Revised Pensionary benefits under OROP released

The Defence Pension Disbursing Offices (DPDOs) functioning under Controller General of Defence Accounts (CGDA) in the Ministry of Defence have released revised pensionary benefits to 2,21,224 Defence pensioners drawing service/disability pension. The amount along with first instalment of arrears had been released and credited by the Defence Ministry to the accounts of these pensioners on 01.03.2016.

In the case of remaining 1,46,335 family pensioners drawing pension from DPDOs, payment along with arrears is expected to be released by March end. Banks are under process of revision work.

These steps are a follow-up to Department of Ex-Servicemen Welfare (ESW) of the Ministry of Defence’s notification on 07.11.2015 ordering implementation of One Rank One Pension (OROP) scheme for Defence pensioners.

The total additional annual financial increase for grant of One Rank One Pension (OROP) is Rs. 7488.70 crores. The total amount on account of arrears to be paid for the period 1.7.2014 to 31.12.2015 is Rs. 10925.11 crores.

Out of total annual liability of Rs. 7488.70 crores, PBOR family pensioners shall get Rs. 6,405.59 crores, which works out to 85.5% of total expenditure of OROP.

Due to increase in defence pension budget, the additional liability for current financial year 2015-16 shall be Rs. 4,721.34 crores which will increase the current defence pension liability of Rs. 60,238 crores to Rs. 64,959.34 crores for the year 2015-16.

Detailed implementation orders of OROP with 101 tables containing revised pensions of different ranks and categories were issued by the Department of ESW on 03.02.2016 through their website www.desw.gov.in. According to the orders, the Pension Disbursing Agencies have been authorized to make payments with arrears as scheduled.

To facilitate the pension disbursing agencies, the Principal Controller of Defence Accounts (P) have also issued implementation instructions through a circular on 04.02.2016. The implementation instructions along with Government orders are available on the website www.pcdapension.nic.in.

Real Estate Bill Passed – As a House Buyer What You should Know

For the House Buyers

@ The bill provides for mandatory registration of all projects with real estate regulatory authority in each state. Real estate agents who intend to sell any plot, apartment or building should also register with the authority.

@ It makes mandatory to disclose all information for registered projects like details of promoters, layout plan, land status, schedule of execution and status of various approvals.

@ It seeks to enforce contract between the developer and buyer and act as a fast tract mechanism to settle the disputes.

@ Fifty percent of the buyers amount has to be deposited in to an escrow account that would be used only for construction of that project.

@ The bill prohibits the developer from changing the plan in a project unless two-thirds of the allot tees have agreed for such change.

How the bill will benefit real estate sector

@ Promote timely execution of projects thereby achieving the objective of housing for all

@ ensure speedy adjudication of disputes and orderly growht of the real estate sector through efficient project execution, professionalism/standardisation

@ Bill aims at restoring confidence of consumer in the real estate sector by institutionalising transparency and accountability

@ Like other sectors such as telecom, electricity, banking, securities insurance etc provides for specialised regulations and enforcement

@ Will boost domestic and foreign investment in the sector and help promote private participation

@ Illegal and unplanned development due to absence of regulator would end.

How it will benefit developers

@ Weed out fly-by-night operators from the sector

@ Will infuse credibility by making the sector mature on the lines of securities, banking, insurance etc

@ Channelise investment into the sector: Huge unsold stock as consumer confidence is low: Bill would restore investment sentiment of consumers and help address inventory pile-up.

How the bill will benefit home-buyers

@ Make operations transparent, promoting informed choice for buyers

@ Disclosure of ‘carpet area’ for sale will curb unfair trade practices

@ Model agreement would end one-sided agreements

@ Time and cost overruns due to funds diversion will be controlled

@ Will help curb black money and speculation leading to price controls

@ Indefinite delay in dispute resolutions in civil courts will end

@ Bill provides curative and preventive measures with powers to enforce specific performance unlike consumer protection laws.

Source: The Hindu

7th Pay Commission – Government and staff side gave indications of Handshake, implementation is expected soon

Government employees have demanded a minimum salary of Rs.26,000 as against Rs.18,000 recommended by the 7th Central Pay Commission while threatening to go on strike if demands not met. “Minimum pay needs to be revised to Rs.26,000 per month and the “Minimum pay of Rs.18,000 as recommended by 7th CPC is not acceptable,” said Minutes of the meeting of Joint Secretary (IC) with the members of the Staff-side of the Standing Committee (National council – JCM).

Secretary, Staff-Side, Standing Committee (National Council-Joint further stated that an Consultative Machinery) Said Staff-Side is “Not at all happy” with the recommendations of the CPC and, if fact, “No section of the employees is satisfied”, as the commission has Recommended a minimal pay increase as compared to the previous pay Commissions.

The Secretary further stated that an amicable and mutually negotiated settlement of these demands is necessary as “Non-acceptance would further cause resentment in the employees”. The secretary “informed that Staff-Side has already made their stand clear to go on strike from April 11, 2016 if their demands are not considered and no amicable settlement happens”, the Minutes said. The meeting was held to discuss the issues raised by the National Joint council of Action (NJCA) in their letter addressed to the Cabinet Secretary, regarding their charter of Demands on the recommendations of the Pay Commission.

The Staff-Side also said the central government employees need to be excluded from the National Pension Scheme (NPS), a long pending demand the fixed monthly medical allowance for pensioners who are not covered by CGHS and REHS needs to be increased from Rs.500 to Ts.2,000 is another major demand. The Joint Secretary (Implementation Cell) assured the staff-side that the concerns and demands made by them would be placed before the Empowered Committee of Secretaries for consideration after examining the Same in the light of the recommendations of the Commission. The scheme of joint consultative Machinery (JCM) is a platform for constructive dialogue between the representatives of the staff side and the official side for peaceful resolution of all disputes between the Government as employer and the employees.Demands are submitted to the Finance Ministry, to work as Secretariat for the Empowered Committee of Secretaries headed by Cabinet Secretary P K Sinha. The pay Commission recommendations when implemented would have bearing on remuneration of 47 lakh central government employees and 52 lakh pensioners. Subject to acceptance by the government, the recommendations will take effect from January 1, 2016.

DA WEF FROM JULY 2016 LIKELY TO BE 7 %

MONTH        INDEX    % INCREASE

Jan  16         269       1.91
Feb  16         267       2.91

Mar  16         268       3.92
Apr  16         271        5.00
May 16.       275.       6.23
      

AICPI-IW – All India Consumer Price Index for Industrial Workers for April 2016 released by Labour Ministry – Three points increase from March 2014

Consumer Price Index for Industrial Workers (CPI-IW) – March, 2016

The All-India CPI-IW for March, 2016 increased by 1 point and pegged at 268 (two hundred and sixty eight). On 1-month percentage change, it increased by (+) 0.37 per cent between February, 2016 and March, 2016 when compared with the increase of (+) 0.40 per cent between the same two months a year ago.

The All-India CPI-IW for February, 2016 decreased by 2 points and pegged at 267 (two hundred and sixty seven). 

Consumer Price Index for Industrial Workers (CPI-IW) – January, 2016

The All-India CPI-IW for January, 2016 remained stationary at 269 (two hundred and sixty nine). On 1-month percentage change, it remained static between December, 2015 and January, 2016 when compared with the rise of 0.40 per cent between the same two months a year ago.

NJCA has decided to defer strike date to 11th July, 2016 due to elections in five states

National Joint Council of Action
4, State Entry Road, New Delhi – 110055

No.NJC/2016/7th CPC

March 7, 2016

To
All Constituents of NJCA

Dear Comrade,
The NJCA met today and reviewed the discussion in the meeting of Empowered Committee of Secretaries presided by the Cabinet Secretary on 1st March 2016 where-in the Cabinet Secretary had requested for more time to arrive at conclusions on the charter of demands raised by the Staff Side.

The meeting also considered the situation in the aftermath of the coming into effect of the Code of Conduct with the declaration of election schedule in 5 State Assemblies and the fact that there will be polling on 11th April 2016 in West Bengal and Assam.

The meeting, therefore, came to the conclusion that it will not be feasible for us to stick to the date of strike as 11th April 2016. Considering the fact that as per section 22 of the Industrial Dispute Act, 1947 with regard to the validity of the strike notice which is not more than six weeks from the date of serving the strike notice, it was also felt that we may have to revisit the issue of serving the notice for strike afresh.

Considering all the above aspects, the meeting took the following decisions”

1. The indefinite strike shall commence from 6 am on 11th July 2016

2. The strike Notice would be served on 9th June 2016.

3. Massive demonstrations shall be held in all work place on 11th March 2016 in support of the charter of demands and strike decision.

4. The decision of the NJCA would be communicated to the Cabinet Secretary.

Detailed mobilization programmes would be given later on.

With greetings

Yours faithfully,
(Shiva Gopal Mishra)
Convener

Budget Allocation for 7th CPC Pay and Pension Hike is true

What was initially seen as a scoop that exposed the attempt of Indian Budget 2016 to understate Deficit Numbers was later confirmed to be not true thanks to Livemint’s study on Budget Allocation for 7th Pay Commission recommended increase in pay and pension of Central Government Employees and Pensioners

Bloomberg business which is a TV and internet media had reported that an Amount equivalent to US$ 15 Billion which is to be paid to CG Employees and Pensioners as result of implementation of 7th Pay Commission report in the year 2016-17, has not been taken in to account in the Budget 2016-17.

Boomberg reported this News with much hype and titled it as : “Missing: $15 billion lost somewhere in India’s 1,500-page budget” .

Click here to read Bloomberg report on 7th Pay Commission and Budget 2016

In response to this, Livemint has now come up with a comparison study on budget allocation for pay and allowances Central Government employees in 2015-16 and 2016-17

A Bloomberg report on Wednesday titled “Missing: $15 billion lost somewhere in India’s 1,500-page budget” raised a red flag on the Indian government’s balancing of its books in Budget 2016. It pointed out how the globalfinancial data provider and other analysts were unable to locate the numbers allocated for implementing the recommendations of the Seventh Pay Commission (SPC), which doles out the once-in-10-years pay hike given to central government employees. The allusion was the government may have understated this payout—and, by extension, its deficit.

Livemint’s study on funds allocated for 7th pay commission pay hike is as follows

“We tried to locate those “missing” numbers in the same budget documents. First, we need to know how much it will cost the government to implement the SPC recommendations. The estimate for 2016-17 by the SPC is a 24% increase in payouts to government employees, or Rs.102,100 crore (around $15 billion).

The first place to look for is under non-plan expenditure, and a table titled “Estimated strength of establishment and provision thereof”. This details how many employees are there in 56 government departments (excluding defence) and how much the government has budgeted to pay their salaries: an increase ofRs.65,690 crore in 2016-17. Thus, we have accounted for around 65% of SPC’s impact.

The second place to look for is pensions, the details of which are again provided under non-plan expenditure. This shows the government has budgeted for an increase of Rs.37,066 crore.”

Thus, the total increase in salary and pension bill in 2016-17 is Rs.102,756 crore. However, there is one rider. The pension liabilities include increased outgo on account of implementing the One Rank One Pension (OROP) scheme.

Implementing OROP is estimated to cost the government Rs.7,500 crore. Deducting this amount means the government has budgeted Rs.95,256 crore to meet SPC recommendations. In other words, the net shortfall in budget estimates on account of implementing the SPC is Rs.6,844 crore.

What’s “missing” is $1 billion and not $15 billion.”

Outcome of meeting with Cabinet Secretary held on 1.3.2016 – Confederation

MEETING WITH CABINET SECRETARY

———-Empowered Committee of Secretaries headed by Cabinet Secretary has held first round of discussion with JCM National Council Standing Committee members on strike Charter of demands on 1st March 2016. Staff Side explained the justification of each and every demand and conveyed the large scale resentment among the Central Government Employees to the Cabinet Secretary . Cabinet Secretary has not made any commitment on any demand. He informed that this is only a preliminary interaction with the Staff Side.

Com. M. Raghavaiyya Leader Staff Side, Com. Shiva Gopal Mishra Secretary Staff Side and other Standing Committee members attended.

Confederation was represented by Coms. KKN Kutty , M. Krishnan & M.S. Raja .

Meeting commenced at 0645 P.M. & ended at 0845 P.M.

M. Krishnan 
Secretary General Confederation