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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 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.

Implementation of VII CPC recommendations connected with pension

24 Tuesday Jan 2017

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Despite many months after the implementation of the VII CPC recommendations for the CG pensioners including gratuity, these have not been extended to BSNL pensioners. Com.V.A.N.Namboodiri, Advisor, AIBDPA today, 24th January 2017, met Shri R.K.Mishra Member (Services) and discussed the matter and demanded for early issue of orders in the matter. He agreed to look in to the matter. The issue of extending 78.2% IDA Pension fixation for those retired from January to May 2007 was also raised on which a letter has already been given earlier. Member (Services) agreed to look in to.

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.

SPECIAL AADHAR ENROLLMENT DRIVE FOR PENSIONERS – 30 MAY TO 10 JUNE 2016

02 Thursday Jun 2016

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THURSDAY, JUNE 2, 2016

SPECIAL AADHAAR ENROLMENT DRIVE FOR PENSIONERS, FROM MAY 30 TO JUNE 10, 2016. (PIB)

Press Information Bureau

Government of India

Ministry of Communications & Information Technology

01-June-2016 16:27 IST

Special Aadhaar Enrolment drive for Pensioners, from May 30 to June 10, 2016

            Pensioners will also get opportunity to seed data for digital life certificate

            The Unique Identification Authority of India (UIDAI) has launched a special enrolment drive for pensioners who are yet to enroll for Aadhaar. The drive is being conducted to enable Pensioners avail the convenience of Jeevan Pramaan, an initiative of Department of Pensions and Pensioners’ Welfare, Government of India.

            Every year, pensioners need to provide a life certificate to an authorized pension disbursing agency such as a Bank, Post office etc., for receipt of pension. To get a life certificate the pensioner is required to either personally present oneself before the Pension Disbursing Agency or have the Life Certificate issued by the department/authority where they served earlier and have it delivered to the disbursing agency. This entails considerable hardship to the senior Citizens.

            Jeevan Pramaan, a digital life certificate which utilises the Aadhaar identity platform, addresses this very problem by digitizing the whole process of securing a life certificate. A pensioner just needs to biometrically authenticate at the nearest centre. After successful authentication, the digital life certificate is stored in a Life Certificate Repository, which can be accessed by the Pension Disbursing Authority.

            To facilitate pensioners to avail the facility of Jeevan Pramaan, which is based on Aadhaar Identity platform, UIDAI and Department of Pensions and Pensioners’ Welfare have taken initiative to carry out special enrolment drive for Pensioners through banks which are Registrars for enrolment for Aadhaar as well as Pension Disbursing Authorities. 

The enrolment drive and the Aadhaar seeding camp is being run from May 30 to June 10, 2016. 

            “We hold special enrolment drives to help people who are yet to enrol for Aadhaar. This particular exercise has been initiated to make sure pensioners get an Aadhaar number if they still don’t have one and seed the Aadhaar details of pensioners so that they can get a Jeevan Pramaan,” said Director General & Mission Director of UIDAI, Dr. Ajay Bhushan Pandey. 

            So far over 15.41 Lakh pensioners have already registered for the Aadhaar-enabled Jeevan Pramaan service.

 

Pension Act may not be scrapped

20 Wednesday Apr 2016

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New Delhi: The Department of Personnel and Training (DoPT) has decided against scrapping a 145-year-old law, which exempts pension from being “attached or sequestered”, though a bill seeking its abrogation from statute book has already been passed by the Lok Sabha.

            Earlier, the DoPT had asked the Law Ministry to include the Pensions Act, 1871 in the repealing bill so it could be removed from the statute book. One of the key provisions of the law is that it exempts pension from attachment by any court. But later, it wrote to the Law Ministry to remove the Act from the repealing bill.

            After its passage in the Lok Sabha, the Repealing and Amending (Third) Bill, 2015 is pending in the Rajya Sabha.

            The Law Ministry is the nodal agency for repealing laws which have lost relevance today.

            A senior government functionary said that perhaps the realisation that there is no other law in the country which protects pensions led to decision against scrapping the Act. (Courtesy: Confederation News)

 

AIBDPA meets Secretary, DOT on 78.2%

31 Thursday Mar 2016

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Com.V.A.N.Namboodiri, Advisor, AIBDPA, today, 31st March 2016, met Shri J.S.Deepak, Secretary DOT on the issue of 78.2% IDA Pension fixation for the pre- June 2013 BSNL pensioners. Com.Namboodiri pointed out the undue delay in submitting the case to the cabinet for approval. Secretary DOT assured that the the Cabinet Note is on his table and there will be no further delay in forwarding the same. Com.Namboodiri also demanded that the 60:40 condition for payment of pension should not be there which is creating difficulties in pension revision. He stressed the need for automatic pension revision, since pension revision is part of pension. He brought to the notice of the DOT the extra efforts made by the unions/associations in BSNL for improving the services which is showing results and the need for financial support from the government.

It is expected from the discussion that the file may be submitted to the Minister/Cabinet with out further delay. This is the second time that AIBDPA is meeting the Secretary DOT in this month, in addition to meeting the Minister Communications Shri Ravi Shankar Prasad on 09-03-2016, in which the entire issue was brought to his notice in detail for early decision.

Jeewan Praman – Life Certificate through Digital Process

07 Sunday Feb 2016

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Now Life Certificate for Pensioners can be provided by digital process. The Press Release issued by the Ministry of Communications and IT dated 02-02-2016 is reproduced below:


Government of India

Ministry of Communications & Information Technology

02-February-2016 15:00 IST

Jeevan Pramaan- A Hit With Pensioners 

Jeevan Pramaan (https://jeevanpramaan.gov.in/) provides a big relief to all pensioners. A pensioner can now digitally provide Annual Life Certificate to the authorities for continuity of pension instead of presenting himself physically or through a Life Certificate issued by specified authorities every year. Lakhs of pensioners on various schemes are already benefitting from it.

             Launched by the Prime Minister on 10th Nov 2014, nearly 12.5 Lakhs pensioners have registered for Digital Life Certificate (DLC) in about a year. Interestingly the enrolled pensioners come from different districts of the country showing the interest the facility has generated all over the country including in far flung rural and hilly districts. Started with Civil pensioners of Central Government only, several other pensioner schemes have adopted Jeevan Pramaan and provide this facility of Digital Life Certificate to these pensioners. Presently apart from civil Central Government employees, Defence services, Employees’ Provident Fund Organization (EPFO), Post Offices, Railways, Defence Pensioners Disbursement Office (DPDOs), several PSUs including Mumbai Port Trust, Chennai Port Trust and New Delhi Municipal Council are providing this service.

State Governments have also recognized the potential of Jeevan Pramaan and adopted the service. State Governments of Haryana, Himachal Pradesh, Telangana, Madhya Pradesh, Maharashtra, Punjab, Pondicherry, Odisha, Andaman & Nicobar, Rajasthan and Jharkhand have already started providing these services.

Jeevan Pramaan service is provided by NIC through a Central Portal developed on Open source. The platform is highly scalable. Developed using in-house manpower, the portal has been developed and maintained free of cost to all the user agencies and is also free for pensioners. 

            In Jeevan Pramaan a pensioner can digitally show that he or she is alive using his/her biometrics. Biometric devices are available in CSC’s, Bank branches, Pensioner associations, Govt. offices etc. More over any citizen can also purchase a finger print scanner and do the identification from home. A typical finger print scanner currently costs around Rs. 2600/- only and the prices are expected to come down in future. The usefulness of Jeevan Pramaan will increase even further as the biometric authentication device gets integrated with mobile phones.

            All pension disbursing organizations, which have a requirement of periodic life certificate to continue disbursing pension are welcome to join this free offering.

            For more details they are required contact Ms Nandita Chaudhri, DDG, NIC (Email: ) 

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KSP/ss
(Release ID :136003)