Category Archives: Pension

Pension Revision in BSNL – Illusions and Realities – Article by Com.K.G.Jayaraj, GS, AIBDPA

19 Monday Jun 2017

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Dear Comrades,
I am herewith posting the full text of the Article published in the ‘Telepensioner’ June issue, written by Com.K.G.Jayaraj, General Secretary, AIBDPA. It is educative and gives the correct approach to the issue of Pension for BSNL employees.

Pension Revision in BSNL – Illusions and Realities.

K.G. Jayaraj, General Secretary, AIBDPA

When BSNL was formed as a fully government owned PSU under Company Act on 01.10.2000, the employees were offered pension from the consolidated fund of the government. And for this, rule 37 A was incorporated in CCS (Pension) Rules, 1972. The pay scales of BSNL employees were also upgraded from CDA to IDA scales. There was a strong argument during this time from certain union leadership, particularly Com. O.P. Gupta that pension should be paid on CDA scales. This argument was unitedly resisted and defeated under the leadership of Com. V.A.N. Namboodiri and the progressive section with the all round support of the other unions. If the argument of Com. O.P. Gupta was agreed to, there would have been huge loss in the pension of BSNL pensioners.

The issue of pension revision arose after the pay revision in BSNL and other CPSEs w.e.f. 01.01.2007. The DoT as well as the government refused to revise the pension for the pre-2007 BSNL pensioners on the plea that there is no provision for pension revision in the Rule 37 A. This was fought tooth and nail by not only the pensioners organisation but all the serving employees unions and succeeded in getting pension revision.

Then came the issue of pension revision on 78.2% IDA or benefit of the merger of 50% IDA with pay. The BSNL employees were granted this benefit notionally from 01.01.2007 with financial effect from 10.06.2013. But the government was not prepared to implement it to those retired before 10.06.2013. The main hurdle pointed out was 60:40 condition for payment of pensionary benefits. Still, with the serious intervention of the employees organisations, powered with two strikes, compelled the government to scrap the 60:40 condition and granted the 78.2% IDA fixation to BSNL pensioners.

During the course of this long and sustained struggle, some people advocated the idea of 7th Pay Commission fixation formula for the BSNL pensioners. What made these people to prefer such a demand was the continuous loss incurring of BSNL. It is more or less the same demand Com. Gupta had put ward and rejected by all. So now these people say that 7th Pay Commission fixation should be implemented on IDA scale. The justification for such a demand is that BSNL pensioners are covered under CCS (Pension) Rules, 1972. Yes CCS (Pension) Rules ensures BSNL pensioners, all the pensionary benefits being granted to central government pensioners, but barring pension, and medical facilities (IDA pattern). As far as pension is concerned, BSNL retirees are governed by Rule 37 A, amended during formation of BSNL. Even if, the government agrees for fixation formula on 7th Pay Commission recommendation, it would become imperative to be downgraded to CDA scales as per existing rule.

It was just a couple of years ago that MTNL retirees were granted pension and other benefits at par with BSNL pensioners, but only after downgrading the pay scales to BSNL pay scales.

Let us come back to BSNL. These people had written off BSNL stating that even ‘God’ cannot revive BSNL and bring it to profits. And on an occasion CMD BSNL said that there will be no pay revision in BSNL w.e.f. 01.01.2017, these people became very jubilant and were in a celebrating mood. But the continued efforts of the employees, spearheaded by all the unions and the Management brought out a wonderful turn around posting operational profits of Rs.672 crore in 2014-15 and Rs.3,856 crore in 2015-16. This made the CMD BSNL to change his earlier stand and assured a decent pay revision in BSNL. The survival of BSNL as a government PSU is very much warranted to ensure telecom services to the people at affordable rates and save them from the sheer exploitation of the greedy private telecom companies.

After the 3rd PRC submitted it’s report, both BSNL Management and DoT had taken a positive stand on pay revision in BSNL, despite the affordability condition in the PRC report. However, it is reported that in the Secretaries meeting under the chairmanship of the Cabinet Secretary held on 12.05.2017, the Additional Secretary of Department of Telecom took a passive stand. All the unions and associations under the leadership of BSNLEU therefore has decided for a phased program of agitation, culminating in a strike on 27.07.2017, demanding pay revision and pension revision. Affordability conditions are nothing new. There had been such affordability condition in the 1st and 2nd PRC also. The 3rd PRC in its report itself has reproduced the operational portion put forward by the 1st and 2nd PRC.

Ist PRC – 2.4.8(a) Affordability.

CPSEs which did not make profit during the last three years would also be allowed to adopt the same recommended pay scales, but with the approval of the administrative ministries in consultation with DPE.

IInd PRC – 2.4.10(a) Affordability.

The parameter for deciding affordability was that by implementing the pay package, the dip in the profit of CPSEs for the year 2007-08 should not exceed 20% in respect of executives. If the dip is more than 20%, then the pay package would not be implemented in full, but in different part stages.

As for scoring, the CPSEs were categorised into five groups. A+, A, B, C and D. The 2nd PRC recommended 5 sets of pay scales for five categories. It also recommended different fitment method.

But after the struggle of the workers, the government was compelled to reject the categorisation and a uniform pay scales was prescribed.

Fitment was also made uniform with @ 30% of BP + DA. The 3rd PRC in it’s executive summary, para 5, has recommended that “Affordability condition shall not be applicable to such CPSEs which are formed to perform specific agenda of the government”.

The CMD BSNL in his DO letter dated 07.06.2017 to Secretary, DoT, with copy to Secretary, DPE has quoted the above recommendation and has effectively pleaded that it is very much applicable to BSNL. BSNL is committed to implement the Telecom Policy, 1999. BSNL is incurring loss for keeping up the social obligation of the government by giving landlines in rural areas. And it is no private telecom company but BSNL alone restoring the telecom services where national calamities strikes the country. Also it is the BSNL which is extending telecom services in the terrorist / naxal affected areas by installing sufficient number of towers. CMD also has specifically mentioned about the urgency of pension revision of 2 lakh BSNL pensioners along with the wage revision.

Pay Revision is very much possible, so also pension revision.

Therefore, there is nothing to be disappointed but to be confident that we shall achieve pay revision and pension revision through united and sustained struggle of the workers and whole heartily supported by the pensioners. There would not be much difficulty in the pension revision, once the pay revision is implemented, as there is no 60:40 condition. On the contrary 100% liability is with the Central Government.

Those who have no faith in organization and the struggles, through which only, we have achieved all the genuine demands of both workers and pensioners, may continue to spread rumours and half truths to confuse the pensioners. The legacy of Com. O.P. Gupta was “it is not the responsibility of unions to fight against government policies and that is the job of political parties.”

These people are least concerned about the continuance of BSNL as a government PSU to ensure telecom services at affordable rates to the common people. They are also not concerned about two lakh BSNL employees. And their mindset has narrowed down to ‘let the BSNL and it’s employees go to the hell but give us our pension revision at any cost’.

Let us focus on the programme of struggle already chalked out by all the unions and associations for pay revision and pension revision so that it is made a grand success.

And definitely victory will be ours.

Kerala LDF Government to the support of the Senior Citizens

15 Thursday Jun 2017

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The LDF Government in Kerala is fully committed to the cause of the senior citizens in the state. It has introduced a project ‘Vayomitram’ (meaning friendly to senior citizens), through which all the senior citizens are provided with facilitates comprising free medicine, counselling, free mobile clinic treatment etc. All those above 60 years and who have no other pension are  paid Rs. 1,100 monthly pension which is paid at their homes. Old age homes are provided in all the districts at government expense.

Today, I got the  chance to attend a Work Shop for Senior Citizens organised by the state government in Kozhikode. More than 500 senior citizens participated. Local MP, Mayor, Dist. Panchayath President, MLA, Police Officeers and may other dignitaries participated. The various issues of the senior citizens were presented by experts. Many old people explained the hardships they are being faced, including desertion by their children.  The laws protecting the senior citizens were explained.

It was a good experience. I could also meet a lot of seniors who distinguished them selves in various fields. (the photos are from all parts of India)

Kerala Government grants Social Security Pension

08 Saturday Apr 2017

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Despite serious financial crisis, Kerala LDF government has sanctioned Rs. 1,114 crore for payment of Social Security Pension to 37.02 lakh persons, those senior citizens who are not getting pension otherwise.

Out of this, 19.29 lakh persons will be paid through accounts, while 17.73 lakh persons will be paid at their homes. Government has taken decision earlier to pay the pension at their homes as a special case.

The special consideration to the senior citizens by the Kerala Government is to be appreciated.

Pensioners protested in Athens

06 Thursday Apr 2017

Posted by in Pension, TUI of Pensioners and Retirees

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The Pensioners’ Union in Athens, Greece, is on agitation on the pension issue. They conducted massive protest demonstration in Athens against pension cuts on 4th April 2017. A report from Athens is given below:

“Tuesday, April 4, Athens Unions pensioners staged a massive demonstration against the new pension cuts, SYRIZA provided by the Government and the EU-IMF-ECB Agreement.
Retired unions protested to the Ministry of Labor, where they met with the Deputy Minister. The unions denounced the planned cuts and demanded the restoration of all the losses they had in their income in recent years.
The unions called for all pensioners to continue the fight, with the following manifestations station PAME on April 7 ”

AIBDPA expresses its solidarity and support to the struggles of the Pensioners of Athens!

RTI on pension details should be replied within 48 hours – Central Information Commission

02 Sunday Apr 2017

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The Central Information Commission has issued directions that all the RTIs on pension issues should be replied within 48 hours. The report of the PTI is given below.
New Delhi, Apr 2 RTI applications seeking pension details should be replied to within 48 hours as it pertains to the “life and liberty” of the elderly, the Central Information Commission has held as it pitched for early redressal of such grievances.
The Commission also directed that if an RTI application is a genuine grievance of a pensioner, steps should be initiated within 48 hours to redress it.
The directive of Information Commissioner Sridhar Acharyulu will come to the aid of over 58 lakh central government pensioners.
Acharyulu in a recent order held that the information pertaining to pension of a person pertains to his/her life and liberty which is mandated to be replied to within 48 hours as per the Right to Information (RTI) Act.
He said the moment an RTI application on pension issue is received, there should be a mechanism at the entry stage to discover and identify if it reflects a pension related grievance.
He said it should be brought to the notice of the responsible officer by the CPIO on the same day and if it is a genuine case, the grievance should be addressed. The result should be communicated within 48 hours, followed by redressal within 30 days.
Acharyulu said considering the “living needs” of elderly pensioners, it is important that records of their dues should be considered as “life and liberty” related information under the RTI Act.
“The moment RTI application on pension issue is received, there should be a mechanism at the entry stage to discover and identify if it reflects a pension related grievance/issue and should be acted upon immediately,” Acharyulu said in his directives to Employees’ Provident Fund Office, Raipur.
He said all the cases relating to delay in fixation and payment of pension and also arrears shall be dealt with urgently, considering them as request for information concerning the life or liberty under section 7(1) of RTI Act.
“Any grievance regarding these issues should also be treated as ‘right to life’ under Article 21 of the Indian Constitution and the public authorities shall do all the needful to address the issue within 48 hours,” the Information Commissioner said.
Acharyulu said some authorities say that unless an imminent danger is there to life or liberty, this clause cannot be invoked.
“It is an extraneous extension of imagination without any basis. The expression used in the Act is simply ‘where the information sought for concerns the life or liberty of a person’, which should mean it is enough if it concerns the life or liberty. That need not be in imminent danger,” he clarified in his order.
He was adjudicating the case of one Amrika Bai who had filed an RTI application seeking to know discrepancy in the payment of pension to her.
When she could not get proper response, she approached the Commission questioning non-payment of arrears of pension in a time-bound manner.
“The arrears involved is only an increase of 4 per cent on the basic pension of Rs 1,986, which comes to Rs 80. Though it is a very small amount it matters most for an old age appellant, who lost her husband and depends upon sons or daughters,” Acharyulu said.

Annual Conference of AIPRPA, Delhi

27 Sunday Nov 2016

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Today, 27th November 2016,  I was invited to inaugurate the All India Postal and RMS Pensioners Association Delhi Circle Conference, which was being held at R.K.Puram Sector 6, Community Hall, Delhi. About 150 pensioners were present. Com. Rajendra Prasad, Circle President presided. Com.Deep Chand,Circle Secretary welcomed all and garlanded and presented shawl to all the guests and speakers.

The house stood in silence for one minute paying homage to the Martyrs, Cuban Revolutionary leader Com. Fidel Castro who passed away yesterday and also Com. Des Raj, former General Secretary, P.IV Union, who left us a few weeks back.

In my inaugural speech, I mentioned about the great Cuban Revolution, the pivotal role played by Castro as also the priority given to the pensioners and children in the socialist  countries.  I also spoke about VII CPC recommendations,  15th December Parliament March by CG Employees, demonetisation and the misery to the people, the major demands of the pensioners etc.

Coms. Iswar Dabas, Laxmi Narayan, H.L.Siddhu and other leaders addressed the Conference. I returned before the conclusion of the conference since I had to attend some other urgent work.

It was a pleasure to meet many senior leaders of the Postal and RMS movement, who are now active in the Pensioners’ movement, AIPRPA. It was a pleasant day. Thanks to Comrades Rajender Prasad and Deep Chand.

Increase in pension of freedom fighters

22 Thursday Sep 2016

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The Cabinet has decided to increase the pension of the freedom fighters by  about 20%. This will take effect from 15th August 2016. DA also will be announced twice in a year as in the case of the central government employees.

As per the new decision the pension of the, ex-Andaman political prisoners/spouses will get Rs. 30,000 increased from the present Rs.24,775. Freedom fighters will get Rs.28,000 in place of Rs. 23,085 and INA pensioners Rs. 26,000 from the earlier rs. 21,395.

The pensioners have been demanding long for an increase in their pensions. At last the decision is taken to increase.

DOT issued orders on the full liability of pension of BSNL retirees, rescinding 60% condition.

23 Saturday Jul 2016

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After the Cabinet decision on the 78.2% IDA Pension fixation as also pension liability of the government of the BSNL retired pensioners, the DOT has issued a very clear order vide No. 40/2013-Pen(T) dated 20-07-2016 stating that :
(a) The pension liability in respect of employees of DOT/DTS/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.
(b) The liability towards pensionary benefits, including family pension to the BSNL employees (excepting those recruited after 01-10-2000), as per sub-rule 22 of Rule 37-A of CCS (Pension)Rules, 1972, lies with the Government of India. The condition that the annual pension liability of the government shall not exceed 60% of the annual receipts to Government from the items specified in the O.M.dated 15-06-2006, is hereby rescinded.
(c) BSNL will continue to discharge pension liability by way of pension contribution in accordance with FR 116.
(Full order published in AIBDPA and BSNLEU websites).

At last, one long pending problem is clearly solved.

AIBDPA meets Secretary, DOT, Member (Services) and Member (Finance)

14 Thursday Jul 2016

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Com. V.A.N.Namboodiri, Advisor, AIBDPA today, 14th July 2016, met Shri J.S.Deepak, Secretary, DOT and thanked him for the settlement of the 78.2% IDA fixation as also getting withdrawn the condition of 60: 40 in payment of pension. He also spoke about the need to ensure pension revision for the BSNL retirees, whenever there is wage revision for BSNL employees, with out the need to approach the cabinet. He agreed to look in to the matter.

Com. Namboodiri also met Smt. Annie Moraes, Member (Finance), DOT and thanked her for the effort in settling the above issue. He asked the Member (Finance) to ensure that the order on 78.2% is issued without further delay. She said that the file is with her and the orders will be issued at the earliest.

Com.Namboodiri, Advisor, AIBDPA met Shri N.K.Yadav, Member (Services), and thanked him also. The issue of Pension revision of BSNL retirees was discussed in detail. He assured that the matte will be seriously attended to. He stated that the pension revision issues of both MTNL and BSNL are pending.

AIBDPA is trying to gt the 78.2% IDA pension fixation orders at the earliest.

Attack by Canada Post on Postal Workers

10 Sunday Jul 2016

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The Postal Workers of Canada are in arms against the proposal of the Canada Post to change the defined pension scheme to for an inferior defined pension scheme. Refusing to discuss with the Union, the Canada Post is taking a high handed decision.

The Communist Party of Canada today called on Prime Minister Justin Trudeau to intervene with Canada Post CEO Deepak Chopra to restart negotiations.

The workers are preparing for a serious struggle against the attack on pension.

Our whole-hearted support to the Canadian Postal workers for their valiant struggle!