfill the assurance given by the Government before corporatization i.e. before formation of BSNL.

 

CENTRAL DEARNESS ALLOWANCE /DEARNESS RELIEF TOBE INCREASED BY 7% FROM 01.07.2016

DATE:     4/ 7

AS PER CONSUMER PRICE INDEX RELEASED BY LABOUR BUREAU THE DA/DR FOR CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS IS TO BE INCREASED BY 7% FROM 1ST JULY, 2016.

78.2% PENSION REVISION : NO NEED OF ANXIETY

DATE:     3/ 7


YESTERDAY  PENSIONERS ASSOCIATIONS REPRESENTATI VES MET   SHRI ANANTHAKUMAR, HONOURABLE   MINISTER FOR FERTILIZERS AND CHEMICALS, AND EXPRESSED OUR PENSIONERS ANXIETY REGARDING 78.2% IN THE BACKDROP OF CABINET APPROVAL FOR 7th CPC AND NO INFORMATION ABOUT OUR CASE.    SHRI ANANTHAKUMAR ASSURED THAT THERE IS NO NEED FOR ANY ANXIETY AND OUR CASE IS UNDER ACTIVE CONSIDERATION OF CABINET. 
LET US HOPE, WE MAY GET FAVOURABLE ANNOUNCEMENT NEXT WEEK.

DATE:     30/ 6

RETIREMENT WISHES:

Shri P.Mohan, EE (Civil), Chennai who is retiring to-day (30.06.2016) on superannuation. Our Assn wishes him "A HAPPY AND LONG RETIRED LIFE"

DATE:     30/ 6

IDA WITH EFFECT FROM 01.07.2016:

IDA increased 2.4% with effect from 01.07.2016,
The total IDA rate is 114.8%.


DATE:     30/ 6

7th PAY COMMISSION REPORT:
                        The Cabinet approves Implementation of the recommendations of 7th Central Pay Commission The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC. However, this time, 7th CPC recommendations are being implemented within 6 months from the due date. The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year.
 The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

 HIGHLIGHTS:
 1. The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.

 2. All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

 3. The minimum pay has been increased from Rs. 7000 to 18000 p.m. Starting salary of a newly recruited employee at lowest level will now be Rs. 18000 whereas for a freshly recruited Class I officer, it will be Rs. 56100. This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.

 4. For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices. After taking into account the DA at prevailing rate, the salary/pension of all government employees/ pensioners will be raised by at least 14.29 % as on 01.01.2016.

 5. Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

 6. The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.
 7. Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include: · Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %. · A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories. · Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel. · Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service. · Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

8. The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.

 9. The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

 10. The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.

 11. The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.

 12. The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.

 13. Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.

 14. As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.

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