Welcome to the official website of All India Postal Employees Union Group 'C'- अखिल भारतीय डाक कर्मचारी संघ वर्ग 'सी' की आधिकारिक वेबसाइट में आपका स्वागत है

Wednesday, November 30, 2011

Notification for Launch of 10-Year National Savings Certificate (IX-Issue), 2011 Issued

In accordance with the decisions taken by the Government on the basis of the recommendations of the Committee for Comprehensive Review of National Small Savings Fund (NSSF), headed by Smt Shyamala Gopinath, the then Deputy Governor, Reserve Bank of India, Notifications on changes made in various small saving schemes except 10-Year National Savings Certificate, have already been issued on 25th November 2011. 

                The Notification for launch of new savings instrument, namely 10-Year National Savings Certificate (IX-Issue), 2011, has been issued today, the 29th November, 2011. 

                The major highlights of this scheme are as follows:

·         Investments in Certificate will earn Interest at the rate of 8.7% p.a. compounded semi-annually.
·         On investment of Rs. 100, the depositor will get Rs. 234.35 on maturity of the Certificate.
·          This Certificate will be available in the denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 and Rs. 10,000. 
·         There is no upper limit for investment in the Certificate. 
·         This Certificate can be transferred from a post office where it is registered to any other post office and it can be pledged as a security.

                The scheme will come into effect from 1st December 2011. Details of the notification are attached herewith and can also be seen on the website of the Ministry of Finance i.e. http://www.finmin.nic.in.
Source : PIB Release, November 29, 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. Confederation06@yahoo.co.in

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 ParaMilitary 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 theStudy 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,                                                

Secretary General NFPE

Saturday, November 26, 2011

An Historic March to Parliament

A Mamooth rally to Parliament organized by C. G. Employees movements/organizations/BSNL Employees union against the PFRDA bill was established its great success and concerns on the cause. Thousands of C. G. Employees including Railway men participated the rally. NFPE, as usual proved its mite by organizing more number of participants in the rally. Our P3 comrades are second none in exhibiting their concern against the PFRDA bill and participated in large numbers. Details we will published shortly.

The meeting was addressed by Com. Basudev Acharya MP, Com. Tapan Sen, MP, Com. Sukomal Sen (AISGEF), Com. Shiv Gopal Mishra (AIRF) Com. S. K. Vyas and Com. K. K. N Kutty (Confideration) Com. M. Krishnan (NFPE), Com. V. A. N. Namboodri & Com. P. Abhimanyu. (BSNL EU), Com. Pathak (AIDEF) Com. K. Rajendran (STFI) after the rally.

The CHQ records its sincere thanks to the participants and congratulates them whole heartly.



Allahabad Study camp


Dear Comrade,
 NFPE All India Study Camp is scheduled to be held at, India Centre,Kriya Yoga Research Institute: Nai Jhunsi , Allahabad (U.P.) from 4th December, 2011 to 6th December, 2011.
All General Secretaries, All India Office Bearers and Circle Secretaries of all NFPE affiliated unions are requested to participate in the Camp compulsorily as per programme:
Delegate Fee has been fixed as Rs. 500/-
All participants are requested to bring warm clothing with them as the weather will be cold.

With fraternal greetings,
(M. Krishnan)
Secretary General

Com.R.N.Parashar :          09868819295              Com. T.P.Mishra:    09415239990
Com.Ashish Chatterjee:    09415645142             Com. P.K.Rai:    09450614139

08AM to 10 AM:    Registration of Delegates
10 AM to 10.30:    Flag Hoisting & Homage to Martyrs.
10.30 to 11 A.M.:  Welcome of Leaders/Guests and Delegates by Reception Committee.
Presided by        Com. D.K. Rahate, President, NFPE.
Welcome Speech by Com. T.P. Mishra Ex. President P-III UP.
11.00 A.M.      Inauguration by Com. A.K. Padmanabhan,  
                          All India President,C.I.T.U.&
                            Subject- Capitalist Economic Crisis and the Role of Working Class.
 13.00 Hrs to 14.00 Hrs : Lunch.
14.00 Hrs to 16.30 Hrs :2nd Class by Com. M. Krishnan, Secretary General, NFPE
Subject: History of Postal Trade Union movement and
                                                         our  present day task


9.30 A.M.:        3rd Class – By Com. K.V. Sridharan, General Secretary, AIPEU Group 'C'.
   Subject: Service Matters and Role of leadership.
 Interaction with General Secretaries:
  Com. I.S. Dabas, General Secretary AIPEU Postmen, MSE/Gr.'D'
Com.Giri Raj Singh, General Secretary, AIRMS&MMS EU, Gr. 'C'
Com. P.Suresh, General Secretary, AIRMS & MMS EU MTS, Group 'D'
Com. Pranab Bhattacharya, General Secretary, Admn. Employees Union.
Com. T. Satyanarayana, General Secretary, Postal Accounts Association.
Com. S. Appan Raj, General Secretary, AIPSBCO Emp. Association.
Com.S.A. Raahim, General Secretary, AIP Civil Wing Employees Association.
 Lunch : 13.00 Hrs to 14.00 Hrs.
 14.30 Hrs : Seminar
Subject:  Globalization policies & Service Sector.
Presided by: Com. M. Krishnan, Secretary General, NFPE.
Welcome Speech: By- Com.R.N.Parashar, Asstt.Secy.Genl.NFPE.
Inauguration by :  Dr. Prabhat Patnaik,
                                                         Centre for Economic Studies and Planning
                                         School of Social Services, JNU, New Delhi-67.
 Shri D.Theagarajan Secy.General, FNPO has given his consent to address the Seminar.
 Senior Postal Officers and other Trade Union leaders will also participate.

09.30 A.M. – NFPE All India Convention.
 Presided by – Com. R.N.Parashar, Chairman,
  NFPE Co-ordination Committee, UP.
 Inauguration  by – Com. S.K. Vyas, President,
       Confederation of Central Government      
       Employees & Workers and
                  4th Class -Subject: Confederation Charter of Demands.
                                 Class 5th: By Com. K. Ragavendran, Ex. Secretary General, NFPE,
       Subject:   Role of Confederation in JCM .
 Interaction with Delegates:
 1.30 P.M. – Camp Review
2PM         – Camp Concludes.
 Vote of thanks- By Com. R.K. Gupta , Convenor, NFPE Co-ordination Committee U.P.
06.12.2011,  3 P.M. U.P. Postal Convention at Allahabad GPO Compound 

Welcome :     Com. Ashish Charterjee_ Divisional Secretary P-III Allahabad
Presided by   Com.T.P.Mishra-Ex.President P-III U.P.
Inauguration  Com. M.Krishnan,  Secretary General, NFPE.
Speakers- All General Secretaries & Circle Secretaries of UP,NFPE Unions
Vote of Thanks:  Com. Subhash Mishra Circle Secretary P-III U.P.
M.Krishnan, Secretary General NFPE

Latest SB Orders

SB Order No. 22 - Discontinuation of Kisan Vikas Patras wef from 1.12.2011

SB Order No. 23 - Revision of maturity period and maturity value of 6 years National Savings Certificate (NSC)

SB Order No. 24 - Revision of maximum limit of subscription in a financial year, rate of interest on balance in the PPF Accounts and rate of interest charged on loan taken from PPF account w.e.f. 1.12.2011

SB Order No. 25 - Revision of maturity period, rate of interest and discontinuation of 5% bonus on maturity of Monthly Income Account Scheme w.e.f. 1.12.2011

SB Order No. 26 - Revision of interest rate on balance at credit in Post office Savings Accounts w.e.f 1.12.2011

SB Order No. 27 - Revision of rate of interest of Time Deposit Accounts w.e.f. 1.12.2011

SB Order No. 28 - Revision of rate of interest of Recrurring Deposit Accounts w.e.f. 1.12.2011

SB Order No. 29 - Revision of rate of commission payable to SAS and MPKBY Agents and discontinuance of Commission to PPF Agents w.e.f. 1.12.2011

Thursday, November 24, 2011


Next Sitting of the MNOP Committee will be held on 02.12.2011 at 3 PM under the Chairmanship of new Member (Operations) Sri. Santosh Gauriar.

Meeting with Senior officers, Directorate

On 24. 11.2011, Com. M. Krishnan, Secretary General NFPE and President CHQ, General Secretary Com. K. V. Sridharan and Com. Satyanarayana, General Secretary, Postal Accounts met the Secretary and discussed the issues. The need for review meeting on the decision arrived on strike demands and convening JCM Departmental Council meeting was discussed and stressed. Secretary (P) Ms. Manjula Prashar assured to convene the meeting shortly.

Thereafter, Secretary General & General Secretary P3 met Member (P), DDG (P) and other senior officers and discussed various issues. The following are the outcome and information, we gathered from the Directorate.

1.      LGO Exam: - Decision has been taken ignore the language papers and exam result will be decided based on the marks secured in Arithmatic Paper (25 X 2) communication will be sent to CMC for valuation of arithmetic paper and finalise results.

2.      IPO Exam:  A Committee has been constituted to review the out of syllabus questions on law paper. The Committees report is expected within a forthnight Threafter decision will be taken about the valuation of IPO exam papers. It seems that it will take atleast a month’s time for finalistion.

3.      HSG I Recruitment Rules: At last, the UPSC approved the Recruitment Rules for HSG I, the file will be forwarded to Law Ministry for approval of draft for Gazette notification of HSG I Recruitment Rules and it will be finalized within a month.

4.      Postmaster Grade III: - The Issue will be finalized within a month as the file relating to HS GI Recruitment Rules had been approved. Volunteers will be called for among the HSG I after releasing DPC for HSG I and the posts will be filled first with the HSG I officials opted for postmaster Grade III. The remaining posts will be filled as per the Recruitment Rules of Postmasters.

5.      Cadre review: - DDG (P) assured that he will finalise a draft from the Department side and discuss the same in the first weak of December 2011. We explained the urgency and the need for the earliest finalization of this major demand.

6.      Postman Recruitment Rules : - Based on our strike demands to modify the Postman Recruitment Rules and also to have a discussion about this with staff side, a meeting with DDG (P) will be held on 2.12.2011 at 11.00 hours at Directorate.

7.      Allowance Committee: - The Committee constituted for review of allowances has finalized its recommendation and is expected to submit before the end of this month. Our CHQ views, as learnt, has taken note of while considering the issues. Orders may be expected.

8.      GDS Demands: - i) Despite strong recommendation by the Department, JS (FA) has once again return the file with some objections relating to the case of reduction of point from Rs. 20,000/- to Rs. 10000/- we should exert more pressure.
(ii) Similarly the enhancement of Bonus ceiling file was also returned by the internal finance stating that the GDS are doing duties less than 5 hours. This should also be taken vigorously

9.      Casual Labourers: - The Committee constituted to consider about application of revision of wages and also the future of the existing casual labourers/contingents has sought information from various circles. The finalisation of Committee, it is leant, will take more time, there are 21000 contingent part time casual labourers. We may think of suggesting to convert such posts as GDS or may be absorbed in the unfilled vacancies of GDS which were kept under skeleton.

10.  Postmaster Grade I: - The declined vacancies have been filled up with the remaining successful candidates of all the circles except five circles from which no informations were received. They have been addressed. No examination was held in Kerala Circle due to court cases.

11.  PA Recruitment: - PA Direct recruitment for the vacancies up to 2011 December may be scheduled in the month of April 2012 and the revised recruitment Rules will be brought in to effect. Directorate has initiated the process.

12.  Confirmation Exam: - In the revised PA recruitment rules, the confirmation examination has been removed. There is no examination hereafter. All will be confirmed by DPC committee as per 6 (i) (12) of the said rules. This is a major achievement so far our P3 Comrades.

13.  Rules 9 Cases/Review petitions: - Member (P) Ms. Yasodhara Menon informed that time bound action has been initiated to clear all pending Rule 9 Cases/Review petitions. She assured result-oriented action on other issues also.


An urgent meeting of the Central JCA will be held on 03.12.2011 (3rd December 2011) Saturday at 11 AM at NFPE office, North Avenue, New Delhi to decide future course of action on pending demands.