CPSUS EMPLOYEES DILEMA - POST RETIREMENT WELFARE- ABSENCE OF HONBLE PENSION SCHEME Inbox x AJIT KUMAR Sachdeva Mar 16 (6 days ago) to office, soniagandhi, pmosb, manmohan, presidentofind., vpindia, lokmail, speakerloksabha, pj.kurian, ak.antony, sharadpawar.sp, fmo, fm, vmoily, sjaipal, ajits, ajitsingh.moca, Oscar, Secy-labour, m.kharge, kapilsibal, meethrm, cim, purandesswri, emsn PSUs Retired Employees’ Association Dated:16.03.2014 Hon’ble Sirs/ Madams, Kindly find enclosed herewith a detailed & self explanatory memorandum (with Annexure of Comparison of Pension) on the poor state of welfare of the Retired CPSU employees who are facing great financial hardships and pathetic conditions after retirement due to absence of a comprehensive Pension Policy for CPSU employees. Unlike central Govt employees, the employees of CPSU’s who got retired prior to 2007 are totally deprived of a regular & recurring monthly pension, while those who retired between 2008-2010 have to be content with monthly pension around Rs 1500 or so. As per some of the estimates there are around 12.0 lacs pre- 2007 Retirees of central Govt CPSUs, who are living these days in pathetic condition because there is no mechanism to compensate them for the regularly rising cost of living and inflation pressures, so that they are able to meet their essential needs at this late stage of their life. A pension system for CPSUs (which was opted by only some CPSUs) was made applicable under Employees Pension Scheme-1995 based on a part investment of 1.16% out of Government contribution of EPF. Under this scheme the existing retirees get a very meager amount varying from about Rs 500/- to Rs 1500/- pm only. This pension is totally insignificant and insufficient to be considered as pension. Moreover , this too has not been adopted by many CPSUs.Now, it is understood that Government after waiting for about 4 years of the recommendation of Parliamentary Committee is planning to enhance Government contribution from 1.16% to 1.79% and also to increase the minimum amount of pension to Rs 1000/- pm (while it is Rs 7000/- Minimum for Government pensioners & regularly adjusted with every DA enhancement ).One can easily understand the condition of CPSU officers and employees that how the Government is treating them i.e. almost at par with Below Poverty Line Families. The predicament faced by CPSUs regarding Pension was earlier faced even by the Public sector banking services. However, they could manage to get rid of the pension less system through collective bargaining with the govt & are now getting handsome monthly pension. All banking sector officers & staff got conversion to monthly pension by surrendering their Employer share in EPF & got few chances for the conversion between 1995 & 2010 are now enjoying the monthly security of pension for life long. Banking Sector, Pension Scheme was introduced in 1995 which is similar to Central Government Employees who were in service on or after 1.1.1986.They were allowed 50% pension plus Dearness Relief. They were allowed to opt/ shift from P.F. scheme to Pension scheme first in 1995 and now again in 2010. Hon’ble Supreme Court in many cases recognised the contribution of PSU employees and has taken the view that pension is reward for long services rendered by them and not a bounty. The Hon’ble court has also observed that pension is neither a bounty, nor a matter of grace depending upon the sweet will of the employer, nor an ex-gratia payment. It is a social welfare measure rendering socio-economic justice to those who in the heyday of their life ceaselessly toiled for the employer on assurance that in their old age, they would not be left in the lurch.”. The concept of inequality for applicability of Pension between GOVT EMPLOYEES & CPSU EMPLOYEES is fundamentally discriminatory & not in line with constitutional provisions. It would not have been possible without the services & contribution past generation of employees to shape the existing stature, growth & profits of the CPSUs & that they too deserve to share a pie of the prosperity / profits & CSR Fund of the made by the organisation. In recognition for their past service in the CPSUs and to the prosperity to the Nation and to honour the Hon’ble Supreme Court’s observation on their post retirement welfare, it is desirable that the Government may draw a suitable Pension scheme to be met from the fund raised out of corpus already created by DPE(1.5% of PBT) and CSR funds of the Individual CPSU (if need be, the Govt should consider enhancement of their past share to EPF contribution) to bring them at par for Pension benefits with the Govt Employees. There is, therefore an urgent need to review & implement a fresh look formula for correcting the imbalance of insufficient pension/ retirement benefits for PSU employees & to bring them at par & on the pattern of central govt / ARMY/BANKING SECTOR retirees, especially for those who have been totally ignored (those who retired prior to 2007) or granted only nominal pension like a bounty or ex-gratia payment ignoring their contribution to individual CPSU and Nation at large. The pension scheme as provided to the Bank Employees, after taking option for switch over from P F Scheme to Pension Scheme can be adopted to redress the grievances of this category of Retirees without differentiation. THE MOST APPROPRIATE STEP WOULD BE TO RATIONALISE & BRING PENSION FOR CPSUs AT PAR WITH GOVT EMPLOYEES/DEFENCE FORCES/ PSU BANKING SERVICES ALL AT ONE LEVEL WITHOUT ANY DISCRIPENCY. It is therefore requested that a proper review of the welfare requirements of the retired employees of PSUs may be got initiated based on our submissions for an early implementation to enable them to live in peace, honour & dignity instead of the existing state of neglect & deprivation. A K SACHDEVA PRESIDENT, SD- BLOCK, PITAMPURA, DELHI-110034
Posted on: Sat, 22 Mar 2014 15:40:18 +0000
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