WHY ANNULMENT OF 60:40 IS IMPORTANT ?
In 2000, when government started thinking of launching BSNL, Cabinet met on 24-6-2000 and formed a Group of Ministers. The GoM decided that pension should be paid by Government to the 3.63 lakh DoT employees moving to BSNL.
On 30th September 2000, one day before launching BSNL, the new Rule 37A was incorporated to CCS Pension Rules 1972. Sub rule 21 of Rule 37A said: “… pensionary benefits including family pension shall be paid the Government”. Sub rule 22 of Rule 37A said:“The Govt. shall specify the arrangements and manner including the rate of pensionary contributions to be made by BSNL…” It was not specified then in the Gazette Notification.
When Shri Yeshwant Sinha was the Finance Minister, in his Budget speech of 2001 it was shown that 100% of the pension liability was with BSNL! Some of us pointed out this to BSNL management. They were not aware of it. They took up the matter with Minister for Communications. He took up the matter with Finance Ministry.Correspondence went on for some time.
Cabinet met on 29-10-2004 and discussed the matter. Finance Minister and Communications Minister could not agree on the rate of pension liability to be shared by BSNL. A dispute arose.
Cabinet appointed a Committee of Secretaries. That committee was compelled to find out a solution. So, without any proper study or any serious thinking the committee submitted a strange, irrational formula:“the pension liability should not cross 60% of the revenue paid by BSNL/MTNL to the government every year. If it is more than 60%, then the BSNL has to bear the extra amount”.
Pension systems in BSNL and MTNL were different then. But Committee did not mind it. They were asked to submit a formula to escape from the Dispute.
The Cabinet meeting held on 27-11-2004, approved the above wonderful formula. Thus it became a Cabinet Decision, a Rule.
THAT RULE IS CANCELLED NOW, AFTER 12 YEARS.
Hereafter, there is no need of any consent from BSNL to grant any pensionary benefit to BSNL retirees. It is 100% liability of Government of India. As in the case of any other establishment, BSNL has to pay pension contribution under Fundamental Rule 116 to Government. Because Government has to pay pension to BSNL retirees. Pension Contribution is 11% of pay of the concerned employee for the period he/she worked in BSNL.
Future Pension revision of BSNL retirees need not depend upon the financial condition of BSNL Company. It is a permanent solution for a serious problem. We desired this decision.
Some people suggested delinking the 78.2 issue with 60:40 issue so that 78.2 could be achieved immediately. EVEN ONE ASSOCIATION OF PENSIONERS DEMANDED DELINKING OF 78:2 FROM 60:40 ISSUE. THEY PROUDLY MENTIONED THIS IN THE REPORT TO THEIR ALL INDIA CONFERENCE. LUCKILY DOT DID NOT ACCEPT THEIR DEMAND. THE 60:40 IS REMOVED NOW. THAT ASSOCIATION IS HAILING THE DECISION FORGETTING WHAT THEY DEMANDED EARLIER.
We did not agree to it because we have a far-sight. When the Department is willing to remove the 60% condition why should we oppose it?
Some people suggested to go to Court. We did not agree that also as we knew we have to fight upto Supreme Court and we have to spend our life in the Courts for next five years at least. Even after winning the case we have to approach the Government. So we approached the government direct.
We argued our case effectively. We took support from political leadership to intervene and influence the decision making process.
WE ARE SUCCESSFUL IN OUR EFFORTS. WE HAVE ACHIEVED IT. ANNULMENT OF 60:40 CONDITION IS THE MOST SIGNIFICANT GAIN.
I do not like to abuse or accuse any one. Individuals and organisations have taken certain stand depending upon their understanding of the matter. But, we should not forget the history. We should learn lesson from this and take correct decision in future.
THINK OF THE FUTURE. DANGER IS AT YOUR DOOR-STEP. STATUTORY PENSION SYSTEM IS NOT SAFE IN INDIA FOR EVER.....
.. P S Ramankutty, 10-7-2016
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