The All-India CPI-IW for November, 2022 remained stationary at 132.5 (one hundred thirty two point five). On 1-month percentage change, it remained static between October, 2022 and November, 2022.
DA as on 1st December 2022 is 41.74%
Expected DA as on 1st January 2023 is 42%(4% increase )
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
No.NC/JCM/2022/DA
Dated: December 5, 2022
All Constituents of the NC/JCM
Dear Comrades,
A meeting was held today with the Special Secretary(Pers.), Deptt. of Exp., Government of India, on Agenda Item No.27/SC/22(D/o Exp.) of the Standing Committee of the NC/JCM regarding payment of the arrears of Dearness Allowance.
After prolonged discussions it has been agreed by the DoE that they will examine the issue once again and will consult the MoF on the subject.
Staff Side also discussed the issue of commutation of pension as per our agenda item. Staff Side demanded that, restoration of full pension after deduction of commuted value of the pension should be done after completion of 12 years instead of 15 years. It has been informed by the Ministry of Pension that the case been sent to the DoE after the last meeting of the Standing Committee of National Council(JCM). Special Secretary, (Pers.), Deptt. of Exp.. agreed to examine the issue and do the needful.
In the said meeting, apart from the undersigned, Leader Staff Side was also present.
This is for your information.
Comradely yours,
(Shiva Gopal Mishra)
Secretary
A Convention of State Govt. Employees and Central Govt. Employees has
been held today at Talkatora Stadium, New Delhi. It has been convened by All
India State Govt. Employees Federation and Confederation Federation and
Confederation of Central Govt. Employees and Workers. The comrades from
Karnataka state led by Com Ganesh participated in the said convention.
Com. K K Narayanan Kutty (10.12.1947 - 8.12.2022)
Com.KKN Kutty was born on 10.12.1947 in Tirur Malappuram District Kerala in a Agriculture Family. After his school education he joined in a private company at Coimbatore. Subsequently he joined Income tax Department as Stenographer at Pollachi in the year 1966. Later he got appointed as Direct Recruit Inspector and posted in Chennai. He was elected as General Secretary of Tamilnadu Income tax Union which was affiliated to ITEF. He was elected as Joint Secretary of ITEF CHQ in the year 1979 in Cochin Conference and opted for foreign service in CHQ. He was nominated as member of JCM staff side and Department Council also. He was elected Secretary General of ITEF in Kolkata Conference in the year 1981 and served in that position for 3 decades until 2009. He retired from Govt service 31.12.2007. He also held the post of Finance Secretary and Secretary of Confederation of Central Government Employees and Workers CHQ. Com. Kutty was elected as Secretary General and President of Confederation also. He was instrumental to form JCA in the year 1987 in Income Tax Department. He formed the Pensioners Association in IT Department and he was founder General Secretary of ITPF. He also held the post of Secretary General of National Coordinating Committee of Pensioners Assembly (NCCPA) which is one of the largest pensioners forum having membership of all Central Government Pensioners including Railway Pensioners Association. He has also held the post of Vice President of World Federation of Trade Unions (WFTU). He has visited many foreign countries and participated in international labour conventions like Cuba, Brazil, South Africa, France, Germany, Australia, Bangladesh, Nepal and Srilanka representing India. He involved himself in all most all the Central Pay Commissions except first and second Pay Commissions. He is good narrator, speaker, negotiator, writer, organiser and a strong trade union leader. He has organised and led many struggles in favour of CG Employees Demands. Always having smiling face, convincing capacity and never get angry. He was the disciple of Com.Sanjeeban Banerjee, Com.Pushpendra Sen, Com.Nayagam, Com.Pathik Bannerjee, Com.SK Vyas, Com. M K Pande, Com.C.Subramaniam etc.
He is good friend of many trade union leaders in our country particularly Com.Umesh Mehta, Com.K.Raghavender, Com.Sivagopal Mishra. He has introduced and brought in many new leaders into the trade union movement including the current leadership of ITEF and Confederation. He has sacrificed his entire life to Central Govt Employees.
The Great leader has passed away on 8.12.2022 at 9.30 AM at Meitra Hospital Calicut after prolonged illness of Pulmonary infections. The Indian labour movement has lost one of a finest Trade Union Leader particularly Central Government Employees and Workers.
Com. KKN Kutty addressed many conventions and conferences in Karnataka state , his contributions to building Central Government employees movement is immense.
Let’s pay our sincere homage to our beloved leader Com. KKN Kutty. And our Deepest Heartfelt Condolences to the family members of Com.Kutty and his friends and comrades.
Red Salutes to Com.Kuttji COC Karnataka dips it flag.
The All-India CPI-IW for October , 2022 increased by 1.2 points & stood at 132.5 (one hundred thirty two point five ) for Base Year 2016 = 100, base year 2001 it is 382 points.
DA as on 1st November , 2022 is 41.13 % .
Expected DA as on 1st Jan 2023 is 42%.
The meeting of the COC Karnataka was held on 23/11/2022 in ITEF Room, C.R.Building Annexe, Ground Floor, Queen's Road, Bengaluru under the chairmanship of Com P.S.Prasad to discuss the following agenda:
1) To discuss and finalise the date for convening COC Karnataka State level conference. Also venue and other arrangements.
2) Convention @ Delhi by Confederation
3) Review of Organisation functioning
4) Remittance of Subscription to COC
5) CGHS issues and other issues
Com Vinod General Secretary briefed about the above issues. The meeting decided the following
1) To hold the COC Karnataka State level conference on 22nd Jan 2023 (Sunday) subject to availability of CHQ leadership .
2) It was decided to hold the COC Karnataka State level conference on Sundays as Postal employees can participate in large numbers.
3) It was decided to hold in LIC union office hall.
4) It was decided to send the NPS employees, delegation of leaders of the various associations to the Joint National Convention of state and central Government employees on NPS issue, DA arrears payment , inflation , privatisation of Government services etc to be held in New Delhi on 8th December 2022 at Talkatora stadium New Delhi from 9.30 am onwards at their own costs.
a) NFPE -30 delegates
b) ITEF -10 delegates
c) AG’s – 10 delegates
d) Survey of India : 5 delegates
e) Other Associations- 15 delegate
Total : 70 delegates
5) It was decided to print the materials on common issues of Central Government employees in bi -language both Kannada & English on issues like NPS, commutation of Pension, inflation etc. and circulate amongst the employees at State level conference on 22nd Jan 2023
6) An appeal has been made to affiliates for requesting them to remit the subscription of COC Karnataka in in view of State level conference on 22nd Jan 2023. An estimated estimate of Rs 70,000/ is estimated for the State level conference on 22nd Jan 2023 and the COC Karnataka has also remit the CHQ Confederation subscription also hence we require about one lakh funds. Hence all affiliates of COC Karnataka are requested all the dues to COC Karnataka and special contributions may also be made in this regard.
7) The issue of CGHS was taken up with the Additional Director CGHS Bengaluru and additional wellness centres and additional emplaned hospitals in Karnataka state hope in next year this issue is resolved.
8) The COC Karnataka has taken up with Confederation CHQ regarding the issues of commutation of pension and the same is now pending at Finance Ministry.
9) An appeal has been made by COC Karnataka more youngsters should join the leadership of COC Karnataka . .
10) The next meeting of COC Karnataka will be held at GPO to chalk out the program of action for State level conference on 22nd Jan 2023.
(P.S.Prasad) (Vinod)
Working President General Secretary
The All-India CPI-IW for September, 2022 increased by 1.1 points and stood at 131.3 (one hundred thirty-one point three). On 1-month percentage change, it increased by 0.84 per cent with respect to previous month compared to an increase of 0.24 per cent recorded between corresponding months a year ago.
DA as on 1st October is 40.02
No. 1/3/2022-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated the 3rd October, 2022.
OFFICE MEMORANDUM
The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/2/2022-E-II(B) dated 31.03.2022 on the subject mentioned above and to say that the President is pleased to decide that the rate of Dearness Allowance payable to Central Government employees, shall be enhanced from 34% to 38% of the Basic Pay with effect from 1st July, 2022.
2. The term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.
3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(271).
4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.
5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.
6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.
(Nirmala Dev)
Director
To,
All Ministries/Departments of the Government of India (as per standard distribution list)
Copy to: C&AG, UPSC, etc. as per standard endorsement list.
The All-India CPI-IW for August, 2022 increased by 0.3 points and stood at 130.2 (one hundred thirty point two) for Base Year 2016 = 100 & Base Year 2001 = 100 it is 375 points . On 1-month percentage change, it increased by 0.23 per cent with respect to previous month compared to an increase of 0.16 per cent recorded between corresponding months a year ago.
DA as on August, 2022 is 39.69 % .
The Union Cabinet has increased Dearness allowance (DA) of the Central Government Employees by 4 per cent taking it effectively at 38 per cent from 34 per cent. Over 50 lakh central government employees and 62 lakh pensioners are likely to benefit from the current hike.
In respect of Anomalies in Commutation of Pension, the present commutation table as last revision took place in the year 2008 with an interest rate of 8% compounded annually , The revision is imminent due to lowering in interest rates by the Central Government and LIC especially in last five years , now 14 years is over as every 10 years pay commission is set up and pay scales and other allowances are revised third commutation table is due from 1/1/2018 .
Restoration of Commuted Portion of Pension to 12 years from the present 15 years considering interest, risk factor & Life Expectancy of 70 years . In this regard a detailed brief is given below.
1) Revision of commutation table.
There are two commutation tables one table 1 is effective from 1.3.1971
– till 1/9/2008 with an interest rate of 4.75 %.
Second commutation table-2 is effective from 2/9/2008 till now
with an interest rate of 8 %.
Commutation tables should be revised every 10 years .
Third commutation table is due from 1/1/2018 with an interest rate of 6.5 %.
The study of various government schemes and its interest rates are given below;
The Public Provident Fund (PPF) rates from 1/4/1986 to 31/3/2000 was 12% , in the year 2002-03 it was at 9 % the decline in Public Provident Fund (PPF), rates has taken place over the years from 1/3/2002 to 30/11/2011 was 8% . In the year 2016 it was at 8.1 % , in the year 2019 it was at 7.9 % and In the year 2021 it was at 7.1 %. So there are steady decline rates in Public Provident Fund (PPF) interest rates which the Central Government has declared.
A study of the Reserve Bank of India (RBI) repo rate from the past fifteen years shows the repo rate (Interest rate) is lowest in 2020 and 2021 compared to 2006-08.
Retirees from 2006 onwards the age of retirement continues to be 60 years. After the 6th CPC, since 1.1.06, the Commutation Factor (CF) has been downgraded from 9.81 to 8.194 for the 61 year old (age next birthday) retirees, thereby reducing the commuted amount by a whopping 16.5%. On top of that, the prescribed rate of interest has been enhanced from 4.75% to 8% p.a. which is an astronomical jump of 68% even in this low interest regime. The interest rates have been slashed by the Government in the last five years by about 30%.
Overall the interest rates have gone down in the past fifteen years , especially in the last five years drastically . Hence there is a need to have a new Commutation Table number 3 with effect from 1/1/2018 considering the LIC interest rates of 6.5 % or The Reserve Bank of India (RBI) repo rate at 4.4 per cent for 2020 whichever is applicable .
The present commutation table as last revision took place in the year 2008 with an interest rate of 8% compounded annually ,Commutation tables should be revised every 10 years, as every 10 years pay commission is set up and pay scales and other allowances are revised , now 14 years are over now revision is due from 1/1/2018.
2) Restoration of Commuted Portion of Pension to 12 years from the present 15 years
Chapter 136 of the report of the Fifth Central Pay Commission, which had recommended reduction of the period of recovery of commuted pension to 12 years from 15 years. This recommendation, it was argued, was unjustifiably and arbitrarily not accepted by the Central Government, though some State Governments like Kerala, Madhya Pradesh, Orissa and Punjab had permitted restoration of full pension after 12 years of commutation.
It is pointed out that the interest charged on various Govt advances like House Building Advance, Car Advance, Festival Advance, Marriage Advance etc. is simple interest and not compound. There is no justification for the Government to recover anything more than what it has advanced to the retirees.
For example The basic pension of Secretaries/DGs who superannuated on or after 1.1.06 at the top of their pay scale (Rs.80,000) was fixed at Rs.40,000. Their commuted pension amount is Rs.15,73,248 with a deduction of Rs.16,000 per month. As per the old CF of 9.81, they would have been entitled to a commuted sum of Rs.18,83,520. Thus, there is a huge drop of Rs.3,10,272 The currently sanctioned principal amount of Rs.15,73,248 is fully recovered in 8.194 years [8.194 x 12 x 16000 = 15,73,248]. If we consider the prescribed interest rate of 8% p.a. as simple interest (reducing interest as principle is already recovered), the total interest works out to Rs.5,10,417. This is recoverable in 2.66 years [510417/16000 = 31.9 months or 2.66 years]. Thus, total recovery period of the commuted amount is = 8.194 + 2.66 = 10.85 years. Even after full recovery, the pensioner keeps on paying for 15 - 10.85 = 4.15 years. Thus, excess recovery = 4.15 x 12 x 16000 = Rs.7,96,800.
This interest rate on commuted value of pension is recoverable in 2.66 years . Commuted Factor = Take Example, Age Next birthday is 61 years, then the commutation value is 8.194 . Thus, total recovery period of the commuted amount is = 8.194 + 2.66 = 10.85 years. Even after full recovery, the pensioner keeps on paying for 15 - 10.85 = 4.15 years. Thus, excess recovery is taking place for 4.15 years. We cannot have a risk factor for 4 years as the recovery of the commuted value of Pension is recovered in 10.85 years .
The risk factors include Mortality rate and life
expectancy the Census department has published its data.
The death rate (Mortality rate) of India has witnessed a significant decline over the last five decades from 14.9 in 1971 to 6.0 in 2020. as per the census department data indicates that death rate at all India level has declined from 7.1 to 6.0 in the last ten years, witnessing about 15% decadal decline. The corresponding decline in rural areas is 7.6 to 6.4 (about 16% decline), and for urban areas it is from 5.7 to 5.1 (about 11% decline).
According to the Ministry of Statistics and Programme Implementation of India, across the different age groups from 60 to 85 years and above, the trend indicates a general fall in death rates in the country in the past ten years, Mortality rate among the elderly in India as on 2018, by age group (per 1,000 people is as follows ).
Hence it is very clear that about 10 % of the Pensioners who are in the age group of 60 years to 70 years only have died. . The risk factor is very less for those adopted for Commutation of Pension .The death rate is only more in 75 plus years .
The commutation provisions have not kept up with time as the life expectancy has increased , life expectancy in India has risen from 59.6 years in 1990 to 69.7 years in 2019, as per the The OFFICE OF THE REGISTRAR GENERAL & CENSUS COMMISSIONER, INDIA MINISTRY OF HOME AFFAIRS GOVERNMENT OF INDIA NEW DELHI The Sample Registration System (SRS) of the Office of Registrar General & Census Commissioner, India brings out Abridged Life Tables annually, has also published SRS-Abridged_Life_Tables_2015-2019.pdf Expectation of life at birth for India has been estimated at 69.7 years for the period 2015-19, exhibiting an increase of 0.3 years from 2014-18. The life expectancy at birth varies from 65.3 years in Chhattisgarh to 75.9 years in Delhi. The government servants life expectancy as per WHO statistics is 77 years. Government servants have a much higher life expectancy than the national average. Hence restoration of the commuted value of pension should be done after 12 years instead of 15 years at present.
Since already the Employees / Pensioners are paid less amount as the interest for commutation amount is deducted already at the time of making commutation payment through a commuted factor, there is no point for restoration of the Commuted Portion of Pension after 15 years. Restoration of the Commuted Portion of Pension should ideally be done after 12 years for all pensioners taking into account risk factors of higher life expectancy of 70 years and also higher interest of 8% is deducted at the time of making payment of commutation instead of 6.5%.
I hope the Department of Pension & Pensioners' Welfare consider the above and issue suitable orders .
