PENSION @ 50% OF LAST PAY DRAWN
The Sixth Pay Commission did not do justice to the pensioners. A person in service drawing Rs 5000 as basic pay was granted increase in the form of Grade Pay of Rs 4200.It comes to 84% of the pay. Whereas, a pensioner drawing Rs 5000 as Basic Pension was granted increase of Rs 2000 (40%) only. This injustice, in every pay scale, is still continuing for eleven years.
Another major anomaly was about rate of pension. Those who retired on or after 1-1-2006 were granted pension at the rate of 50% Last Pay Drawn, provided they rendered a minimum of ten years qualifying service. Those who retired before 1-1-2006 continued to get pension at the rate of 50% of ten months average pay and that too on rendering qualifying service of 33 years. This disparity continues for the last eleven years.
Seventh CPC gave two options to undo this injustice and bring parity in pension of old pensioners and new pensioners. While Government accepted both the options, Option No 2 was implemented. Pension was multiplied by 2.57. Net benefit got is 32% of the existing basic pension. Though government accepted Option 1, subject to feasibility, it was not implemented. Instead, the Allowance Committee was asked to examine the ‘feasibility’. It is understood that the Committee has almost rejected Option 1. They have suggested a new method to bring parity in pension. It is not yet announced officially. It is presumed that pay of the retirees will also be revised notionally in the new pay matrix. Then pension will be granted at 50% of the notionally fixed pay. It will remove the disparity to some extent. There is some indication as gained in the SCOVA meeting on 12-1-2017. [Please see the second Email received from Com. Krishna Rao, GS of Karnataka P&T Pensioners Association, given below.]
Question is about date of effect. If the new proposal is implemented with effect from 1-1-2016, then the senior pensioners will be losing arrears for ten full years.
We wrote to all organisations participating in SCOVA requesting them to demand pension at 50% of Last Pay Drawn to all who retired prior to 1-1-2006. Com. Krishna Rao only took up the item. But, it was not included in the Agenda by Government Side.