Restoration of commuted portion of pension in 12 years:
Restoration
of commuted value of pension in 12 years: Commutation value in respect
of employee superannuating at the age of 60 years between 1.1.1996 &
31.12.2005 and commuting a portion of pension within a period of one
year would be equal to 9.81 years Purchase. After adding thereto a
further period of two years for recovery of interest in terms of
observation of Supreme Court in their judgment in writ petitions No
395-61 of 1983 decided in December 1986. It would be reasonable to
restore commuted portion of pension in 12 years instead of present 15
years. In case of Person superannuating at the age of 60 years after
31.12.2005 and seeking commutation within a year, numbers of purchase
years have been further reduced to 8.194. Also the mortality rate of 60
plus Indians has considerably reduced ever since Supreme Court judgment
in 1986. And the life expectancy stands at 69 years now.
|
Refund Excess Recovery of Commuted Pension by the Govt
|
As
per extant rules, commuted pension is restored after 15 years after the
Govt makes full recovery of the commuted amount with interest. This
period of 15 years is arbitrary, hypothetical and without any
mathematical basis. Calculations show that the recovery exceeds much
more than the dues.
Retirees between 1986 and 1995
The
age of retirement during that period was 58 years. This category of
retirees have all completed the prescribed period of 15 years for
restoration of pension. Since 1.3.1971 and until 31.12.2005, the
Commutation Factor (CF) was 10.46 for the 59 year old (age next birth
day) retirees and the officially prescribed rate of interest was 4.75%
p.a. Commutation allowed was 1/3rd of the basic pay. The
basic pension of Secretaries who superannuated between 1.1.86 and
31.12.95 at the top of their pay scale (Rs. 8,000) was fixed at Rs.4,
000 and the commuted portion of their pension was Rs.1, 67,318 with a
deduction of Rs.1,333 per month. The principal amount of Rs. 1,67,318
was fully recovered in 10.46 years [10.46 x 12 x 1333 = 1,67,318].
· If
we consider the prescribed interest rate of 4.75% p.a. as simple
interest, the total interest works out to Rs.36,250. This is recoverable
in 2.27 years [36250/1333 = 27.2 months or 2.27 years]. Thus, total
recovery period of the commuted amount works out to 10.46 + 2.27 = 12.73
years. Even after full recovery, the pensioner kept on paying for 15 –
12.73 = 2.27 years. Thus, excess recovery = 2.27 x 12 x 1333
= Rs.36,311.
· If
we consider the prescribed interest rate of 4.75% p.a. as compound
interest, the total interest works out to Rs.54,750. This is recoverable
in 3.42 years [54750/1333 = 41.07 months or 3.42 years]. Thus, total
recovery period of the commuted amount is = 10.46 + 3.42 = 13.88 years.
Even after full recovery, the pensioner kept on paying for 15 – 13.88 =
1.12 years. Thus, excess recovery = 1.12 x 12 x 1333 = Rs.17,916.
Retirees between 1996 and 2005
The
age of retirement was raised to 60 years after the 5th Central Pay
Commission (CPC). Permissible commutation was also raised to 40% of the
basic pay. Those who retired between 1996 and 1998 have already
completed the prescribed period of 15 years for restoration of pension.
Since 1.3.1971 and until 31.12.2005, the Commutation Factor (CF) was
9.81 for the 61 year old (age next birth day) retirees and the
officially prescribed rate of interest was 4.75% p.a. Secretaries who
superannuated between 1.1.96 and 31.12.05 at the top of their pay scale
(Rs.26,000), were sanctioned commuted pension amount of Rs.9,18,216 with
a deduction of Rs.7,800 per month. The principal amount of Rs.9,18,216 is fully recovered in 9.81 years [9.81 x 12 x 7800 = 9,18,216].
· If
we consider the prescribed interest rate of 4.75% p.a. as simple
interest, the total interest works out to Rs.2,12,114. This is
recoverable in 2.27 years [212114/7800 = 27.2 months or 2.27 years].
Thus, total recovery period of the commuted amount works out to 9.81 +
2.27 = 12.08 years. Even after full recovery, the pensioner keeps on paying for 15 – 12.08 = 2.92 years. Thus, excess recovery = 2.92 x 12 x 7800 = Rs.2,73,312.
· If
we consider the prescribed interest rate of 4.75% p.a. as compound
interest, the total interest works out to Rs.3,20,367. This is
recoverable in 3.42 years [320367/7800 = 41.07 months or 3.42 years].
Thus, total recovery period of the commuted amount is = 9.81 + 3.42
= 13.23 years. Even after full recovery, the pensioner keeps on paying
for 15 – 13.23 = 1.77 years. Thus, excess recovery = 1.77 x 12 x 7800 = Rs.1,65,672.
Retirees from 2006 Onwards
The
age of retirement continues to be 60 years. After the 6th CPC, since
1.1.06, the Commutation Factor (CF) has been downgraded from 9.81 to
8.194 for the 61 year old (age next birth day) retirees, thereby reducing the commuted amount by a whopping 16.5% !!! On top of that, the
prescribed rate of interest has been enhanced from 4.75% to 8%
p.a. which is an astronomical jump of 68% even in this low interest
regime!!! The basic pension of Secretaries who superannuated on or after
1.1.06 at the top of their pay scale (Rs.80,000) was fixed at
Rs.40,000. Their commuted pension amount is Rs.15,73,248 with a
deduction of Rs.16,000 per month. As per the old CF of 9.81, they would
have been entitled to a commuted sum of Rs.18,83,520. Thus, there is a
huge drop of Rs.3,10,272 !!! The currently sanctioned principal amount of Rs.15,73,248 is fully recovered in 8.194 years [8.194 x 12 x 16000 = 15,73,248].
· If
we consider the prescribed interest rate of 8% p.a. as simple interest,
the total interest works out to Rs.5,10,417. This is recoverable in
2.66 years [510417/16000 = 31.9 months or 2.66 years]. Thus, total
recovery period of the commuted amount is = 8.194 + 2.66 = 10.85 years. Even after full recovery, the pensioner keeps on paying for 15 – 10.85 = 4.15 years. Thus, excess recovery = 4.15 x 12 x 16000 = Rs.7,96,800.
· If
we consider the prescribed interest rate of 8% p.a. as compound
interest, the total interest works out to Rs.9,93,007. This is
recoverable in 5.17 years [993007/16000 = 62.06 months or 5.17 years].
Thus, total recovery period of the commuted amount is = 8.194 + 5.17
= 13.37 years. Even after full
recovery, the pensioner keeps on paying for 15 – 13.37 = 1.63 years.
Thus, excess recovery = 1.63 x 12 x 16000 = Rs.3,12,960.
The
above calculations are only illustrative, applicable to
retired Secretary rank officers who retired on or after 1.1.86 at the
top of their pay scale and their pension was fixed at the maximum.
Calculations can be made similarly for other cases and the results would
tally.
We
may point out that the interest charged on various Govt. advances like
House Building Advance, Car Advance, Festival Advance, Marriage Advance
etc. is simple interest and not compound. Applying
the same policy, the commuted amount of pension was fully recovered
with interest in 12.73 years in case of 1st category of retirees (who
retired between 1986 and 1995), in 12.08 years in case of 2nd category
of retirees (who retired between 1996 and 2005) and in 10.85 years in
case of 3rd category of retirees who retired in 2006 or after. There is no justification for the Govt. to recover anything more than what it has advanced to the retirees.
Logical Recovery Period
The Govt. should be moved to rectify this wrong and modify the period of restoration of commuted pension as under:-
1st category of retirees (who retired between 1986 and 1995): They have already repaid the entire amount with interest. The
excess amount recovered should be refunded to them with the same rate
of interest as was charged from them for recovery (i.e. 4.75% p.a.).
· The same policy should be adopted towards those who retired before 1986. Similar calculations can be done in their case.
- 2nd category of
retirees (who retired between 1996 and 2005): Those who retired 15
years ago have already repaid the entire amount with interest. The
excess amount recovered should be refunded to them with the same rate of
interest, i.e. 4.75% p.a. For others, the recovery should be stopped and full pension should be restored after completion of 12.08 years.
- 3rd category of retirees who retired in 2006 or after: The recovery should be stopped and full pension should be restored after completion of 10.85 years.
Status of the Cases of Pre 2006 Pensioners in various Courts: As on 01.05.2014
STATUS OF THE CASES OF PRE 2006 PENSIONERS IN VARIOUS COURTS : AS ON 01..05.2014.
COMPILED BY M. L. KANAUJIA, IRSSE / Chief Communication Engineer, N.E. Railway, (Rtd.)
| Item |
HEARD BY |
PETITIONNO. & YEAR |
LEAD PETITIONER |
NEXTDATE FIXED FORHEARING |
REMARKS IN BRIEF |
| 1 |
CAT-PB Delhi |
OA 1165 / 2011 |
Pratap Narain & Ors Vs. MOP/DOP |
23.05.14 |
SCPC
Recommendations in respect of pensioners, who retired prior to
1.1.2006, was accepted and approved by the Union Cabinet, vide
MOP(DOP&PW) Resolution dated 29.08.2008 but while implementing,
revisedpension was wrongly reduced even where qqualifying service was
more than 20 years. This petition prays for refixation of pension at
full rate where qualifying service happens to be more than 20 years,
exactly as per Resolution dated 29.08.2008.UOI filed an affidavit on 15.04.14. A Counter to this would be filed soon.
|
| 2 |
CAT-PB Delhi |
OA 2165 / 2011 |
KR Srinivasan & Ors Vs. MOP/flOP |
23.05.14 |
Same as for item 1 above. |
| 3 |
CAT-PB Delhi |
OA 247 of 2012 |
17 Petitioners |
23.05.14 |
Same as for item 1 above. |
| 4 |
Lucknow HC |
Ser.Ben.203 / 2010 |
s29 UP Officers |
Second week of May'14 |
The
case is for modified parity i.e. revision of pension at 50% of sum of
minimum of the pay in the pay band plus the grade pay corresponding to
the pre revised pay scale from which a pensioner had retired, in terms
of Resolution dated 29.08.08, effective 1.1.2006. Heard on 16.4.14 but
UOI Advocate sought time, which wasgranted. |
| 5 |
Delhi HC |
WP(C)3359/ 2010 |
Ex.Para Military (s29,s26) Association Vs UOI |
14.08.14 |
The
case is for modified parity i.e. revision of pension at 50% of sum of
minimum of the pay in the pay band plus the grade pay corresponding to
the pre revised pay scale from which a pension had retired, in terms of
Resolution dated 29.08.08, effective 1.1.2006. Bench did not assemble on
6.3.14. |
| 6 |
Supreme Court |
ContemptPetition (Civil) 64/2009 |
SPS Vains, Major General & Ors. |
30.06.14 |
This
case is for grant of Modified Parity in terms of MOP,DOP Resolution
dated 29.8.2008, after including the same in Special Instructions. |
| 7 |
Supreme Court |
Civil Appeal 2966 / 2011 |
U0I Vs SPS Vains Mj. General & Ors |
30.06.14 |
This
case is for grant of Modified Parity in terms of MOP,DOP Resolution
dated 29.8.2008, after including the same in Special Instructions. |
| 8 |
Supreme Court |
Civil Appeal 8875-8876 of 2011. |
U0I & Ors.Vs. Vinod Kumar Jain & Ors (Avtar Singh) |
24.07.14 |
CA No. 8875-76 and SLP(C)CC No.18339 -341 of 2013 are now Converted to SLP (Civil) 36148-36150 / 2013. |
| 9 |
Supreme Court |
Civil Appeal 5367 -5368 / 2005 SLPC CC 5081-82/2004 |
Principal Secretary, Govt. Finance and Planning Deptt., Andhra Pradesh Vs. A.P. Pensioners Samaj. |
30.04.14 |
Heard
on 30.04.2014 and dismissed with following remarks : "We do not see any
reason to interfere with the concurrent conclusion of the High Court as
well as of the Tribunal. The appeals are accordingly dismissed." |
| 10 |
Delhi HC |
WPC No. 4572 of 2012 |
All India S30 Pensioners Association Vs. UOI |
DOJ 19.8.13. |
|
| 11 |
CAT-PB/Delhi |
ContemptPetitionNo.158 of 2012 |
CG
SAG (S29) Pensioners Association, Shri Satish Verma, Rtd.CE Vs. Shri RC
Mishra, Sec. DOP, MOP,GOI. and Shri Sumit Bose, Sec.DOE,MOF, GOI. |
15.05.14 |
This Petition is against non-compliance
of orders passed by CAT-PB while giving Judgment in case of OA
0655/2010 with other OAs. In view of IR granted by Delhi HC on 21.5.12,
hon.ble Court on 30.5.12 closed the case with liberty to move
application for revival of CP as per the Orders of hon.ble Delhi HC.
Accordingly, after the dismisal of UOI Petition in Delhi HC, the revival
application was put up which was heard on 24.5.13 and 28.5.13 and
orders for isuue of notices to respondents were passed. Hearing on
7.8.13 couldnot take place. Case was heard on 25.9.13. Hon.ble Court
ordered for revival of Contempt Petition and fixed 10.10.13 to take up
contempt proceedings. On 10.10.13, during hearingASG himself appeared
for UOI and argued citing pending SLPs in Supreme Court, for stay on
contempt proceedings which was opposed by the Advocate of Association.
Court did not agree for granting stay but fixed next date
of hearing as 27.11.13. Adjouraned due to non-availability of one of
the Judges to 18.12.13, 15.01.14 and 12.02.14. Heard but adjourned for
19.02.14. UOI submitted MA for certain clarification from
Court and Court adjourned the hearing till 15.05.2014. In the
meanwhile, the Curative Petition submitted to HSC by UOI has also been
dismissed on 30.04.14, attaining full and comlete finality to the case,
leaving no scope for any clarification or change in Judgment of CAT-PB,
already merged with the judgment of the HSC, except for implementation
of the "direction" or facing contempt proceedings. |
| 12 |
Supreme Court |
SLP (Civil) 19784 of 2013 with SLP(C)CC 12122,12366,1 2373,13325 & 14816. |
Haryana Viduat Prasaran Nigam Ltd & Ors Vs R K Agarwal and Ors |
DOJ 28.10.13 |
This
SLP is againsst Punjab and Haryana High Court Judgment in case of CWP
No. 19641 of 2009 R K Agarwal &Ors. Vs. HVPN Ltd & Ors. dated
21.12.2012. Hearing took place wheein Haryana Advocate pleaded about
Haryana Regulations for Pensioners and about financial implications
which Respondents Advocate opposed. Court was not impressed but allowed
them to put up their arguments in writing for orders
before nexthearing which was fixed for 28.10.2013 when following orders
were passed : Learned counsel appearing for the petitioners seeks
permission towithdraw the
special leave petitions with liberty to approach the High Court.
Permission is granted. Consequently, the special leave petitions are
dismissed as withdrawn with the liberty as |
