Saturday, April 9, 2011

P.G.C.R.T.W.A.'s Letter to GoP Secretary Finance on Rationalization of the pension of Pre-1-1-2006 pensioners under Punjab Government Notification dated 17-8-2009, regarding employees governed by the UGC pay scales.

Punjab  Government  College  Retired  Teachers’ Welfare Association(Regd), Chandigarh. 
                      
Working Office: 762, Phase 3BI, Mohali, Phone:- 0172-2266638, M- 9417427662.



To: The Principal Secretary, Government of Punjab, Department of Finance, Chandigarh.
                                                                                                                                                       
                                                                       
                                                                                                                                                                             
Subject: Rationalization of the pension of Pre-1-1-2006 pensioners under Punjab Government Notification dated 17-8-2009, regarding employees governed by the UGC pay scales.

Sir,

Respectfully, it is submitted that pre-1-1-2006 Punjab Government College Retired Teachers have been discriminated against in respect of grant of revised pension under Punjab Govt. Notifications- No. 3/23/09-3FPPC/885 dated 17-8-2009, Notification No.10/3/09-Edu.I/ 3321 dated 2-9-2009, No.3/39/09-3FPPC/201 dated 22-2-2010, The Punjab Civil Services (Revised Pay) Rules,2009 etc. The under lying principle enunciated in these letters is that the full pension, in no case, shall be less than 50 % of the “Initial Pay” plus the academic grade pay. This principle of full pension being 50% of the “Initial Pay” plus the Academic Grade Pay has not been applied to pre-1-1-2006 pensioners governed by the UGC pay scales. All these notifications have been discussed in the representation enclosed herewith. 
 
It is, therefore, requested that all these anomalies and discrimination may kindly be rectified. We may please be given an opportunity to present our point of view personally for which any time and date convenient to you may be given to us ten days in advance.
Thanking you.
                                                                                                                                       Yours faithfully,                                                                                                                                                                                                        

(S.S.Jaspal) Gen.Secretary,
                                                                                                                             


(S.S.Gulati) President
                                                                              
                                                                                                       
February 14, 2011.

Copy to:-
1.                   The Principal Secretary, Government of Punjab, Department of Higher Education, Chandigarh.
  The D.P.I. (Colleges), Punjab Chandigarh.For information and necessary action please.

  



Rationalization of the pension of pre-1-1-2006 pensioners under para 4.2 of the  Punjab Government letter No. 3/23/09-3FPPC/885 dated 17-8-2009- Employees governed by the U.G.C. pay scales.


 1. Employees of the Punjab Government can be classified in two categories on the basis of the commissions on whose recommendations their pay scales are determined by the Punjab Government. These are as under:-
(i) Employees whose pay scales are determined on the recommendations of the Punjab Pay Commissions. They may be called PPC pay scales employees for the purpose of this note. 
(ii) Employees whose pay scales are determined on the recommendations of the University Grants Commission. They may be called U.G.C. pay scales employees for the purpose of this note. 

2. So far as pension rules are concerned the employees of both these categories are governed by the rules contained in Punjab Civil Services Rules Vol. II as modified from time to time, in regard to the rationalization of pension of pre- 1-1 2006  pensioners / family pensioners w.e.f. 1-1-2006. The Punjab Government has issued the following orders:-
(i)  Letter No.3/23/09-3FPPC/885 dated 17-8-2009.
(ii) Letter No.3/39/09-3FPPC/201 dated 22-2-2010.

3. Para 4.1 of the letter dated 17-8-2009 quoted above  provided for the rationalization of pension/ family pension of pre-1-1-2006 pensioners/ family pensioners from 1-1-2006 by adding together:-
i)   Existing pension/ family pension.
ii)  Dearness Pension where applicable.
iii) Dearness Relief at 24% of basic pension/family pension plus Dearness Pension. 
iv) Fitment weight age @ 40% of the existing pension/ family pension.                   (Where the existing pension/ family pension at (i) above included the effect of merger of 50% D.R. w.e.f. 1-4-2004, the existing pension for the purpose of fitment weightage is to be recalculated after excluding the merged D.R .of 50% of the pension.)
Both the categories of employees i.e. PPC pay scales employees and U.G.C pay scales employees were governed by the provisions of the said para 4.1 in the matter of rationalization of their pension/ family pension w.e.f. 1-1-2006 and have got their pension rationalized under the provision of the said para 4.1.

4. Para 4.2 of the letter dated 17-8-2009 quoted above provides as under:-
“The fixation of pension will be subject to the provision that the revised pension, in no case, shall be lower than 50 % of the minimum of the `pay in the pay band` plus the grade pay corresponding to the pre-revised pay scales from which the pensioner had retired. This will be reduced pro-rata if the qualifying service of the pensioner falls short of 33 years.”

The question is to what is exactly meant by the “ minimum of the` pay in the pay band` plus the grade pay”  was examined thoroughly by the finance department and ultimately it was clarified and the above said provisions of the said para 4.2 were modified to mean that the fixation of the pension envisaged in the said para will be subject to the condition that full pension, in no case, shall be less than 50 % of the` initial pay` shown in col. 8 of the schedule to the Punjab Civil Services ( Revised Pay) Rules 2009 against the relevant Pay Band and Grade pay corresponding to the pre-revised scale of pay in which the pensioner had worked, vide Finance Department letter No.3/39/09-3FPPC/201 dated 22-2-2010.

5. The above said clarification/ modification does not cover the UGC pay scale pensioners because their pay scales are not governed by the Punjab Civil Services (Revised Pay) Rules 2009 but they are governed by the UGC pay scales notified vide Punjab Government Notification No.10/3/09-Edu.I/ 3321 dated 2-9-2009. But the underlying principle enunciated in this letter that the full pension, in no case , shall be less than 50 % of the  “initial pay ” has to be made applicable in the case of UGC pay scale employees/pensioners also. The question as to what constitutes “initial pay” in their case is discussed in the paragraphs that follow. 
   
6. The definition of “pay in the pay band”, “ Revised pay Structure”,” Basic Pay” etc as  given in the Punjab Civil Services (Revised Pay) Rules 2009, are on the similar lines as contained in Annexure III of Punjab Government Notification No. 10/3/09-3Edu.I/3321 dated 2-9-2009- regarding  UGC pay scales. The term “Grade Pay” used in the former has been replaced by the term “Academic Grade Pay” in the latter for obvious reasons.   
The “Revised Basic Pay” shown in the last column of the 6th Table appended to the Notification dated 2-9-2009 also corresponds exactly to the “Revised Basic Pay” shown in the last column of all the 32 Tables appended to the Punjab Civil Services (Revised Pay) Rules 2009 in the matter of the formula adopted for fixation of Revised Pay i.e. multiplying the pre-revised basic pay by 1.86 and adding there to the applicable grade pay/ academic grade pay. The first entry in the last column “Revised Basic Pay” of each of the 32 Tables appended to the Punjab Civil Services (Revised Pay) Rules 2009 is the same as the entry of “initial pay” in column 8 of the schedule to the said rules.

It is thus clear beyond any shadow of doubt that the first entry in the last column (Revised Basic Pay) of the six tables appended to the Notification dated 2-9-2009, is the “Initial Pay” that is to form the basis of computing the revised pension in terms of para 4.2 of Punjab Government letter dated 17-8-2009 quoted in the subject in the case of UGC pay scales pensioners, as further clarified / modified vide letter dated 22-2-2010 quoted above.

7. The genesis of the concept of modified parity is that the revised pension should not be less than 50 % of “the initial pay“ in the revised pay structure can be traced to the following recommendations of the 5th Central Pay Commission.

Para 137.20 “We have no hesitation in conceding the arguments advanced by the pensioners that they should receive pension at least in the minimum pay of the post as revised by the 5th Pay Commission in the same way as an employee normally gets the minimum revised pay of the post he holds. We recommend acceptance of the principle which is based on reasonable consideration”. It has been clarified by the Finance Department in their letter No. 5/55/2009-5FPI/604 dated 16-10-2009, extract reproduced below that ‘the initial pay’ of the person appointed/ promoted on or after 1-1-2006 will be fixed as specified in column 8 of the schedule appended to the Punjab Civil Services Revised Pay) Rules 2009.   

Query
Clarification by the Finance Department
What is the revised ‘basic pay’ admissible to an employee under  the revised pay structure who is appointed on 1st March, 2006 in the pre revised scale of 7,000-10980?                                                          
As per S. No.14 of the Schedule the initial pay of an employee who is appointed on 1st March,2006 in pre-revised scale of Rs. 7,000-10,980 will be fixed at Rs.17,420/=  in the revised pay structure of Rs.10,300-34,800+4,400 and not at Rs.14,700  (Rs.10,300+4,400).                      Hence it is clarified that the initial pay of the persons appointed on or after     1-1-2006 will be fixed as specified in Column 8 of the schedule against the relevant pre-revised pay scales.                                                     

                                                                                                                                                                                                                                                                                                
8.    This interpretation is also corroborated by the Central Civil Services (Revised pay) Rules 2008. In this connection attention is invited to para 8 of Annexure III of the Punjab Government, Higher Education Department Notification dated 2-9-2009 which deals with the fixation of pay in revised pay structure of the employees appointed as fresh recruit on or after 1-1-2006. Extract of Section II of part A  of the First Schedule of the Central Services (Revised Pay) Rules 2008 referred to in the said para 8 of  Annexure III which deals with the entry pay in the revised pay structure for direct recruits appointed on or after 1-1-2006 are reproduced below:-

Pay Band 3 (Rs.15,600-39,100)
Grade pay
Pay in the Pay Band
Total
5400
15600
21000
6600
18750
25350
7600
21900
29500


Pay Band 4 (37,400-67,000) 
Grade pay
Pay in the Pay Band
Total
8700
37400
46100
8900
40200
49100
10000
43000
53000
12000
47100
59100


It will be seen that a person appointed on or after 1-1-2006 in P.B. 3 (15600-39100) on a post carrying a grade pay of 6600 is fixed at Rs.18750 plus grade pay and not at 15600 (i.e. minimum of the pay band) plus grade pay. Similarly, a person appointed on or after 1-1-2006 in P.B. 4 ( 37400-67000) on a post carrying grade pay of 12000 is fixed at 47100 plus grade pay and not in 37400( i.e. minimum of the pay band plus grade pay. 
The concept of modified parity (with pension related to the minimum pay of the revised pay scale) as enunciated by the 5th Central Pay Commission in para 137.20 of their report reproduced in para 7 above, therefore, implies that the pension received on 1-1-2006 should not be less than 50% of what a direct recruit appointed on or after 1-1-2006 is paid as starting pay i.e. “initial pay”. The rules of the Central Government and the Punjab Government make this point absolutely clear and there is no scope of any doubt in this matter.
Thus, there is absolutely no doubt that the principle of initial pay as enunciated vide letter dated 22-2-2010 should equally apply in the case of UGC pay scales pensioners because “Revised Basic Pay” against the first entry in the six Tables appended to the Notification dated 2-9-2009, has been worked out on the same principles as first entry in the column of “Revised Basic Pay” in the 32 Tables appended to the said rules vide letter dated 22-2-2010. Necessary clarification may be issued to this effect. Any other interpretation would lead to avoidable litigation.

9.  A Table showing the pension/ family pension computed in the case of UGC pay scales pensioners on the same pattern as to the Punjab Government letter No. 3/39/09-3FPPC/201 dated 22-2-2010 is attached for reference and approval/ issue.

   Table showing revised pension/ family pension in the case of UGC pay scales pensioners based on the first entry of “Revised Basic Pay” in the last column of Tables 1 to 6 appended to the Punjab Government Notification No.10/3/09-3Edu.I/3321 dated 2-9-2009, is attached as Annexure-I.          
                                                                 Annexure-I.
Table No.
Pre-revised Scale
Corresponding Revised Pay Scale/Pay Band
Academic   Grade      Pay
Minimum Pay in the Pay Band
Revised Basic Pay/Initial Pay in the corresponding pay scale as per Fitment Table
Revised Pension at 50%
Family Pension at 30%
1
2
3
4
5
6
7
8
Table No. 1
8000-13500
15600-39100
6000
15600
21600
108700
6480
Table No. 2
10000-15200
15600-39100
7000
18600
25600
12800
7680
Table No. 3
12000-18300
15600-39100
8000
22320
30320
15160
9096
Table No. 4
12000-18300
37400-67000
9000
37400
46400
23200
13920
Table No. 5
16400-22400
37400-67000
10000
40890
50890
25445
15267
Table No. 6
12000-18300
37400-67000
10000
37400
47400
23700
14220
                                                                  

(S. S. Jaspal) Gen. Secretary,                                                                 
(S. S. Gulati) President
                                                                                       
Punjab Government College Retired College Teachers` Welfare Association (Regd)              Chandigarh.

Working Office:- 762, Phase 3B1, Mohali. Ph:-2266638, M- 9417427662.