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Wednesday, November 30, 2011

Central staff get air travel sop to attract tourists to the Northeast

             The Union tourism ministry has renewed air travel concessions for central government employees to attract tourists to the Northeast.
An official statement issued here today by the tourism ministry said the government has relaxed Central Civil Services (Leave Travel Concession) Rules, 1988, to enable the central government employees to travel by air to the Northeast.
According to the proposal, group A and group B central government employees will be entitled to travel by air from their place of posting or nearest airport to a city in the Northeast or the nearest airport. The ministry said other categories of employees would be entitled to travel by air to a city in the Northeast from Guwahati or Calcutta.
All central government employees will be allowed conversion of one block of hometown LTC into LTC for destinations in the Northeast. This means that employees can use LTC meant to visit their homes for travelling to tourist destinations.
The minister of state for tourism, Sultan Ahmed, announced these decisions in a written reply in Lok Sabha recently. An official of the Meghalaya tourism department today said the initiative would definitely boost tourist flow to the Northeast, including Meghalaya.
Source : The Telegraph, November 28, 2011

All India Consumer Price Index Numbers for Industrial workers on Base 2001=100 for the Month of October, 2011

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of October, 2011 increased by 1 point and stood at 198 (one hundred & ninety eight) .
During October, 2011, the index recorded maximum increase of 8 points in Darjeeling centre, 7 points in Yamunanagar centre, 6 points each in Hyderabad and Tiruchirapally centres, 5 points in 5 centres, 4 points in 7 centres, 3 points in 14 centres, 2 points in 18 centres and 1 point in 19 centres. The index decreased by 3 points in Mysore centre, 2 points each in Ernakulam, Lucknow, Kolkata and Guwahati centres and 1 point in Mundakkayam centre, while in the remaining 5 centres the index remained stationary.
The maximum increase of 8 points in Darjeeling  centre is mainly on account of increase in the prices of Masur Dal, Mustard Oil, Garlic, Chillies Green, Vegetable items, Refined Liquor, Firewood, Kerosene Oil, Clothing & Footwear items, etc. The increase of 7 points in Yamunanagar centre is mainly due to increase in the prices of Rice, Wheat Atta, Poultry (Chicken), Fresh Milk, Pure Ghee, Vegetable & Fruit items, Firewood, Barber Charges, etc. The increase of 6 points in Hyderabad centre is due to increase in the prices of  Rice, Groundnut Oil, Goat Meat, Poultry (Chicken), Garlic, Tamarind, Vegetable & Fruit items, Tea (Readymade), Electricity Charges, Clothing & Footwear items, Medicine (Allopathic & Homeopathic), Petrol, Washing Soap, Tailoring Charges, etc. The increase of 6 points in Tiruchirapally centre is due to increase in the prices of  Rice, Fish Fresh, Garlic, Vegetable & Fruit items, Sugar, Flower/Flower Garlands, etc. The decrease of 3 points in Mysore centre is the outcome of decrease in the prices of Rice, Wheat, Onion, Kerosene Oil, Clothing items, etc. The decrease of 2 points each in Ernakulam, Lucknow, Kolkata and Guwahati centres is due to decrease in the prices of Rice, Wheat, Coconut Oil, Fish Fresh, Sugar, Kerosene oil, etc.
The indices in respect of the six major centres are as follows :
1. Ahmedabad

4. Delhi
2. Bangalore

5. Kolkata
3. Chennai

6. Mumbai
The All-India (General) point to point rate of inflation for the month of October, 2011 is 9.39% as compared to 10.06% in September, 2011. Inflation based on Food Index is 8.72% in October, 2011 as compared to 8.29% in September, 2011.
The CPI-IW for November, 2011 will be released on the last working day of the next month, i.e. 30th December, 2011.
Source : PIB Release, November 30, 2011

Processing of files referred to DoP&T for advice / clarification - Procedure to be followed

Post Office Savings Scheme : Notifications issued by Ministry of Finance (Department of Economic Affairs), Govt. of India

1.         Payment of Commission to SAS and MPKBY Agents.
2.         National Small Savings Fund ( Custody and Investment ) Amendment Rules, 2011
3.         Public Provident Fund ( Amendment ) Scheme, 2011
4.         Discontinuance of Kisan Vikas Patras
5.         Increase in rate of interest in Post Office Savings Accounts
6.         Post Office ( Monthly Income Account ) Second Amendment Rules, 2011
7.         Post Office Time Deposit ( Second Amendment ) Rules, 2011
8.         Post Office Recurring Deposit ( Second Amendment)  Rules, 2011
9.         National Savings Certificates ( VIII Issue ) Second Amendment Rules, 2011

To view all Notifications Click Here

National Savings Certificate ( IX - Issue ) Rules, 2011

Notification for Launch of 10-Year National Savings Certificate (IX-Issue), 2011 Issued

In accordance with the decisions taken by the Government on the basis of the recommendations of the Committee for Comprehensive Review of National Small Savings Fund (NSSF), headed by Smt Shyamala Gopinath, the then Deputy Governor, Reserve Bank of India, Notifications on changes made in various small saving schemes except 10-Year National Savings Certificate, have already been issued on 25th November 2011. 

                The Notification for launch of new savings instrument, namely 10-Year National Savings Certificate (IX-Issue), 2011, has been issued today, the 29th November, 2011. 

                The major highlights of this scheme are as follows:

·         Investments in Certificate will earn Interest at the rate of 8.7% p.a. compounded semi-annually.
·         On investment of Rs. 100, the depositor will get Rs. 234.35 on maturity of the Certificate.
·          This Certificate will be available in the denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 and Rs. 10,000. 
·         There is no upper limit for investment in the Certificate. 
·         This Certificate can be transferred from a post office where it is registered to any other post office and it can be pledged as a security.

                The scheme will come into effect from 1st December 2011. Details of the notification are attached herewith and can also be seen on the website of the Ministry of Finance i.e.
Source : PIB Release, November 29, 2011

Population of the Country Under Insurance Net

              Based on the  working population as per census 2001 data, the Insurance Regulatory and Development Authority (IRDA) has reported that the approximate total number of insurable persons in the country is  57,03,35,944.
                The names of the insurance companies, both private and public sector is at Annexure.
The IRDA has informed that the details of insured persons, institutions  etc.  company-wise are not maintained.
As at 31.03.2010, the total number of policies in force relating to private life insurers are 4,03,63,200 and the lives covered under group new business by private life insurers are  4,19,59,796.  IRDA has informed that the details of insured people belonging to Above the Poverty Line (APL) and Below the Poverty Line (BPL) category are not maintained.

The objectives achieved are as follows:

(i)            The insurance penetration has increased from 2.32% to 5.51% over the period 2000 to 2010.
(ii)           The number of insurance offices has increased from 2,199 in 2000 to 12,018 in 2010.
(iii)          From the single channel system of tied agents which was predominant before opening up of the sector in 2000, multiple channels of distribution comprising brokers, bancassurance, corporate agents emerged in the decade and accounted for nearly 21 percent of the new business in the year 2009-10. These channels have aided in expanding the market as well as in better outreach.
(iv)          The first year life insurance premium grew from Rs.19,857.28 crore in 2001-02 to Rs.1,09,894.02 crore in 2009-10. The total life insurance premium rose from Rs.50,094.46 crore in 2001-02 to Rs.2,65,450.37 crore in 2009-10.
Life Insurers (As on 20.06.2011)
Non-Life Insurers(As on 05.08.2011)
Public Sector:

Life Insurance Corporation of India

     Private Sector:
1.    Bajaj Allianz Life Insurance Company Ltd
Birla Sun Life Insurance Company Ltd
HDFC Standard Life Insurance Company Ltd
ICICI Prudential Life Insurance Company Ltd
ING Vysa Life Insurance Company Ltd
Max New York Life Insurance Co Ltd
Met Life Insurance Company Ltd
Kotak Mahindra Old Mutual Life Insurance Company Ltd
SBI Life Insurance Co Ltd
Tata AIG LIFE Insurance Co. Ltd
Reliance Life Insurance Co Limited
Aviva Life Insurance Co Ltd
Sahara India Life Insurance Co. Ltd
Shriram Life Insurance Co. Ltd
Bharti AXA Life Insurance Company  Ltd
Future Generali India Life Insurance Co.Ltd
IDBI Federal Life Insurance Co. Ltd
Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
AEGON Religare Life Insurance Co. Ltd
DLF Paramica Life Insurance Co. Ltd
Star Union Dia-ichi Life Insurance Co. Ltd
India First Life Inasurance Co. Ltd.
Edelweiss Tokio Life Insurance Co. Ltd.
Public Sector:
National Insurance Co. Ltd
The New India Assurance Co. Ltd
The Oriental Insurance Co. Ltd
United India Insurance Co. Ltd.
Private Sector:
Bajaj Allianz General Insurance Co. Ltd
ICICI Lombard General Insurance Co Ltd
IFFCO Tokio General Insurance Co. Ltd
Reliance  General Insurance Co. Ltd
Royal Sundaram Alliance Insurance Co. Ltd
Tata AIG General Insurance Co. Ltd
Cholamandalam MS General Insurance Co. Ltd
HDFC ERGO General Insurance Co. Ltd
Export Credit Guarantee Corporation of India Ltd
Agriculture Insurance Co. Ltd
Star Health Insurance Co. Ltd
Apollo Munich Health Insurance Co. Ltd
Future Generalli India Insurance Co. Ltd
Universal Sompo General Insurance Co. Ltd
Shriram General Insurance Co Ltd
Bharti AXA General Insurance Company Limited
Raheja QBE General Insurance Company Limited
SBI General Insurance Co. Ltd
Max Bupa Health Insurance Co. Ltd
L&T General Insurance Co. Ltd
General Insurance Corporation of India

This information was given by the Minister of State for Finance, Shri   Namo Narain Meena in written reply to an Unstarred Question in Rajya  Sabha today.
Source : PIB Release, November 29, 2011

National Policy for Senior Citizens

             The Government had constituted a Committee on 28.1.2010 under the Chairpersonship of Smt. Mohini Giri, to inter-alia draft a new national policy on older persons. Other members of the Committee were:
(i)            Shri. M. M. Sabharwal, President Emeritus, Helpage India;
(ii)           Dr. K. R. Gangadharan, Chairman, Heritage Foundation;
(iii)          Smt. Shielu Sreenivasan, President, Dignity Foundation;
(iv)          Representatives of Ministries of Health & Family Welfare, Rural Development, Finance, Home and Women & Child Development; and
(v)           Principal Secretaries/Secretaries in charge of Welfare of Senior Citizens of Andhra Pradesh, Assam, Delhi, Maharashtra and West Bengal.
(vi)          Joint Secretary, Ministry of Social Justice & Empowerment as Member Secretary.
             The Committee submitted the draft National Policy on Senior Citizens 2011 on 30.3.2011 which inter-alia, accords priority to the needs of senior citizens aged 80 years and above, elderly women, and the rural poor. Some of the salient policy objectives are to:
              Mainstream the concerns of senior citizens, especially older women, and bring them into the national development debate;
                Promote income security, homecare services, old age pension, healthcare insurance schemes, housing and other programmes/ services;
                Promote care of senior citizens within the family and to consider institutional care as a last resort;
                Work towards an inclusive, barrier-free and age-friendly society;
                Recognize senior citizens as a valuable resource for the country, protect their rights and ensure their full participation in society;
                Promote long term savings instruments and credit activities in both rural and urban areas;
              Encourage employment in income generating activities after superannuation;
                Support organizations that provide counseling, career guidance and training services; etc.
The Committee also suggested the areas of intervention to be made by Central/ State Governments towards implementation of the policy objectives.
The draft Policy has been circulated to State Governments, seeking their comments. It has also been placed on the Ministry’s Website ( for information of the general public and feedback, if any. The draft policy will be finalized after the process of consultation with State Governments and concerned Central Ministries/ Departments is completed.
This information was given by the Minister of State for Social Justice and Empowerment, Shri D. Napoleon in a written reply to a question in Lok Sabha.
Source : PIB Release, November 29, 2011



                The system of engaging casual labour is in existence in the dept since undivided P & T department. Due to many struggles by the then NFPTE organizationally and legally in the year 1987 Honorable Supreme Court intervened and gave a land mark judgment on how wages are to be paid and regularization has to be made. Basing on that department of personal & training issued orders. Even before the judgment DOPT issued orders vide OM no 49014/18/84-esstt (C) dated 7-5-85 for one time relaxation to absorb casual labour against regular group D vacancies even though they were not recruited through employment exchange and also made it clear that future engagement should be through employment exchange only. In spite of this engagement of new casual labours is continued with out adhering to the conditions laid down by the DOPT.
                After the supreme court verdict department of posts issued an order vide no 65-24/88-spb I dated 17-5-89 declaring all mazdoors, casual labours, contingent paid staff daily wager, daily rated mazdoor and outsiders are to be treated as casual labours. It was clarified in the same order that those who work for not less than 8 hours a day are full time casual labours and those who work less than 8 hours are part time casual labours. These casual labours will have priority in absorption as group D after the non test category group D and extra dept agents. The eligibility criterion was fixed as 240 days engagement in a year for full time casual labours and 480 days engagement in 2 years for part time casual labours. In spite of this orders the regularization of full time and part time casual labors was not done in many divisions.
                The issue of regularization of full time casual labours as group D was a demand fought by the P&T trade union movement i.e. NFPTE for a long time. The dept of posts again issued an order called as ''grant of temporary status and regularization scheme" in the year 2001.  The scope was further increased vide orders dated 1-11-95 extending the eligibility date from 29-11-85 to 10-9-93. After granting temporary status and working for 3 years in that status they will be treated on par with temporary group D even though group 'D' posts are not in existence.
                The Para 1 of the dept of posts orders dated 12-4-91 states that temporary status would be conferred on those who have rendered continuous service of at least one year with 240 days (206 days in administrative offices) is taken as one time measure by the authorities to deny other casual labors who complete this conditions as and when they could get 240 days of engagement in a year subsequent to issue of these orders. This interpretation is arbitrary and unjustified. Because of this interpretation thousands of full time /part time casual labors who have completed this condition in subsequent years are not allowed to be conferred the temporary status and the consequential benefits due to lack of vacancies even though temporary status was conferred they could not be regularized. As per the earlier orders of the dept of posts the part time casual labours who have rendered 480 days in 2 years are to be converted into full time casual labours. This benefit is taken away by the dept in the subsequent orders there by they were denied of temporary status and consequent benefits. But dept of telecommunications extended the scheme and implemented in 1997 but similar extension is not allowed in the dept of posts so far even though both are under the same ministry of communication and IT.
                Subsequently Honorable CAT Hyderabad in OA no 389 delivered judgment to grant temporary status to all those FTCLs who completed 240 in a year and PTCLs who completed 480 days in 2 years. But dept approached Honorable Ap High Court and the High Court upheld the decision of the honorable CAT in its judgment on 8th September  2010 by dismissing their writ petition filed by the dept. but till date the same is not been implemented resulting in compulsion on the  casual labors to file contempt of court suite. After filing contempt of court suit hurriedly department approached hon'ble supreme court and filed SLP WHICH WAS DISALLOWED by the apex court. After such hectic continued process only department granted temporary status to those employees who won the case. This clearly shows how department is adamant towards casual labor working in the department and dealing the issue of casual labours.
                Wages : As per the directions of the honorable supreme court vide its verdict in 1987 the wages of part time/ full time casual labour  are to be revised from 1-1-2006 i.e. from the date of effect of implementation of 6th pay commission report to regular employees. But orders were issued for revision of wages of casual labours that were conferred with temporary status but even though a long gap is there orders were not issued in respect of full / part time casual labours. in some circles  even payment of DA  to the contingent employees on pre revised wages which was paid regularly was stopped in the name of clarification from directorate. Payment of arrears file is tossing from one section to other on the plea of not receiving the information from circles.
                Instead of issuing orders for revision of wages all of a sudden one order were issued to  all cpm'sg to out source these cadres. This is nothing but violation of fundamental rights given by the constitution of India and naked violation of honorable apex court full bench judgment. Against this immediately NFPE responded and gave a programme of call attention day on 10-2-2011 and chelo cpmg office on 03-03-2011.  Directorate issued modification order restricting this to only administrative offices. On the immediate intervention of NFPE only this was stopped.
                Daily rated mazdoors: a new section of casual employment called as daily rated mazdoors came into existence in the department of posts. They are employed in mail business centers i.e. almost in every mail offices and for clearing the arrears of data entry. They are attending to the duties of Pas and SAs i.e. sorting of letters, booking of speed post articles and data entry. No uniform procedure is being followed through out the country in respect of their wages. A uniform rate has to be fixed through out the country.
                Keeping in view the above situation the FOLLOWING DEMANDS are to be highlighted for early settlement along with the issue of implementation of revised wages from 1-1-2006



 2]            Revision of wages of all full time / part time casual labours and payment of arrears from 1-1-2006.

 3]         The condition of 1-9-93 in respect of FTCL / PTCL for absorption against the vacancies of MTS has to be removed keeping in view the AP HIGH COURT judgment which stated clearly that all PART TIME CASUAL LABOURS WHO WORKED FOR 480 DAYS IN TWO YEARS SHOULD BE TREATED AS TEMPORARY STATUS CASUAL LABOUR FOR THE PURPOSE OF ABSORPTION WITH OUT ANY CONDITIONS THOSE WORKING UPTO 2010.

 4]                            Fixing of uniform rates to daily rated mazdoors who are attending to the duties of PA /SA on the minimum of their pay.

 5]            Ftcl/ptcls are to be given priority against gds vacancies before giving open notification honoring the assurance given by the department at the time of discussions on strike charter.

 6]            All the posts of PT CONTINGENT be converted as GDS and the present employees working in those posts may be absorbed as one time measure to settle the issue permanently.

 7]             No new casual labor be engaged further and no out sourcing in the department.



             The number of casual workers is increasing day by day due to the policy of privatization in every sector including central govt organizations. It is the duty of the organized working class to organize these sections and bring them into the working class movement. Confederation of central govt employees and NFPE took a decision to form casual labours union. Still many circles are lagging behind in forming state level organizations. Till now in west Bengal Andhra Pradesh Kerala and UTTARANCHAL circles state level units were formed. In some circles like Tamilnadu efforts are going on. Nfpe federal executive decided to conduct ALL INDIA CONVENTION at TIRUPATHY to form ALL INDIA UNION. Accordingly all India union was formed today in this convention with the name as "ALL INDIA POSTAL CASUAL, PART TIME, CONTINGENT & CONTRACT WORKERS FEDERATION" so that the process of forming state level committees will be speeded up and the most down trodden will be brought under the banner of NFPE. Unless circle unions of nfpe took steps effectively the task will not be completed. Hence all the circle co ordination committees of the circles are requested to take it as a serous task and circle unions may be formed and brought under the banner of THIS FEDERATION to strngthen the working class movement in DEPARTMENT OF POSTS.

Without fulfilling this task we cannot achieve the objective of united strength in postal wing which is the only way for settlement of demands of entire postal workers.

Casual Labor Union Zindabad
Nfpe Zindabad
Workers Unity Zindabad
Courtesy : NFPE

Monday, November 28, 2011

Two Wheeler Owners : Be aware of your Registration Number Plates

Limited Departmental Competitive Examination for promotion to the cadre of Postmaster Grade - I held on 12th June, 2011 - Publication of revised result of Odisha Circle


13.C Feroze Shah Road
New Delhi. 110 001
Dated: 25th November, 2011
Phone: S.K.Vyas . Convenor: 91-98682 44035.
011-2338 2286. E mail.
The Hon'ble Prime Minister of India,
New Delhi
 Sub:      Request for Scrapping of PFRDA Bill
We submit this Petition to bring to your kind notice and through your good office to the attention of the Honorable Parliamentarians of our country certain aspects of the re-introduced PFRDA bill, which will have adverse impact on the exchequer in general and on the prevailing service conditions of the Civil Servants.  We pray that our submissions in this regard may please be caused to be considered earnestly and the implication of the provisions of the bill critically analyzed and examined and take decision to kindly withdraw the Bill from the Parliament.
We submit the following for your critical and objective analysis of the Bill : 
1.      The concept of old age security for civil servant in the form of pension has a very ancient
origin dating back as early as third century BC, the quantum being half of the wages on  completion of forty years blemishless  service to the king.
2.      In the last century, one of the measures taken by the colonial rulers to attract talented personnel to the Royal service was the introduction of pension scheme for civil servants in  1920.  The Royal commission through its various recommendations improved the scheme and the 1935 Government of India Act provided it statutory strength. 
 3.      The land mark judgment of the Supreme Court in D .S. Nakara and others Vs. Union of India          (AIR-1983-SC-130)(applicable to the Central and State Government employees, teachers,  and        all stake holders of pension system) conceptualized pension stating that pension is neither a bounty nor a grace bestowed by the sweet will of the employer, but a payment for the past services rendered.  It was construed as a right step towards socio-economic justice and a concrete assurance to the effect that the employee in his old age is not left in the lurch.
 4.      The fifth Central Pay Commission which was set up by the GOI in 1993 to go into the wage structure and pension scheme of the Central Government employees referring to the Judgment of the Supreme Court cited, observed (Para 127.6) that
 "pension is the statutory, inalienable and legally enforceable right earned by the civil servant by the sweat  of the brow and being so must be fixed, revised, modified and changed in the way not dissimilar to salary granted to serving employees." 
 5.      The guiding principle adopted in determining of pay package of civil servants is to spread out    the wage compensation over a long period of time whereby wages paid out during the work  tenure is low in order to effect payment of pension on retirement. As such civil service pension  is rightly termed as deferred wage.  While in the organized private sector the employer is   required to contribute equal share to the Provident Fund of the employees, the Government neither contributes to the Provident Fund of the civil servants nor takes any pension  subscription from  him.
 6.      In an unwarranted intervention in the Statutory defined benefit  Pension system, the IMF in    their work paper (WP/01/125,(2001) propounded the creation of a pension fund by eliciting subscription   from the Wage earners at the earliest stage of their employment so as to fetch an annuity decent enough to sustain him at the old age. In fact it was a suggestion for a retrograde change over from the defined benefit pension scheme to a defined contributory system.   While suggesting so, they have categorically stated that India does not suffer demographic pressure experienced by major countries, for India's population beyond the age of 60 was about 7% in 2004 which rose to 8.6% in 2010 and is estimated at 13.7% in 2030 and 20% in 2050.
 7.      The New contributory pension scheme enunciated by the Government of India and adopted by most of the State Governments is covered by the PRFDA bill. The bill inter alia, envisages a social security scheme for all who desire to have an annuity at his old age which is voluntary and not mandatory.  However, in the case of Civil Servants, who are recruited to Government service after the prescribed cut -off date ( 1.1.2004 in GOI service) the scheme is mandatory in as much as the employee is bound to subscribe 10% of his emoluments to the Pension Fund and the Govt. being the employer would contributes equal amount.  No employee is entitled to opt out of the scheme.
 8.      Despite the inability to bring in a valid enactment, the Central and all  State Governments other than those of West Bengal, Kerala and Tripura through illegal executive orders decided to impose the contributory pension system arbitrarily on the Central and State Government employees .While the Govt.  of India notification excluded the personnel in the armed forces and para-military establishments, the Governments of  the Left ruled States of West Bengal, Kerala and Tripura consciously continued with the existing defined benefit pension system.
 9.      The PRFDA Bill stipulates that there will not be any explicit or implicit assurance of the benefit except market based guarantee.  The subscriber is thus exposed to the following risks at the exit.
a)      If there is a major market shock, the subscriber to the New Pension scheme may end with no ability to purchase an annuity.
b)      Since annuity is and cannot be cost indexed, the real worth of the annuity might fall depending upon the inflationary pressure on the economy.
c)      As per the scheme, the subscriber is to make the choice of investment portfolio.  The Civil Servant being mostly uninformed in finance and investment related matters, he might end up in making wrong choices which would eventually rob him of the old age pension.
d)     The subscriber is perforce to contribute to the charges of the investment managers, whose priority often is as to how much profit they could make through investment of the huge corpus of pension fund in the volatile share market .
 10.  The pension fund created by the employees' subscription and the employers' contribution which directly flows from the exchequer ( which is nothing but tax revenue of the Govt.) is  made available for the stock market operations which is not only unethical but also blatant diversion of public fund for private  profit, both  Foreign and Indian capitalists.
 11.  In the case of Civil Servants recruited after the cut-off  date, the new scheme replaces the existing much better "defined benefit" pension scheme. In the process, the Government has created two classes of civil servants viz. the one with a defined benefit pension scheme and the other with the contributory pension scheme in which the employee is to part with 10% of his emoluments to become entitled for an old age social security subject to  the vagaries of share market permits.  Since in both the cases, the pay, allowances, perks, and other benefits, privileges, duties and responsibilities are the same it amounts to wanton discrimination of one against another which is not sustainable in law, rather violative of the existing constitutional provisions.
 12.  The wage structure presently designed for those who are recruited prior to the cut- off date and after is on the same premise and is depressed to enable the Govt. to meet the pension liability in future.  By imposing the new contributory pension scheme on the employees who are recruited after the cut- off date the Govt. not only denies the statutory defined pension  benefit to them but also compel them to contribute for earning an undefined annuity, which must be characterized as highly discriminatory. 
 13.  Those who are covered by the contributory pension scheme will become entitled for an annuity, a portion of the accumulated contribution is able to purchase, basing upon the accretion to the fund from the investment.  There is, however, no guaranteed minimum amount of pension for those who are covered by the new scheme, whereas the civil servants covered by the existing scheme do get a defined and guaranteed minimum pension and on his death his family members (wife, widowed and unmarred daughters and unemployed sons below the age of 25) become entitled for family pension.  The discrimination factor is thus compounded.
 14.  The  PFRDA Bill when  enacted, it is rightly feared, will empower the Government to alter or even deny the present employees and pensioners the statutory defined pension benefit as has been done in the case of those who are appointed after the cut-off date.
 15.   It is stated that the prime objective of the introduction of the contributory pension scheme is to substantially reduce the outflow on account of pension liability.  The major pension liability of Government is accounted for by Armed Defence personnel.  They are however excluded from the purview of the contributory pension scheme.  The personnel in the Para Military forces are also excluded from the ambit of the new Scheme.  While doing so, (no doubt to attract the people to serve in the armed forces for security of the Nation) the Govt. is bound to meet the pension liability from the consolidated fund of India.  The argument advanced by the Govt. to cover the Civil Servants in the ambit of the new Pension scheme has been found to be unsustainable by the study commissioned by the 6th CPC.  Shri S. Chidambaram, Actuary, in his report, (Annexure to "A study of Terminal benefit of Central Government employees by Dt. K. Gayatri, Centre for Economic Studies and policy, Institute for Social and Economic change, Nagarbhavi, Bangalore) has pointed out that the Government liability on account of contributory pension scheme would in effect increase for a period spanning for the next 34 years from the existing Rs. 14,284 Cr. To  Rs. 57,088 Cr. ( 2004-2038) and is likely to taper off only from 2038 onwards.  The exchequer is bound to have an increased outflow for the next 34 years and will be called upon to bear the actual pension liability of defence personnel and personnel of para military forces, besides making the contribution to the Pension fund of the Civil Servants recruited after the cut off date.  The specious plea that the exchequer is bound to gain due to the contributory pension scheme is therefore not borne from facts.
 16.   Of the present pension liability of the Govt. of India, which  in 2004-05 was 0.51% of the GDP, 0.26% is accounted for by the Defence( which is 50% of the total pension liability.) The study report of the Centre for Economic Studies has concluded that the pension liability as a percentage to GDP which is just 0.5% presently is likely to decline given the growth rate of Indian economy.
 17.   Since most of the State Governments have chosen to switch over to "contributory pension scheme" , in fairness ( from the Study conducted by the Centre for Economic Studies and policy) it can be concluded that the pension liability of all the State Governments are bound to increase to three times of what it is today by 2038. 
 18.  The first version of the PFRDA Bill was placed before the Parliament by the NDA Government in 2003.  The 6th CPC set up the Committee to go into the financial implication on account of the increasing number of pensioners and suggest alternative funding methodology in 2006.  The said Committee came to the inescapable conclusion (report submitted in 2007) that "the existing systems of pension are increasingly becoming complicated after the introduction of the New Pension scheme" and warned that "caution has to be exercised in initiating any further reforms"  In the light of the conclusion of the said study report which revealed the fact of serious escalation in the  pension payment outflow,  the rationale of the re-introduction of the PFRDA bill in 2011 covering the civil servants is incomprehensible.  Undoubtedly, the Bill when enacted into law will through the existing pensioners to a financially insecure future and the existing workers to the vagaries of the stock market. We, therefore, earnestly pray to your good-self to bring back all the civil servants including teachers irrespective of the date of entry into Government service as also those irregularly appointed within the ambit of the existing statutory defined pension benefit scheme.  
                We may, in fine, quoting the concluding paragraph (Page 76 of the report of the Centre for Economic Studies and Policy – Institute for Social and Economic Change) of the Committee set up by the 6th CPC
                "Mainly given the fact that the future liability although may be large in terms of absolute size is not likely to last very long and does not constitute an alarmingly big share of the GDP which is also on the decline. It appears that pursuing the existing 'Pay as you go' to meet the liability will be an ideal solution."
 appeal you, for the detailed reasons adduced in the foregoing paragraphs, that the new pension scheme enshrined in the PFRDA Bill  may be withdrawn from the Parliament both in the interest of the Civil Servants and the exchequer.

With regards,