PENSION -Not a burden on the Government
PENSION
Not
a burden on the Government
Pension is described in section 60 of
the CPC and section 11 of the Pension Act There are three important features of
‘pension’. Firstly, pension is a compensation for past service. Secondly, it
owes its original to a past employer-employee or master-servant relationship.
Thirdly, it is paid on the basis of earlier relationship of an agreement of
service as opposed to an agreement for service. This relationship terminates
only on the death of the concerned employee. Scheme of payment of pension was
introduced: as it was greatly advantageous to the government.
(i)Government saved thousands of million
by stopping matching contribution to provident fund.
(ii)One
third the commuted part of pension was permanently retained by the government,
till 1986 . Even after 1986 in restoring the commuted portion after 15years,
Govt. retains the substantial balance with itself ( As per calculations the
amount commuted would be got back by the government in ten years)
(iii)Due to delayed payment of arrears
Govt. retains millions of rupees on a/c of death of pensioners/family
pensioners during the intervening period. Thus enormous amount of money has
been with the government for very long period. Had the government created a
corpus out of these savings by proper investment, today pension would not have
been a burden.
Friends , Inspite of clear ruling of Honorable S.C. on
more than one occasion,
(i)that pension
is not a largesse instead; the concerned employee by the dint of his hard work
has earned it.
(ii)That Pension
is legally enforceable right in terms of proviso to Article 309 clause 5 and
Article 146 ;of the constitution of India.
Government has been crying about increasing financial load of pension,
forgetting all the time that during the service time of present pensioners.,
(i) Had to
forego the matching contribution by the government to the Provident fund on
account of which Govt. saved thousands of million Rupees.
(ii) Were paid
less than their non pensionable counterparts.
Whenever parity of wages, was demanded
on the principal of equal work equal pay., Government declined it on the reason
that, Pensionable Government employees were entitled to pension after
retirement, thus their salary could not be at par with similarly placed non
pensionable counterparts .
In the studies got done by Central Pay
Commissions it has clearly come out that the pay scales of pensionable govt.
employees are kept low by design.
Each pay commission before
recommending new grades took into account all the benefits/allowances and perks
including the post retirement pension and other benefits.
That means
present pensioners were paid less salary than entitled to based on equal work
equal pay as compared to non pensionable
workers! Because they were to be paid pension. Pensioner during his/her
service life directly or indirectly always contributed towards pension to be
paid after retirement
(i) By forgoing
government’s matching contribution to the provident fund
(ii) By
accepting lower salaries for equal work as compared to their non pensionable
counterparts
(iii) By giving
prime years of their lives to the government. Thus Pensioners are being paid
pension out of their own money which was
otherwise due to them. Then why this hue &cry about pension burden .Why I.
Tax on Pension?.
Why not even once, not evens the
opposition, ever talk about, ever increasing load of pension , perks &
Security of politicians.
Introduction of
NPS is conspiracy to deprive the employees of Financial & Social security
in their old age as it does not guaranty payment of single penny & is
subjected to market risks
The present Finance Minister Sri
P.Chidamram had once stated in his ealier tenure that commitment of old pension
scheme would very soon develop into an unbearable liability of the Government .
We therefore, have to be alert about the
nightmarish thinking of those in power. Lest some fine morning, they may
through an ordinance stop Pension of existing Pensioners .
Over the decades, the strength of
employees is consistently coming down. In Railways alone, inspite of increase
in network, increase in freight/passenger movement and consequent increased
work load we have now 14 lakhs employees against 18 lakhs earlier. Considering
that pension amount is only half the basic pay, HRA,CCA etc are not paid to
Pensioners, it can easily be seen that governments liabilities are much reduced
& not increased . Had the Government taken care of the savings as brought out in foregoing
paras, there perhaps would not have been any burden of pension.
We pensioners have therefore to take
up on ourselves to establish the voice of reason & justice to protect our
wellbeing and to an honorable existence as senior Citizens in free India.
S.C.
Maheshwari
Secretary
General BPS
Comments
The employees have been serving loyally for a pittance in earlier days and wasted their sweat for the government.It is the duty of the Govt. to look after such dedicated employees in their old age according to the agreement entered into.
If this burden is called "structural shocks" I WONDER WHAT HE WILL CALL THE 1000 CRORE SCAMS OF MINISTRIES.
IT IS A MATTER TO BE GIVEN THOUGHT IN THIS CONTEXT.
JOSEPH THOMAS, SAO/,S.Rly.