Sunday, September 7, 2008

Why the disparity in pension under Sixth Pay Commission?

By S. Sam Daniel

Why the disparity in pension under Sixth Pay Commission with effect from 1-1-2006 and denial of natural justice to the post 1-1-1996 and pre 1-1-2006 pensioners?

1. Parity in pension of the pre and post 1-1-1996 retirees and natural justice to the pre and post 1-1-1986 pensioners by the v central pay Commission and the then central government! The main demand of the Past Pensioners [Retired before 1-1-1986] was for full parity in pension to those who retired during the period from 1.1.1986 onwards. The V CPC in Para 137.13 (PP 1830) had observed as under:-

"While it is desirable to grant complete parity in pension to all Past Pensioners irrespective of the date of their retirement, this may not be feasible straightaway as the financial implications would be considerable. The process of bridging the gap in pension of Past Pensioners (Pre 1986 Pensioners) has already been set in motion by the Fourth CPC when past Pensioners were granted additional relief in addition to consolidation of their pension. This process of attainment of- reasonable parity needs to be commuted so as to achieve complete parity over a period of time."

In Paras 137.13 and .14 of their Report the V CPC stated that as follow-up of our basic objective of parity, we would recommend that pension of all the Pre 1986 Retirees may be updated by notional fixation of their pay as on 1.1.86 by adopting the same formula as for the serving Employees. This step would bring all the Past Pensioners to a common platform or on the IV CPC pay scales as on 1.1.86.

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