30% pay element on DP wef01/04/04
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Clarification for calculation of emoluments of Running staff vide Railway Board's letter No. E(P&A)II-2004/RS-13 dated 30.6.2004 (RBE 140/2004). Dearness Pay (DP) calculated on a basic pay of Rs 5000 = Rs. 3250 ( Computed on BP+30% of BP) and drawn in the salary immediately before retirement
Clarification vide Railway Board's letter No. RBE No. 217/2004
No. E(P&A)II-2004/RS-13 dated 12/10/2004 Subject :- Merger of Dearness Allowance equal to 50% of basic pay with basic pay w.e.f. 1.4.2004
The issue has, therefore, been examined by the Board and it has been decided that the method, as illustrated below, is to be adopted for computing emoluments of running staff for working out their retirement benefits: -
Basic Pay (BP) = Rs.5,000
Dearness Pay (DP) = Rs. 2,500 (50% of BP)
Thus the drawn figure of (DP) is Rs.3250 and the reduced (DP) figure of Rs 2500 for calculating emoluments for retirement benefits in above two letters are different figures which is legally wrong. The emoluments cannot be reduced while calculating retirement benefits without sufficient reason that too of all running staff retired between 01/04/04 and 31/12/05. all the serving employees are drawing the figure of Rs.3250 till now and will enjoy in future and also in pay fixation under 6th CPC. Only the retired running employees are at loss. The recommendation committee 2002 on running staff can not supercede the recommendation of 5th CPC in their para 105.11 of their report, and the pay defined in railway rules in IRM codes and Railway pension rules 1993. The railway board is making fun of the retired running staff by giving misleading instructions by issuing different letters as quoted above, but they have to correct it and pay the arrears with interest.
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retired assist loco pilot
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Comments
Jul 26th 2008, by
Guest
The issue has to be examined by board, how they have issued two different letters to calculate DP on a basic pay of Rs. 5000 as 3250 while in service and Rs. 2500 for calculating average emoluments for retirement. This definitely formed two different figures. When the pension is calculated short, wrongly due to RB’s misleading instructions, by the sanctioning authority and the retired employee request for revision of pension what is the procedure,
For example on a Basic Pay of Rs.5,000.The drawn figure of (DP) is Rs.3250 vide Railway Board's letter No. E(P&A)II-2004/RS-13 dated 30.6.2004 (RBE 140/2004) ( Computed on BP+30% of BP) and drawn in the salary immediately before retirement and the reduced (DP) figure of Rs 2500 vide No. E(P&A)II-2004/RS-13 dated 12/10/2004 with Subject as Merger of Dearness Allowance equal to 50% of basic pay with basic pay w.e.f. 1.4.2004.
calculating DP for salary and for emoluments for retirement benefits in above two letters are different figures which is legally wrong. The emoluments cannot be reduced while calculating retirement benefits without sufficient reason that too of all running staff retired between 01/04/04 and 31/12/05. all the serving employees are drawing the figure of Rs.3250 till now and will enjoy in future and also in pay fixation under 6th CPC. Only the retired running employees are at loss. What should be the correct procedure.
The issue has to be examined by board, how they have issued two different letters to calculate DP on a basic pay of Rs. 5000 as 3250 while in service and Rs. 2500 for calculating average emoluments for retirement. This definitely formed two different figures. When the pension is calculated short, wrongly due to RB’s misleading instructions, by the sanctioning authority and the retired employee request for revision of pension what is the procedure,
For example on a Basic Pay of Rs.5,000.The drawn figure of (DP) is Rs.3250 vide Railway Board's letter No. E(P&A)II-2004/RS-13 dated 30.6.2004 (RBE 140/2004) ( Computed on BP+30% of BP) and drawn in the salary immediately before retirement and the reduced (DP) figure of Rs 2500 vide No. E(P&A)II-2004/RS-13 dated 12/10/2004 with Subject as Merger of Dearness Allowance equal to 50% of basic pay with basic pay w.e.f. 1.4.2004.
calculating DP for salary and for emoluments for retirement benefits in above two letters are different figures which is legally wrong. The emoluments cannot be reduced while calculating retirement benefits without sufficient reason that too of all running staff retired between 01/04/04 and 31/12/05. all the serving employees are drawing the figure of Rs.3250 till now and will enjoy in future and also in pay fixation under 6th CPC. Only the retired running employees are at loss. What should be the correct procedure.
Feb 4th 2009, by
Guest
the pay element in SCPC might have been reduced to 10% instead of 30% wef 01/01/06 and 20% in place of 55% as component of retirement benifit all runing staff to note and keep expectations accordingly.
retired Assist Loco pilot PUNE
the pay element in SCPC might have been reduced to 10% instead of 30% wef 01/01/06 and 20% in place of 55% as component of retirement benifit all runing staff to note and keep expectations accordingly.
retired Assist Loco pilot PUNE
Feb 4th 2009, by
Guest
the pay element in SCPC might have been reduced to 10% instead of 30% wef 01/01/06 and 20% in place of 55% as component of retirement benifit all runing staff to note and keep expectations accordingly
the pay element in SCPC might have been reduced to 10% instead of 30% wef 01/01/06 and 20% in place of 55% as component of retirement benifit all runing staff to note and keep expectations accordingly
Feb 13th 2009, by
Guest
30% pay element must be counted with the BP for each running category employee whether retired or in service, this is his fundamemtal right for his services provided all along 365 days round the clock working by sacrifising family/society commitments.
30% pay element must be counted with the BP for each running category employee whether retired or in service, this is his fundamemtal right for his services provided all along 365 days round the clock working by sacrifising family/society commitments.
Feb 13th 2009, by
Guest
While fixing Pay of running staff in SCPC S NO.PC VI/5 RBE letter No..109/2008. PC-VI/2008/1 dated 12.09.2008 for fixation of PAY of Running Staff has fixed the Pay considering 30 Pay element on DP and thus the fixation has been taken on a assumed pre- revised Basic Pay of 5000/- as follow
a) Basic Pay 5000/-
b) Dearness Pay 3250/- (added 30 % pay element of 5000/-)
c) DA 2340/-
d) Grade pay 4200/-
Thus the assumed pre-revised Basic of 5000/- is fixed as 14790/- i.e. Total of (a to d above) vide RBE letter dated 12/09/2008. The fixing of pay will boost the emoluments for pension and other retrial benefits like pension/gratuity/commutation etc of those retiring on and from 01/01/2006. It has brought anomaly among the pensioners and amount of monthly pension drawn as highest by pre 01/04/04 running staff pensioner having the same assumed basic pay last drawn, and then the pensioners retiring on and from 01/01/2006 will draw highest Gratuity and commutation. The pensioners retired between 01/04/04 to 31/12/05 are only at loss in calculation of pension as well as commutation value they received.
Following is the table from which the present position of the running staff pensioners retired in V CPC from 1996 to 01/01/06.
SN Date of retirement Basic Pay Pre Revised Basic Pension 40% commutation Revised Pension Sep/08 pension with 16% DA
1 1996 5000/- 3875 1550 8758 8610
2 01/04/04 5000/- 5812 2325 8758 7834
3 01/01/06 5000/- par revised to 14790 from 01/01/06 NA 4585 11462 8711
From the above table it is clear that SN 1 & 3 are drawing equal pension in to days date and there is parity between them, but pensioners in SN 2 seems to have been deprived of due to the non inclusion of 30% pay element while merging 50 % DA as DP and the same element has been given to the employees while fixing Pay from 01/01/06 in the SCPC recommendation.
If the pay element of 30% is added to the merger of DP and pension is calculated it will come as follow
SN Date of retirement Basic Pay Pre Revised Basic Pension 40% commutation Revised Pension Sep/08 pension with 16% DA
1 01/04/04 5000/- 6394 2558 9634 8617
Thus there will be parity amongst all three.The running staff of Indian Railway who retired under fifth CPC represented to revise pensions of those running staff who retired between 01/04/2004 and 31/12/2005 who were deprived of 30% Pay element on DP of 50 % DA which was merged in Pay from 01/04/2004 which ultimately affected in short calculation and payment of pension.
The pension on a assumed basic Pay of Rs. 5000/- was calculated as follow for retirement between 01/04/04 to 31/12/05.
a) Basic Pay : 5000/-
b) Dearness Pay : 2500/-. (50 % of Basic pay)
A + b = 7500/-
c) Component of Pay Element of 55 % on 7500/- = 4125/-
a + b +c = 11625/-
50% of 11625/- = 5812/-
BY rounding off, 5810/- will be the basic pension as per the above method.
As per the Sixth CPC formula the Revised Basic Pension on 01/01/06 will be 8758/- on above pre revised pension of 5810/-.
Where as the pension for those retired between 01/04/04 to 31/12/05 should have been calculated as follow by adding 30% of pay element as has been allowed while fixing emoluments vide RBE letter dated 12/09/2008.
a) Basic Pay: 5000/-.
b) Dearness Pay: 3250/-. (50 % of DA which actually drawn as Dearness Pay in the salary actually drawn immediately before retirement)
A + b = 8250/-
c) Component of Pay Element of 55 % on 8250/- = 4538/-
a + b +c = 12788/-
50% of 12788/- = 6394/-
6390/- will be the basic pension as against 5810/-
As per the SCPC formula the revised basic pension on 01/01/06 will be 9628/- on above pre revised pension of 6390/-.
6390 – 5810 = 580/- is the amount being paid short every month up to 31/12/05
9628 – 8758 = 870/- is the amount will be paid short every month from 01/01/06.
The ministry of finance here has applied thump rule in fixing the formula of merging of DA in basic pay as DP and interpreted as “DA equal to 50 % of basic pay” and not 50 % of DA. 50 % of DA which was the ultimate idea of Fifth CPC quoted in Para 105.11 of their report and decided by the President, the Ministry of Finance in their letter No. 42/2/2004P&PW dated 01/03/2004 in their para 2 used 50% DA equal to basic pay which has brought anomaly particularly to the running staff of railway which formed two deferent figures as well as meanings. For example on a basic pay of Rs. 5000/- the DA equal to 50% on 01/04/04 goes to 2500/- and the same 50 % of DA was paid to running staff was 3250/-. The ministry of Finance Letter is reproduced below.
No.42/2/2004-P&PW (G)
F.No.105/1/2004-IC
Government of India
Ministry of Finance
Department of Expenditure New Delhi, the 1st March, 2004
OFFICE MEMORANDUM
Subject: Merger of 50% Dearness Allowance/Dearness Relief with basic pay/pension to Central Government employees/pensioners w.e.f. 1.4.2004.
The Fifth CPC in para 105.11 of their Report had recommended that `DA should be converted into Dearness Pay each time the CPI increases by 50% over the base index used by the last Pay Commission’.
2. This recommendation of Fifth CPC has been considered and the President is pleased to decide that, with effect from 1.4.2004, DA equal to 50% of the existing basic pay shall be merged with the basic pay and shown distinctly as Dearness Pay (DP) which would be counted for purposes like payment of allowances, transfer grant, retirement benefits, contribution to GPF, License Fee, monthly contribution for CGHS, various advances etc. The entitlements for LTC, TA/DA while on tour and transfer and government accommodation shall, however, continue to be governed on the basis of the basic pay alone without taking into account Dearness Pay. In case of existing pensioners, Dearness Relief equal to 50% of the present pension will, w.e.f. 1.4.2004, be merged with pension and shown distinctly as Dearness Pension. Dearness Allowance/Dearness Relief converted into Dearness Pay/Dearness Pension respectively would be deducted from the existing rate of Dearness Allowance/Dearness Relief.
3. To ensure that pensioners retiring between 1.4.2004 to 31.1.2005 do not face any loss in fixation of pension, as a special dispensation in their case, DA equal to 50% of the basic pay would be treated as basic pay for purposes of computation of pension in respect of basic pay received by them prior to 1.4.2004. Consequently, element of dearness pension will exist only for pensioners retired/retiring from Government of India up to 31.3.2004.
Insofar as the persons serving in the Indian Audit & Accounts Department are concerned, these orders issue after consultation with the Comptroller & Auditor General of India.
Sd/-
(SUSHAMA NATH)
Joint Secretary to the Government of India
To: All Ministries/Departments of the Government of India as per standard distribution list. Copy (with usual number of spare copies) to C&AG, UPSC, etc. as per standard endorsement list.
Though it was clear from the various rules and VCPC recommendation which are reproduced below for further redressal to higher authorities of Railway Board and if required in CAT for the sake of justification. Few IREM and RB’s references are given below for further guide line.
IRE Manual Vol. I (revised edition 1989) Rule 924.
Reckoning or running allowance as pay ( i) 30% of the basic pay of running staff shall be reckoned as pay for the following purpose.
(c) While determining the emoluments of running staff for the purpose of calculation of retirement benefits, Dearness Pay as admissible from time to time shall be calculated on bases of pay plus 30% thereof in the case of running staff retired / retiring on or after 01/08/1981.
1303. F. R. 9(21) a( i ) Pay means the amount drawn monthly by a government servant as to which he is entitled by reason of his position in cadre; and (iii) any other emoluments which may be specified specially classified as Pay by the President.
Railway Pension Rules 1993. Rule 49 & 50: Emoluments and Average Emoluments: Any increase in the pay which is not drawn shall not form part of emoluments (i.e. if drawn shall form part of emoluments.)
Fifth CPC recommendations 133.35 in Para VI:
INCLUSION OF ALLOWANCE IN EMOLUMENTS: Long term benefits like pension should be related only to the basic pay of a employee as has been held by the Forth CPC. There are no circumstances which might warrant a review of this principal. Dearness allowance would, however form part of the emoluments in in the normal course however it is merged, either fully or partially in the pay for the purpose of pensionary benefits”
In Fifth CPC recommendation in Part III “The emoluments for the purpose of calculating pension shall mean Pay as defined in rule 1303 (i) R II [FR-9(21) a (i) which the railway servant receiving immediately before his retirement or on the date of his death”
IRM code 1417 Dearness Pay: Such portion of the dearness allowance as is decided by the Govt to be treated as dearness pay shall be formed as dearness pay. The Dearness Pay is so designed, shall be reckoned as Pay for such purposes as are specified by the Govt from time to time and are for no other purpose.
Therefore, it is duty of pensioner’s welfare association, and Pensioners’ Welfare Ministry, the Loco Traffic wings of running Staff of Indian Railway men associations to take the matters to the Railway Board as the method applied in these three deferent cases of retirees from 1996 to 01/01/06 results in huge recurring loss of monthly pension. The 6th CPC has also suggested that a dispensation was required to be taken by the Government in respect of post 1/4/2004 retirees. Therefore, the Pensioners’ Welfare Ministry may kindly reconsider and view this case sympathetically and ensure upward revision of Revised Consolidated Pension nullifying the deduction of 1/3 portion of the Basic Pension all through being drawn by the post 1-4-2004 retirees and render justice to the category of running staff which is the back bone of Indian Railways as well as other pensioners of the post 01/04/04 retirees.
Retired Assist Loco Pilot /PUNE
While fixing Pay of running staff in SCPC S NO.PC VI/5 RBE letter No..109/2008. PC-VI/2008/1 dated 12.09.2008 for fixation of PAY of Running Staff has fixed the Pay considering 30 Pay element on DP and thus the fixation has been taken on a assumed pre- revised Basic Pay of 5000/- as follow
a) Basic Pay 5000/-
b) Dearness Pay 3250/- (added 30 % pay element of 5000/-)
c) DA 2340/-
d) Grade pay 4200/-
Thus the assumed pre-revised Basic of 5000/- is fixed as 14790/- i.e. Total of (a to d above) vide RBE letter dated 12/09/2008. The fixing of pay will boost the emoluments for pension and other retrial benefits like pension/gratuity/commutation etc of those retiring on and from 01/01/2006. It has brought anomaly among the pensioners and amount of monthly pension drawn as highest by pre 01/04/04 running staff pensioner having the same assumed basic pay last drawn, and then the pensioners retiring on and from 01/01/2006 will draw highest Gratuity and commutation. The pensioners retired between 01/04/04 to 31/12/05 are only at loss in calculation of pension as well as commutation value they received.
Following is the table from which the present position of the running staff pensioners retired in V CPC from 1996 to 01/01/06.
SN Date of retirement Basic Pay Pre Revised Basic Pension 40% commutation Revised Pension Sep/08 pension with 16% DA
1 1996 5000/- 3875 1550 8758 8610
2 01/04/04 5000/- 5812 2325 8758 7834
3 01/01/06 5000/- par revised to 14790 from 01/01/06 NA 4585 11462 8711
From the above table it is clear that SN 1 & 3 are drawing equal pension in to days date and there is parity between them, but pensioners in SN 2 seems to have been deprived of due to the non inclusion of 30% pay element while merging 50 % DA as DP and the same element has been given to the employees while fixing Pay from 01/01/06 in the SCPC recommendation.
If the pay element of 30% is added to the merger of DP and pension is calculated it will come as follow
SN Date of retirement Basic Pay Pre Revised Basic Pension 40% commutation Revised Pension Sep/08 pension with 16% DA
1 01/04/04 5000/- 6394 2558 9634 8617
Thus there will be parity amongst all three.The running staff of Indian Railway who retired under fifth CPC represented to revise pensions of those running staff who retired between 01/04/2004 and 31/12/2005 who were deprived of 30% Pay element on DP of 50 % DA which was merged in Pay from 01/04/2004 which ultimately affected in short calculation and payment of pension.
The pension on a assumed basic Pay of Rs. 5000/- was calculated as follow for retirement between 01/04/04 to 31/12/05.
a) Basic Pay : 5000/-
b) Dearness Pay : 2500/-. (50 % of Basic pay)
A + b = 7500/-
c) Component of Pay Element of 55 % on 7500/- = 4125/-
a + b +c = 11625/-
50% of 11625/- = 5812/-
BY rounding off, 5810/- will be the basic pension as per the above method.
As per the Sixth CPC formula the Revised Basic Pension on 01/01/06 will be 8758/- on above pre revised pension of 5810/-.
Where as the pension for those retired between 01/04/04 to 31/12/05 should have been calculated as follow by adding 30% of pay element as has been allowed while fixing emoluments vide RBE letter dated 12/09/2008.
a) Basic Pay: 5000/-.
b) Dearness Pay: 3250/-. (50 % of DA which actually drawn as Dearness Pay in the salary actually drawn immediately before retirement)
A + b = 8250/-
c) Component of Pay Element of 55 % on 8250/- = 4538/-
a + b +c = 12788/-
50% of 12788/- = 6394/-
6390/- will be the basic pension as against 5810/-
As per the SCPC formula the revised basic pension on 01/01/06 will be 9628/- on above pre revised pension of 6390/-.
6390 – 5810 = 580/- is the amount being paid short every month up to 31/12/05
9628 – 8758 = 870/- is the amount will be paid short every month from 01/01/06.
The ministry of finance here has applied thump rule in fixing the formula of merging of DA in basic pay as DP and interpreted as “DA equal to 50 % of basic pay” and not 50 % of DA. 50 % of DA which was the ultimate idea of Fifth CPC quoted in Para 105.11 of their report and decided by the President, the Ministry of Finance in their letter No. 42/2/2004P&PW dated 01/03/2004 in their para 2 used 50% DA equal to basic pay which has brought anomaly particularly to the running staff of railway which formed two deferent figures as well as meanings. For example on a basic pay of Rs. 5000/- the DA equal to 50% on 01/04/04 goes to 2500/- and the same 50 % of DA was paid to running staff was 3250/-. The ministry of Finance Letter is reproduced below.
No.42/2/2004-P&PW (G)
F.No.105/1/2004-IC
Government of India
Ministry of Finance
Department of Expenditure New Delhi, the 1st March, 2004
OFFICE MEMORANDUM
Subject: Merger of 50% Dearness Allowance/Dearness Relief with basic pay/pension to Central Government employees/pensioners w.e.f. 1.4.2004.
The Fifth CPC in para 105.11 of their Report had recommended that `DA should be converted into Dearness Pay each time the CPI increases by 50% over the base index used by the last Pay Commission’.
2. This recommendation of Fifth CPC has been considered and the President is pleased to decide that, with effect from 1.4.2004, DA equal to 50% of the existing basic pay shall be merged with the basic pay and shown distinctly as Dearness Pay (DP) which would be counted for purposes like payment of allowances, transfer grant, retirement benefits, contribution to GPF, License Fee, monthly contribution for CGHS, various advances etc. The entitlements for LTC, TA/DA while on tour and transfer and government accommodation shall, however, continue to be governed on the basis of the basic pay alone without taking into account Dearness Pay. In case of existing pensioners, Dearness Relief equal to 50% of the present pension will, w.e.f. 1.4.2004, be merged with pension and shown distinctly as Dearness Pension. Dearness Allowance/Dearness Relief converted into Dearness Pay/Dearness Pension respectively would be deducted from the existing rate of Dearness Allowance/Dearness Relief.
3. To ensure that pensioners retiring between 1.4.2004 to 31.1.2005 do not face any loss in fixation of pension, as a special dispensation in their case, DA equal to 50% of the basic pay would be treated as basic pay for purposes of computation of pension in respect of basic pay received by them prior to 1.4.2004. Consequently, element of dearness pension will exist only for pensioners retired/retiring from Government of India up to 31.3.2004.
Insofar as the persons serving in the Indian Audit & Accounts Department are concerned, these orders issue after consultation with the Comptroller & Auditor General of India.
Sd/-
(SUSHAMA NATH)
Joint Secretary to the Government of India
To: All Ministries/Departments of the Government of India as per standard distribution list. Copy (with usual number of spare copies) to C&AG, UPSC, etc. as per standard endorsement list.
Though it was clear from the various rules and VCPC recommendation which are reproduced below for further redressal to higher authorities of Railway Board and if required in CAT for the sake of justification. Few IREM and RB’s references are given below for further guide line.
IRE Manual Vol. I (revised edition 1989) Rule 924.
Reckoning or running allowance as pay ( i) 30% of the basic pay of running staff shall be reckoned as pay for the following purpose.
(c) While determining the emoluments of running staff for the purpose of calculation of retirement benefits, Dearness Pay as admissible from time to time shall be calculated on bases of pay plus 30% thereof in the case of running staff retired / retiring on or after 01/08/1981.
1303. F. R. 9(21) a( i ) Pay means the amount drawn monthly by a government servant as to which he is entitled by reason of his position in cadre; and (iii) any other emoluments which may be specified specially classified as Pay by the President.
Railway Pension Rules 1993. Rule 49 & 50: Emoluments and Average Emoluments: Any increase in the pay which is not drawn shall not form part of emoluments (i.e. if drawn shall form part of emoluments.)
Fifth CPC recommendations 133.35 in Para VI:
INCLUSION OF ALLOWANCE IN EMOLUMENTS: Long term benefits like pension should be related only to the basic pay of a employee as has been held by the Forth CPC. There are no circumstances which might warrant a review of this principal. Dearness allowance would, however form part of the emoluments in in the normal course however it is merged, either fully or partially in the pay for the purpose of pensionary benefits”
In Fifth CPC recommendation in Part III “The emoluments for the purpose of calculating pension shall mean Pay as defined in rule 1303 (i) R II [FR-9(21) a (i) which the railway servant receiving immediately before his retirement or on the date of his death”
IRM code 1417 Dearness Pay: Such portion of the dearness allowance as is decided by the Govt to be treated as dearness pay shall be formed as dearness pay. The Dearness Pay is so designed, shall be reckoned as Pay for such purposes as are specified by the Govt from time to time and are for no other purpose.
Therefore, it is duty of pensioner’s welfare association, and Pensioners’ Welfare Ministry, the Loco Traffic wings of running Staff of Indian Railway men associations to take the matters to the Railway Board as the method applied in these three deferent cases of retirees from 1996 to 01/01/06 results in huge recurring loss of monthly pension. The 6th CPC has also suggested that a dispensation was required to be taken by the Government in respect of post 1/4/2004 retirees. Therefore, the Pensioners’ Welfare Ministry may kindly reconsider and view this case sympathetically and ensure upward revision of Revised Consolidated Pension nullifying the deduction of 1/3 portion of the Basic Pension all through being drawn by the post 1-4-2004 retirees and render justice to the category of running staff which is the back bone of Indian Railways as well as other pensioners of the post 01/04/04 retirees.
Retired Assist Loco Pilot /PUNE
Feb 13th 2009, by
Guest
Sub: Fixation of Pay and pension in SCPC of running staff of railways.
Running staff retired between 01/04/04 to 31/12/05 deprived of calculation of pension with 30 % pay element on 50% Dearness Pay merged on 01/04/04 which was drawn immediately before the retirement of running staff retired between 01/04/04 to 31/12/05 as has been allowed to the serving employees of railway running staff while fixing their Pay from 01/01/06 under the SCPC S/NO .PC VI / 5 RBE letter No..109/2008. PC-VI / 2008 / 1 dated 12.09.2008 for fixation of PAY of Running Staff, have fixed the Pay considering 30 % Pay element on not only 50% DP but on full DA of 74% on 01/01/06 and thus the recommendation of SCPC has allowed fixation on a assumed pre- revised Basic Pay of 5000/- as follow
a) Pre-revised Basic Pay 5000/- (5000-8000)
b) Dearness Pay 3250/- ( with added 30 % pay element of 5000/-)
c) DA 24% =2340/- (how 24 % DA comes to 2340/- on a basic pay of 5000/- is explained below)
d) Grade pay 4200/-
e) revised Basic Pay on 01/01/06 14790/-
Thus the assumed pre-revised Basic of 5000/- is fixed as 14790/- i.e. Total of (a to d above) vide RBE letter 109/2008 dated 12/09/2008. The SCPC recommendations could not take out the effect of merger of 50% DA which was from 01/04/04 as has been taken out in cases of all pensioners retired between 01/04/04 to 31/12/05 in the SCPC recommendation. The SCPC recommendations have allowed 30 % pay element on basic pay 5000/- plus merger of 50 % of basic pay ( i.e. on 5000 + 2500 = 7500/-) that too taking into consideration 30 % pay element on 7500/- which comes to 2250/- thus on a total of 9750/- the DA of 24 % amounting to 2340/- was allowed keeping the effect of merger of 50 % of basic pay of 5000/- as 2500/- that too with a amount of 2500 + 750 = 3250/- as Dearness Pay and the same figure of 3250/- was added while fixing Pay in the revised pay in SCPC, it is because merger of Dearness Pay of 3250/- into pay on 01/04/04 vide Fifth CPC recommendation, which could not be nullified by the SCPC recommendations. The remarkable point here to note is the 50 % merger from 01/04/04 of 3250/- was allowed to them as it is with 30 % pay element on a basic of 5000/-, but the same element was denied for running staff while calculating their pension of pensioners retired from 01/04/04 to 31/12/05 which has creating unrest amongst the pensioners for such injustice and Govt decision.
The fixing of pay in SCPC from 01/01/06 will boost the emoluments for calculating Pension and ultimately other retrial benefits like pension/gratuity/commutation etc of those retiring on and from 01/01/2006. It has brought anomaly among the pensioners and amount of monthly pension drawn as highest by pre 01/04/04 and 01/01/06 running staff pensioner having the same assumed basic pay last drawn, and then the pensioners retiring on and from 01/01/2006 will draw highest Gratuity and commutation. The pensioners retired between 01/04/04 to 31/12/05 are only seen at loss in calculation of revised pension from 01/01/06.
Following is the table from which the present position on sep/2008 of the running staff pensioners retired in V CPC from 1996 to SCPC effective on 01/01/06.
SN Date of retirement Assumed Basic Pay running staff Pre Revised Basic Pension 40% commutation Revised Pension Sep/08 pension with 16% DA
1 1996 to 31/03/2004 5000/- 3875 1550 8758 8610
2 01/04/04 to 31/12/05 5000/- 5812 2325 8758 7834
3 01/01/06 & onwards 5000/- par revised to 14790/- from 01/01/06 NA 4585 11462 8711
From the above table it is clear that S/No. 1 & 3 are drawing equal pension in to days date of sep/08 and there is parity between them, but pensioners in S/No. 2 seems to have been deprived of due to the non inclusion of 30% pay element while merging 50 % DA as DP in their last pay drawn and calculation of emoluments without adding 30% pay element on dearness pay, the same element has been given to the present running staff employees of railways in service while fixing their Pay from 01/01/06 in the SCPC recommendation vide RBE letter 109/2008 dated 12/09/2008.
If the pay element of 30% is added to the merger of DP and pension is calculated or the dearness pay last actually drawn immediately to retirement between 01/04/04 to 31/12/05, it will come as follow
SN Date of retirement Assumed Basic Pay running staff Pre Revised Basic Pension 40% commutation Revised Pension Sep/08 pension with 16% DA
1 01/04/04 to 31/12/05 5000/- 6400 2558 9640 8624
Thus there will be parity amongst all three. The running staff of Indian Railway who retired under fifth CPC represented to revise pensions of those running staff who retired between 01/04/2004 and 31/12/2005 who were deprived of 30% Pay element on DP of 50 % DA which was merged in Pay from 01/04/2004 which ultimately affected in short calculation and payment of pension.
The pension on a assumed basic Pay of Rs. 5000/- was calculated as follow for retirement between 01/04/04 to 31/12/05.
a) Basic Pay : 5000/-
b) Dearness Pay : 2500/-. (50 % of Basic pay)
A + b = 7500/-
c) Component of Pay Element of 55 % on 7500/- = 4125/-
a + b +c = 11625/-
50% of 11625/- = 5812/-
BY rounding off, 5810/- will be the basic pension as per the above method.
As per the Sixth CPC formula the Revised Basic Pension on 01/01/06 will be 8758/- on above pre- revised pension of 5810/-.
Where as the pension for those retired between 01/04/04 to 31/12/05 should have been calculated as follow by adding 30% of pay element as has been allowed while fixing emoluments vide RBE letter dated 12/09/2008.
a) Basic Pay: 5000/-.
b) Dearness Pay: 3250/-. (50 % of DA which actually drawn as Dearness Pay in the salary actually drawn immediately before retirement)
A + b = 8250/-
c) Component of Pay Element of 55 % on 8250/- = 4538/-
a + b +c = 12788/-
50% of 12788/- = 6394/-
6394/- will be the basic pension as against 5810/-
As per the SCPC formula the revised basic pension on 01/01/06 will be 9640/- on above pre revised pension of 6400/- (after rounding off to multiple of 10)
6400 – 5810 = 590/- is the amount being paid short every month up to 31/12/05
9630 – 8760 = 870/- is the amount will be paid short every month from 01/01/06.
From Retired Assistant Loco Pilot/PUNE
Sub: Fixation of Pay and pension in SCPC of running staff of railways.
Running staff retired between 01/04/04 to 31/12/05 deprived of calculation of pension with 30 % pay element on 50% Dearness Pay merged on 01/04/04 which was drawn immediately before the retirement of running staff retired between 01/04/04 to 31/12/05 as has been allowed to the serving employees of railway running staff while fixing their Pay from 01/01/06 under the SCPC S/NO .PC VI / 5 RBE letter No..109/2008. PC-VI / 2008 / 1 dated 12.09.2008 for fixation of PAY of Running Staff, have fixed the Pay considering 30 % Pay element on not only 50% DP but on full DA of 74% on 01/01/06 and thus the recommendation of SCPC has allowed fixation on a assumed pre- revised Basic Pay of 5000/- as follow
a) Pre-revised Basic Pay 5000/- (5000-8000)
b) Dearness Pay 3250/- ( with added 30 % pay element of 5000/-)
c) DA 24% =2340/- (how 24 % DA comes to 2340/- on a basic pay of 5000/- is explained below)
d) Grade pay 4200/-
e) revised Basic Pay on 01/01/06 14790/-
Thus the assumed pre-revised Basic of 5000/- is fixed as 14790/- i.e. Total of (a to d above) vide RBE letter 109/2008 dated 12/09/2008. The SCPC recommendations could not take out the effect of merger of 50% DA which was from 01/04/04 as has been taken out in cases of all pensioners retired between 01/04/04 to 31/12/05 in the SCPC recommendation. The SCPC recommendations have allowed 30 % pay element on basic pay 5000/- plus merger of 50 % of basic pay ( i.e. on 5000 + 2500 = 7500/-) that too taking into consideration 30 % pay element on 7500/- which comes to 2250/- thus on a total of 9750/- the DA of 24 % amounting to 2340/- was allowed keeping the effect of merger of 50 % of basic pay of 5000/- as 2500/- that too with a amount of 2500 + 750 = 3250/- as Dearness Pay and the same figure of 3250/- was added while fixing Pay in the revised pay in SCPC, it is because merger of Dearness Pay of 3250/- into pay on 01/04/04 vide Fifth CPC recommendation, which could not be nullified by the SCPC recommendations. The remarkable point here to note is the 50 % merger from 01/04/04 of 3250/- was allowed to them as it is with 30 % pay element on a basic of 5000/-, but the same element was denied for running staff while calculating their pension of pensioners retired from 01/04/04 to 31/12/05 which has creating unrest amongst the pensioners for such injustice and Govt decision.
The fixing of pay in SCPC from 01/01/06 will boost the emoluments for calculating Pension and ultimately other retrial benefits like pension/gratuity/commutation etc of those retiring on and from 01/01/2006. It has brought anomaly among the pensioners and amount of monthly pension drawn as highest by pre 01/04/04 and 01/01/06 running staff pensioner having the same assumed basic pay last drawn, and then the pensioners retiring on and from 01/01/2006 will draw highest Gratuity and commutation. The pensioners retired between 01/04/04 to 31/12/05 are only seen at loss in calculation of revised pension from 01/01/06.
Following is the table from which the present position on sep/2008 of the running staff pensioners retired in V CPC from 1996 to SCPC effective on 01/01/06.
SN Date of retirement Assumed Basic Pay running staff Pre Revised Basic Pension 40% commutation Revised Pension Sep/08 pension with 16% DA
1 1996 to 31/03/2004 5000/- 3875 1550 8758 8610
2 01/04/04 to 31/12/05 5000/- 5812 2325 8758 7834
3 01/01/06 & onwards 5000/- par revised to 14790/- from 01/01/06 NA 4585 11462 8711
From the above table it is clear that S/No. 1 & 3 are drawing equal pension in to days date of sep/08 and there is parity between them, but pensioners in S/No. 2 seems to have been deprived of due to the non inclusion of 30% pay element while merging 50 % DA as DP in their last pay drawn and calculation of emoluments without adding 30% pay element on dearness pay, the same element has been given to the present running staff employees of railways in service while fixing their Pay from 01/01/06 in the SCPC recommendation vide RBE letter 109/2008 dated 12/09/2008.
If the pay element of 30% is added to the merger of DP and pension is calculated or the dearness pay last actually drawn immediately to retirement between 01/04/04 to 31/12/05, it will come as follow
SN Date of retirement Assumed Basic Pay running staff Pre Revised Basic Pension 40% commutation Revised Pension Sep/08 pension with 16% DA
1 01/04/04 to 31/12/05 5000/- 6400 2558 9640 8624
Thus there will be parity amongst all three. The running staff of Indian Railway who retired under fifth CPC represented to revise pensions of those running staff who retired between 01/04/2004 and 31/12/2005 who were deprived of 30% Pay element on DP of 50 % DA which was merged in Pay from 01/04/2004 which ultimately affected in short calculation and payment of pension.
The pension on a assumed basic Pay of Rs. 5000/- was calculated as follow for retirement between 01/04/04 to 31/12/05.
a) Basic Pay : 5000/-
b) Dearness Pay : 2500/-. (50 % of Basic pay)
A + b = 7500/-
c) Component of Pay Element of 55 % on 7500/- = 4125/-
a + b +c = 11625/-
50% of 11625/- = 5812/-
BY rounding off, 5810/- will be the basic pension as per the above method.
As per the Sixth CPC formula the Revised Basic Pension on 01/01/06 will be 8758/- on above pre- revised pension of 5810/-.
Where as the pension for those retired between 01/04/04 to 31/12/05 should have been calculated as follow by adding 30% of pay element as has been allowed while fixing emoluments vide RBE letter dated 12/09/2008.
a) Basic Pay: 5000/-.
b) Dearness Pay: 3250/-. (50 % of DA which actually drawn as Dearness Pay in the salary actually drawn immediately before retirement)
A + b = 8250/-
c) Component of Pay Element of 55 % on 8250/- = 4538/-
a + b +c = 12788/-
50% of 12788/- = 6394/-
6394/- will be the basic pension as against 5810/-
As per the SCPC formula the revised basic pension on 01/01/06 will be 9640/- on above pre revised pension of 6400/- (after rounding off to multiple of 10)
6400 – 5810 = 590/- is the amount being paid short every month up to 31/12/05
9630 – 8760 = 870/- is the amount will be paid short every month from 01/01/06.
From Retired Assistant Loco Pilot/PUNE
Feb 13th 2009, by
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Feb 15th 2009, by
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1. the Railway Board vide its letter RBE 109/2008 dated 12.09.2008 for fixation of pay of running staff did not mentioned any thing about the fixation of pay considering the leftover factor of 30% pay element on Dearness pay of those retired between 01.04.2004 to 31.12.2005 but has, allowed the same neglected factor of pay element of 30% on dearness pay while fixing Pay of those in service and further to their retirement on and from 01.01.2006 under the recommendation of 6th CPC from 01.01.2006. And step mother treatment was given to the pensioners retired after 01.04.2004.
1. the Railway Board vide its letter RBE 109/2008 dated 12.09.2008 for fixation of pay of running staff did not mentioned any thing about the fixation of pay considering the leftover factor of 30% pay element on Dearness pay of those retired between 01.04.2004 to 31.12.2005 but has, allowed the same neglected factor of pay element of 30% on dearness pay while fixing Pay of those in service and further to their retirement on and from 01.01.2006 under the recommendation of 6th CPC from 01.01.2006. And step mother treatment was given to the pensioners retired after 01.04.2004.
Jan 17th 2010, by
Guest
The running staff of Railways retired between 01.04.2004 to 31.08.2008 who were given the same benefits of 30% Pay Element on 50% merger of DA in terms of clause ‘C’ below NOTE of Rule 25 of 1981 vide Railway Board letter: No. E (P&A) AII II – 80/RS- 10 Dt. 17.7.1981. The actual drawn figure of Dearness Pay in terms of 1303. F. R. 9-21 a- i, was simply reduced while computing pension emoluments without any sufficient reason by 30% on 50% DP drawn in their last salary prior to retirement of the pensioners from 1.4.2004 to 31.12.2005. Where as the same element of 30% pay on 50% DP was given to those retired from 1.1.2006 in terms of clause ‘C’ below NOTE of Rule 25 of 1981. This has violated the Article 14 of the constitution.
Thus, pensioners retired between 1.4.2004 to 31.12.2005 were given only 50% merger denying element of 30% pay on Pension Emoluments. Though it was quite incumbent on the part of Railway Board to add 30% Pay Element on figure of Dearness Pay drawn in the salary prior to the retirement similar to those figure of Dearness Pay which was added to the post 1.1.2006 pensioners and similar to those retired from 1.1.1996 when 148% of DA when merged and added as pay /Pension considering 30% pay Element for pension emoluments. This incorrect computation from 1.4.2004 to 31.12.2005 resulted in unauthorized reduction in pay drawn from 01/04/04 to 31/12/2005 and entitlement of legitimate basic pension of running staff. This has also caused short payment of commutation of pension & has further af-fected the Consolidated Revised pension from 1.1.2006, which in turn deprived part of means of livelihood to retired running staff from 1.4.2004 to 31.12.2005, which is very much against human rights and Consti-tutional guarantees. The meaning of merger of DA with pay without 30% pay element for running staff is meaning less and contrary to the Rule 25 of 1981 and created wide disparity.
This has created Anomaly due to Reduction in drawn Dearness Pay while computing pension emoluments for running staff of Railways retired between 01.04.2004 to 31.12.2005, which caused in short payment of legitimate basic pension from 1.4.2004 in terms of clause ‘C’ below NOTE of Rule 25 of 1981.
The running staff of Railways retired between 01.04.2004 to 31.08.2008 who were given the same benefits of 30% Pay Element on 50% merger of DA in terms of clause ‘C’ below NOTE of Rule 25 of 1981 vide Railway Board letter: No. E (P&A) AII II – 80/RS- 10 Dt. 17.7.1981. The actual drawn figure of Dearness Pay in terms of 1303. F. R. 9-21 a- i, was simply reduced while computing pension emoluments without any sufficient reason by 30% on 50% DP drawn in their last salary prior to retirement of the pensioners from 1.4.2004 to 31.12.2005. Where as the same element of 30% pay on 50% DP was given to those retired from 1.1.2006 in terms of clause ‘C’ below NOTE of Rule 25 of 1981. This has violated the Article 14 of the constitution.
Thus, pensioners retired between 1.4.2004 to 31.12.2005 were given only 50% merger denying element of 30% pay on Pension Emoluments. Though it was quite incumbent on the part of Railway Board to add 30% Pay Element on figure of Dearness Pay drawn in the salary prior to the retirement similar to those figure of Dearness Pay which was added to the post 1.1.2006 pensioners and similar to those retired from 1.1.1996 when 148% of DA when merged and added as pay /Pension considering 30% pay Element for pension emoluments. This incorrect computation from 1.4.2004 to 31.12.2005 resulted in unauthorized reduction in pay drawn from 01/04/04 to 31/12/2005 and entitlement of legitimate basic pension of running staff. This has also caused short payment of commutation of pension & has further af-fected the Consolidated Revised pension from 1.1.2006, which in turn deprived part of means of livelihood to retired running staff from 1.4.2004 to 31.12.2005, which is very much against human rights and Consti-tutional guarantees. The meaning of merger of DA with pay without 30% pay element for running staff is meaning less and contrary to the Rule 25 of 1981 and created wide disparity.
This has created Anomaly due to Reduction in drawn Dearness Pay while computing pension emoluments for running staff of Railways retired between 01.04.2004 to 31.12.2005, which caused in short payment of legitimate basic pension from 1.4.2004 in terms of clause ‘C’ below NOTE of Rule 25 of 1981.
Jan 17th 2010, by
Guest
The running staff of Railways retired between 01.04.2004 to 31.08.2008 who were given the same benefits of 30% Pay Element on 50% merger of DA in terms of clause ‘C’ below NOTE of Rule 25 of 1981 vide Railway Board letter: No. E (P&A) AII II – 80/RS- 10 Dt. 17.7.1981. The actual drawn figure of Dearness Pay in terms of 1303. F. R. 9-21 a- i, was simply reduced while computing pension emoluments without any sufficient reason by 30% on 50% DP drawn in their last salary prior to retirement of the pensioners from 1.4.2004 to 31.12.2005. Where as the same element of 30% pay on 50% DP was given to those retired from 1.1.2006 in terms of clause ‘C’ below NOTE of Rule 25 of 1981. This has violated the Article 14 of the constitution.
Thus, pensioners retired between 1.4.2004 to 31.12.2005 were given only 50% merger denying element of 30% pay on Pension Emoluments. Though it was quite incumbent on the part of Railway Board to add 30% Pay Element on figure of Dearness Pay drawn in the salary prior to the retirement similar to those figure of Dearness Pay which was added to the post 1.1.2006 pensioners and similar to those retired from 1.1.1996 when 148% of DA when merged and added as pay /Pension considering 30% pay Element for pension emoluments. This incorrect computation from 1.4.2004 to 31.12.2005 resulted in unauthorized reduction in pay drawn from 01/04/04 to 31/12/2005 and entitlement of legitimate basic pension of running staff. This has also caused short payment of commutation of pension & has further af-fected the Consolidated Revised pension from 1.1.2006, which in turn deprived part of means of livelihood to retired running staff from 1.4.2004 to 31.12.2005, which is very much against human rights and Consti-tutional guarantees. The meaning of merger of DA with pay without 30% pay element for running staff is meaning less and contrary to the Rule 25 of 1981 and created wide disparity.
This has created Anomaly due to Reduction in drawn Dearness Pay while computing pension emoluments for running staff of Railways retired between 01.04.2004 to 31.12.2005, which caused in short payment of legitimate basic pension from 1.4.2004 in terms of clause ‘C’ below NOTE of Rule 25 of 1981.
The running staff of Railways retired between 01.04.2004 to 31.08.2008 who were given the same benefits of 30% Pay Element on 50% merger of DA in terms of clause ‘C’ below NOTE of Rule 25 of 1981 vide Railway Board letter: No. E (P&A) AII II – 80/RS- 10 Dt. 17.7.1981. The actual drawn figure of Dearness Pay in terms of 1303. F. R. 9-21 a- i, was simply reduced while computing pension emoluments without any sufficient reason by 30% on 50% DP drawn in their last salary prior to retirement of the pensioners from 1.4.2004 to 31.12.2005. Where as the same element of 30% pay on 50% DP was given to those retired from 1.1.2006 in terms of clause ‘C’ below NOTE of Rule 25 of 1981. This has violated the Article 14 of the constitution.
Thus, pensioners retired between 1.4.2004 to 31.12.2005 were given only 50% merger denying element of 30% pay on Pension Emoluments. Though it was quite incumbent on the part of Railway Board to add 30% Pay Element on figure of Dearness Pay drawn in the salary prior to the retirement similar to those figure of Dearness Pay which was added to the post 1.1.2006 pensioners and similar to those retired from 1.1.1996 when 148% of DA when merged and added as pay /Pension considering 30% pay Element for pension emoluments. This incorrect computation from 1.4.2004 to 31.12.2005 resulted in unauthorized reduction in pay drawn from 01/04/04 to 31/12/2005 and entitlement of legitimate basic pension of running staff. This has also caused short payment of commutation of pension & has further af-fected the Consolidated Revised pension from 1.1.2006, which in turn deprived part of means of livelihood to retired running staff from 1.4.2004 to 31.12.2005, which is very much against human rights and Consti-tutional guarantees. The meaning of merger of DA with pay without 30% pay element for running staff is meaning less and contrary to the Rule 25 of 1981 and created wide disparity.
This has created Anomaly due to Reduction in drawn Dearness Pay while computing pension emoluments for running staff of Railways retired between 01.04.2004 to 31.12.2005, which caused in short payment of legitimate basic pension from 1.4.2004 in terms of clause ‘C’ below NOTE of Rule 25 of 1981.