To The Governor, Reserve Bank of India, Central Office, Mumbai Respected Sir,

Transcription

1 To The Governor, Reserve Bank of India, Central Office, Mumbai Respected Sir, THE SUPREME COURT JUDGEMENT ON INCLUSION OF NPA ALLOWANCE FOR COMPUTATION OF PENSION At the outset, let me say that hundreds of our retired Pensioners/Ex Gratia recipient colleagues including those who are in their twilight years and who had contributed immensely in the formative years of the RBI to enhance its prestige and image, join me in sending our heartfelt greetings and congratulations to you, Sir, for having been conferred with the coveted Best Central Bank Governor Award for 2014 by the prestigious international magazine Euromoney, mentioning in its citation that Dr. Rajan s tough monetary medicine combated the storm ravaging the deficit-ridden economy in the recent emerging market crisis. We also take this opportunity to say how you have rekindled hopes in our minds of getting our dues in the form of Pension updation for which we have been waiting for the last several years. Sir, you are aware that the issue of updation of pension has eluded us for the last 12 years and we all, as a community of senior citizens, are in restless state as many of our colleagues have already left for heavenly abode with a dream of updation holding close to their hearts. Such a sordid chapter has never come to our share as the illustrious former governors like late Shri R N Malhotra and Dr Bimal Jalan stood like a rock behind us. While expressing our sincere thanks for your kind efforts in the matter for the last one year, we submit before you one recent relevant verdict of the Supreme Court (SC) for your kind consideration. Sir, before referring to the SC verdict, we may briefly touch upon the recent developments at the Bank s end. After the Bank s proposal in

2 the matter, vide D.O. letter dated 11 th October 2011, to the Ministry of Finance (MoF), there were spate of irrelevant queries on it by the MoF only to deny what is legitimately due to us. Finally, on your kind intervention, our hopes were raised and a much talked proposal came from MoF with a rider, amongst others, that the pension updation should be based on Pay plus Grade Pay and no other allowances available to retirees from the Bank be considered for computing pension. We are of the considered opinion that our community being in helpless state on account of delay of twelve years in revision / updation of pension, wanted to grab whatever proposed by MoF before dying, as the time is not by our side. In our earlier submissions (Copy of our letter dated 11 th Nov to you enclosed for your ready reference), we had placed all facts before you in the matter, which are undoubtedly in favour of our legitimate demand. Now, in respect of MoF proposal to exclude allowances for computing pension, we have certain apprehensions, especially in view of SC verdict, which we submit here for your sympathetic considerations. As per recent Supreme Court judgment dated November 27, 2013 by Justice G.S.SINGHVI and Justice KURIAN JOSEPH, Non Practicing Allowance (NPA) available to Government Doctors shall form part of basic pay for computation of their pension with retrospective effect from The Ministry of Finance had earlier refused to take NPA for computing pension and in fact they had filed a review petition before the Supreme Court which was dismissed in July 2014 by the SC. The Government of India, Ministry of Personnel, Public Grievances and Pensions, Department of Pension and P.W., therefore, vide their order O.M. dated 21st October; 2014 (Copy enclosed along with news item on it.) implemented the SC order with retrospective effect from The Supreme Court has held that "The expression 'emoluments' means basic pay as defined in Rule 9(21)(a)(i) of the Fundamental Rules which a Government servant is receiving immediately before his retirement or on the date of his death and will also include Non Practicing Allowance granted to the Medical Officer in lieu of private practice."

3 Thus, even in terms of the aforementioned definition, the N.P.A. would be part of pay. Further, the Supreme Court has stated that yet again in V. Kasturi v. Managing Director, State Bank of India, Bombay and Anr., the Apex Court pointed that in D.S. Nakara's case (supra) a distinction has been made between a new scheme and a liberalized pension scheme. When a new scheme comes into force, the same may not apply to the persons who had retired prior thereto, but when there is a revision in the existing scheme by way of upward revision, the scheme should be applied. As such the Non Practicing Allowance shall count as 'pay' for all service benefits including retirement benefits as hitherto for doctors in service of the GOI. In our case as well, if only Pay and Grade Allowance has to be taken for computation of pension updation, then it could apply only to prospective employees and not to existing ones. In other words all allowances which hitherto taken for computing pension should continue for pension purposes to those who are covered under the old pension scheme. Further, as a matter of policy, RBI had taken a decision with prior approval of Shri K.C. Chakraborty, the then D.G. (HRDD) that certain allowances would count for superannuation benefits including pension benefits vide ADMINISTRATION CIRCULAR No.4 dated September 8, 2010 viz; Stagnation Increments, Grade Allowance, Special Allowance, Special Pay, Fixed Personal Allowance, CAIIB Allowance etc. It is pertinent to note that in case of Grade F Officers all these allowances except Grade Pay were already absorbed in basic pay. We may please add that above stated all allowances have sanctity of various wage settlements in the Bank in terms Industrial Dispute Act and so on and they are reckoned as part of pay for superannuation purposes like pension as per understanding reached with the Bank. You may kindly keep in a view that the NPA which was so far treated non- admissible to GOI medical officers for computation of pension purposes for earlier retirees has been made admissible for them.

4 Keeping in view this reality, non-inclusion of existing allowances for pension in the Bank which form part of pay for computation of pension is contrary to the Supreme Court judgment in question. Sir, in view of above, kindly use your good offices to prevail on MoF not to ignore the said verdict of the Supreme Court in RBI pensioners matter pending with them. In this regard we are under bona fide impressions that whatever comes from MoF, if not in consonance with the law of the land, is to be contested by the Bank to avoid future complications as also to protect the great image of our RBI. In view of above, we fervently appeal to you to look into the matter and kindly deliver long-standing justice to us as per the said verdict of the SC. Yours faithfully, (L R Parab) General Secretary Encls. 1. A copy of our letter dt. 11 th Nov A copies of the GOI order dt & News item. News Item Big news for Central Govt Doctors: Justice finally prevails, after SC decision, Govt issues orders that NPA is to be added into pension w.e.f 01 Jan 1996 for pre-96 retirees In the long and tortuous journey for doctors working under the Central Govt, the Department of Pension and Pensioners Welfare (DoPPW) has today finally implemented the decision of the

5 Supreme Court which had held in November 2013 that the Govt was wrong in its interpretation of addition of Non-Practicing Allowance (NPA) into total pensionary benefits. It may be recalled that earlier the Supreme Court had ruled against the claims of the doctors in BJ Akkara s case but later when the Apex Court was informed about the correct position on the subject and that the Govt had chosen to hide the actual facts from the Supreme Court as also the very important point that even the Prime Minister had approved a policy favouring addition of NPA into the pension of pre-96 retiree doctors, the Court finally ruled in favour of doctors and recorded in its order the unethical stand of the Govt in this regard before the Supreme Court in BJ Akkara s case. The subject in detail can be understood by perusing an old post on this blog dated 30 Nov The Govt had filed a review petition before the Supreme Court which was dismissed in July Taking a progressive and balanced view of the matter, the DoPPW has finally issued orders implementing the decision of the Supreme Court across the board universally and not just for the petitioners in the case before the Supreme Court as is usually done by the Department of Ex-Servicemen Welfare in cases of military pensioners. With this, the Govt would have to release the correct deserved pension to all Central Govt doctors w.e.f with all consequential benefits by including the element of NPA into the revised scales for calculating pension. No.38/31111-P&~W(A)(Vol.IV) Government of India Ministry of Personnel, Public Grievances and Pensions Department of Pension and P.W 3rd Floor, Lok Nayak Bhawan, Khan Market, New Delhi. Dated the 21st October; 2014 OFFICE MEMORANDUM Subject :- Revision of pension of pre-1996 pensioners - inclusion of Non- Practicing Allowance (NP A) for revision of pension of retired medical officers w.e.f The undersigned is directed to say that in this Department's OM of even number dated 14thOctober, 2014, it was provided that in the case of pre-1996 retired medical officers NPA

6 @ 2S% shall be added to the minimum of the revised scale of pay as on corresponding to the pre-1996 pay scales from which the pensioner had retired, in cases where consolidated pension/family pension was to be stepped up to SO% / 30% respectively of the minimum of revised pay-scale in terms of OM No.4SIl 0/98-P&PW(A) dated read with OM No.4S/86/97-P&PW(A) (Pt.) dated 11.S After Vth CPC, the maximum pension admissible w.e.f was SO% of the highest pay, i.e. Rs.1S,000/-, applicable in the Central Government. Accordingly, the maximum pension admissible in terms of this Department's OM dated would also be SO% of Rs.30,000/-, i.e. Rs.IS,OOO/- w.e.f This may be taken into account while revising the pension of pre-1996 retired medical officers in terms of OM of even number dated Hindi version will follow. (Tripti P. Ghosh) Director To (i) All Ministries/Departments of Government of India. (ii) O/oCAG/CGDA