Resolutions adopted in the Central Executive Committee meeting of BPMS

Resolutions adopted in the Central Executive Committee meeting of BPMS

REF: BPMS/RESOLUTION/10(7/1/M)

Dated: 02.04.2018

To,
The Secretary,
Govt. of India, Min of Defence,
South Block, DHQ PO,
New Delhi – 110011

Subject: Resolutions adopted in the Central Executive Committee meeting of BPMS.

Respected Sir,

With due regards, it is submitted for your kind information that the Central Executive Committee meeting of this federation has held on 27th & 28th March, 2018 at Ordnance Factory Estate, Dehu Road, Pune and 03 Resolutions have been unanimously adopted by the CEC of the federation & the same are enclosed herewith for your kind consideration and further necessary action please.

This federation is in full hope to get favourable consideration in this regard.

Thanking you in anticipation.

Sincerely yours
S/d,
(MUKESH SINGH)
Secretary/BPMS &
Member,JCM-II Level Council (MOD)

Resolution No.1

Enhancement of Insurance Coverage under CGEGIS

Central Government Employees Group Insurance Scheme, 1980 was notified on 01/11/1980 and came into force with effect from the forenoon of 01/01/1982.

The `scheme’ is intended to provide for the Central Government employees, at a low cost and on a wholly contributory and self financing basis, the twin benefits of an insurance cover to help their families in the event of death in service and a lump-sum payment to augment their resources on retirement.

The rates of benefit under the scheme, till date is as under :

Category	Rates of monthly subscriptions (Rs.)		Insurance Coverage (Rs.)
	As on 31/01/1989	After 01/02/1989
A	40	120	120000
B	20	60	60000
C	10	30	30000
D	05	15	15000

Ever since then, except merging of Group “D” with Group “C” and subsequent change in subscriptions and coverage thereof, nothing has changed.

Taking cognizance of this static state of affairs, the 7th CPC in its recommendations commented under Para 9.3.7 The Commission also took note of the fact that the Tables of Benefits published by Ministry of Finance are based on the mortality rate of 3.75 per thousand per annum up to 31.12.1987 and 3.60 per thousand per annum thereafter. In its report (brought out in January 1997), the V CPC had pointed out that the mortality rate, life expectancy and health delivery systems have improved over a period of time. They had highlighted the need “for a detailed review of the current mortality rates with a view to revising the apportionment between the Savings and Insurance Funds.” Since it was likely to take some time, they had recommended a ratio of Savings Fund to Insurance Fund of 75:25, with Appropriate machinery for a periodical review of the mortality rates and adjustment of the apportionment ratio”.

Further, under Para 9.3.8 All the three factors viz., mortality rate, life expectancy and health delivery systems have further improved over the course of nearly twenty years following the V CPC recommendations. Accordingly, this Commission recommends that the ratio of Savings Fund to Insurance Fund be modified from the present 70:30 to 75:25, as an interim measure, pending a detailed review. It is also recommended that periodical reviews of mortality rates should be undertaken for suitable adjustment of the apportionment ratio. The Tables of Benefits may be modified accordingly.

After carefully examining all relevant aspects, the 7th CPC finally recommended the following as revised rates and benefits:

Level of Pay Matrix	Monthly Deduction (Rs.)	Insurance Amount (Rs.)
10 and above	5000	50,00,000
Between 06 to 09	2500	25,00,000
Between 01 to 05	1500	15,00,000

However, vide notification No.1-2/2016-IC dated 25/07/2016, it was announced that ”The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.”

However, in spite of lapse of more than 19 months, the concerned department is silent thus defeating the very purpose of the Government’s intention to replace the existing scheme with a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

The Central Executing Committee of Bharatiya Pratiraksha Mazdoor Sangh, at its meeting held at Dehu Road (Pune) deliberated on this very serious issue and demands that the Government should immediately notify the customized group insurance scheme for Central Government Employees with low premium and high risk cover.

Resolved on this, 28th Day of March, 2018.

Resolution No.2

Grant of One Time Relaxation for Compassionate Appointments

Govt. of India, DoP&T O.M. No. 14014 / 6 / 94- Estt (D) dated 09th Oct 1998 read with O.M. No. 14014/23/ 99- Estt (D) Dated 03rd Dec 1999 has a provision to give a compassionate appointment to one of the dependent for the survival of his family, if the employee unfortunately dies during his service period; leaving his family behind to survive, but it is limited to 5% of the vacancies falling under direct recruitment quota in any Group ‘C’or ‘D’ post. Not only this, under this 5% quota DR of Group ‘C’ & ‘D’ defence civilians, the dependants of Group ‘A’ & ‘B’ defence civilians and all uniformed personnel (of Army, AirForce & Navy) are being granted compassionate appointment but the 5% vacancies under DR of Group ‘A’ & ‘B’ defence civilians and uniformed personnel are not added. Due to this, a large number of wards are waiting for their appointment on compassionate grounds to look after the family.

This federation has made lot of efforts on the subject and it may be noteworthy to mention the following correspondence (1) BPMS Letter No. BPMS / MOD / Comp.Apptt./219 (8/3/L) . dated 04.04.2016 (2). Hon’ble RM’s DO No. 4930/VIP/RM/2016, dated 02.06.2016 (3). MOD ID No. 19(1)/2016-D(Lab), Dated 05.07.2016 (4). OFB letter No. 039(6)/PER/POLICY, Dated 14.07.2016.

Further, this issue has been discussed on several occasion with the present Raksha Mantri also but no action is seen as yet.

On the other hand, the families of dependents are suffering and are becoming desperate on account of inaction on such an important and sensitive issue.

The Central Executive Committee Meeting being held at Dehu Road (Pune) took serious cognizance of the issue and demands that the Government should take immediate necessary steps to solve the issue.

Resolution passed on 28/03/2018.

Resolution No.3

Grant of Minimum Guaranteed Pension under NPS

The Central Government had introduced the National Pension System (NPS) with effect from 1 January, 2004 (except for armed forces). During the budget session of 2003-2004 the Government announced introduction of the “New Defined Contribution Pension Scheme” then known as the New Pension Scheme. It was formally notified vide Ministry of Finance, Department of Economic Affairs letter dated 22-12-2003. Later, it was adopted by various State Governments and Central and State Public Sector Corporations.

Upto 28.02.2018, the total figure of subscribers of NPS working in Central Government Establishments/ Offices including Public Sector Undertaking has reached to 19,12,871 with a corpus of Rs 61,145.65 crore and in State Governments Establishments/ Offices including respective Public Sector Undertaking, it has reached to 38,21,266 with corpus of Rs. 86,897.31 crore.

The above mentioned Scheme was made operative since 01.01.2004 without any concrete instructions and with passage of time, Govt has been trying to develop a system regarding its functioning. But the future as well as retiremental security (Social Security) of the employees is at stake without guarantee of Minimum Pension under the Scheme.

This Federation has been consistently demanding that Government should frame a policy to ensure that irrespective of the financial/market conditions at the time of Retirement of the subscriber under NPS, he should get a guaranteed minimum pension equivalent to 50% of his last drawn Basic Pay plus Dearness Relief for neutralization of price rise.

A resolution to this effect was also passed in the CEC Meeting held at Hyderabad during September 2015 and subsequently several correspondence have also occurred. However, in spite of lapse of such a large time, no tangible action is seen from the Government side on the issue.

After having deliberated the issue in details, the Central Executive while recording its displeasure over the absence of action on the part of the Government on such an important issue, hereby calls upon the Government to immediately notify the subject issue.

This resolution is being passed in the Central Executive Committee held at Dehu Road (Pune) on 28/03/2018.

Source : BPMS