MERGER OF 50 PERCENT DA

Merger of 50 percent DA may soon be considered by Central Government –Sources

Sources close to the Central Government Employees Federations told that Merger of 50% DA will soon be considered by Central Government before the budget session of Parliament in February 2014. According to the sources, the central government is likely to consider the central government employees  demand for merging of 50 % DA, for the reason that the DA will be crossing 100% level after January 2014.

The rate of dearness allowance to be paid to govt servants has been increasing consistently due to the rise in the prices of essential commodities for the past two years. In 2011 the rate of DA was at 50 % level. Since then all the Federation demanded the central government to merge the 50 Percent DA with basic Pay. But the government did not accept this demand to merge the DA with basis pay, as it was not recommended by sixth CPC.

The demand would be considered in view of parliament elections

But federations kept on demanding the government that raising dearness allowance alone will not help to compensate the alarming rate of price rice. So they urged the government to consider their demand favorably. It is believed that after the defeat in the election of four state legislative councils, the UPA government has decided to reconsider about its decision on the issues which directly affects the common public. The high command of the ruling party thought that the reason for their defeat in the state election is mainly because of their government failed to contain the price rise. The gap between common public and UPA government has been considerably increased. To correct these failures the UPA government decides to do something to attract the voters.

After announcing the government’s proposal to constitute the 7th pay commission, the community of central government employees has been convinced to have soft view on this government. Further the 50 lakh central government employees would be made happy if the 50% DA is merged with Basic Pay. It is told that , as the central government staff association and federations demanding it very seriously, in case the government decides go with this demand, there will be around one crore voters will be in favour of UPA government. So the government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.

Allowances will have no impact on merging DA with basic Pay

The sources, associated with National Council JCM, said that the government initially was not willing to consider this demand as some allowance and advances have been raised by 25% whenever the DA crosses 50% level as per the sixth CPC recommendation. But federations insisted that the allowances, which are raised to 25 % level when DA crosses 50%, will have no impact on merging DA with basic pay. The only allowance will have an increase when Basic Pay increases are HRA. No other allowances will be increased and other entitlement of the respective Grade Pay will not be revised as the 50% DA to be merged will be kept under separate component like it was treated in 5CPC as Dearness Pay. “There is no need to worry about financial implications, as the 50% DA will be paid by just changing its nomenclature as Dearness Pay”, said sources.

50% DA merger to be decalered before DA crosses 100%

Further, it has been informed that it is good enough for the government to announce its decision before declaring the next additional installment of DA. Because the AICPIN for Industrial workers for the Month of December 2013 is awaited to determine the rate of dearness allowance to be paid from January 2014.The result of last 11 months AICPIN shows that DA will definitely be raised by 10 % from existing 90% level. So the rate of DA will be 100% with effect from 1st January 2014. After the DA increased to 100%, the demand for 50% DA merger will have to change its avatar. Probably the demand would be for 100% DA merger. So the federations expect the government may consider 50% DA merger soon.

However, decision if any in this regard should be taken before the announcement of election for parliament. It is expected that election announcement for parliament will be made by the end of February 2014. Before that,  the announcement of 50% DA merger is expected from central government.

One Rank One Pension for armed forces approved in budget

Great news for ex servicemen. Finance Minister in his interim budget granted Rs 500 Crores for implementation of OROP for the ex servicemen. It will be effected prospectively from 01.04.2014.
Chidambaram says the government has accepted the one rank one pension scheme for the defence forces. "Rs 500 crore will be transferred in 2014-15 for implementing the 'one rank one pay' decision,"

Rahul backs one rank, one pension for ex-servicemen

NEW DELHI: It's election season, and politicians are promising the one-rank, one-pension (OROP) to retired military personnel yet again. The latest to join the bandwagon is Congress vice-president Rahul Gandhi, who on Friday told a group of ex-servicemen that he backed their long-standing demand. 

"I am on your side. I understand your concerns. You give your life for the country, I will do all that I can to see that your demands are met," said Gandhi, addressing a gathering of over 500 ex-servicemen in Delhi. 

But the fact remains that virtually all parties, including Congress and BJP, have time and again promised OROP to ex-servicemen in the run-up to elections but never implemented it once they came to office. 

Both the UPA-I and UPA-II, with Pranab Mukherjee and AK Antony as defence ministers, for instance, have refrained from granting OROP despite ex-servicemen holding many protest rallies and returning their medals in thousands in protest. 

OROP basically implies payment of uniform pension to personnel retiring in the same rank with the same length of service irrespective of their date of retirement. Consequently, any further enhancement in pension rates will automatically be passed on to past pensioners. The UPA government has certainly revised military pensions, holding that several steps have been taken over the last three to four years to "improve the welfare of ex-servicemen" at the additional cost of Rs 2,200 crore annually, but it is not the OROP the military veterans have been demanding. 

The defence ministry in the past has contended that full OROP is neither financially nor administratively possible. As per one past estimate, full OROP implementation could mean an annual outgo of another Rs 1,200-1,300 crore, apart from payment of arrears in the range of Rs 4,000 crore. "There are also administrative reasons, with possible repercussions from the civil side, public sector and autonomous bodies," said an official. 

"Significant improvements in pension for armed forces personnel were made over and above the benefits that accrued out of implementation of the 6th Pay Commission. Of the additional annual Rs 2,200 crore, a major share amounting to Rs 1,636 core went towards further improving the pension of PBORs (personnel below officer ranks)," he added. 

But with elections on the horizon, it's time to woo the ex-servicemen with tall promises once again. The defence community of 14 lakh serving and 24 lakh retired military personnel swells into a sizable — albeit diffused — votebank of around 1.5 crore people if family members are also taken into account.

1 RANK 1 PENSION

26TH JANUARY, 2013 - 64TH REPUBLIC DAY PARADE - LIVE

http://youtu.be/5ZQ6mF5Z4_U

NEW DA PAYABLE TO CENTRAL GOVERNMENT EMPLOYEES MIGHT BE ENHANCED FROM 72% TO 80% WITH EFFECT FROM JANUARY 2013

THE RATE OF DEARNESS ALLOWANCE PAYABLE TO CENTRAL GOVERNMENT EMPLOYEES MIGHT BE ENHANCED FROM 72% TO 80% WITH EFFECT FROM JANUARY 2013

All India Consumer Price Index Number for Industrial Workers is the only Index watched keenly by each and every Central Government Employees now. Because the rate of Dearness allowance granted twice in a year for cg employees is determined by this Index only. It is irony that no one is happy to see the hike in prices of essential commodity, but all the government servants are eagerly awaiting to know how much the rate of Dearness allowance will be increased at the end of every 12 months from the month of January and July. The interesting thing to be noted in dearness allowance vs AICPIN_IW is that the AICPIN-IW reflects the increase in the prices of basket of essential commodities, whereas, the rate of dearness allowance reflects the increase or decrease in AICPIN-IW. It is quite obvious that the AICPIN – IW is always in the trend of increasing mode due to the price rise, so as the rate of dearness allowance is also increasing twice in a year.

Whatever the impact on the exchequer of the government on account of releasing additional installment of dearness allowance and dearness relief is inevitable. The additional installment of dearness allowance and dearness relief to central government employees and pensioners is released particularly to compensate for price rise. The increase is determined in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

NEW PENSION FOR EX-SERVICEMEN

IMPROVEMENT IN PENSION OF JCOS/ORS OF ARMED FORCES RETIRED / DISCHARGED /INVALIDED OUT OF SERVICE PRIOR TO 01.01.2006.

MOST IMPORTANT CIRCULAR

IMPLEMENTATION OF THE GOVT. DECISION ON THE RECOMMENDATIONS OF

COMMITTEE ON THE ISSUE RELATED TO DEFENCE SERVICE PERSONNEL AND EX-SERVICEMEN – MINIMUM GUARANTEED PENSION TO PRE-2006

COMMISSIONEDOFFICERS / FAMILY PENSIONERS.

IMPLEMENTATION OF THE GOVERNMENT DECISION ON THE RECOMMENDATIONS OF 

COMMITTEE ON THE ISSUE RELATED TO DEFENCE SERVICE PERSONNEL AND

EX-SERVICEMEN – 2012 GRANT OF DUAL (TWO) FAMILY PENSION FROM

MILITARY AS WELLAS CIVIL EMPLOYMENT.

Ex-Servicemen Pensionary Benefits

Government Orders on Cabinet Decision on  Pensionary Benefits to Ex-Servicemen to be Issued Next Month

Describing the twin tasks of improving the pensionary and medical benefits for ex-servicemen as ‘subjects of prime concern’ and ‘as an ongoing process’, the Defence Minister Shri AK Antony today announced that the orders authorizing payment to ex-servicemen and their families accruing from the recent cabinet decisions, hiking pension and other benefits amounting to nearly Rs.2300 crores per annum, would be issued next month.  Addressing a meeting of the Consultative Committee attached to his Ministry, here, Shri Antony said this is the third time in the last four years that the Government have systematically improved the post-retirement benefits for ex-servicemen.  Outlining the slew of measures taken by the MoD for improving the health care benefits of ex-servicemen, Shri Antony said the Government has been trying to expand the delivery mechanism and simplify procedures so that the ex-servicemen, who have given their best years of life for the security of the nation, get the required medical benefits without hassles.  He said under the Ex-servicemen Contributory Health Scheme (ECHS), which has been in operation since April 2003, 227 polyclinics were initially approved by the Government. In 2010, another 199 polyclinics were sanctioned by the Government out of which 99 polyclinics have become functional and 100 polyclinics are under various stages of operationalization. The scheme is presently been implemented to 326 functional polyclinics. At present, the scheme has over 41 lakh beneficiaries including 13 lakh ex-servicemen and over 28 lakh dependents. The reach and coverage of the scheme is evident from the fact that in 2011-12, 90 lakh patients were attended to at the polyclinics. Shri Antony expressed confidence that with the commissioning of the remaining polyclinics the bulk of the ex-servicemen population throughout the country would be covered by the scheme.  Shri Antony said there is still a long way to go as presently, ECHS facilities are available only in 339 districts out of a total of 659 in the country. The delivery of medicare at polyclinics is also hampered by the shortage of staff and non-availability of the prescribed medicines.  Taking part in the discussion, the Members of Parliament urged the Government to prepare a roadmap to ensure that medical facilities are available to ex-servicemen in every district of the country. They also called for greater transparency in the process. Some Members pointed out that there is inordinate delay in settling the bills of private hospitals which should be ameliorated through technological means. Taking note of the rapid growth of healthcare facilities in the private sector in recent years and the innovative steps taken by some organizations and hospitals, the Members suggested that the Government should adopt the best practices readily available outside the government sector rather than handling the situation in a conservative fashion which is neither efficient nor cost-effective.  Replying to some of the queries of the Members, the Minister of State for Defence Shri Jitendra Singh said the government is veering towards a ‘dashboard approach’ so that the healthcare mechanisms can be monitored online on a day-to-day basis by the administrators. He said the government’s efforts will always be to put a smile on the face of the ex-servicemen because they deserve it.  Members of Parliament who attended the meeting included Shri Navin Jindal, Shri GajananDharmshi Babar, Shri SS Ramasubbu, Shri Gopal Singh Shekhawat, Shri Suresh Kalmadi, Shri Harsh Vardhan, Shri Kailkesh N. Singh Deo, Shri Sultan Ahmed, Shri Ram Chandra Khuntia, DrMahendra Prasad, Shri Ishwarlal Jain, Smt. AmbikaSoni and Shri PiyushGoyal.  The Defence Secretary Shri Shashikant Sharma, Secretary Department of Defence Production Shri RK Mathur, Secretary Ex-Servicemen’s Welfare Shri Vijay Chibber, Secretary Defence Finance Smt. PritiMohantyand other officials of the Ministry of Defence also attended the meeting.  SitanshuKar/NN  (Release ID :90878)

LATEST NEWS ONE RANK ONE PENSION

Rs.2300 crore approved to meet the demands of Ex-servicemen pensioners

The Union Cabinet has approved the recommendations of the Committee headed by Cabinet Secretary for benefits to ex-servicemen on four issues.   The financial implications of the improvements made as per the Cabinet decision on the four items are broadly estimated at Rs.2300 crore per annum.  The details are as follows: I.             One Rank One Pension: On One Rank One Pension, the demand of the Defence Forces and Ex-Servicemen Associations is that uniform pension be paid to the Defence Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension be automatically passed on to the past pensioners.              The difference in the pension of present and past pensioners in the same rank occurs on account of the number of increments earned by the defence personnel in that rank.  There is also a difference between the pension of pre 1.1.06 and post 1.1.06 retirees belonging to a particular rank.  The UPA Government on two previous occasions has taken decisions to narrow the gap between the present and past pensioners, particularly those belonging to the ranks of JCOs and Other Ranks.             On the issue of One Rank One Pension, the following have been approved by the Cabinet: (i)         Bridging of the gap in the pension of pre 1.1.06 and post 1.1.06 JCO/OR retirees by determining the pension of pre 1.1.06 retirees on the basis of notional maximum for ranks and groups across the three Services as in the case of post 1.1.06 retirees.  In addition, the weightage of qualifying service in the ranks of Sepoys,Naik and Havaldar would be increased by two years for both pre and post 1.1.06 retirees. (ii)        The pension of pre 1.1.06 Commissioned Officer pensioners would be stepped up with reference to the minimum of fitment table for the ranks instead of theminimum of pay band.             These are expected to largely meet the demands of the defence pensioners on one rank one pension.  II.                   Enhancement of Family Pension : (i)                   The pension of pre - 1.1.2006 family pensioners(Commissioned Officers, Honorary Commissioned Officers, JCOs/ORs ) be stepped up based on the minimum of the fitment table instead of the minimum of the Pay Band; (i)            Establishing linkage of the family pension with the pension of JCOs/ORs, in those cases where the death takes place after the retirement of the JCO/OR since such a JCO/OR drew a pension based on the maximum of the pay scales, 60% of the pension applicable to JCO/OR pensioners would be granted to the family pensioner in case of normal family pension calculated a 30% of last pay drawn. Accordingly, based on the rank, group and length of service of the deceased JCO/OR pensioner, his pension would first be determined on notional basis. In cases where death of JCO/OR took place after retirement, the family pensioners in receipt of normal family pension would become entitled to 60% of the said pension determined on notional basis and those in receipt of enhanced family pension will be entitled to 100% of this pension. Similar entitlements would be determined in the case of Special Family Pension; and (ii)                 The family pensioner of the JCO/OR would be granted pension arrived at on the basis of the family pension worked out as per the formulation at (i) above or the pension on the basis of stepping up with reference to the minimum of the fitment table, whichever is beneficial. Further, the linkage of family pension with retiringpension be applied in the case of post 1.1.2006 family pensioners of JCOs/ORs also. III.           Dual Family Pension: Dual family pension would be allowed in the present and future cases where the pensioner drew, is drawing or may draw pension for military service as well as for civil employment. IV.          Family pension to mentally / physically challenged children of armed forces personnel on marriage: Grant of family pension to mentally/physically challenged children who drew, are drawing or may draw family pension would continue even after their marriage. The above recommendations made by the Committee on pension issues of Ex-Servicemen may be implemented from a prospective date and payment made accordingly. *** SH/SKS

MEDICINES SUPPLY TO ECHS POLYCLINICS

Increasing Supply of Midicines to Polyclinics

For timely payment to empanelled hospitalsfor treatment availed by ex- servicemen, a pilot project for ‘on line bill processing’ through a Bill Processing Agency (UTI, ITSL) has been launched on 1st April, 2012 at 5 cities i.e. Delhi, Chandimandir, Pune, Secunderabad& Trivandrum. The Government has also approved a pilot project for `outsourcing of pharmacy operations` of ECHS to ensure that ECHS beneficiaries receive the prescribed medicines on time at Regional Centres Delhi, Chandigarh, Pune, Secunderabad, Trivandrum &Lucknow.  This information was given by Minister of State for Defence Dr MM PallamRaju in a written reply to Shri Mohd. Ali Khan in Rajya Sabha ON 22 Aug 2012