GS, BDPA writes to DOT

Our web:  www.bdpa.in

No: BDPA/GUJ/Pen                                                                      dated 13^th April, 2010.

To:

Shri P. J Thomas,

I.A.S. Secretary,

Department of Telecommunications,

Sanchar Bhavan, Asoka Road,

New Delhi 110011.

Sub:     A Request to Implement 2^nd Wage Revision Committee Recommendations for Pension Revision for pre/post 01.01.2007 BSNL Retirees.

Respected Sir,

1. We write to inform you that ours is Association Registered under Trade Union Act, 1926 and represents the cases of BSNL & DoT Pensioners. We have members from UP, NTR, UP, Rajasthan, Mumbai, Maharashtra, Kerala, Karnataka and Jammu who look forward to us for representing their legitimate grievances to appropriate authorities.

2. We had addressed you a letter of even No. dated 15.03.2010 on the captioned subject (Annexure ‘A’) for Pension Revision of BSNL Pensioners.

3. The Minutes of Meeting held on 01.04.2010 with you by the Union Representatives extracts reads as under :

     

Serial No.	Issues raised by Unions/Associations of BSNL	Decision/status
6	Revision of IDA Pension as on 01.01.2007	A note for consideration of Telecom Commission is currently under preparation and is likely to be finalized within a month. Thereafter, views of the concerned Ministries shall be obtained, which is likely to take another 3 months. Based on the decision in the telecom Commission, if need be, a note for consideration of the Cabinet shall be prepared.

4. The 2^nd Wage Revision Committee of BSNL has finalized its recommendations for the employees who were on roll on 01.01.2007 and also recommended Pensionary benefits for the employees as under:

            6.1       Pension:           

6.1.1    The DoT/DTS/DTO employees absorbed in BSNL are eligible for pension from Central Govt. as per provisions under Rule 37-A of CCS (Pension) Rule 1972. The BSNL recruited/regularized employees are governed by provisions of Employees Provident Funds and Miscellaneous Provisions Act 1952.

6.1.2    The issues of revision of IDA Pension in respect of employees absorbed in BSNL and retired before 1.1.2007 and Pension anomaly in respect of BSNL absorbed employees retired prior to 31.7.2001 already stand referred to DOT and may be further pursued by BSNL.”

The above recommendation has been duly approved by the BSNL Management and is awaiting approval from you.

5. When the DoT/BSNL had issued orders for merger of 50% IDA for its employee’s w.e.f. 01.01.2007, we were assured that our case being similar, it will be finalized soon.

6. As Para 3 denotes, we are glad to note that DoT has taken uniform stand for pre/post 01.01.2007 BSNL Pensioners and perusing it for all the Pensioners as on 01.01.2007. We welcome the decision as it will avoid proposed division of BSNL Pensioners by the Management.

7. A Rule 37A which enables Pension for erstwhile DoT employees absorbed in BSNL at point envisages/permits  discrimination/differentiation amongst the Optees as all were accorded same status as employee/pensioner on their absorption

8. The BSNL Management has also accepted and implemented all relevant provision of 6^th CPC so far increase in gratuity, Pension Counting on Last month Average etc.. are concerned.

9. As the Pension Revision for IDA Pensioners is not covered under the terms of reference to the Wage Committee constituted by the Department of Public Enterprises, BSNL has specifically considered the issue of Pension Revision on IDA and sought for your approval.

10. We submit notes on Role of DOP & DPE on the issue of Pension Revision on IDA for PSUs to know their roll. (Annexure ‘B-1’).

11. We also submit a note on Pension Revision on IDA Scale in two CPSUs i.e. FCI and Port Trust of India, which will strengthen our case for Pension Revision on IDA by the DoT itself. (Annexure ‘B-2’).

12. We also submit a separate note on FCI and it’s Pension Revisions earlier. (Annexure ‘B-3’).

13. Now, we submit our proposal for  revision of  IDA Pension for EX-DOT Officials retiring as BSNL Pensioners after 01/10/2000 but prior to 01/01/2007 as under :

            All the benefits admissible to Pensioners drawing Pension under CCS Pension Rules         in accordance with Sixth Pay Commission have been extended by the Government /     Department of Telecommunications to BSNL Pensioners other than the revision of   Pension as per the proposed formula given by Sixth Pay Commission because the             Pension of BSNL Pensioners is calculated on last pay drawn by them in IDA Scale.

            The formula proposed by 2^nd wage Committee and approved by the Government of          India and made applicable to BSNL Executives/ Non-Executives w.e.f 01/01/2007      should also be made applicable for revision of IDA Pension for BSNL Pensioners        retiring between 01/01/2000 and 31/12/2006. On 1/1/2007 all BSNL Executives &            Non-Executives were drawing 68.8% IDA out of which 50% IDA was merged in            Basic Pay as Dearness Pay.  The formula given by DPE for refixation of Pay in new           IDA scales with 30% weightage on existing pay plus dearness pay plus IDA @18.8%              is as under:-

            Revised Pay = [Pre-revised IDA Pay on 1/1/7 + (Dearness Pay = 50% of pre-       revised IDA Pay)] * 1.188 + 30% * 1.188 * [Pre-revised IDA Pay on 1/1/7 +    (Dearness Pay = 50% of pre-revised IDA Pay)]

The formula for revised pension on similar pattern for BSNL Employees retiring before 01/01/2007 should also follow the DPE pattern of revision of pay and it should be as under:-

Revised Pension on 01/01/2007 should be = [Pre-revised IDA Pension on 1/1/7 + (Dearness Pension = 50% of pre-revised IDA Pension)] * 1.188 + 30% * 1.188 [Pre-revised IDA Pension on 1/1/7 + (Dearness Pension = 50% of pre-revised IDA Pension)]

Thus the DPE Formula as provided for revision/ re-fixation of IDA Pay in the new IDA scales as on 01/01/2007 should be made applicable for revision of Pension for the BSNL Pensioners as stated above.

Thanking you.

Yours faithfully,

 (D.D. Mistry)

General Secretary                                                                                 Encls: Three.    

Copy to:

1.         Shri S.C. Mishra, Member Services, DoT, New Delhi.

2.         Shri Kuldeep Goyal, CMD BSNL, New Delhi.

3.         Shri K. Vallinayagam, GS FNTO New Delhi.

4.         Shri S.S. Ramchandran, GS      AICCPA New Delhi.

5.         Shri Shri Shyam Sunder, SG BPS New Delhi.

6.         Shri Ramankutty GS AI BSNL PWA, Trivendrum.

Annexure ‘B’

Introduction/ Role of DOP & DPE in IDA Pension Revision

Revision/ Consolidation of Pension for Central Government Pensioners drawing Pension under CCS Pension Rules is simultaneously carried out and approved by the Central Government along with Revision of Pay Scales for Central Government Employees as recommended by the respective Central Pay Commissions because both these items i.e. Pay Scale revision and Pension Revision are covered under the terms of reference of the  Central Pay Commissions duly constituted by the Government of India from time to time. The Pension is being revised/ consolidated automatically along with the revision of pay scales for existing Employees as per the recommendations of respective Central Pay Commissions duly accepted by the Government. Fixation formula/ weightage for revision of CDA Pension is identical to that applicable for Revision of Pay for in service Employees, as per the Pay Commission Guidelines.

But in case for Pensioners of the CPSUs, drawing Pension in IDA scale under CCS Pension Rules, based on combined service in Central Government and CPSU, such is not the case because only very few CPSUs have provision for payment of Pension under CCS Pension Rules based on combined service in the Government and CPSU. Moreover the case of Pension Revision for IDA Pensioners is not covered under the terms of reference to the Wage Committee constituted by the Department of Public Enterprises.

It is also pointed out that both Department of Pension and Department of Public Enterprises i.e. DOP and DPE have officially absolved themselves of any responsibility towards 50% IDA Merger and IDA Pension Revision/ Consolidation on the plea that DPE deals only with serving CPSU Employees and has nothing to do with Pensioners and similarly DOP states that they deal only with CDA Pension/ Pensioners and have nothing to do with IDA Pension. This stand of DPE and DOP has been communicated verbally several times by the respective officials of DPE and DOP and the same has also been reiterated in response to RTI Queries raised by some retired BSNL Executive with respect to IDA Merger/ IDA Pension Revision.  It once again became amply clear on record when the issue of 50% IDA Merger w.e.f. 01/01/2007 for BSNL Pensioners was referred by DOT to DOP and DPE for approval. DOP categorically replied on two occasions that they have nothing to say in this matter because they do not deal with IDA/ IDA Scales/ IDA Pension. Similarly DPE replied that 50% IDA Merger for CPSU Employees w.e.f. 1/1/2007 was accorded after approval by Union Cabinet and they had nothing more to say or do in the matter. After getting two indifferent and Non-Committal Replies by DOP and DPE, the case for 50% IDA Merger for BSNL Pensioners was shelved by DOT on the plea that the same shall get resolved along with revision of Pension of the BSNL Pensioners at a future date.