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ANNULMENT OF 60:40 IS IMPORTANT
In 2000, when government started thinking of launching BSNL, Cabinet met on 24-6-2000 and formed a Group of Ministers. The GoM decided that pension should be paid by Government to the 3.63 lakh DoT employees moving to BSNL.
On 30th September 2000, one day before launching BSNL, the new Rule 37A was incorporated to CCS Pension Rules 1972. Sub rule 21 of Rule 37A said: “… pensionary benefits including family pension shall be paid the Government”. Sub rule 22 of Rule 37A said:“The Govt. shall specify the arrangements and manner including the rate of pensionary contributions to be made by BSNL…” It was not specified then in the Gazette Notification.
When Shri Yeshwant Sinha was the Finance Minister, in his Budget speech of 2001 it was shown that 100% of the pension liability was with BSNL! Some of us pointed out this to BSNL management. They were not aware of it. They took up the matter with Minister for Communications. He took up the matter with Finance Ministry.Correspondence went on for some time.
Cabinet met on 29-10-2004 and discussed the matter. Finance Minister and Communications Minister could not agree on the rate of pension liability to be shared by BSNL. A dispute arose.
Cabinet appointed a Committee of Secretaries. That committee was compelled to find out a solution. So, without any proper study or any serious thinking the committee submitted a strange, irrational formula:“the pension liability should not cross 60% of the revenue paid by BSNL/MTNL to the government every year. If it is more than 60%, then the BSNL has to bear the extra amount”.
Pension systems in BSNL and MTNL were different then. But Committee did not mind it. They were asked to submit a formula to escape from the Dispute.
The Cabinet meeting held on 27-11-2004, approved the above wonderful formula. Thus it became a Cabinet Decision, a Rule.
THAT RULE IS CANCELLED NOW, AFTER 12 YEARS.
Hereafter, there is no need of any consent from BSNL to grant any pensionary benefit to BSNL retirees. It is 100% liability of Government of India. As in the case of any other establishment, BSNL has to pay pension contribution under Fundamental Rule 116 to Government. Because Government has to pay pension to BSNL retirees. Pension Contribution is 11% of pay of the concerned employee for the period he/she worked in BSNL.
Future Pension revision of BSNL retirees need not depend upon the financial condition of BSNL Company. It is a permanent solution for a serious problem. We desired this decision.
Some people suggested delinking the 78.2 issue with 60:40 issue so that 78.2 could be achieved immediately. EVEN ONE ASSOCIATION OF PENSIONERS DEMANDED DELINKING OF 78:2 FROM 60:40 ISSUE. THEY PROUDLY MENTIONED THIS IN THE REPORT TO THEIR ALL INDIA CONFERENCE. LUCKILY DOT DID NOT ACCEPT THEIR DEMAND. THE 60:40 IS REMOVED NOW. THAT ASSOCIATION IS HAILING THE DECISION FORGETTING WHAT THEY DEMANDED EARLIER.
We did not agree to it because we have a far-sight. When the Department is willing to remove the 60% condition why should we oppose it?
Some people suggested to go to Court. We did not agree that also as we knew we have to fight upto Supreme Court and we have to spend our life in the Courts for next five years at least. Even after winning the case we have to approach the Government. So we approached the government direct.
We argued our case effectively. We took support from political leadership to intervene and influence the decision making process.
WE ARE SUCCESSFUL IN OUR EFFORTS. WE HAVE ACHIEVED IT. ANNULMENT OF 60:40 CONDITION IS THE MOST SIGNIFICANT GAIN.
I do not like to abuse or accuse any one. Individuals and organisations have taken certain stand depending upon their understanding of the matter. But, we should not forget the history. We should learn lesson from this and take correct decision in future.
THINK OF THE FUTURE. DANGER IS AT YOUR DOOR-STEP. STATUTORY PENSION SYSTEM IS NOT SAFE IN INDIA FOR EVER.....
.. P S Ramankutty, 10-7-2016
PALAKKAD
WITH GREAT REGRET, WE REPORT SAD DEMISE OF COM. R B RAMA, OUR FORMER VICE PRESIDENT IN HIS RESIDENCE AT ALLAHABAD UP TODAY MORNING AT 4 AM. HE WAS 79. COM. RAMA ATTENDED OUR FORMATION CONFERENCE IN CHENNAI IN 2009 WHERE HE WAS ELECTED AS VICE PRESIDENT. HE WAS NOT KEEPING WELL FOR SOME PAST AND HENCE COULD NOT ATTEND OUR MEETINGS. CHQ CONVEYS HEARTFELT CONDOLENCE TO THE BEREAVED FAMILY.
OUR CREDIBILITY ESTABLISHED
Dear Comrades,
1.Now people are busy in calculating assessing the monetary benefit out of 78.2. It is natural.
2.But let us recollect how it was achieved.
3. After our CWC meeting at Nagpur we were bit apprehensive what would happen to the demand. Because the top bureaucrats in Sanchar Bhavan sent the case to BSNL Corporate Office asking month-wise data of BSNL pensioners. As usual, Corporate Office sent it to Circles. The BSNL would give a reply after 2-3 years, after 10-15 reminders. We told member (F) that she can collect the above data from CCAs but she did not show any interest at that time.
4. We wanted to meet the Secretary, Telecom. His Personal staff was not arranging any meeting.
5.Then we thought of taking help from Shri Ananthakumar. He was quite different from other ministers we approached. He arranged a meeting with Shri Rakesh Garg, the then Secretary, Telecom. We had very purposeful meetings with Shri Rakesh Garg. He appreciated futility of waiting for data from BSNL. He understood the importance of annulment of 60:40 condition. Shri Garg promised quick action. On future pension revision applying the fitment benefit to be granted by seventh CPC also he promised that he would take clarification from all concerned.
6.That discussion changed the entire scenario. The file moved in right direction despite reluctance shown by some top officers in DoT.
7.Cabinet Note was prepared. Views of other nodal ministries were sought for.
8. When the file was shuttling between DOT and DOE etc. we sought the help of Shri Nripendra Mishra, the powerful Principal Secretary to Prime Minister. Mishraji was earlier Secretary, Telecom and aware of the entire case. Sri Anantha kumar himself arranged our meeting with Mishraji. Discussion with him also helped us.
9. Shri Garg was changed and Shri Deepak took over charge as Secretary, Telecom. He was not meeting anyone. Even then Shri Ananthakumar arranged a meeting with him for us.
10. We met Shri Deepak in Bangalore when there was some delay in sending the Cabinet Note to Cabinet Secretariat. He signed the Note immediately after coming back to Delhi. The file went to Member(S), Member (F) and DDG (Estt). Even after that, some organisations declared that the File was lying in the chamber of Shri Deepak. That was the reliability of their reporting.
11.They all reported where the File was lying. Some times, after enquiring; some time guessing.
12. We pushed and moved the File from one table to another; from one officer to another; from one ministry to another. That is our constructive work. Then we reported to the Pensioners the exact position. That established our credibility.
13. Cabinet considered our case on 29th June but deferred a decision. Immediately some people started the propaganda that Cabinet returned the file. It created some panic among the BSNL pensioners.
14. We approached Shri Anantha kumar once again in Bangalore. He was little annoyed on the misguiding news. He simply told us:”Go and relax. It is my case now. The case is under serious consideration of the Government.”
15. He was different from others. He intervened in our case very effectively with dedication.
16. He was correct. The Cabinet meeting on next Tuesday, immediately after the swearing in ceremony, took the significant decision.
17. BSNL pensioners have understood who has done the work. Let others claim anything.
18. We are entitled to get the arrears from January 2007.But we got it only from 10-6-2013 because of the Agreement for prospective effect. Many pensioners lost Rupees One lakh ore more. All those who made that agreement and declared that it was ‘historic’ should realise the folly. It is just like Finance Minister Shri Arun Jaitley declaring the gains of central government staff as ‘historic’ after giving the lowest gain ever in the history of Independent India.
19. Let me tell you again, The decision for removing 60:40 is the most important and significant achievement.I have put a brief posting in the whatsapp. I shall write about it again in this site. Now, I am too busy in attending the telephone calls.
P S Ramankutty, 8th July 2016.
It is difficult to prepare a Ready Reckoner to assess the benefit out of 78.2% for the BSNL pensioners retired after 1-1-2007. Some data like Increment etc. has to be posted.. However, Com. C Ravikumar, Treasurer of our Trivandrum District Unit has prepared a Ready Reckoner . Same is given here. Click on this link: post2007-table.xls
On a call from the Kerala Circle Association, the BSNL Pensioners in different parts of Kerala circle staged demonstrations expressing their happiness over the achievement with regard to 78.2% case. Few photos:
Com. P S Ramankutty speaks at Trivndrum
DS Smt. Annie Preman speaks at Calicut
Com. T Ramachandran, Circle VP speaks at Calicut
Circle Secretary Com. T P George addressing at Ernakulam
Ernakulam 
Malappuram SSA
We are impressed very much with the response for request from some comrades for preparation of Calculation Table to assess the benefit out of recent decision of Cabinet on 78.2% benefit.
A new Table prepared by Com. Ravikumar of Trivandrum will help pre-2007 pensioners to assess their gain by clicking on the figure 1000 given in red colour and then typing their present basic pension (revised with 68.8% IDA). Click here to get the Table new-table-by-cr.xls
We are attaching another simple calculation table to know arrears on account of 78.2% benefit for the Pre-2007 pensioners. Only problem is that you should know your old basic pension available before last pension revision. In the Table it is given as 5322 in red colour. Click on that and then type your old basic pension. Rest is automatic. simple-table.xlsx
Many comrades are demanding that calculation tables should be given in this Website to find out the arrears amount on account of recent decision in 78.2% case.
It is easy to prepare a Table for pre-2007 retirees.
But for post-2007 retirees, it is not so simple and easy. The date of increment etc. have to be added.
However, we are uploading two Tables prepared by Com. Narasimhan of Chennai STR Division. pre-2007-pensioners-table1.xls post-2007-78.2-arrears.xls
DPE ORDERS DATED 4-7-2016 RAISING IDA WITH EFFECT FROM 1-7-2016
ida-july-16-new.pdf...........................................................ida-july-16-old.pdf
Dear Comrades,
I am a lucky person. Rather, more lucky than many. I have done little work but I am the receiving bowl for all congratulations and praises for the gain.
It is because of the great help rendered by Shri Ananthakumarji that we got this gain. We should be thankful to him for the unusual help.
Comrades Gangadhara Rao, Changappa, Babu, Murthy and others of Bangalore worked relentlessly for achieving 78.2%. It is only because of them we got it.
Com. Natarajan and Com. DG have done marvellous work as leaders of the Organisation.
Comrades R L Kapoor, R C Malhotra and DPS Sisodia in Delhi spent lot of time for this.
They all deserve congratulations.
I can not forget the services of late Comrade Chhidu Singh. We felt very much his absence during these months.
I was performing as a co-ordinator only. Just because I am handling the whatsapp and Email group I received all praises from you all. I receive it on behalf of TEAM AIBSNLPWA and transfer it to the Team.
REAL GAIN
The real gain is that the condition of 60:40 is removed by Cabinet itself. In future we need not depend upon the financial condition of BSNL Company for any pension revision. It is 100% responsibility of the government to pay pension to us. A dangerous clause in Rule 37A is gone. For ever!
Nobody talked about this before 2009; before AIBSNLPWA was formed. NO BODY talked about BSNL pensioners before August 2009; before we started functioning as an All India organisation. Now all are talking for BSNL pensioners. Many will claim for the gain.
VICTORY HAS MANY FATHERS; FAILURE IS AN ORPHAN.
Thank you comrades. Thank you...
P S Ramankutty
6th July 2016.
Official Press release from Cabinet secretariat after todays cabinet meeting
Cabinet approves Revision of pension of BSNL Pensioners Removing Anomalies The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the revision of pension of BSNL pensioners and family pensioners, who retired prior to 10.06.2013 by allowing the benefit of merger of 50% DA/DR with Basic Pay/ Pension, effectively amounting to 78.2% DA/DR for the purpose of fitment, and (ii) Modifying the liability of BSNL towards the payment of pensionary benefits to the retired employees.
The pension of BSNL pensioners/family pensioners, who retired prior to 10.06.2013 has been revised w.e.f. 01.01.2007 notionally with actual benefit w.e.f. 10.06.2013, by allowing the benefit of merger of 50% DA/DR with Basic Pay/ Pension, effectively amounting to 78.2% DA/DR for the purpose of fitment at par with the serving employees of BSNL. However, increase in the amount of DCRG, leave encashment and commutation of pension in respect of these pensioners shall not be increased on this account.
The pension liability in respect of employees of Department of Telecommunications (DOT) / Department of Telecom Services (DTS) / Department of Telecom Operations (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. In respect of employees who are absorbed in BSNL, the liability on account of pensionary benefits shall be fully borne by Government while BSNL will continue to discharge pension liability by way of pension contribution in accordance with FR-116 for the period they so work/worked.
The revision entails an estimated recurring annual expenditure of approximately Rs 129.63 crore for pensioners and Rs 24.93 crore for family pensioners and arrears from 2013-14 would be Rs 239.92 crore approximately for pensioners and Rs 44.62 Crore approximately for family pensioners. Approximately118500 pensioners all over India will be benefitted by this revision.
This revision will fulfill the long pending demand of revision of pension of BSNL absorbed employees who retired prior to 10.06.2013 and will bring the pensioners at par with the serving employees of BSNL by removing the anomalies. It will help in reducing the financial burden of BSNL and removing prospects of industrial unrest in BSNL while fulfilling the commitment of Government.
Background:
The decision of the Cabinet has come in the wake of an anomalous situation created in the difference of pension formula among the BSNL retirees who retired before and after 10.06.2013. Further, the decision regarding pensionary liability is on persistent demand from various quarters and a series of deliberations at different levels to fulfill the assurance given by the Government before corporatization i.e. before formation of BSNL.
Dear Comrades,
I was away from Trivandrum for 3-4 days to attend some domestic functions in my native village. During those days, I found some disturbing news in whatsapp spread by some other organisations/individuals creating a panic situation. It was widely circulated that Cabinet returned the file on 78.2% case.
Hence our leaders- Com. Gangadhara Rao, Com. Changappa and Com. Murthy – on 3-7-2016 met Shri Ananthakumar who attended the last cabinet meeting. Shri Ananthakumar asked them “who told that the file was returned”. Then he told with confidence that “You relax. Your case is under SERIOUS consideration of the Government.”
I do not find any reason for panic. To get removed the stipulation of 60:40 condition on pension liability is not that easy. It should go for ever. It should be 100% responsibility of the Government to pay pension to BSNL retirees from the Consolidated Funds. So, I was very happy when Telecom Department itself moved that proposal. Even if the decision is delayed little, the condition should be removed. For Ever. We are getting older every day. In future, we can not do this strenuous exercise every time to get some benefit from the government.
.......................................................................................................................................................................................
SEVENTH CPC REPORT AND GOVT. DECISION
We have already reported in this Site what exactly is the impact of Cabinet Decisions on the CPC report. The immediate benefit on 1-1-2016 is only 32% of basic pay or basic pension. In July 2016, the benefit will come down to 30.2%. Every six months the net benefit will come down like that. Finally, within 3-4 years the gains of seventh CPC will be nullified totally. For those who occupy government quarters the benefit is very very negligible say just 14.14% of their basic pay from 1-1-2016. There are thousands of railway employees living in railway quarters, mostly in dilapidated conditions. .... Living with rats and snakes....They will get very small benefit.
Therefore, there is widespread anger among the employees.Some discussion took place between Union leaders and Group of Ministers consisting of S/s Rajnath Singh, Arun Jaitley and Suresh Prabhu. Further discussion may take place tomorrow.I expect that the minimum pay may be raised from Rs 18000.Naturally it will raise the minimum pension from Rs 9000 for central government pensioners.The Conversion factor has to be modified accordingly.Let us wait and see.
...................... P S Ramankutty
Leaders who addressed the Madurai District Conference on 28-6-2016
TODAY OUR COMS Dy G/S GANGADHARA RAO ,KARNATAKA C/S CHANGAPPA AND MURTHY MET S/SHRI ANANTHAKUMAR HON.MIN.FOR FERTILIZERS AND CHEMICALS AND EXPRESSED OUR PENSIONERS ANXIETY REGARDING 78.2% IN THE BACKDROP OF CABINET APPROVAL FOR 7th CPC AND NO INFORMATION ABOUT OUR CASE. SHRI ANANTHAKUMAR ASSURED THAT THERE IS NO NEED FOR ANY ANXIETY AND OUR CASE IS UNDER ACTIVE CONSIDERATION OF CABINET. LET US WAIT PATIENTLY.
From Today, 1-7-2016, a new BSNL CIRCLE comes into existence.
Present AP Circle is bifurcated as Andhra and Telengana Circles. Under Telengana Circle, there will be following Nine SSAs: Hyderabad, Nizamabad, Khammam, Warangal, Mahaboobnagar, Karimnagar, Medak(Sangareddy), Nalgonda and Adilabad. Headquarters will be at Hyderabad.
Under the new Andhra Circle there will be 13 SSAs which are: Srikakulam, Vizianagaram, Visakhapatnam, Rajahmundry (East Godavari), Eluru (West Godavari), Vijayawada, Guntur, Cuddappah, Kurnool, Ongole, Nellore, Ananthapur and Tirupathi. Headquarters of the Circle is Vijayawada.
Labour Bureau of India has released the Consumer Price Index for May 2016:
It is 275 points.
With this, the IDA rate from July 2016 is assessed as 114.8%.
From January 2016 it continues as 112.4%.
Hence, the increase from July 2016 is 2.4%.
The Government of India has finally taken a decision on Seventh CPC report. It has rejected all the proposals from the Empowered Committee and accepted the CPC report almost in toto.
Minimum pay for Group D will be Rs 18000, not 23400 as propagated. A Group D is getting Rs 7000 as minimum pay + Rs 8750 as CDA now.So, the net increase is only Rs 2250.00.
If you multiply the existing pay by 2.57 you will get new basic pay.
Same multiplication factor of 2.57 is applied for pensioners.There is no difference between serving staff and pensioners.
Immediately the pension will be revised multiplying by 2.57. In other words;
Present basic pension: Rs 100 plus Present DA : Rs 125
New basic pension: Rs 257.00 + 0% DA: Net increase is 32 % of existing basic pension.
CPC suggested another method to revise pension giving weightage to increments earned in the scale at the time of retirement. It is something like OROP (One Rank One Pension). Government will constitute a committee to study if this method is feasible or not. Pensioners have to wait for another 4 months to see the Committee’s recommendations.
IN SHORT, the Government has not given anything extra to the employees and pensioners.
Fifth CPC suggested 20% increase to employees and pensioners. The Gujral Government increased it to 40% then. Sixth CPC suggested 40% increase in pension and gave Grade Pay to serving staff, which is something about 54%. Government accepted that recommendation.
This is the lowest increase ever given by any CPC. It is most disappointing.
And, Mr Arun Jaiteley, the Finance Minister says it is HISTORIC.
It is HISTORIC because it is the lowest.