Sunday, October 7, 2012

PENSION – A FUNDAMENTAL RIGHT

Pension is an important ingredient of a retired person. Besides providing financial security, it forms a vital link with the past and connotes continuity with the organization one had served in his youth. Gone are the days, when on retirement, a person went into an inactive state, confined to the four walls of the house, dependant on the mercy of the prodigy or other younger elements to sustain the life, awaiting for the final call from the Almighty. The Pension, which one receives on his superannuation, stands by his side, and he can move around with his head held high. Pension is a boon for the retirees for a self sustaining active life after retirement. Khushwant Singh, the versatile writer, in an article, published in a newspaper, indicated that Dalai Lama had conveyed him the blessing for a ‘peaceful death’. This is possible only when one continues to live a contented life till his last breath- free from health ailments, financial problems and actively leading a blissful life.

In the present age of nuclear families and the break-up of joint family system, the elderly people have to seek social security amongst themselves, by forming associations, club activity etc. For sustaining social set-up, one must have financial security as also good health, especially when the life expectancy has increased almost two times over the past half century, from 37-38 years in 1951 to 68-70 in the beginning of 21st century.

Pensioners Struggle for recognition.The concept of ‘Pension’, in the modern context, had been introduced in India by the British, who enacted the ‘Pension Act’ in 1871, whereby pension was paid to employees on superannuation at the pleasure of the Viceroy / Governor General, who had the power to reduce or even discontinue the pension. The pension was considered a bounty, grace, a mercy and was subject to good conduct of the retired employee.
After independence, till seventies, the pensioners were looked upon as unwanted persons – a non productive burden. The govt paid scant attention to pensioners’ woes, grievances and difficulties. An awareness was, generated, when in 1972, the Gajendra Gadkar Law Commission pointed out numerous discrepancies in the Pension Act of 1871, highlighting some aspects of the Act violative of the Constitution of India. Subsequent efforts to enact a New Pension Act were unsuccessful and the old British Pension Act of 1871 remains in India’s Statute Book till date. All pensionary matters these days are based on Civil Services (Pension) Rules, 1972, which were notified under the powers vested under the proviso of Article 309 of the constitution and not under the Pension Act. A new Pension
Scheme for civil central govt. services has been introduced for those who join the govt on or after 01 January, 2004 – known as Contributory Pension Scheme 2004. The Defence Services have been kept out of this scheme.
The simmering discontent among the pensioners gave rise to some pensioners seeking justice from the courts of law. Shri D S Nakra, a Class1 Defence Accounts Officers, who had retired in 1971, sought justice in a Writ Petition No 5939-41/1980 from Supreme Court, challenging many provision of the Pension Act 1871.The major achievement in the struggle for recognition of pensioners, was the land mark judgement of the Supreme Court of India in the case of Mr. D.S. Nakra. The judgement announced on 17 December, 1982, struck down many adverse provisions of Pension Act, 1871, and among other various considerations, held ‘as per India’s Constitution, govt is obliged to provide social economic security to pensioners… govt retirees (pensioners) had the fundamental right to pension…’ This judgement also affirmed the state’s obligation to provide security in old age, an escape from undeserved want. A senior citizen needs to be treated with dignity and courtesy befitting his age. It reiterated, ‘A pension scheme consistent with available resources should provide pension so that the pensioner should be able to live (i) free from want, with decency, independence and self-respect and (ii) at a standard of living, equivalent to pre-retirement level.
The court held that, ‘Pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment, but payment for past services rendered. It is a social welfare measure, rendering socio-economic justice to those who had, in the hey days of their life, ceaselessly toiled for their employers on an assurance that in their old age, they would not be left in the lurch’
The judgment came as a magna carta for the pensioners. It gave the pensioners a new lease of life and a good respectable status to the pensioners in India. The judgment of 17December, 1982, brought awareness in government circles that pensioners cannot be ignored. 17 December, the day of judgement is observed as ‘Pensioners Day’ throughout India.
Pay CommissionsThe pensioners struggle for better status continued with the passage of time for proper revision of pension structure. The pensioners, who were being treated as non-entity or as un-necessary burden by the government was jolted as a result of Supreme Court judgment. The first three Pay Commissions did not consider any revision of Pension structure. In the case of 4th Pay Commission, the point concerning ‘Pensions’ was added to its Terms of Reference’ at a later stage and for
the first time a revision in pension was considered in the report of 4th Pay Commission in 1986. The 5th Pay Commission (1996) brought about more changes and also recommended that pension should be fixed, revised, modified and changed in ways not entirely dissimilar to the salaries granted to serving employees.
The recommendations of 6th Pay Commission were unique in a sense that it changed the concept of ‘Pay Scales’ for the employees and introduced the new form of ‘Pay Bands’ (PB1 to PB4) and ‘Grade Pay’ The Govt. of India accepted the recommendations of the 6th CPC as a package with some modifications. Gazette Notification No. 1/1/2008 IC dated 29 Aug 08 was issued by Finance Ministry in respect of civilian employees of Central Government, and Gazette Notification No. 38/37/D8-P&PW (A) dated 29 Aug 08 was issued by Ministry of Personnel, Public Grievance and Pensions in respect of Pensioners. However, thereafter the Central Government resorted to issuing some modifications etc vide their O M dated 03 October, 2008 and 14 October, 2008, which vitiated the whole ambit of Pay Commission recommendations adversely affecting the pre-2006 pensioners. This has led to many pensioners seeking justice from the courts / CAT. The constitution of National Anomalies Committee is also considering these anomalies. The affected pensioners belong to those who fall in the pay scales S-4 to S-29,( Pre-revised) who are suffering a loss in their Basic Pension ranging from Rs 165/- to Rs 3650/- ( from constable to the rank of Inspector General)
Conclusion
In old age the basic needs of a person are (i) financial independence (ii) good health, and (iii) social security. The pension provides financial independence, health coverage is provided by various health schemes of the government, and social security, which is diminishing with breaking of joint family system, is provided by pensioners associations etc. In all these pension plays an important link.

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