Friday 30 May 2014

Correction in Common Memorandum


The following correction has been made in the common memorandum. Paragraph 3.3 has been replaced with the following:

3.3       The VI CPC has done away with the requirement of 33 years of qualifying service for full pension. They have said that full pension may be granted to those who voluntarily retire from service having the qualifying service of 20 years. Other employees who retire on superannuation with ten years of service are eligible for pension. We suggest that employees with five years of qualifying service also can be made eligible for pension in the background that many are regularised with less than ten years in government service.  


  1. Chapter-III Pension Entitlement, under the heading C. Qualifying service for pension, the following proposal shall be supplemented suitably.

    This proposal is necessitated on the pretext of periodical changes in recruitment rules, reservation on appointments, promotions and other concessions availed of at the time of appointment. Of late, women as well as men get their employment in later ages on compassionate appointments commuted with other benefits extended to differently enabled people, ex servicemen and have to retire within 20 years. So the minimum qualifying service of 20 years for pension will not hold water and can not be tested against the principle of natural justice. This proposal will also render justice to large a number of pending cases in different courts and avoid further litigations.

    Qualifying service for pension:
    a) on or after completing 15 years of service, in special circumstances not falling within any of the provisions,
    b) in the case of male officers in service on or after attaining the age of 55 years if a man, or of 50 years if a woman
    c) who, having retired from the public service, such an officer is physically or mentally incapacitated so as to be unable to continue in any employment before he has attained the minimum age of retirement applicable to him, he may be granted a pension, gratuity or other allowance with effect from the date he is so physically or mentally incapacitated;
    d) Where such an officer dies before he has attained the minimum age of retirement applies, having either completed 15 years of public service or attained the age of 40 years and completed 10 years of public service.


  2. 2
    In Chapter-VII, under the heading Medicare, the following proposal shall be supplemented
    As the memorandum is silent on medical insurance scheme to pensioners, where as the scheme is adopted in countries in Western and East Asia and in Tamilnadu, successfully. The proposed MediShield Life Scheme benefit will be an enhanced benefit in addition to the existing CGHS benefits.
    MediShield Life for Pensioners
    1) There is no insurance scheme for the working employees and pensioners. A MediSheild Life Insurance Scheme (MSLIS) may be innovated and introduced and the proposed scheme will work for civil servants who are on pension scheme. While the MSLIS shall be compulsory for all employees to pay for their premiums and if the pensioners are also required to pay the full premium like other working employees, has to be worked out.
    2) The government which accepts the MSLIS has its commitment to provide support to ensure that premiums for the enhanced benefits remain affordable for all civil servants. As a major and model employer the government has to help its employees benefit from the lifelong coverage that the new scheme provides.

    Chapter-VIII, Miscellaneous, under the heading, Travel Concession, the following suggestions shall be supplemented.
    A) In Railways the working employees permitted free and concessional travels and retired employees continue to avail privileges even after retirement. But other Central Government employees are already enjoying benefits of LTC is with drawn suddenly on their retirement which is against Art.27 of the Constitution. As a welfare state the Government can not apply different yard sticks and principles extending benefits to its own employees under one umbrella. The Government should consider extending the benefits of LTC, mutatis mutandis, to the retired employees without any break in period as the LTC is availed by the working employees.
    B) The Travel Concession to Elders (TCE) may be offered as suggested in the following Table to all elder citizens of India, with accredited benefits already availed by Physically Challenged persons, etc.
    On attaining the age of Fare concession to be allowed
    55 years 40%
    60 years 50%
    65 years 55%
    70 years 60%
    75 years 70%
    80 years 75%
    Above 85 years 80%
    Each employee on the eve of his/her retirement will be getting a lump sum by way of DCRG, encashment of leave, etc. Though the competitive Financial Markets are open with multiple choices with additional and attractive benefits, the retirees have little knowledge about their safe investment. They have to follow the market trends and other factors affecting the financial markets, which may not be possible as they have to pay more attention to their family and health care.
    It is suggested either the Ministry of Finance or any other Ministry be empowered to Pensionary Benefit Fund (PBF) and retired employees, pensioners may be allowed be members of this fund.
    The PBF invest made only in Government Bonds and Securities, government sponsored financial instruments, with Short Term Deposits with additional interest rate than the interest rate prevailing in Banking Sector, Mutual Funds, etc., which will earn them higher and safer returns than the acclaimed additional interest to senior citizens by the leading banks and financial institutions.
    A notable number of pensioners invest in FDs as a safer deposit with higher returns and this aspect can be better utilized to grab the out flow of money from the Exchequer, instead to retain for investment in Government bonds and securities.