Indignity of a Strike.. The prolonged 214-day strike by state government employees demanding the implementation of the exact clauses of the 6th CPC......

   The prolonged 214-day strike by state government employees demanding the implementation of the exact clauses of the 6th Pay Commission recommendation with retrospective effect from January 2006 as in the case of Central government employees has thankfully for everybody else in the state, concluded. It is perfectly legitimate for the state government employees to want salaries and benefits at a par with their Central government counterparts, but they did not seem to realise that this is not a guarantee. The 6th Pay Commission looked into matters of a hike in Central government employees only and it was up to the individual state governments to also hike the salaries of their employees in identical manner or else in modified versions.

   The report of the 13th Finance Commission on whose awards revenue-poor states like Manipur solely depend to foot their own salary bills, clearly mentioned that while it would include provisions for a hike in salaries in the pattern of the 6th Pay Commission recommendations, the question of paying arrears would be solely the prerogative of the individual state government depending on their own means and resources.

    In other words, the award did not include funds for payment of arrears from January 2006,
which for Manipur was estimated to have come to about Rs. 200 crore. It is  true some north eastern states like Arunachal Pradesh decided to adopt the  6th Pay Commission recommendations verbatim, and also to pay arrears from  January 2006 to the last rupee by borrowing Rs. 300 crore, but it is another  matter if this is a prudent decision. By contrast, according to media  reports, the Meghalaya government prepared its own Pay Commission  recommendations using the pattern set by the Central Pay commission, but
after making adjustments that fitted with the needs and means of the state. This is also why the state employees would now be paid as per the  recommendations of the 4th State Pay Commission. We are of the opinion that  in future, it would be more appropriate for the Manipur government to follow  this latter approach. It must know what is in hand and learn to spend within  its means.


    This process of drawing up a balance sheet to decide what is  within the state’s means and what is not, must be made transparent, and once  this transparency is ensured, the employees must understand what should be  their reasonable entitlements. Our sigh of relief at the news of the end of the employees strike for  arrears is on another count. For all the while that the prolonged cease work  strike lasted, the message had seemed to be, government employees would even  opt Manipur to be reverted back to the status of a Union Territory or even a  Part-C state so that they would be Central government employees and thus can  enjoy Central salary equivalents.

    It had seemed qualities like pride and  self esteem, dignity of individual identity, freedom of autonomous  administrative decision making etc were being bargained away. But let  whatever has happened be put away and behind. Let even those accusations  from including the chief minister, Okram Ibobi, which the in summary said  state government employees should be at least half as passionate about the  work they do as they are about the salaries they want, not leave a residue  of bitterness, although there would be very few who would not agree the  message contained in the statement is extremely relevant. The counter  allegation that the government should also end the culture of making fresh  and redundant recruitments just for the sake of the crores of rupees of  bribe money that would be generated, should be paid heed to earnestly.

   The  214 days standoff which resulted in virtually no administration for the  period should teach both the government and its employees to evolve new  cultures in both governance and attitude to work. Let the dies non principle  of no work no pay be further extended to also mean government servants  getting only as much as the worth of the service they put in.

   These are  incidentally almost natural and intuitive principles in practice in the  private sector, so why should they be seen as violation of rights in the  case of government employees who are paid public money. This is to say,  introduce accountability in governance process as well as government service  delivery by introducing penalties for non performers and rewards for  performers, in direct as well as indirect ways.

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Recommendations of the Sixth Central Pay Commission-Decision relating to grant of Special Allowance.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

PC VI No. 204
RBE No. 65/2010
New Delhi dated 30.04.2010

No. E(P&A)
I-2009 / SP-1 / Genl

The General Managers,
All Indian Railways and Production Units.

 Sub: Recommendations of the
Sixth Central Pay Commission-Decision relating to grant of Special  Allowance.

********

   Pursuant to the recommendations of the Sixth Central Pay Commission relating to grant of Special Allowance,  the President is pleased to device that the Special Allowance already  admissible against specified posts would stand revised as indicated in  Annexure-A.

2. These orders would be effective from 1st September 2008.

3. The rates of Special Allowances may be increased by 25% every time the Dearness Allowances payable on revised pay scales goes up by 50% except in the case of categories mentioned against item no.10 will be taken separately.

4. Special Allowance may be discontinued in respect of the categories indicated in Annexure ‘B’ with immediate effect.

5. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

(Chander Prakash

Joint Director Estt. (P&A),
Railway Board.

ANNEXURE 'A'

THE CATEGORIES (GROUP 'A', 'B', 'C' AND 'D') OF STAFF WHOSE RATE OF SPECIAL
ALLOWANCE HAS BEEN DOUBLED.

Sl.No.	Category	Pay Scales w.e.f. 01.01.2006 Rs.	Existing rate of Special Allowance (Rs. p.m.)	Revised rate of Special Allowance (Rs. p.m.)
1	2	3	4	5
1	Health and Malaria Inspector for additional duty of food inspectin. (Gr.I,II,III and III(IV)	9300-34800 + upto GP 4600	200	400
2	Commercial staff in-charge of Flag stations where Train passing duties are not involved.	5200-20200 + GP 2400 5200-20200 + GP 2000	40	80
3	Teachers doing library work: (i) ATP/Primary Schools, (ii) Middle Schools, (iii) High/Sr.Secondary School / Inter College / Degree Colleges	9300-34800 + GP 4200 9300-34800 + GP 4600 9300-34800 + GP 4800	100 150 200	200 300 400
4	Announcers - ECRCs/Comml. Clerks/TCs for part time announcing work in addition to normal duties without restriction of grades	-	60	120
5	Train Supt./Dt. TS (Rajdhani Express)	9300-34800 + GP 4200	300	600
6	Steward (Dy. TS) (Rajdhani Express)	5200-20200 + GP 2400	120	240
7	CTIs / TTEs for working in Headquarters Flying Squad	9300-34800 + GP 4200 5200-20200 + GP 2800 5200-20200 + GP 2400	100	200
8	Cook / Cook mate	5200-20200 + GP 1800	40	80
9	Sr.Scale, J.A. Grade and S.A. Grade Officers entrusted with the administrative control of Hindi works in terms of Railway Board's letter No. Hindi-85/OL-1/15/8 dated 26.5.1987	Sr. Scale J.A. Grade S.A. Grade	200 300 400	400 600 1200
10	Qualification Pay i. Clerks Grade II (Accounts Clerks) / Typists on passing Appendix-II Examination. ii. Sr. Accounts Assistant / Accounts Assistant / Stock Verifier / Typist / Stenogrpher on Passing Appendix-III Examination		60 80 (First Year) 140 (Second Year)	120 160(First Year) 280 (Second Year)

THE CATEGORIES OF EMPLOYEES (GROUP 'C' AND 'D') WHOSE SPECIAL ALLOWANCE HAS TO BE DISCONTINUED WITH IMMEDIATE EFFECT.

Sl.No.	Category
1	2
1	Adrama / Bradma Operators
2	Wireless Operators
3	Drivers (Centralized Freight Service)
4	Cipher Inspectors
5	Group 'D' Staff working as Stencil Cutting Machine Operators
6	Peons/Hamals/Daftries for doing Gestetner OPerator
7	Franking Machine Operator
8	Box Boy
9	Hamals/Porter for operating Hand Cranes
10	Group 'D' staff exclusively engaged in photo copying job

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Efforts to introduce Performance linked incentives for Central Government Employees

   The Indian government is finally going the corporate way. The stage has been set for introducing performance-linked payouts which may force over five million central government employees to deliver their best.

     What may make even corporate executives envious of the new bonanza for central government employees, particularly of the brass, is the proposal of a 20% hike for the best performers over and above the raise that they had received after the sixth Pay Commission’s recommendations two years ago.

      Yet for the babus, it won’t be a cakewalk either, as the formula of assessing the government employees as proposed by performance management division under the cabinet secretariat, has ruled out paying even a penny to an official if his ministry scores 70 or below in a scale of 100.

      But a secretary of a high performing ministry which meets 100% target will be eligible to receive Rs
2.4 lakh extra per year if the cabinet secretariat’s proposal of a 20% performance-linked payout is endorsed by the government, according to an official in cabinet secretariat.

       The first round of assessment, initially for three months from January to March 2010, is over and three out of 59 central government departments have got a 100% score. There is a strong possibility that a large number of government employees would receive an extra pay once the new formula is adopted.

        “We are extending the performance monitoring and evaluation system to 62 departments from the  current fiscal. According to our system, a department sets a target, fixes the weightages of each target, and if it succeeds meeting all its targets, it gets a score of 100. Now, we are proposing that if a department meets all its targets,the head of the department would be given a performance bonus of
20% or more of his basic salary. And other employees too will get such bonuses,” said an official in performance management division.

        He further says how the government has failed to implement performance-linked incentives for its
employees for the last 20 years though such recommendations were mooted by successive pay commissions including the more recent Sixth Pay Commission.

        Several countries such as Canada, New Zealand, Australia, Netherlands, Denmark, UK, US and Finland have moved away from the traditional government administrative model to a management model
under which officers act like corporate managers as they get greater operational freedom, but are held accountable for results. In fact, New Zealand is considered to be the leader of the pack where performance of government agencies are weighed in by setting targets and adopting regular evaluations. Though there were several  attempts in India too to bring in performance management in an institutionalised way, the process got kickstarted only after World Bank’s senior economist Prajapati Trivedi was appointed as secretary to the government of India with the responsibility for performance management early last year. Dr Trivedi, along with cabinet secretary KM Chandrasekhar, introduced a tool called Results Framework Document (RFD) which will set targets for each ministry and will finally be the basis for yearly evaluation.

        Dr SP Parashar, a former director of IIM Indore, says that the government had in the past too dealt with the subject by introducing themessuch as programming,planning,budgeting(PPB) Zero Base Budgeting (ZBB), and Outcome Budgeting (OB), to name a few. “You might be wondering what happened to
them? They went with their champions. Lets hope that Results Framework Document (RFD) stays. The real challenge and test of any change program in our kind of democracies is its continuity…” he says.

        He agrees that at concept level, Results Framework Document captures international best practices in
respect of government performance management, but it misses the heart of good performance being implemented in the corporate world. It is fixing individual responsibility in addition to departmental responsibility. The Results Framework Document as currently devised and adopted uses departmental responsibility and score as proxy for individual responsibility and score,” he says.

        Yet, with 62 government ministries and departments on board with a few exceptions like PMO, home and defence, the performance of central ministries is under close watch. Though SundayET has learnt that only three ministries met 100% targets and some could not even meet 50%, it remains to be seen when and how the government makes those report cards public.

SOURCE - THE ECONOMIC TIMES

read more...

Efforts to introduce Performance linked incentives for Central Government Employees

   The Indian government is finally going the corporate way. The stage has been set for introducing performance-linked payouts which may force over five million central government employees to deliver their best.

     What may make even corporate executives envious of the new bonanza for central government employees, particularly of the brass, is the proposal of a 20% hike for the best performers over and above the raise that they had received after the sixth Pay Commission’s recommendations two years ago.

      Yet for the babus, it won’t be a cakewalk either, as the formula of assessing the government employees as proposed by performance management division under the cabinet secretariat, has ruled out paying even a penny to an official if his ministry scores 70 or below in a scale of 100.

      But a secretary of a high performing ministry which meets 100% target will be eligible to receive Rs
2.4 lakh extra per year if the cabinet secretariat’s proposal of a 20% performance-linked payout is endorsed by the government, according to an official in cabinet secretariat.

       The first round of assessment, initially for three months from January to March 2010, is over and three out of 59 central government departments have got a 100% score. There is a strong possibility that a large number of government employees would receive an extra pay once the new formula is adopted.

        “We are extending the performance monitoring and evaluation system to 62 departments from the  current fiscal. According to our system, a department sets a target, fixes the weightages of each target, and if it succeeds meeting all its targets, it gets a score of 100. Now, we are proposing that if a department meets all its targets,the head of the department would be given a performance bonus of
20% or more of his basic salary. And other employees too will get such bonuses,” said an official in performance management division.

        He further says how the government has failed to implement performance-linked incentives for its
employees for the last 20 years though such recommendations were mooted by successive pay commissions including the more recent Sixth Pay Commission.

        Several countries such as Canada, New Zealand, Australia, Netherlands, Denmark, UK, US and Finland have moved away from the traditional government administrative model to a management model
under which officers act like corporate managers as they get greater operational freedom, but are held accountable for results. In fact, New Zealand is considered to be the leader of the pack where performance of government agencies are weighed in by setting targets and adopting regular evaluations. Though there were several  attempts in India too to bring in performance management in an institutionalised way, the process got kickstarted only after World Bank’s senior economist Prajapati Trivedi was appointed as secretary to the government of India with the responsibility for performance management early last year. Dr Trivedi, along with cabinet secretary KM Chandrasekhar, introduced a tool called Results Framework Document (RFD) which will set targets for each ministry and will finally be the basis for yearly evaluation.

        Dr SP Parashar, a former director of IIM Indore, says that the government had in the past too dealt with the subject by introducing themessuch as programming,planning,budgeting(PPB) Zero Base Budgeting (ZBB), and Outcome Budgeting (OB), to name a few. “You might be wondering what happened to
them? They went with their champions. Lets hope that Results Framework Document (RFD) stays. The real challenge and test of any change program in our kind of democracies is its continuity…” he says.

        He agrees that at concept level, Results Framework Document captures international best practices in
respect of government performance management, but it misses the heart of good performance being implemented in the corporate world. It is fixing individual responsibility in addition to departmental responsibility. The Results Framework Document as currently devised and adopted uses departmental responsibility and score as proxy for individual responsibility and score,” he says.

        Yet, with 62 government ministries and departments on board with a few exceptions like PMO, home and defence, the performance of central ministries is under close watch. Though SundayET has learnt that only three ministries met 100% targets and some could not even meet 50%, it remains to be seen when and how the government makes those report cards public.

SOURCE - THE ECONOMIC TIMES

read more...

UP State University, College, PG College Teachers/ Librarians and other employees get Sixth Pay Commission

  This is reported to be effective from 1 January 2006, so employees can expect a big amount in arrears payment. This will also give them higher Pension post retirement. 


1.How many UP State University, College, PG College Teachers/ Librarians and other employees will benefit from this decision?
   Around eighteen thousand employees working in the UP State University, College, PG Colleges are expected to benefit.


2.Which organizations will this pay hike following Sixth Pay Commission be effective?
  Hundreds of colleges will benefit. Talking about the exact nos. - 12 UP
state universities and around 500 government and government-aided PG/degree
colleges - employees will get the benefit of new hikes salaries, arrears
payment and raised pensions


3.By which date is the Pay Hike for Teachers/ Librarians and other employees
effective?

  As per the reports, the Pay hike will be effective from 1 January 2006
onwards, so employees can expect a big amount in the form of payment of
arrears. However, the payment of arrears may not be in lump sump, it may be
in installments over a period of time.

But there are conditions attached to this - the arrears payment will be made
ONLY AFTER the center provides 80% of the total arrears accrued from January
1, 2006, to March 31, 2010. Now that might hold on the arrears payment for
quiet sometime, as we all are aware how smoothly the money flows from center
to states, especially when there are different party governments at center
and state level.

If the funds come in from the center, the reports say that payments will be
made in 2010-11 and 2011-12, 50% each year.


4.Who will bear the cost of this additional salary hike?
  It is not clear who will pay for this additional cost - although it is known
that around 192 Crores will be required for this.
 

5.What will be the basis of the new implementation of pay hike for Sixth Pay Commission for UP State University, College, PG College Teachers/ Librarians and other employees?

As per the reports, the recommendations set by the Chadda Commission by the UGC, will form the basis of fixing new pay scales and pensions, as well as arrears payments for UP State University, College, PG College Teachers/ Librarians and other employees

read more...

UP State University, College, PG College Teachers/ Librarians and other employees get Sixth Pay Commission

  This is reported to be effective from 1 January 2006, so employees can expect a big amount in arrears payment. This will also give them higher Pension post retirement. 


1.How many UP State University, College, PG College Teachers/ Librarians and other employees will benefit from this decision?
   Around eighteen thousand employees working in the UP State University, College, PG Colleges are expected to benefit.


2.Which organizations will this pay hike following Sixth Pay Commission be effective?
  Hundreds of colleges will benefit. Talking about the exact nos. - 12 UP
state universities and around 500 government and government-aided PG/degree
colleges - employees will get the benefit of new hikes salaries, arrears
payment and raised pensions


3.By which date is the Pay Hike for Teachers/ Librarians and other employees
effective?

  As per the reports, the Pay hike will be effective from 1 January 2006
onwards, so employees can expect a big amount in the form of payment of
arrears. However, the payment of arrears may not be in lump sump, it may be
in installments over a period of time.

But there are conditions attached to this - the arrears payment will be made
ONLY AFTER the center provides 80% of the total arrears accrued from January
1, 2006, to March 31, 2010. Now that might hold on the arrears payment for
quiet sometime, as we all are aware how smoothly the money flows from center
to states, especially when there are different party governments at center
and state level.

If the funds come in from the center, the reports say that payments will be
made in 2010-11 and 2011-12, 50% each year.


4.Who will bear the cost of this additional salary hike?
  It is not clear who will pay for this additional cost - although it is known
that around 192 Crores will be required for this.
 

5.What will be the basis of the new implementation of pay hike for Sixth Pay Commission for UP State University, College, PG College Teachers/ Librarians and other employees?

As per the reports, the recommendations set by the Chadda Commission by the UGC, will form the basis of fixing new pay scales and pensions, as well as arrears payments for UP State University, College, PG College Teachers/ Librarians and other employees

read more...

9TH BIPARTITE SETTLEMENT – IMPLEMENTATION and INCOME TAX EXEMPTION ON CONTRIBUTION TOWARDS PENSION FUND

1.     "The 9^th Bipartite was signed on 27^th April 2010.  There have been a series of meetings and grand gala celebrations all over the country over the success of the bipartite which is one of the major mile stone in our bipartite relations with the Indian Banks association. It is also a historic achievement as far as securing the 2^nd Option on Pension. There have been a number of enquiries as to the
implementation of the settlement and also expectations from the rank and file across the country that they would be able to draw the revised salary from the next month as such. The process of getting the agreement vetted by the Government for the purpose of amendments to our regulation was a long drawn procedure in the earlier days.  However, over a period of time we have been able to reduce the delay and see that the in principle clearance is available for the implementation pending the amendments to the regulation of our service rules. 

  2.       While appreciating the anxiety of the members across the country,  we would only like to assure them that the implementation of the 9^th bipartite is not going to be delayed at all and it will take place within the next few days.   The leadership of the Confederation is in constant  touch with the Indian Banks’ association and our information reveal that the officials of IBA are on their job of obtaining necessary instructions from the Government for the implementation of the salary revision and payment of acturial arrears on adhoc basis at the earliest possible.



3.       The next task would be to commence the process of implementation of
the 2^nd
Option on Pension. Comprehensive instructions are being issued to all the
banks to speed up the process of obtaining the option and giving effect to
the scheme without further delay.



4.       Comrades, we have covered a long distance and it is now only a
matter of few days before the 9th bipartite along with the 2nd Option on
Pension in the Banking Industry is implemented.  Let us look forward to
cherish the historic moment.

With greetings

(G.D.NADAF)
GENERAL SECRETARY "




On account of  IBA agreeing to extend 2^nd Option on Pension to CPF Optees, funding of pension gap by Optees at 2.8 times of revised pay as on 01.11.2007, a question has arisen as regards tax on the amount to be recovered, out of arrears of salary and allowances payable on account of 9^th Bipartite settlement. According to Income tax rules, the gross arrears receivable on account of salary revision is taxable. A portion of arrears is invested in Pension fund towards future liability of Banks who have agreed to extend pension to CPF Optees. Therefore, the contribution has to be treated as investment in Superannuation Schemes and the amount to be exempted from payment of tax.





"No./1452/145/10                              
                    10.05.2010

 

To,

The Chairman,
The Indian Banks’ Association,
World TradeCentre,
MUMBAI – 400 020.

 

Dear Sir,


 
2^ND OPTION ON PENSIONCONTRIBUTION TOWARDS PENSION FUND BY CPF OPTEES

 
  1.       As per pension settlement, the employees and Officers are eligible
to exercise one more option towards the Pension Scheme, in lieu of the
Contributory Provident Fund. The agreement also refers to the funding of the
Pension Fund gap by way of contribution by the employees and Officers who
are in service, out of the arrears payable to them on account of the 9^th
Bipartite settlement; apart from surrendering of Bank’s Contribution of PF
accumulated in their respective accounts.

 

2.          The contributions made by the employees towards the Superannuation Benefits; such as Provident Fund, Pension Fund etc., are eligible for the tax
exemption as per the Income Tax rules and treated as investments in the eligible securities for all practical purposes. Thus, the money, so contributed towards pension fund in Bank is liable to be exempted from the payment of Income tax by the Tax authorities. It is in this background, there is a need to issue proper instructions to all the Banks at the time of sending guidelines for the implementation of the 9^th Bipartite settlement as well as the payment of arrears to cover inter-alia:



a)           The amount contributed from the CPF Optees towards their part of contribution for the Pension Fund in view of the 2^nd Option on Pension extended to them should be treated on par with their contributions towards the superannuation benefits and necessary exemption should be extended at the time of deduction of tax at source.  Thus, the recovery made out of arrears for the purpose of payment towards Pension Fund to the extent of 2.8 times of the revised Pay for the month of Nov.2007 should be treated as investment towards the superannuation benefits and necessary exemption should be allowed for the purpose of calculation of Income tax.  In other words, the payment made towards Pension Fund on account of the 2^nd Option on Pension should not be treated as taxable at the hands of the Officers.

b)            The Bank Managements, while furnishing Form – 16 as well as the statement of arrears paid to the Officers should make necessary entry to this effect to enable the Officers’ concerned to utilize the same at the time of submission of their returns.

c)              In view of the fact that the tax on the income for the year 2007-2008, 2008-2009, 2009-2010 have already been deducted at source, the Officers’ should also become eligible to apportion this amount as investment in the next three
years’ income, since the money contributed is very substantial and they may have already exceeded their entitlement for such investments. 




3.              We therefore, request you to obtain special permission from the CBDT to exempt the entire contribution towards pension fund, from payment of tax. Please therefore look into the matter and take necessary action without further delay.


 

Thanking you,

       Yours faithfully,

                              
        (G.D.NADAF)

GENERAL SECRETARY"

 
Source : AIBOC

read more...

9TH BIPARTITE SETTLEMENT – IMPLEMENTATION and INCOME TAX EXEMPTION ON CONTRIBUTION TOWARDS PENSION FUND

1.     "The 9^th Bipartite was signed on 27^th April 2010.  There have been a series of meetings and grand gala celebrations all over the country over the success of the bipartite which is one of the major mile stone in our bipartite relations with the Indian Banks association. It is also a historic achievement as far as securing the 2^nd Option on Pension. There have been a number of enquiries as to the
implementation of the settlement and also expectations from the rank and file across the country that they would be able to draw the revised salary from the next month as such. The process of getting the agreement vetted by the Government for the purpose of amendments to our regulation was a long drawn procedure in the earlier days.  However, over a period of time we have been able to reduce the delay and see that the in principle clearance is available for the implementation pending the amendments to the regulation of our service rules. 

  2.       While appreciating the anxiety of the members across the country,  we would only like to assure them that the implementation of the 9^th bipartite is not going to be delayed at all and it will take place within the next few days.   The leadership of the Confederation is in constant  touch with the Indian Banks’ association and our information reveal that the officials of IBA are on their job of obtaining necessary instructions from the Government for the implementation of the salary revision and payment of acturial arrears on adhoc basis at the earliest possible.



3.       The next task would be to commence the process of implementation of
the 2^nd
Option on Pension. Comprehensive instructions are being issued to all the
banks to speed up the process of obtaining the option and giving effect to
the scheme without further delay.



4.       Comrades, we have covered a long distance and it is now only a
matter of few days before the 9th bipartite along with the 2nd Option on
Pension in the Banking Industry is implemented.  Let us look forward to
cherish the historic moment.

With greetings

(G.D.NADAF)
GENERAL SECRETARY "




On account of  IBA agreeing to extend 2^nd Option on Pension to CPF Optees, funding of pension gap by Optees at 2.8 times of revised pay as on 01.11.2007, a question has arisen as regards tax on the amount to be recovered, out of arrears of salary and allowances payable on account of 9^th Bipartite settlement. According to Income tax rules, the gross arrears receivable on account of salary revision is taxable. A portion of arrears is invested in Pension fund towards future liability of Banks who have agreed to extend pension to CPF Optees. Therefore, the contribution has to be treated as investment in Superannuation Schemes and the amount to be exempted from payment of tax.





"No./1452/145/10                              
                    10.05.2010

 

To,

The Chairman,
The Indian Banks’ Association,
World TradeCentre,
MUMBAI – 400 020.

 

Dear Sir,


 
2^ND OPTION ON PENSIONCONTRIBUTION TOWARDS PENSION FUND BY CPF OPTEES

 
  1.       As per pension settlement, the employees and Officers are eligible
to exercise one more option towards the Pension Scheme, in lieu of the
Contributory Provident Fund. The agreement also refers to the funding of the
Pension Fund gap by way of contribution by the employees and Officers who
are in service, out of the arrears payable to them on account of the 9^th
Bipartite settlement; apart from surrendering of Bank’s Contribution of PF
accumulated in their respective accounts.

 

2.          The contributions made by the employees towards the Superannuation Benefits; such as Provident Fund, Pension Fund etc., are eligible for the tax
exemption as per the Income Tax rules and treated as investments in the eligible securities for all practical purposes. Thus, the money, so contributed towards pension fund in Bank is liable to be exempted from the payment of Income tax by the Tax authorities. It is in this background, there is a need to issue proper instructions to all the Banks at the time of sending guidelines for the implementation of the 9^th Bipartite settlement as well as the payment of arrears to cover inter-alia:



a)           The amount contributed from the CPF Optees towards their part of contribution for the Pension Fund in view of the 2^nd Option on Pension extended to them should be treated on par with their contributions towards the superannuation benefits and necessary exemption should be extended at the time of deduction of tax at source.  Thus, the recovery made out of arrears for the purpose of payment towards Pension Fund to the extent of 2.8 times of the revised Pay for the month of Nov.2007 should be treated as investment towards the superannuation benefits and necessary exemption should be allowed for the purpose of calculation of Income tax.  In other words, the payment made towards Pension Fund on account of the 2^nd Option on Pension should not be treated as taxable at the hands of the Officers.

b)            The Bank Managements, while furnishing Form – 16 as well as the statement of arrears paid to the Officers should make necessary entry to this effect to enable the Officers’ concerned to utilize the same at the time of submission of their returns.

c)              In view of the fact that the tax on the income for the year 2007-2008, 2008-2009, 2009-2010 have already been deducted at source, the Officers’ should also become eligible to apportion this amount as investment in the next three
years’ income, since the money contributed is very substantial and they may have already exceeded their entitlement for such investments. 




3.              We therefore, request you to obtain special permission from the CBDT to exempt the entire contribution towards pension fund, from payment of tax. Please therefore look into the matter and take necessary action without further delay.


 

Thanking you,

       Yours faithfully,

                              
        (G.D.NADAF)

GENERAL SECRETARY"

 
Source : AIBOC

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Leave Waiving of age restriction of 18 years for Government servant having mentally challenged/disabled children

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

PC-VI No.200
RBE No. 58/2010
New Delhi dated dated 23.04.2010

No.E(P&A)I-2008/CPC/LE-8

The General Managers / CAOs
All Indian Railways and Production
Units.
  

          Sub : Implementation of Government’s decision
on the recommendations of the Sixth Central Pay Commission – Child Care
Leave Waiving of age restriction of 18 years for Government servant having
mentally challenged/disabled children –reg

*****

  

1. Please refer to Board’s letter of even number dated  23.10.2008 and 12.12.2008 regarding grant of Child Care leave (CCL).

  

2.     Consequent upon the decision taken by the Government,
the Ministry of Railways have decided to permit CCl to female railway
employees having disabled children up to the age of 22 years for a maximum
period of two years (i.e 730 days) subject to the other terms and conditions
stipulated in Board’s above referred letters. However, it is re-iterated
that CCL cannot be demanded as a matter of right and under no circumstances
can any employee proceed on CCL without prior approval of the Leave
sanctioning authority.

  

3.     Disabled Child having a minimum disability of 40% is
elaborated in the Ministry of Social Justice and Empowerment’s Notification
No.16-18/97-NI.I dated 01.06.2001 (copy enclosed). Documents relating to the
handicap as specified in the above said Notification dated 1.6.2001, as well
as a certificate from the Railway servant regarding dependency of the child
on the railway servant would have to be submitted by the female railway
employee. The CCL would be permitted to female railway employees only if the
child is dependent on them.

  

4.     This issues with the concurrence of the Finance
Directorate of the Ministry of Railways.

  

5.     Please acknowledge receipt.

DA: As above.

(Chander Parkash)
Joint Director Estt.(P&A),
Railway Board

No.E(P&A)I-2008/CPC/LE-8

New Delhi dated dated 23.04.2010

  

SOURCE - PIB

read more...

Leave Waiving of age restriction of 18 years for Government servant having mentally challenged/disabled children

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

PC-VI No.200
RBE No. 58/2010
New Delhi dated dated 23.04.2010

No.E(P&A)I-2008/CPC/LE-8

The General Managers / CAOs
All Indian Railways and Production
Units.
  

          Sub : Implementation of Government’s decision
on the recommendations of the Sixth Central Pay Commission – Child Care
Leave Waiving of age restriction of 18 years for Government servant having
mentally challenged/disabled children –reg

*****

  

1. Please refer to Board’s letter of even number dated  23.10.2008 and 12.12.2008 regarding grant of Child Care leave (CCL).

  

2.     Consequent upon the decision taken by the Government,
the Ministry of Railways have decided to permit CCl to female railway
employees having disabled children up to the age of 22 years for a maximum
period of two years (i.e 730 days) subject to the other terms and conditions
stipulated in Board’s above referred letters. However, it is re-iterated
that CCL cannot be demanded as a matter of right and under no circumstances
can any employee proceed on CCL without prior approval of the Leave
sanctioning authority.

  

3.     Disabled Child having a minimum disability of 40% is
elaborated in the Ministry of Social Justice and Empowerment’s Notification
No.16-18/97-NI.I dated 01.06.2001 (copy enclosed). Documents relating to the
handicap as specified in the above said Notification dated 1.6.2001, as well
as a certificate from the Railway servant regarding dependency of the child
on the railway servant would have to be submitted by the female railway
employee. The CCL would be permitted to female railway employees only if the
child is dependent on them.

  

4.     This issues with the concurrence of the Finance
Directorate of the Ministry of Railways.

  

5.     Please acknowledge receipt.

DA: As above.

(Chander Parkash)
Joint Director Estt.(P&A),
Railway Board

No.E(P&A)I-2008/CPC/LE-8

New Delhi dated dated 23.04.2010

  

SOURCE - PIB

read more...

Bonus Points: Centre to dole out payouts to performing employees

  The Indian government is finally going the corporate way. The stage has been set for introducing performance-linked payouts which may force over fivemillion central government employees to deliver their best.

   What may make even corporate executives envious of the new bonanza for central government employees, particularly of the brass, is the proposal of a 20% hike for the best performers over and above the raise that they had received after the sixth Pay Commission’s recommendations two years ago.

   Yet for the babus, it won’t be a cakewalk either, as the formula of assessing the government employees as proposed by performance management division under the cabinet secretariat, has ruled out paying even a penny to an official if his ministry scores 70 or below in a scale of 100. But a secretary of a high performing ministry which meets 100% target will be eligible to receive Rs 2.4 lakh extra per year if the cabinet secretariat’s proposal of a 20% performance-linked payout is endorsed by the government, according to an official in cabinet secretariat.

   The first round of assessment, initially for three months from January to March 2010, is over and three out of 59 central government departments have got a 100% score. There is a strong possibility that a large number of government employees would receive an extra pay once the new formula is adopted.

   “We are extending the performance monitoring and evaluation system to 62 departments from the current fiscal. According to our system, a department sets a target, fixes the weightages of each target, and if it succeeds meeting all its targets, it gets a score of 100. Now, we are proposing that if a department meets all its targets, the head of the department would be given a performance bonus of 20% or more of his basic salary. And other employees too will get such bonuses,” said an official in performance management division.

   He further says how the government has failed to implement performance-linked incentives for its employees for the last 20 years though such recommendations were mooted by successive pay commissions including the more recent Sixth Pay Commission.

   Several countries such as Canada, New Zealand, Australia, Netherlands, Denmark, UK, US and Finland have moved away from the traditional government administrative model to a management model under which officers act like corporate managers as they get greater operational freedom, but are held
accountable for results. In fact, New Zealand is considered to be the leader of the pack where performance of government agencies are weighed in by setting targets and adopting regular evaluations.



   Though there were several attempts in India too to bring in performance management in an institutionalised way, the process got kickstarted only after World Bank’s senior economist Prajapati Trivedi was appointed as secretary to the government of India with the responsibility for performance management early last year. Dr Trivedi, along with cabinet secretary KM Chandrasekhar, introduced a tool called Results Framework Document (RFD) which will set targets for each ministry and will finally be the basis for yearly evaluation. Dr SP Parashar, a former director of IIM Indore, says that the government  had in the past too dealt with the subject by introducing themes such as  Programming, Planning, Budgeting (PPB), Zero Base Budgeting (ZBB), and  Outcome Budgeting (OB), to name a few. “You might be wondering what happened
to them? They went with their champions. Lets hope that Results Framework  Document (RFD) stays. The real challenge and test of any change program in  our kind of democracies is its continuity...” he says.

    He agrees that at concept level, Results Framework Document captures  international best practices in respect of government performance  management, but it misses the heart of good performance being implemented in the corporate world. “It is fixing individual responsibility in addition to departmental responsibility. The Results Framework Document as currently  devised and adopted uses departmental responsibility and score as proxy for  individual responsibility and score,” he says.

    Yet, with 62 government ministries and departments on board with a few  exceptions like PMO, home and defence, the performance of central ministries  is under close watch. Though SundayET has learnt that only three ministries
met 100% targets and some could not even meet 50%, it remains to be seen
when and how the government makes those report cards public.

SOURCE - ECONOMIC TIMES

read more...

Bonus Points: Centre to dole out payouts to performing employees

  The Indian government is finally going the corporate way. The stage has been set for introducing performance-linked payouts which may force over fivemillion central government employees to deliver their best.

   What may make even corporate executives envious of the new bonanza for central government employees, particularly of the brass, is the proposal of a 20% hike for the best performers over and above the raise that they had received after the sixth Pay Commission’s recommendations two years ago.

   Yet for the babus, it won’t be a cakewalk either, as the formula of assessing the government employees as proposed by performance management division under the cabinet secretariat, has ruled out paying even a penny to an official if his ministry scores 70 or below in a scale of 100. But a secretary of a high performing ministry which meets 100% target will be eligible to receive Rs 2.4 lakh extra per year if the cabinet secretariat’s proposal of a 20% performance-linked payout is endorsed by the government, according to an official in cabinet secretariat.

   The first round of assessment, initially for three months from January to March 2010, is over and three out of 59 central government departments have got a 100% score. There is a strong possibility that a large number of government employees would receive an extra pay once the new formula is adopted.

   “We are extending the performance monitoring and evaluation system to 62 departments from the current fiscal. According to our system, a department sets a target, fixes the weightages of each target, and if it succeeds meeting all its targets, it gets a score of 100. Now, we are proposing that if a department meets all its targets, the head of the department would be given a performance bonus of 20% or more of his basic salary. And other employees too will get such bonuses,” said an official in performance management division.

   He further says how the government has failed to implement performance-linked incentives for its employees for the last 20 years though such recommendations were mooted by successive pay commissions including the more recent Sixth Pay Commission.

   Several countries such as Canada, New Zealand, Australia, Netherlands, Denmark, UK, US and Finland have moved away from the traditional government administrative model to a management model under which officers act like corporate managers as they get greater operational freedom, but are held
accountable for results. In fact, New Zealand is considered to be the leader of the pack where performance of government agencies are weighed in by setting targets and adopting regular evaluations.



   Though there were several attempts in India too to bring in performance management in an institutionalised way, the process got kickstarted only after World Bank’s senior economist Prajapati Trivedi was appointed as secretary to the government of India with the responsibility for performance management early last year. Dr Trivedi, along with cabinet secretary KM Chandrasekhar, introduced a tool called Results Framework Document (RFD) which will set targets for each ministry and will finally be the basis for yearly evaluation. Dr SP Parashar, a former director of IIM Indore, says that the government  had in the past too dealt with the subject by introducing themes such as  Programming, Planning, Budgeting (PPB), Zero Base Budgeting (ZBB), and  Outcome Budgeting (OB), to name a few. “You might be wondering what happened
to them? They went with their champions. Lets hope that Results Framework  Document (RFD) stays. The real challenge and test of any change program in  our kind of democracies is its continuity...” he says.

    He agrees that at concept level, Results Framework Document captures  international best practices in respect of government performance  management, but it misses the heart of good performance being implemented in the corporate world. “It is fixing individual responsibility in addition to departmental responsibility. The Results Framework Document as currently  devised and adopted uses departmental responsibility and score as proxy for  individual responsibility and score,” he says.

    Yet, with 62 government ministries and departments on board with a few  exceptions like PMO, home and defence, the performance of central ministries  is under close watch. Though SundayET has learnt that only three ministries
met 100% targets and some could not even meet 50%, it remains to be seen
when and how the government makes those report cards public.

SOURCE - ECONOMIC TIMES

read more...

CM bound for Delhi today, scheduled to meet PM

 

   Imphal, May 05 2010: With tension running high following the rigid stand adopted by the NSCN (IM) as well as the State Government over the proposed visit of Th Muivah to his birth  place at Somdal, Chief Minister O Ibobi is scheduled to leave for New Delhi tomorrow to discuss the issue with the Prime Minister.
Union Home Minister P Chidambaram and Union Finance Minister Pranab Mukherjee are also expected to attend the meeting, which is scheduled for 9 am tomorrow.The Chief Minister will return tomorrow itself.
The Union Home Ministry has already arranged a special flight for the Chief Minister, which will take off from here at 7 am.With an imminent show down hanging heavy in the air, Chief Minister O Ibobi had a telephonic conversation on the issue with Union Home Minister P Chidambaram today. It was during this conversation that the meeting with the Prime Minister was mooted and fixed for tomorrow.Union Finance Minister Pranab Mukherjee also spoke to the Chief Minister urging him to come to Delhi immediately and work  out a resolution.Talking to The Sangai Express, a reliable source said that the State Government has still not budged an inch from its earlier decision to ban the entry of Th Muivah into Manipur. Towards this end, the State Government has prepared a detailed draft, which clearly mentions that the ban is not against the home coming of Th Muivah, but taking into consideration the ground reality.The draft prepared by the State Government points to fact that the NSCN (IM) has a hand in opposing the upcoming election to the ADCs, the bitter memories of the Naga-Kuki clash in 90s are yet to be forgotten as well as the sensitive issue for the demand of a Greater Lim.All these factors taken together convinced the State Government to ban the entry of The Muivah into Manipur under any circumstances, as this could re-ignite bitter memories.The scheduled meeting with the Prime Minister, Home Minister and Finance Minister, gains significance with either side
sticking to their stand, said the source and added that any developments that arise after the meeting with the Prime Minister will be strictly scrutinised.To discuss the tense situation, the Cabinet met today again
and apart from re-affirming its earlier decision, decided to urge the Union Home Ministry to reconsider its earlier stand to allow Muivah to enter Manipur without consulting the State Government.
The MHA had earlier summoned Ibobi to Delhi, but it was deferred by the Chief Minister on the ground that the situation in Manipur is tense.Speaking to the media this evening, Government spokesperson
and IFCD Minister N Biren said that the Cabinet met twice today, one at 10.30 am and the other at 6 pm, to discuss the present situation.Apart from dwelling at length on the situation arising out of the proposed visit of Th Muivah, the Cabinet also took a number of decisions regarding the implementation of the 6th Pay recommendations for Government employees.The IFCD Minister said that the revised 6th Pay recommendations will be implemented with effect from April 1 .Along with this, there will be an increase of 35 percent of the pay for Dearness Allowance and another increase of 10 percent of the pay for House Rent Allowance.The Special Compensatory Allowance will also be hiked appreciably.The 6th Pay commission recommendations will also be implemented for pensioners, he said and added that the pensions would be
increased with each passing years for all pensioners.

SOURCE - E-PAO

read more...

CM bound for Delhi today, scheduled to meet PM

 

   Imphal, May 05 2010: With tension running high following the rigid stand adopted by the NSCN (IM) as well as the State Government over the proposed visit of Th Muivah to his birth  place at Somdal, Chief Minister O Ibobi is scheduled to leave for New Delhi tomorrow to discuss the issue with the Prime Minister.
Union Home Minister P Chidambaram and Union Finance Minister Pranab Mukherjee are also expected to attend the meeting, which is scheduled for 9 am tomorrow.The Chief Minister will return tomorrow itself.
The Union Home Ministry has already arranged a special flight for the Chief Minister, which will take off from here at 7 am.With an imminent show down hanging heavy in the air, Chief Minister O Ibobi had a telephonic conversation on the issue with Union Home Minister P Chidambaram today. It was during this conversation that the meeting with the Prime Minister was mooted and fixed for tomorrow.Union Finance Minister Pranab Mukherjee also spoke to the Chief Minister urging him to come to Delhi immediately and work  out a resolution.Talking to The Sangai Express, a reliable source said that the State Government has still not budged an inch from its earlier decision to ban the entry of Th Muivah into Manipur. Towards this end, the State Government has prepared a detailed draft, which clearly mentions that the ban is not against the home coming of Th Muivah, but taking into consideration the ground reality.The draft prepared by the State Government points to fact that the NSCN (IM) has a hand in opposing the upcoming election to the ADCs, the bitter memories of the Naga-Kuki clash in 90s are yet to be forgotten as well as the sensitive issue for the demand of a Greater Lim.All these factors taken together convinced the State Government to ban the entry of The Muivah into Manipur under any circumstances, as this could re-ignite bitter memories.The scheduled meeting with the Prime Minister, Home Minister and Finance Minister, gains significance with either side
sticking to their stand, said the source and added that any developments that arise after the meeting with the Prime Minister will be strictly scrutinised.To discuss the tense situation, the Cabinet met today again
and apart from re-affirming its earlier decision, decided to urge the Union Home Ministry to reconsider its earlier stand to allow Muivah to enter Manipur without consulting the State Government.
The MHA had earlier summoned Ibobi to Delhi, but it was deferred by the Chief Minister on the ground that the situation in Manipur is tense.Speaking to the media this evening, Government spokesperson
and IFCD Minister N Biren said that the Cabinet met twice today, one at 10.30 am and the other at 6 pm, to discuss the present situation.Apart from dwelling at length on the situation arising out of the proposed visit of Th Muivah, the Cabinet also took a number of decisions regarding the implementation of the 6th Pay recommendations for Government employees.The IFCD Minister said that the revised 6th Pay recommendations will be implemented with effect from April 1 .Along with this, there will be an increase of 35 percent of the pay for Dearness Allowance and another increase of 10 percent of the pay for House Rent Allowance.The Special Compensatory Allowance will also be hiked appreciably.The 6th Pay commission recommendations will also be implemented for pensioners, he said and added that the pensions would be
increased with each passing years for all pensioners.

SOURCE - E-PAO

read more...