For the 8th Pay Commission, talks are going on with different stakeholders like employee unions, pensioners associations and various staff organizations and new demands and suggestions are being placed before the Commission. While many of these suggestions focus on salary revisions, fitment factors and allowances, pensioner groups are highlighting retirement concerns and long-term financial security after retirement.
One such suggestion has come from ‘Railway Senior Citizens Welfare Society’ (RSCWS). It has submitted a memorandum to the 8th Central Pay Commission which includes several demands related to pension, healthcare, allowances and retirement benefits. Retirement benefits are an important part of their recommendations.
This memorandum has been submitted at a time when several employee unions have expressed dissatisfaction over certain aspects of the ‘Terms of Reference’ (ToR) approved by the Union Cabinet last year. Some unions argue that the ToR does not properly address issues like restoration of the Old Pension Scheme (OPS), pension parity and other long-pending demands of employees and retirees.
Post Retirement Benefits
According to the RSCWS memorandum, retirement benefits are an important basis of social security for government employees after decades of public service. The organization said the 8th Pay Commission should put more emphasis on ensuring a dignified and financially secure life after retirement. The society said the current compensation structure is largely dependent on allowances, many of which stop after retirement. However, expenditure, especially on health care, continues to rise, leading to a sharp decline in the real income of pensioners.
Demand for amendment in the maximum limit of gratuity from time to time
On ‘Death-cum-Retirement Gratuity’ (DCRG), the RSCWS has recommended that the maximum limit of gratuity should be reviewed from time to time and should be linked to rising salary levels and inflation. The organization has also demanded timely payment of gratuity at the time of retirement and simplification of procedures to avoid delays. It also suggested that the provisions of gratuity under various pension systems like OPS, NPS and UPS should be rationalized to ensure fairness among retirees.
Concerns regarding pension security under NPS and UPS
The Railway Pensioners’ Association has said that the contributory pension system should have adequate safeguards to ensure a fixed and stable income after retirement. According to the memorandum, the pension system should protect against inflation and guarantee long-term financial security for retirees. The organization has also reiterated its demand for re-implementation of the old pension scheme for employees retired after 2004. They argue that this will help in maintaining equality among pensioners.
OROP like principle for civilian pensioners
RSCWS has also suggested that a principle like OROP (One Rank, One Pension) may be considered for civilian government pensioners. The organization says that retired employees with the same rank and same service period should get the same pension benefits, no matter when they retired. They argue that doing so will help reduce the disparity between different batches of pensioners.
Pension commutation restoration period should be reduced
Another main demand is related to pension commutation. Currently, the commuted portion of pension is restored after 15 years. RSCWS says this period is too long, especially in a low interest rate environment. The organization has proposed to reduce the restoration period to 10-12 years so that pensioners can get their full pension back sooner. In the memorandum, it has also been recommended to make changes in the limit of leave encashment (cash payment in lieu of leave) from time to time according to salary revision and inflation.
Emphasis on timely settlement of retirement dues payment
The organization has also raised the issue of delay in settlement of pension, gratuity and other dues related to retirement. He says that due to such delay, retired employees have to face financial problems. The organization has urged the 8th Pay Commission to recommend a robust system for speedy processing and distribution of all retirement-related payments.
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