Merger of 50% percent DA may soon be considered by Central Government –Sources

Sources close to the Central Government Employees Federations told that Merger of 50% DA will soon be considered by Central Government before the budget session of Parliament in February 2014. According to the sources, the central government is likely to consider the central government employees  demand for merging of 50 % DA, for the reason that the DA will be crossing 100% level after January 2014.

The rate of dearness allowance to be paid to govt servants has been increasing consistently due to the rise in the prices of essential commodities for the past two years. In 2011 the rate of DA was at 50 % level. Since then all the Federation demanded the central government to merge the 50 Percent DA with basic Pay. But the government did not accept this demand to merge the DA with basis pay, as it was not recommended by sixth CPC.

The demand would be considered in view of parliament elections

But federations kept on demanding the government that raising dearness allowance alone will not help to compensate the alarming rate of price rice. So they urged the government to consider their demand favorably. It is believed that after the defeat in the election of four state legislative councils, the UPA government has decided to reconsider about its decision on the issues which directly affects the common public. The high command of the ruling party thought that the reason for their defeat in the state election is mainly because of their government failed to contain the price rise. The gap between common public and UPA government has been considerably increased. To correct these failures the UPA government decides to do something to attract the voters.

After announcing the government’s proposal to constitute the 7th pay commission, the community of central government employees has been convinced to have soft view on this government. Further the 50 lakh central government employees would be made happy if the 50% DA is merged with Basic Pay. It is told that , as the central government staff association and federations demanding it very seriously, in case the government decides go with this demand, there will be around one crore voters will be in favour of UPA government. So the government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.

Allowances will have no impact on merging DA with basic Pay

The sources, associated with National Council JCM, said that the government initially was not willing to consider this demand as some allowance and advances have been raised by 25% whenever the DA crosses 50% level as per the sixth CPC recommendation. But federations insisted that the allowances, which are raised to 25 % level when DA crosses 50%, will have no impact on merging DA with basic pay. The only allowance will have an increase when Basic Pay increases are HRA. No other allowances will be increased and other entitlement of the respective Grade Pay will not be revised as the 50% DA to be merged will be kept under separate component like it was treated in 5CPC as Dearness Pay. “There is no need to worry about financial implications, as the 50% DA will be paid by just changing its nomenclature as Dearness Pay”, said sources.

50% DA merger to be decalered before DA crosses 100%

Further, it has been informed that it is good enough for the government to announce its decision before declaring the next additional installment of DA. Because the AICPIN for Industrial workers for the Month of December 2013 is awaited to determine the rate of dearness allowance to be paid from January 2014.The result of last 11 months AICPIN shows that DA will definitely be raised by 10 % from existing 90% level. So the rate of DA will be 100% with effect from 1st January 2014. After the DA increased to 100%, the demand for 50% DA merger will have to change its avatar. Probably the demand would be for 100% DA merger. So the federations expect the government may consider 50% DA merger soon.

However, decision if any in this regard should be taken before the announcement of election for parliament. It is expected that election announcement for parliament will be made by the end of February 2014. Before that,  the announcement of 50% DA merger is expected from central government.

Source:http://www.gservants.com/2014/01/15/merger-50-percent-da-may-soon-considered-central-government-sources/

PRESS STATEMENT ISSUED BY THE CONFEDERATION - 48 HOURS ALL INDIA STRIKE ON 12 AND 13 FEB 2014.

CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES & WORKERS
CHQ: 1 Floor, North Avenue Post Office Building
New Delhi - 110001
E mail: confederation06@yahoo.co.in
Website:confederationhq.blogspot.com.

Dated: 15th January, 2014.

PRESS NOTE

Twelve lakh Central Government Employees will be on 48 hr. Strike on 12th and 13th Feb. 2014 demanding settlement of 15 point charter of Demands, the major issues being immediate wage revision and repealing the new contributory Pension Scheme by reintroducing the Statutory Defined Benefit Pension Scheme which was in vogue for more than a century. The Government in September 2013 announced the setting up of VII-Central Pay Commission to effect Wage Revision from 1.01.2016. 

The employees have made it clear that prospective date of effect is not acceptable to them and the VII-CPC recommendations must of effective from 01.01.2014. The Government is yet to take a decision on the Terms

of Reference of the VII-CPC viz, the merger of Dearness Allowance, composition of the VII-CPC with a labour representative, Interim Relief, the need to bring the Gramin Dak Sevaks of Postal Department within the ambit of the CPC.etc.

The employees are agitated over the introduction of the New Pension Scheme, passing the PFRDA Bill in the last session of the Parliament, the denial to guarantee minimum pension and the provision of the new enactment to cover even the existing employees in the new contributory pension Scheme. The employees covered under the new pension scheme are apprehensive of having no pension at the end of their service career of 35 years for the return on their contributions is presently linked to the market.

The Confederation of the Central Government Employees and Workers in their National Executive Meeting held at New Delhi on 10th January, 2014 expressed their total dissatisfaction over the closure of JCM, the negotiating machinery and the consequent non-settlement of any of their demands in the last nine years, The introduction of contract labour system in carrying Governmental functions, the indiscriminate outsourcing, closure of many institutions, the total ban on creation of posts and recruitment have made regular employment in Central Services impossible. 

The Confederation has therefore, decided to organise the two day strike on 12th and 13th February, 2014. The resolution adopted at the meeting of the National Executive (copy of which is enclosed), explains in detail the major issues.

M.Krishnan
Secretary General.

Source:http://confederationhq.blogspot.in/

CGHS Hospitals will stop cashless treatment from 1st Febraury

The 800 hospitals in the country empanelled under the Central Government Health Scheme will stop cashless transactions from February 1, 2014, because, they claim, the government has not cleared arrears of Rs 600 crore.

The aggrieved hospitals have come together under the umbrella of the Association of Healthcare Providers India and had served notice to the CGHS office in New Delhi on December 13, 2013.

A meeting with the Union health secretary K.N. Desiraju on January 9 yielded no results.

A senior officer of AHPI said, “The amount has been budgeted in the health budget and it must be released. But it is not being done. Hence, the question is, where is it going?”

Since 2010, the hospitals have been complaining of 40 per cent unauthorised deductions in the payments. Now they have come together to put across their point to the government.

AHPI general secretary for AP Govind Hari says, “The problem started in 2002 when they started inviting tenders. In doing so, they reduced the cost of surgeries drastically. Also, orthopaedic treatment costs Rs 3,200 in Karnataka and Rs 10,000 in AP. These errors in terms of determining the cost put the hospitals in a spot.”

A senior member of the APHI said, “We want to quit as it has become more of a burden than a service as the clearance promise of 180 days is hardly followed.”

Additional director, CGHS, Dr Prasad, says, “We have not received any communication from the hospitals.” But senior officers in the Begumpet office of the department say there has been an assessment of the pending amount, and deliberations have started to sort out that matter.

Source : Deccan Chronicle

24th meeting of the Standing Committee of Voluntary Agencies (SCOVA) to be held on 5th February , 2014 in New Delhi.

F. No. 42/2/2014-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date: 10th Jan 2014

To,
All the Pensioners Associations under present SCOVA

Subject :24th meeting of the Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Honible MOS (PP) to be held on 5th February , 2014 in New Delhi.

- Intimation regarding DATE and TIME.

Sir,
In continuation to this Department’s OM of even no dated 1st Jan,2014 regarding holding of the 24th meeting of Standing Committee of Voluntary Agencies(SCOVA) under the Chairmanship of Hon’ble MOS(PP), the date and time of the meeting is indicated below:

Date:- 5th February, 2014

Time:- 4.00 PM.

2. The Venue of the meeting will soon be intimated. Because of the consideration of space, only one representative may attend the above said meeting.

3. Only one outstation member will be paid TA/DA and local members will be paid conveyance charges in accordance with the rules/instructions. Outstation members will be paid TA/DA as per their last entitlement on retirement. Therefore, members are requested to bring copy of PPO for determining the entitlement of TA/DA claims.

4. This Department looks forward to you participation in the meeting.

Yours faithfully,

Sd/-
(Sujasha Choudhury)
Dy. Secretary (P) 

Source:http://ccis.nic.in/WriteReadData/CircularPortal/D3/D03ppw/SCOVA_130114.pdf

PFRDA proposes partial withdrawal to make NPS attractive

Partial withdrawals are currently not allowed under the NPS and a subscriber has to completely exit from the scheme subject to certain conditions on the utilization of the amount.

New Delhi: To make the national pension system (NPS) more attractive, the Pension Fund Regulatory and Development Authority (PFRDA) has published draft rules that will, if implemented, allow subscribers to withdraw funds partially to meet major expenses such as those related to treatment of certain diseases and education.

Under the proposed guidelines, a subscriber can withdraw as much as 25% of the accumulated funds for marriage of children, purchase of property, higher education and treatment of ailments such as cancer and paralysis.

Partial withdrawals are currently not allowed under the scheme and a subscriber has to completely exit from the scheme subject to certain conditions on the utilization of the amount.

PFRDA administers the NPS for Union and state government employees and the unorganized sector.

The move will make the pension scheme attractive vis-a-vis insurance and the employee provident fund (EPF), where partial withdrawals are possible. The pension scheme for unorganized sector has failed to gain popularity since its launch in May 2009.

The approval of the PFRDA Bill last year by Parliament has paved the way for the restructuring of some of the features of the NPS to make it more attractive. The PFRDA Act, 2013, provides for partial withdrawals, not exceeding 25% of the contribution made by the subscriber.

“This flexibility is positive and will help in increasing the popularity of this scheme,” said Suresh Sadagopan, a certified financial planner at Ladder7 Financial Advisory, a Mumbai-based financial planning firm. “The fact that PFRDA has restricted the withdrawal to 25% of the accumulated amount is also good. Ultimately, it is a scheme meant for retirement savings. If higher withdrawals would have been permitted, the situation would have been a repeat of EPF, where more than 80% of the accounts have less than Rs.20,000 in them.”

The new law also gives the pensions regulator statutory and punitive powers, similar to that of the Securities and Exchange Board of India, the Reserve Bank of India and the Insurance Regulatory and Development Authority.

The government is in the process of revamping the pension fund regulator. It is also shortlisting candidates for the post of the chairman of the pension fund regulator and for the posts of three whole-time members. In November, Yogesh Agarwal, chairman of PFRDA, resigned after being prodded by the finance ministry to quit.

Under the proposed draft guidelines, the subscriber should be in NPS for at least 10 years and regularly contribute to the scheme. Also, the subscriber will only be allowed to withdraw for a maximum of three times and that too with a gap of five years between two withdrawals. However, in case of illnesses, the mandatory gap between withdrawals will not apply.

“We are proposing the above frequency in order to make sure that the subscriber should be left with a decent and considerable accumulated pension wealth at the time of superannuation/age of 60 years enabling him to purchase sustainable annuity,” PFRDA said.

According to the current rules, a subscriber can exit the NPS on retirement or on attaining 60 years. In this case, at least 40% of the accumulated funds have to be mandatorily used to purchase an annuity with the balance paid as a lump sum amount. In case the exit is before retirement or before 60 years of age, at least 80% of the funds have to be used for purchase of an annuity and only the balance is paid as a lump sum.

Courtesy:www.livemint.com