The
Governor,
Reserve
Bank of India,
Central
Office,
Mumbai
400 001.
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 the matter, vide
D.O. letter dated 11th 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 11th Nov. 2013 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 1-1-1996. 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 1-1-1996.
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."
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. 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. 11th Nov. 2013
2. A copies of the GOI order dt.
21-10-2014 & News item.
News
Item
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 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 Govt had filed a review petition before the Supreme Court
which was dismissed in July 2014. 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 01-01-1996 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. 1.1.1996. .
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
@ 2S% shall be
added to the minimum of the revised scale of pay as on 1.1.1996
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 17.12.1998 read
with OM
No.4S/86/97-P&PW(A) (Pt.) dated 11.S.2001.
2. After Vth CPC, the maximum pension admissible
w.e.f. 1996 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 14.10.2014 would also be SO% of
Rs.30,000/-, i.e. Rs.IS,OOO/- w.e.f 1.1.1996. This may
be taken into account while revising
the pension of pre-1996 retired medical officers in
terms of OM of even number dated
14.10.2014.
3. Hindi version will follow.
(Tripti P. Ghosh)
Director
To
(i) All Ministries/Departments of Government of India.
(ii) O/oCAG/CGDA
