MINUTES OF THE MEETING OF NATIONAL ANOMALY COMMITTEE HELD ON 12th DECEMBER, 2009

MINUTES OF THE MEETING OF NATIONAL ANOMALY

COMMITTEE HELD ON 12th  DECEMBER, 2009

                A meeting of the National Anomaly Committee (NAC) was held on 12th December, 2009 in Conference Room No.119, North Block, New Delhi under the  Chairmanship  of  Secretary  (Personnel).  A  list  of  participants  who attended the meeting is annexed. 

2.            At  the outset, the Chairman welcomed the  representatives of the Staff Side and Official Side.  The Chairman stated that the recommendations of the 6th  CPC have been implemented with certain modifications. While processing the  Report, the  Committee of  Secretaries  also consulted  the  Staff  Side. As decided by the Cabinet at the time of approving the Report of the Sixth CPC, instructions have been  issued for  setting  up of Anomaly  Committees at  the National as well  as Departmental Level in order  to  ensure  the  resolution of anomalies.  The  Chairman  informed  that  the  National  Anomaly  Committee would  discuss  the  anomalies  common  to  two  or  more  Departments  and anomalies  pertaining  to  common  categories  of  employees.  Further,  he indicated  his  firm  belief as well  as  conviction that  all  the  anomalies can be resolved through the consultative process.  The Chairman also  informed that the next (46th) meeting of the National Council (JCM) has been scheduled to be held on 16th  January, 2010 under the Chairmanship of Cabinet Secretary.

The Chairman also  reiterated the  resolve of  the Government  to maintain a sustained  level  of  contact with  the  Staff  Side  in  order  to  take  forward  the process of  consensus building and collaborative endeavour to  achieve  the goals  of  higher  productivity,  efficiency  and  staff  welfare.  Thereafter,  the Chairman invited the Leader and Secretary of Staff Side to say a few words. 

3.           Leader of the Staff Side Shri M. Raghaviah  thanked the Chairman and conveyed the appreciation of the Staff Side for  convening the meeting of  the National Anomaly Committee. He further  stated that  the opening address of the Chairman conveyed the  right message and stated that all anomalies can be  resolved  in a peaceful fashion.  He thanked  the Government  for  all the improvements  over  and  above  the  recommendations  of  the  6th CPC  and stated that  there are certain areas  where  there is some unrest with respect to  implementation of the  recommendations of  the 6th  CPC and  requested the Chairman that all such issues  should be resolved  as soon as possible.  He once again thanked the Chairman and  reiterated the resolve of the Staff Side for cordial and healthy industrial relations.

4.           Secretary  of  the  Staff  Side  Shri  Umraomal Purohit  reciprocated  the sentiments expressed by the Chairman and  indicated that  all the anomalies can be  resolved through mutual discussion. He also  thanked  the Chairman, for  not only  for  convening the  first meeting of  the  NAC at  such a short notice,  but  also  taking  initiative  in  scheduling  the  next meeting  of  the National Council (JCM)  on 16th  January, 2010.  He mentioned about the long delay in convening  the meeting of the National Council but also stated that he hoped that from now onwards things would  change for the better. Secretary, Staff Side drew the attention of the Chairman towards non-functioning  / delays in  holding  the meetings  of  the  Departmental Councils  in various Ministries/Departments.  Emphasising the  importance of  the Departmental Councils  in the  Scheme  of  Joint  Consultative  Machinery  and  Compulsory  Arbitration, Secretary  of  the  Staff  Side  stated  that  some way  out  has  to  be  found  to ensure  that  Departmental  Councils  work  properly  in  all  Ministries/Departments and  its meetings  are  held  regularly. While  complimenting the Government  for  timely  implementation of  the  recommendations of  the  6th CPC,  Secretary of  the  Staff  Side  stated  that  the  definition of  the  anomaly which  was  adopted  earlier  has  been  altered  this  time  which may  lead  to certain problems.  He also stated that the Report of the 6th CPC is not like the earlier  reports and  the  new  format  recommended by  the  6th CPC  is being gradually adopted.  He also  referred to  certain  issues  like Risk Allowance (RA),  Patient  Care  Allowance  and  Fixed  Medical  Allowance  (FMA)  for pensioners and  requested that  final orders  on  these  issues may  be  issued only after discussing the same with the Staff Side.  Secretary of the Staff Side also drew the attention of the Chairman  towards certain benefits like maternity leave, child care  leave and stated that the same have not been extended as yet  to  the women  industrial employees and  requested for  early action  in this regard.  Secretary of  the Staff Side also complimented the Government with respect to  the setting of  the  Fast Track Committee and  stated  that  the Fast Track Committee has resolved long standing problems of the employees.  He once again thanked the Chairman for convening the meeting of the NAC and for giving him an opportunity to express his  feelings. 

5.           The Chairman stated that Government also understand  that the report of  the 6th  CPC is different and was of the view that there is a need for greater dissemination  of  information  on  the  recommendations  of  the  6th  CPC. Accordingly, he  requested  the  Staff  Side  for  a  list of  questions /issues on which more information is required so that the Government can prepare a list of Frequently Asked Questions (FAQs) and put the same on the web site for, increasing awareness etc.  The Chairman also assured to  take  necessary steps  to  ensure  that  meetings  of  the  Departmental  Councils  of  various Ministries  / Departments are  held  regularly.  Regarding  the  definition  of  an anomaly, the Chairman opined that this should not lead to any problems and stated that official side is open to examining the matter if  it is found that there is  indeed a  case.  The  Chairman  also  requested the  Staff Side  to  forward issues which  could  have  become  anomalies  had  the  said  para  not  been deleted  for further examination of the same. 

6.           Thereafter,  the  anomalies  as  per  the  agenda  were  taken  up  for discussion: 

Agenda  Item Nos. 1 to 4- Anomaly  in Pay Fixation in case of merqer of various Pay Scales.

               As  the  anomalies  mentioned  at  item  No.1  to  4  represented  similar items,  it  was  decided  to  club  the  four  items  together.  The  Staff  Side demanded  that  since  the  pre-revised  Pay  Scales  of  Rs.5000-80001-, Rs.5500-90001- were merged with the pay scale of Rs.6500-10500,  the pay of  the  incumbents  holding the pay scales of  Rs.5000-80001- and Rs.5500-9000  should  have  been  fixed  with  effect  from 1.1.2006  by  applying  the multiplying  factor of 1.86 at Rs.65001.  The Staff Side stated that the  intention of  the Pay Commission was  to upgrade the two pay scales and merge them with  the  higher pay  scale  of  Rs.6500.  Therefore,  denying the  benefit of higher pay scale to the concerned employees is not justified. Joint Secretary (Pers), Department of  Expenditure  stated  that  this  issue was  raised  by  the Staff Side before the Committee of Secretaries set up by  the Government to process  the  Report  of  the  Sixth CPC.  Further, JS  (Per)  informed  that  pay fixation in the revised pay structure has been done strictly in accordance with the  fixation  tables  given  in  the  Report  of  the  6th CPC  (with  suitable modifications  due  to  change  in  fitment  factor  from  Rs.1.74  to  1.86)  and therefore, this could not be  termed as an anomaly.  She further stated that all the employees  in the pre-revised Pay Scales of Rs.5000-8000 and Rs.5500-9000 were given the uniform fitment benefit @ 40% of  the maximum of  the pay scale of Rs.6500-10500, i.e., 40% of Rs.10500  as Grade Pay.  In case the merger of the pre-revised pay scales of Rs.5000-8000 and Rs.5500-9000 with  Rs.6500-10500 had  not  been  recommended by  the  Pay Commission, then the fitment benefit granted to the Government servants who were  in the pre-revised  scales  of  Rs.5000-8000 and  Rs.5500-9000  would  have  been much  lesser  i.e. 40%  of  Rs.8000  and  Rs.9000  respectively. JS  (Per) also clarified that the paras in the text of the Report should be read in conjunction with the fitment tables as they are not independent of each other.  The fitment tables have been incorporated  for  the  first time in a Report of the Central Pay Commission and  are very much part of  its  recommendations. However, the Staff Side insisted that from the phraseology of the  report of the 6th CPC, it is evident that the intention of the Pay Commission was to upgrade the two pay scales and pay fixation done merely on the basis of the fixation table given in the  report of the 6th  CPC  cannot be an excuse to justify  the denial of  benefit on this  ground to the concerned employees. The Staff Side reiterated that  it was an anomaly precisely for  the  reason that vide Para 2.2.19, the 6th CPC has  stated  unambiguously  that  where  pre  revised  pay  scales  have  been merged it has been done by extending the minimum prescribed for the highest pay scale with which  the other pay scales are being merged.  However, the pay  band has  been fixed with  reference to  the minimum  of  the  lowest pay scales  which  have  been  merged. The  Chairman, while  reiterating  that  the tables are very much part of  the  recommendations of  the Pay Commission, suggested that Ministry of Finance, Department of Expenditure may look into this issue  further. 

Agenda  Item No.5- Revised Pay Rules

(i)           The Staff Side stated that since the 6th CPC  has  introduced  the new system of Pay Bands and Grade Pay, there was a lot of confusion among the employees in deciding about the option for switching over  to the  revised pay scales.  Accordingly, Staff Side demanded that the first option exercised may not be  treated as final and one more option should be given to the employees. Officers of Department of Expenditure informed that all the cases of  revision of  option  in  relaxation of  CCS  (RP) Rules, 2008  referred to  them had been agreed  to  by  them.  However,  JS  (Pers)  agreed  to  look  into  the  matter regarding delegation of  powers  to  the  administrative ministries  to  allow  the options. 

(ii)                Regarding reckoning of Special Allowances and Qualification Pay at  the  time  of  fixation  of  pay  in  the  revised  pay  structure,  the  Staff  Side demanded that the same should have been taken into account while fixing the revised pay of the concerned Government servants.  JS (Per) stated that this was not provided  for  in the CCS  (RP) Rules, 2008.  In  this context, Members of  Staff Side demanded that  Rule should  be modified to  allow  reckoning of Special Allowances Qualification Pay.  JS (Per) enquired about the procedure followed  at  the  time  of  implementation  of  Fifth  Pay  Commission’s recommendations.  Responding  to  this,  Staff  Side  stated  that  an  item pertaining  to  reckoning of such allowances / pay  for the purpose of pay fixation after  Fifth  CPC  was  pending  in  the  Standing  Committee  of  the  National Council.  In this context, JS  (Per) observed that CCS (RP) Rules, 2008 have no provision for this purpose and there is no precedent on the matter since the item  raised  by  Staff  Side  after  implementation  of  Fifth  CPC’s recommendations  is  still  pending  in  the  Standing Committee,  logically  the present issue could be taken up depending on the final decision on the  item pending  in  the Standing Committee.

(iii)                      It was noted that this part has already been discussed as  it relates to agenda item Nos.1  to 4.

(iv)              Regarding anomaly  in fixation  of  pay  between direct  recruits and promotees, the Staff Side argued that while applying Rule 8 of the CCS (RP) Rules, 2008, the pay of direct  recruits and new entrants  is fixed  at a higher stage when  compared to  the existing employees who were  promoted  in the same grade.  The Staff Side demanded that this anomaly should be rectified by incorporating a provision  that in case after 1.1.2006, if a promotee’s pay  is getting fixed at a stage lower  than that of a direct recruit as given in Section 2 of  the  First Schedule of  the CCS  (RP) Rules, then  the pay  of  the promotee should be fixed  at  the same stage  as that of  a direct  recruit/ new entrant so that the existing employees pay is protected at par with the pay given to a new entrant.  JS (Pers) stated  that the pay of the new entrants is being  fixed strictly in accordance with the principles laid down by the 6th CPC  in this regard.  In case  where  a  promotee  and  post 1.1.2006 direct  recruit  are  borne  on  the same seniority list and the senior is drawing less basic pay than the junior, the pay of the senior can be stepped up.  The Staff Side argued that it was not the intention of  the  6th  CPC  to  grant  higher  pay  to  direct  recruitees  vis-a-vis promotees and  also  stated  that  stepping  up  of  pay  is not  being  allowed  in many Ministries1 Departments in such matters. The Staff Side further  stated that the pay granted to  the fresh entrant is the deemed minimum pay of  the post and  no promotees can be fixed  below the minimum pay of  the  post to which  he  is  promoted  on  regular  basis.  The  Chairman  suggested  to  the Department of Expenditure  to re-examine  the matter.

(v)            Regarding the date of annual  increment, the  Staff Side argued that since the date of increment of all the Central Government employees has been fixed as 1st of July of every year, the employees whose increment dates are between 1st February 2006 and 1st June 2006 have to wait for more than 12  months  for  their  first  increment  after  the  implementation  of  the recommendations of  the 6th  CPC.  The Staff Side argued that this situation is quite  anomalous  since  this will  affect  the  employees who  retire  during  the period between 1st  February to 3oth  June every year.  They will suffer a loss of  one  increment perpetually and thus affecting their pension. The Staff Side demanded that the employees, whose increment  falls between 1st  February to 1st  June,  2006, may  be  given  an  increment on  01.01.2006  as  a  one-time measure.  JS (Per) intimated  that as per the recommendation of Sixth CPC  in the matter, which  has been accepted by the Government, now  there  is only one day  in the year,  i.e.,  1st  of July of every year, for  the purpose of granting annual increments. Further, it was stated that as far as cases of promotions that  took  place  between  1st  of  January  and  30th of  June  are  concerned, instructions  have  already  been  issued  that  in  such  cases,  Government servants have the option to have their pay fixed under FR 22(l)(a)(I). As  per this,  they will be granted  two  increments on  1st July,  one  annual  increment , and  the  other  on  account  of  promotion.  Regarding employees who  retire during  the  period  between  lst  February  to  30^th June  every  year,  it  was intimated that even prior to 01.01.2006, there were  cases where the date of superannuation of a Government servant could be just one day prior to  their DNI. Even at that time, there was no system to grant an additional increment to  Government  servants  in such  cases. Regarding the  demand of  the Staff Side  that  the  employees whose  increment falls  between  1st  February to  1st June,  2006  may  be  given  an  increment  on  01.01.2006  as  a  one-time measure, JS  (Per) stated that the  issue will be looked into keeping in view  its repercussions and a final view  on the matter will be taken after factoring the likely repercussions. The Staff Side further stated that the Revised Pay Rules in  relaxation of  F.R. are meant only  for  the purpose of  fixing  the pay  in the revised Pay  scales.  It  has  no  application  thereafter.  It  is  on  this  specific understanding that  the  staff  side  had demanded  the  one  time  relaxation as otherwise the one  time  relaxation would  not address similar  issues of  future recruitees and promotees. The Official Side contended that the Revised Pay Rules would override the provisions of  the Fundamental Rules permanently. The  Staff  Side  then  contended  that  an  increment  has  to  be  granted  on completion of one year service.  It must not be postponed except on award of a  penalty  on  initiation  of  disciplinary  proceedings.  After  some  further discussion,  the official side agreed  to reconsider  this matter. 

(vi)              The Staff Side agreed to drop this part relating to deduction of tax from salary.

(vii)            The  Staff  Side  stated  that  as  per  the  existing  scheme  the temporary  status  employees  have  been  granted  the  minimum  of  the corresponding  scale  of  pay  of  regular  employees  (with  benefit  of  annual increments). Therefore  it would be necessary  that these employees if they are non matriculates are given the  requisite training and the benefit of  fixation of pay at Rs.7000/- (with grade pay of Rs.1800 with effect  from 01  .01.2006.  The Secretary, Staff Side pointed out that in respect of those who have retired / die during the period between 1.1 .2006 and 1.9. 2008  it would not be possible to impart  training to them.  He, therefore, suggested, referring to his letter in this regard that they may be given the benefit of Grade Pay of Rs.1800 with effect from  1.1.2006. Regarding granting of  temporary  status to casual labourers, JS (Pers) informed  that Department of Expenditure had already rendered  their advice in  the matter  to JS (E), DoPT. Further action is to be  taken by DoPT.

Agenda  Item Nos.6 & 7-Benefit on Promotion

             The  Staff  Side  stated  that  prior  to  implementation  of  the recommendations of  the 6th CPC while on promotion,  the employees used to get  the  benefit of  almost  two  increments  subject  to  a minimum  benefit of Rs.100. However, after  the  implementation of  the  recommendations of  the 6th  CPC,  the  promotion  benefit  is  restricted  to  one  increment,  i.e.,  three percent of the lower pay band and grade pay.  The Staff Side demanded that there should be at  least a benefit of two  increments while on promotion.  JS (Pers), while reminding  that this issue was also raised by the Staff Side before the Committee of Secretaries set up by the Government  to process  the Report of the Sixth CPC, stated that this was not an anomaly in terms of the definition of the anomaly. Further, she stated that as per the recommendations of Sixth CPC, in addition to 3% increment,  the difference of grade pay also is given to the  employee while  on  promotion and  hence  there  is no justification  in  the demand of the Staff Side.  The Staff Side argued that in the case of PB-I,  the difference  of  grade  pay  is  Rs.100  to  Rs.400  only  and  in  PB-2,  the difference of  grade pay  is Rs.200 to Rs.400  only.  Therefore the Staff Side demanded  that  two  increments  while  on  promotion  are  fully  justified. However, JS  (Per)  stated  that  since  this  was  not  an  anomaly,  Staff  Side should raise  this matter outside the  forum of National  Anomaly Committee

Agenda Item No.8- Re-fixation of pension and family pension

                 Director (Pension) informed that the Dearness Relief is admissible toall  categories  of  Central  Government  pensioners1  family  pensioners. Therefore, it was agreed  that the item may be treated as closed.

Agenda Item No.9-Paritv in Pension

               Regarding  anomaly  in  the  pension  for  Government  servants,  who retired / died  in harness  between 1.1.2006 and 1.9.2008,  Director(Pension) informed that  Department of  Pension and  Pensioners Welfare  has already clarified  vide  its  O.M  dated  11/12/2008  that  the  provision  of  payment  of pension  at  50%  of  the  emoluments  (pay  last  drawn  or  50%  of  average emoluments received during the last ten months, whichever is more beneficial to  the  retiring  employee,  shall  be  applicable  to  all  Government  servants retiring on or after  1.1.2006.  Therefore, it was agreed that the  item may be treated  as  closed.  The  Staff  side  also  drew  the  attention  of  the  Chairman towards difficulties  being  faced  by  many  pensioners  in  getting  the  second instalment of the arrears of pension. The Chairman assured  the staff side that he would  take  up the matter with  the Department of  Financial Services and also  instructed Director (Pensions) to ensure that the problem is sorted out at the earliest. 

Agenda Item No.10-Cornrnutaion of Pension

                The Staff Side dropped  this item 

Agenda Item No.15, 16 & 17 -Parity in Pension  to all Pensioners

              Regarding  parity  in pension of  all pre 1996  retirees with  those  who retired on or after 1.1.1996,  the Staff Side stated that the pensioners were not given  parity  in pension irrespective of  the  date  from which  they  had  retired. The Government  in the  past have accepted the principle that  there shall be parity  in pension  irrespective of  the date  from which  they  had  retired.  The benefit was  given while  implementing the  5th  CPC  recommendations.  The Staff Side  further  stated  that  the  6th  CPC  in para  5.1.47 has  stated  that  in order  to  maintain  the  existing  modified  parity  between  present  and  future retirees  it will  be  necessary  to  allow  the  same  fitment  benefit  as  is  being recommended  for  the  existing  Government  employees.  However,  while implementing  the  6th CPC, the  pensioners who  retired  prior  to  01.01.2006 were given only 40%  of  the basic pension where as  the serving employees were given 40% of the maximum of their pay scale.  The Staff Side, therefore, demanded that the pensioners should be granted 50% of the Grade Pay in  the scale  from which  they  had retired by way  of  fitment  benefit and  not 40%  of basic pension. JS  (Pers)  informed that as per the  recommendations of Sixth CPC,  modified  parity  had  already  been  granted  to  all  pre-01.01.2006 pensioners.  Consequent  upon  the  implementation  of  Sixth  CPC’s recommendations  regarding  pension,  all  pre-01.01.2006  pensioners  have been granted fitment benefit equal to 40% of their pre-revised basic pension, subject to the revised pension, in no case, being fixed lower than fifty percent of  the  sum  of  the minimum of  the  pay  in  the  pay  band and  the grade pay thereon corresponding to the pre-revised pay scale from which the pensioner had  retired.  At  this,  the  Staff  Side  argued  that  a  reading  of  the recommendation of  Sixth Pay Commission on  the matter  indicated that  the intent  of  the  Pay Commission was  to  grant modified parity  to  pre-1.1.2006 pensioners by allowing same fitment benefit as  is being recommended to the existing Government employees subject to the provision that  revised pension shall  not  be  lower  than  50%  of  the minimum of  the  pay  in  the  pay  band prescribed for  the grade pay and the sum of the grade pay corresponding  to the pre-revised pay scale from which the pensioner had retired.  On the other hand,  the  Government  had  approved modified  parity with  reference to  the minimum of the pay band plus the grade pay which  is not consistent with the recommendation of  the  Sixth CPC.  Officers of  Department of  Expenditure stated  that  this  was  not  the  intent  of  the  recommendation  of  the  Pay Commission. After some discussions, the staff side requested the official side to examine  the matter once again.

Agenda Item no 27-Constant Attendance Allowance

               Director  (Pensions)  informed  the  Members  of  the  Committee  that suitable instruction have already been issued vide O.M. No.45/6/2008-P&PW dated the 7th December, 2009.  Therefore, it was agreed that the item may be treated as closed.

7.  It was decided  that the remaining items shall be  taken up for discussion

in  the next meeting of the National Anomaly Committee.  ,

 ANNEXURE

DEPARTMENT OF PERSONNEL & TRAINING

LIST  OF  PARTICIPANTS WHO  ATTENDED  THE  FIRST  MEETING  OF  THE

NATIONAL ANOMALY COMMITTEE HELD ON lzTH  DECEMBER, 2009 AT  11  .00 AM IN ROOM NO. 119, NORTH BLOCK, NEW DELHI.

 CHAIRMAN  –  SECRETARY (PERSONNEL)

              OFFICIAL SIDE                                                                                   STAFF SIDE