Monday, December 26, 2011

A-2/95,Manishinath Bhawan,Rajouri Garden, New Delhi-110 027
Tel: 011-2510 5324:  Mobile: 98110 48303

Conf/No 24/2011                                                                                                                 Dated: 24.12.2011

Dear Comrades,

National Council meeting and decisions.

                The National Council meeting as scheduled was held at Gananam Hotel Conference hall, Ernakulam, Kochi, Kerala on 16th December, 2011.  The National Council was inaugurated by Com. P. Rajiv, M.P. and was presided over by Com. Narasimhan, Vice President.  The meeting commenced with observance of two minutes silence to condole the death of comrades who passed away during the period between December, 2010 and December, 2011. The meeting specially moved and adopted a resolution to condole the death of Com. M.K. Pandhe, Member of the Polit bureau of CPI (M) and former General Secretary and President of CITU. 
                Com. Secretary General presented a brief report to the Council meeting touching upon the events of importance both at national and international arena. He also submitted a work report for the consideration of the house.  Decisions taken at the meeting on various agenda items are briefly as under:

 Agenda Item Nos 1 to 4. These agenda issues were discussed together.  The following were the conclusions.

(a)    Review of 25th March to Parliament Programme and the signature campaign

The meeting evaluated the participation of CGE in the programme as very good.  It however felt that had some State Committees and the affiliates taken a little more efforts to comply with the quota fixed, the target could have been achieved.  The campaign for eliciting the participation of large number of comrades from nearby stations in Delhi had not been properly undertaken.

Reviewing the efforts undertaken by the affiliates and state Committees in the matter of signature cam0paign, the meeting decided to record its disappointment over the laxity in the matter shown by many affiliates and State Committees.   The Council praised  the endeavour of the Kerala State Committee in the matter as that State alone accounted for almost 1/3rd of the total 3.5 lakhs signatures collected.

(b)   Subscription: The Secretary General informed the house that no improvement has been registered in the matter of remittance of subscription to CHQ by the affiliates.  He assured to present the receipt and payment position since the last conference to the next National executive.  The non-payment of subscription, he added, had a cascading effect in as much as the decision to start a journal, to effect intensive campaign on demands amongst the mass of the employees, the setting up of District level Committees etc., could not be implemented.  The Council asked the Sectt. to get in touch with each affiliate to ensure remittance.

(c)    Com. R.P. Singh informed the house that the Maharashtra State Committee will try to host the next Conference at Mumbai.  No final decision in the matter could be taken at the Council.

(d)   The Council felt that the charter of demands must be pursued with action programmes.  However, taking into account the fact that the Central Trade Unions have decided to organise a day’s strike on 28th Feb. 2012, the National Sectt. of the Confederation was authorised to chalk out campaign programme to popularise the demands and organise agitational programmes culminating in a day’s strike action  in the monsoon session of the Parliament (i.e. July- August, 2012). The earlier decision to organise a massive march to Parliament on the charter of demands was reiterated.  The date will be finalised by the National Sectt.   The campaign on the charter of demands will commence after 28th Feb. 2012. 

(e)   The Steering Committee’s decision to organise two hour walk out and demonstration on the next day of the taking up the PFRDA Bill in the Parliament was reiterated.  It was also decided that campaign on the ill effects of the Bill must be brought to the notice of all MPs and they may be requested to oppose the Bill.   Taking into account the unanimous decision of the Standing Committee to incorporate a minimum guaranteed pension, the Council decided to emphasise that the Central Government employees must be ensured with the guarantee of Minimum pension of 50% of the last pay drawn, family pension benefit and such other facilities as are presently available. 

Agenda Item No. 5.

Participation in the ensuing strike action on 28th Feb. 2012.

The Council unanimously endorsed the decision of the Central Trade Unions to organise a day’s strike action on 28th Feb. 2012 and a resolution was adopted to call upon all CGEs organisations affiliated to Confederation to take strenuous efforts to ensure the participation of all members in the strike action on 28th Feb. 2012.

Agenda Item No. 6, National anomaly committee - Secretary General informed the council that the National Anomaly Committee is slated to meet on 5th Jan. 2012.  He however, informed the members that no settlement on serious issues is likely to come out in the said meeting. 

 Agenda Item No.7

The Council adopted a resolution to be submitted to the Cabinet Secretary demanding the revival of the functioning of the Departmental Councils of Various Ministries.

Another resolution was adopted to extend the solidarity and support of the Confederation to the Postal Employees who have decided under the auspices of the Joint Council of Action of Postal organisations to embark upon indefinite strike in Jan. 2012 for the Postal Board did not honour the commitment made earlier especially in the matter of closure of RMS offices as per the suggestion of the McKenzie Committee report.

The Council decided to deplore through a resolution the terror attacks on T.U. Activists going on in West Bengal after the last general election. 

The Council also adopted a resolution demanding grant of regular recognition to NFPE enabling it to be represented in the NC of JCM.

                The Kerala State Committee had made excellent arrangements for the conduct of the Council meeting and for the stay of the Council members.  On behalf of the National Secretariat Com. KV Sreedharan, Vice President, Confederation profusely thanked the State Committee and the volunteer comrades who made it possible.  Com PG Saseendran, Secretary, Ernakulam District Committee of Confederation offered vote of thanks.

                With greetings,

Yours fraternally,


Secretary General

Wednesday, December 21, 2011

















Dear Comrades,


The Steering Committee of Government Employees Organisations on PFRDA has given a clarion call to agitate nationwide by staging strong protest demonstrations at all work spots on 22nd December, 2011 on the face of the decision of the Government to move the PFRDA Bill for adoption today in Parliament. The adoption of the bill is one of the most retrograde moves in the path of neo-liberalization surrender to international finance capital by the Government. The Social Security of all Government Employees is in peril. Let us agitatate strongly as per the call  of the Steering Committee communicated through the minutes of the meeting furnished below:


Minutes of the meeting of the Steering Committee of Government Employees Organisations on PFRDA Bill
held on 20th December 2011 at AIRF Head Quarters

(4, State Entry Road, New Delhi)



The steering Committee of Government Employees Organisations on PFRDA Bill met at AIRF Head Quarters ie 4, State Entry Road, New Delhi on 20th December 2011. Following were present.

1.       Com Shiv Gopal Mishra, General Secretary AIRF

2.       Com. Sukomal Sen, Sr Vice President, AISGEF

3.       Com C. Sreekumar, General Secretary, AIDEF

4.       Com. M. S. Raja, Secretary, Confederation of CG Employees & Workers

5.       Com. P. Abhimanyu, General Secretary, BSNLEU

6.       Com. OP Vasisht, AIDEF

7.       Com. Shyam Sundar, Secretary General, Bharat Central Pensioners' Confederation (BCPC)



1.       The PFRDA bill is expected to come up in the Lok Sabha on 21st Dec.2011.  The Steering Committee calls upon to hold 2-hour demonstration in the work place on 22nd December 2011 against passage of the bill and demanding its withdrawal.

2.       In case the bill does not come up in this session for some unforeseen circumstances (which has been extended upto 29th December 2011), the Steering Committee shall write to all MPs on the need to withdraw the Bill. The field formations shall contact the MP of their station and submit the letter.

3.       Future agitational programmes shall be decided after the one day strike called by central trade unions on 28th February 2012. The demand 'Assured Pension for all' formulated by Central TUs shall be modified by the constituents of Steering Committee to "Scrap PFRDA bill/NPS; ensure pension for all".


(SK Vyas)



Sunday, December 11, 2011


A-2/95,Manishinath Bhawan,Rajouri Garden, New Delhi-110 027
Tel: 011-2510 5324:  Mobile: 98110 48303
Dear Comrades,
Dated: 10th December, 2011
Placed hereunder is the Statement dated 2.12.2011 issued by the Central Trade Unions calling upon all  Federations/Associations/Unions to organize a day's strike  on 28.02.2012. The  National Council of the Confederation which is slated to meet at Ernakulam on 16th December, 2011 will discuss as to how best we would be able to organize the Central Government employees  to participate in the proposed strike action. All National Council members are requested to make it convenient to attend the meeting without fail.
With greetings,
Yours fraternally,
Sd/- K.K.N. Kutty
STATEMENT dated 2.12.2011
The Central Trade Unions, fn a meeting congratulated the mass at the working people for their massive response TO the programme of countrywide Jail Bharo (Satyagraha) of 8* November 2011 jointly organized by Central and other Trade Unions of India.
The Central Trade Unions also convey their appreciation to the- independent All India Federations of the employees and workers for their active wholehearted Support to the call of countrywide Satyagraha/Jail  Bharo.
The Central Trade Unions noted wtlh serious concern that despite several rounds of united protests by the entire trade union movement of the country, the Govt has remained  totally unresponsive to major concerns of the working people Rather anti-people moves are being taken to further aggravate the rise in prices through frequent hike in power tariff, urea etc., besides complete decontrol of petrol prices.  Existing labour rights including right to form union are sought to be curbed and social security and pension are under attack through various legislative and administrative moves. Mass scale contractorisation of the regular work Is continuing in all the workplaces inducing in PSUs and Govt. establishments, Contract workers are not being paid in most of the places even the statutory minimum wages Disinvestment of shares of Public Sector Units Is being actively pushed through by the Govt.  to facilitate phased privatization of the highly profit-making PSUs .
The Central Trade Unions also  expressed serious concern over the flaring up of the rampant corruption all around and huge black-money-generation in the economy resulting In widespread popular discontent and disgust over the Issue of corruption. The CTUOs demand concrete legislative and administrative measures and change in the economic policy regime to eradicate and prevent corruption and  bring back the black money stashed abroad.
The Central Trade Unions reiterate the most pressing demands of the workers highlighted by the Jail Bharo/Stayagraha  agitation on 8th  November 2011:
While reiterating the five point demands formulated jointly by the Central Trade Unions and Federations for 1} concrete measures to contain price rise 2) concrete measures for linkage of employment protection w'th the concession/incentive package offered to the entrepreneurs, 3) Strict enforcement of all basic labour laws without any exception or exemption and stringent punitive measures for violation of labour laws. 4) universal social security cover for the unorganized sector workers without any restriction and
Creation  of a National Social Security Fund with adequate resources in line with the  recommendation, of NCEUS and Parliamentary Standing Committees on Labour, Stoppage of disinvestment in Central and State PSUs, the  Central Trade Unions also demand immediate  action  by the Govt. of India to en sure:-
1) No Contractorisatlon of work of permanent/perennial nature and payment of wages  and  benefits to the contract workers  at  the same rate as available to the regular workers of the Industry/establishment
2) Amendment   of  Minimum   Wages   Act   to   ensure   universal  coverage irrespective of the schedules and fixation of statutory minimum wage at
not less than Rs 10,000/-,
3) Remove the ceilings on payment and eligibility of Bonus, Provident Fund; Increase the quantum of gratuity.
4) Assured Pension for all.
5) Compulsory registration of trade unions within a period of 45 days and immediate ratification of ILO conventions 67 and 96.
To press for the  above demands, the Central Trade Unions decided to observe countrywide genera! strike on 28th February, 2012
The Central Trade Unions also urge upon their state committees and all the trade unions irrespective of affiliations to hold state wise and Industry wise conventions and launch immediately other forms of joint campaigns to make the countrywide general strike on 28th February, 2012 a total success.
The Centraf Trade Unions call upon rnass of toiling people end their organizations irrespective of affiliations to join the call for general strike enmasse throughout the country.

Saturday, December 3, 2011




A-2/95,Manishinath Bhawan,Rajouri Garden, New Delhi-110 027

Tel: 011-2510 5324:  Mobile: 98110 48303


Circular No:23 Dated 03-12-2011

 Dear Comrades,

                The hard work put in by all concerned paid dividends on 25th November, 2011.  There was impressive gathering of all sections of CGEs as also pensioners in the March to Parliament against PFRDA Bill. The rally commenced at 10.00 A.M and went on up to 3.00 P.M.  The  fog which had disrupted the train services, especially in and around Delhi created difficulties for those who came from distant destinations.

                The steering Committee's ambitious objective  to have 10 million signatures did not however come about.  While Kerala and West Bengal did contribute immensely to the endeavour, in so far as Confederation is concerned the vigour and efforts were not so visible at other places.  The target was not at all impossible.  The idea was to make the campaign reach the grass root level workers and their friends and relatives.  Had it been given a little more importance by our leaders and cadres, the target could have been achieved.  The break-up of figures, organisation wise is as under:

AISGEF- 10,64,071, AIRF- 2,37,312, CONFDN.- 3,25,022. TEACHERS- 2,74,123. PENSIONERS, 97,864, AIDEF- 69,020, BSNLEU. 10,180. OTHERS- 1841. TOTAL- 20,79,018.

                We enclose herewith the Press statement issued by the Convenor, Steering Committee on 25th.  As you know, the Parliamentary Standing Committee had unanimously recommended for specifying a guaranteed minimum Pension to protect the subscribers and employees from the vagaries of equity market.  The Cabinet had unfortunately rejected it.  The delegation consisting of Com. Sukomal Sen (Sr. Vice President, AiSGEF,) Com. S.K.Vyas, (President, Confederation and Gl Secretary, NCCPA and convenor, Steering Committee) Com. Shivgopal Misra, (AIRF) Com. K.K.N. Kutty. (Secretary General, Confederation) , Com.Rajendran, (Gl, Secretary, STFI) Com. S.N. Pathak, (President. AIDEF) Who met the Prime Minister on 25th had harped on this issue and told the PM that  the rejection of the Standing Committee;s recommendation to have a guaranteed minimum pension to all subscribers  had no tenable basis.  This apart,  the delegation also pointed out that even while making the pension fund available to private entrepreneurs  the  USA, Britain  and other western countries  had protected the subscribers by providing a minimum pension benefit irrespective of what happens to the investment made on behalf of the subscriber.  The delegation also brought to the notice of the Prime Minister that the Bhattacharya Committee and the committee set up by the 6th CPC both  too had recommended the need to have a provision for a minimum  pension guaranteed by the Government, for the Government has the moral and legal responsibility as in the scheme of things the government collects the subscription from the contributors.

The delegation was accompanied by Com.Basudev Acharya, MP and leader of CPI(M) in Lok Sabha and Cpm.Tapan Sen, MP(Gen. Secretary, CITU) Both of them requested the Prime Minister to have a relook into the matter and accept at least those recommendations of the standing committee on which there had been unanimity of opinion amongst different political parties.

                While asserting that his Govt. Is not at all against the interest of workers and are bound to protect them, the Prime Minister said that the new pension scheme would be providing better returns to the employees than the defined benefit scheme.  When pointed out that if that be the case, as to why not the Govt, make the new scheme optional, the PM said that he will get the contentions made in the petition examined and considered by the Finance Ministry.         

The National Council Meeting

The National Council as already intimated will meet at Kochi on 16th December, 2011. The National Secretariat members, the Chief Executive of all affiliates and the State Committee Secretaries of Confederation, the Chairman and Convenor of the  Women  committee constitute the council. The meeting will be held at the following venue:


Near Ernakulam Junction (Ernakulam South Railway Station)

Chittoor Road

KOCHI. 682016


Accommodation has been arranged for 3 days 15th, 16th and 17th December, 2011.  The rooms are to be vacated on 17th.  All National Council Members are requested to kindly intimate Com.Sasindran or Com.Krishnan whose mobile numbers are given hereunder of the date and time of their arrival and departure:

                Com.Sasindran:  09447355334                                    Com.M.Krishnan: 09447068125


Central TU decides for another one day strikeOn 28th Feb. 2012

                The joint committee of Central Trade Unions in the meeting on 24th November, 2011 has proposed to organise a one day's strike on 28th February, 2012 against the neo-liberal policies and in pursuance of the 5 point charter of demands.  Both BMS and INTUC have agreed to this proposal and the strike when it takes place will be the largest worker participated strike in the country.  The National Council inter alia will deliberate as to how the CGEs could be participants in this great national struggle action.

                With greetings,


Yours fraternally,


K.K.N. Kutty

Secretary General

Tuesday, November 29, 2011

Near Ernakulam Jn.(South) Railway Station
Chittoor Road
Contact. No.
General Secretary
Confederation- Kerala

District Secretary

Monday, November 28, 2011



C/o AIRF, 4, State Entry Road, New Delhi – 110001





Thousands of State and Central government employees, Railway workers, Defence workers, BSNL, University and School teachers today participated in a massive March to Parliament against the PFRDA Bill and to submit a petition to the Prime Minister to which millions of employees have subscribed their signature. The rally was addressed by the leaders of various organizations of employees and several Members of Parliament.


A seven member delegation consisting of Coms. S K Vyas, (Convenor, Steering Committee) Shiv Gopal Mishra, (General Secretary, AIRF), KKN Kutty, (Secy. General, Confederation of Central Government Employees & Workers)   S.N. Pathak, (President, AIDEF) P. Abhimanyu (General Secretary, BSNLEU) Rajendran (General Secretary, STFI) and Sukomal Sen (Sr. Vice President, AISGEF) met the Hon'ble Prime Minister today along with Com Basudeb Acharya, MP and Com.  Tapan Sen, MP and General Secretary of CITU. The delegation appealed to the Prime Minister to reconsider the government's policy of privatisation of pension funds and withdraw the PFRDA bill which seeks to replace the existing defined benefit Pension Scheme of government employees. The concern and anxiety of the government employees over the financial security in the evening of their life was also brought to the notice of the Prime Minister.


The petition to the Prime minister elaborated the various reasons as to why the present bill will be neither in the interest of the employees nor will benefit the Government Exchequer (Copy enclosed).


The Hon'ble Prime Minister assured the delegation of the consideration of the petition and the feasibility of providing a guarantee for a minimum pension which the Standing Committee had recommended but unfortunately not found approval of the Cabinet.  The Prime Minister informed the delegation that his Government would not do anything to harm the interest of the employees.


The rally was concluded at 2.30 PM. On behalf of the Steering Committee, Com. Vyas announced that the employees will organize two hour walk out on the next day the Parliament takes up the PFRDA Bill for consideration.












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,