S.K. PANCHAL, MEMBER National Council (JCM) Department of Atomic Energy & Department of Space, Government of India

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1 1 S.K. PANCHAL, MEMBER National Council (JCM) Department of Atomic Energy & Department of Space, Government of India 18/C, Prangan Society, Near MGM School, New Sama Road, Vadodara (Gujarat) To The Hon ble Prime Minister of India, Government of India, South Block, Raisina Hills, New Delhi June 21, 2011 SUB: Grant of Option for Switching over from CPF to GPF to the Employees of the Department of Atomic Energy Reg. Respected Sir, With due respect, I would like to submit following few lines for your kind consideration. We have in the Department of Atomic Energy, around 247 Employees who are governed by Contributory Provident Fund instead of General Provident Fund. In terms of OM No. 4/1/87-PIC/I Dated issued by Department. Of Pension and Pensioners Welfare of the Government of India, these employees had opted to remain in Contributory Provident Fund instead of switching over to General Provident Fund in the year However, later on as the rates of Interest on Fixed Deposits are diminished and cost of living has increased, it is not possible to lead the retired life with the help of meager amount of Contributory Provident Fund. Therefore, they have been approaching the Department of Atomic Energy and the DOPT/Department of Pension & Pensioner 1

2 2 Welfare of the Government of India, for granting one more option to switch over from Contributory Provident Fund to General Provident Fund.. This matter was taken up by the Employees as well as by the Department of Atomic Energy with the Department of Pension & Pensioners Welfare on various occasions, however, the same has been denied without giving any sympathetic consideration. The Department of Pension & Pensioners Welfare have advocated some of implications in granting another option to these employees vide their OM No. 20/1/01-P&PW(F) Dtd , however, there has been a substantial change in these matters and their arguments are no more valid for the reasons given below. A) Department of Atomic Energy and its employees are paid out of Consolidated Fund of India whereas the Railway Ministry is having their separate Budget. The Service rendered in Railways is not considered in the Central Government Ministries & Departments; B) The PSUs are not governed by the Consolidated Fund of India, they are having their separate source of funds. C) For the BANK Employees, under Memorandum of Settlement Dated 27 th April, 2010, in the case of workmen employees and Joint Note Dated 27 th April, 2010, signed with the Officers Organizations on extending another option for pension to the non-optees who were in the service of the Bank prior to 29 th September, 1995 in case of Nationalised Banks and 26 th March, 1996 in case of Associate Banks of State Bank of India and confirmed to be in service on or after the said date and did not opt for pension earlier as well as in the case of Officers Employees, those who ceased to be in service on account of retirement on superannuation, death or on account of VRS under Special Scheme prior to 27 th April, 2010 but after 29 th September, 1995 from Nationalised Banks and after 26 th March, 1996, from Associated Banks of State Bank of India are eligible to OPT FOR JOINING THE PENSION SCHEME now as retired employees subject to 2

3 3 the terms and conditions stipulated. Those who were in the service of the Banks as on 27 th April, 2010 will be eligible to join the Pension Scheme as serving employees subject to the terms and conditions stipulated. The said pension scheme was not made applicable to those, who joined the services of Banks on or after 1 st April, Officers/Workmen employees, joining services of Banks on or after 1 st April, 2010 shall be eligible for Defined Contributory Pension Scheme on the lines of New Pension Scheme introduced for employees of Central Government. Thus, same as on the above lines the employees working in the Department of Atomic Energy before 1 st of April, 2004 (the date on which New Pension Scheme is made applicable) may kindly be given One and last option to switchover from Contributory Provident Fund to General Provident Fund/Pension Scheme. D) New Pension Scheme applicable to the employees employed w.e.f The 5 th Central Pay Commission in the year 1996 denied to grant the option and the same was followed by the 6 th Pay Commission for the various reasons. a) The reasoning given in view of 5 th Central Pay Commission for not considering the option is also not correct as the Pay Commissions are recommendatory bodies and their recommendations are subject to approval or disapproval with or without modifications by the Government. Thus, the Government of India is supreme in accepting or rejecting the recommendations made by such Pay Commissions. b) The employees of Ministry of Consumer Affairs Food and Public Distribution based on Supreme Court Judgement background have been granted the Option to switchover from Contributory Provident Fund to General Provident Fund/Pension Scheme. 3

4 4 c) The employees of Bureau of Indian Standards have been granted option to switchover from CPF to GPF in terms of Supreme Court Judgement Dated in case of Union of India vs. SL Verma; d) Whenever any Social Security/Welfare Scheme is considered in the interest of Citizens, financial burden is automatically involved and this being a Social Security Scheme in the interest of Central Government Employees, a small amount of financial burden shall definitely be there. However, the financial implication of current proposal is almost negligible whereas with a view to motivate the employees, Government has given major concessions through the 6 th Central Pay Commission, Cadre Review etc. e) While implementing Court Orders in such matters, the Government is shouldering such financial burdens. f) It is advocated by the Department of Pension & Pensioners Welfare that by granting one more option to the employees to switchover from CPF to GPF, the objectives of the New Pension Scheme may get defeated, however, the same is not true as this decision will not have any cascading effect as new pension scheme has come with effect from In the above referred arguments advanced by the Department of Pension & Pensioners Welfare, these small bunch of employees and most of them belongs to Group B & C of the Ministerial Cadres, are now deprived of the benefit of GPF/Pension. Out of these 247 employees, 143+ are Female employees. Sir, under your dynamic and kind leadership, in the Sixth Central Pay Commission, a lot has been done including for Social Security/welfare of the Employees of the Central Government as well as for their families and therefore, this request is being made to your good office for giving kind and sympathetic consideration to the request of these small number of employees of the Department of Atomic Energy by granting them one more option from switching over from Contributory Provident Fund to General Provident Fund 4

5 5 to enable them to draw Pension during their retired life as well as Family Pension to their families as the cost of living now a days has been increased in manifold than earlier time and it would not be possible to live with the Interest amount of the CPF amount received by these Central Government Employees. It is established that with the help of Pension, a Retired Government Employee lead his life in a dignified manner without depending upon their family members. Hence, it is humbly requested to kindly intervene into this matter to grant one more option for switching over from Contributory Provident Fund to General Provident Fund and oblige. Everyone commits error is his life which can be pardoned and this is also an error on the part of these small bunch of employees to remain under CPF Scheme in the year 1987, which need be pardoned as a matter of motivation in their service life and as social security measure for their retired life At present in the Government of India around 45, 00,000 employees are governed by the General Provident Fund and eligible for Pension on their retirement whereas only 247 are left out to be considered for the said benefit of GPF/Pension, which is a very meager quantity of employees. Out of these 247 employees, 143+ Nos. are Female employees. Thus, by granting this option to switch over from CPF to GPF/Pension Scheme to these 247 employees it shall be great help in general and female employees in particular for their retired life. By granting one more option to switch over from CPF to GPF a substantial amount of Government Contribution to be paid to the CPF Holders shall vest in Government. Further, in the Sixth Pay Commission many social security/welfare measures have been granted in the interest of the Employees and therefore one more measure by granting one and last option to switch over from CPF to GPF to these employees shall be very much helpful to them and the same shall be remembered by these employees and their families forever. If any personal meeting is needed for seeking more detail on the subject, I am prepared to come at your convenience and at my cost, in the interest of my fellow colleagues. 5

6 6 Thanking you hoping kind and favourable action in the matter, Encl: 1.OMs Dt & Yours faithfully, 2.Indian Banks Association s Letter Dt (S.K. PANCHAL ) MEMBER National Council (JCM) Department of Atomic Energy & Department of Space, Govt. of India Copy to: 1. The Hon ble Minister of State in the Prime Minister s Office, Government of India, South Block, Raisina Hills, New Delhi for his kind information and with a request to kindly look into this matter sympathetically in the interest of small number of employees of Deptt. of Atomic Energy. 2. The Hon ble Chairman, - for her kind information and request to kindly National Commission for Women, intervene into this matter in the interest of , Deen Dayal Upadhyaya Marg, Women alongwith 247 employees deprived of New Delhi with this benefit of Pension 3. The Secretary to the Govt. of India, Department of Atomic Energy, - for his kind information and with a request Anushakti Bhavan, to kindly pursue the matter with the Chhatrapati Shivaji Maharaj Marg, Government of India, in the interest of this Mumbai small number of 247 employees of DAE. 4. The Addl. Secretary to the Govt. of India, Department of Atomic Energy, Anushakti Bhavan, - for his kind information and needful in the Chhatrapati Shivaji Maharaj Marg, matter. Mumbai Shri K.V. Jayraj, - for his kind information and needful in Secretary General, the matter. National Federation of Atomic Energy Employees, Department of Atomic Energy, Opp: Niyamak Bhavan, PO: Anushaktinagar, Mumbai