ADMINISTRATIVE REFORMS COMMISSION REPORT

ARC RECOMMENDATION
The Second Administrative Reforms Commission (ARC) has recommended lowering of the upper age limit and reducing the number of attempts for civil services aspirants with some relaxations for reserved categories.
The Tenth report of the Commission on “Refurbishing of Personnel Administration — Scaling New Heights,” released here on Friday, suggested doing away with the present system of evaluation of performance based on annual confidential report (ACR). Instead, it came up with a concept of annual performance agreements to be signed between the Minister concerned and the Secretary or head of the department, providing physical and verifiable details of the work to be done during a financial year. The actual performance should be assessed by a third party.
Addressing a press conference, Commission chairperson M. Veerappa Moily said the panel favoured reducing the upper age limit for writing the civil services examination to between 21 and 25 for general candidates, 28 for the Other Backward Classes (OBC) and 29 for Scheduled Caste (SC) and Scheduled Tribe (ST) candidates as also those who were physically challenged.
The number of permissible attempts in the civil services examinations should be 3 years, 5 years and 6 years for the general candidates, OBC, and SC/ST and physically challenged aspirants, the panel has suggested.
At present, the upper age limit is 30 years for the general candidates with 4 attempts. But there are relaxations for the OBC and SC/ST aspirants.
According to the report, a Post-School Grooming System for civil services aspirants and a formal degree course in public policy would be of great help and also discourage the system of coaching centres which have tended to distort the formal education system.
While recommending the establishment of National Institutes of Public Administration to run degree courses in public administration, the report has said an expert committee should work out the modalities of the proposed system.
For a transparent system of appointments in the government, covering all ranks, the Commission has suggested the setting up of a Central Civil Services Authority. The panel is also in favour of introducing competition for all senior positions by opening these to services. The Authority, the panel says, should be a five-member body with the chairperson appointed by the President on the recommendations of the Prime Minister and the Leader of the Opposition to make it totally apolitical.
The Commission is of the view that in order to avoid any conflict of interest, government officials should not be allowed to go on deputation to private commercial organisations.
Periodic review
In order to increase accountability, the Commission suggested a periodic review of the performance for which it recommended a system of two intensive reviews — one on completion of 14 years of service and the other on completion of 20 years. The first review will primarily serve the purpose of intimating individual about his/her performance and the second is mainly to assess the fitness of the officer for his/her future continuation in service. The employees found unfit after 20 years should be dispensed with and a provision in this regard should be made in the proposed Civil Services Law, Mr. Moily has said.
Source:The Hindu.

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BSNL BROADBAND FOR GOVT EMPLOYEES

BSNL Offers 20% discount for govt employees
In order to boost the acquisition and usage of Broadband among government Employees the competent authority has approved 20% discount on Broadband charges (usage and rental) for Broadband connections provided to Central Government/ State Government/ PSU Employees category.
The scheme is to be launched from 1 December 2008 across BSNL network and is a continuous scheme.
The serving and retired government employees applying for Broadband Connection under this scheme, should furnish an undertaking countersigned by their Drawing and Disbursing Officer regarding their bonafide along with the applicationIn case of retired employees, an attested copy of the Pension Pay Order should be submitted along with the application. The application should be marked as “FOR GOVERNMENT EMPLOYEES SCHEME”.
The scheme is also applicable to existing Broadband customers who are serving/retired government employees subject to their furnishing an undertaking as detailed above. The discount of 20% in Broadband Service charges for the existing customers will also be applicable if they apply, from the month of such application.
Source: The details of offer available at http://bsnl.co.in/tender1/files/proscheme_bs.pdf
BSNL official news availabe at http://bsnl.co.in

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CCL- ANOTHER CLARIFICATION

CCL -BEFORE 18-11-2008
There is lot of confusion over CCL after the clarification issued by DOPT on 18-11-2008.
As per this clarification CCL can be availed after exaustion of EL.But the position of CCL which is availed before this clarification is not clear.So DOPT ,Now, issued another clarification regarding this issue.It is as follows:-
With reference to the DoPT’s O.M. of even number dated 11th September, 2008 regarding introduction of child care leave in respect of Central Government employees and subsequent clarifications vide O.M. dated 29th September, 2008 and 18th November, 2008.
It is further clarified that child care leave sanctioned prior to issuance of O.M. No. 13018/2/2008-Estt.(L) dated 18th November, 2008 shall be treated as child care leave and shall be deducted from the Child Care Leave account of the Government servant concerned. No adjustment against any kind of leave shall be made in this regard.
The Child Care Leave sanctioned for the period beyond 18/11/2008 shall however be regulated in terms of clarification issued vide O.M. of even number dated 18/11/2008.

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PSU-NEW PAY SCALE DETAIL

PAY BONANZA FOR EXECUTIVES OF CPSU
The Government has approved the Ministry of Heavy Industry’s recommendation for
pay revision of the executives of the Central Public Enterprises. The Minister of Heavy
Industry and Public Enterprises, Shri Santosh Mohan Dev highlighted a few important aspects
of this pay revision at a press conference in New Delhi .
He said, “this was the best ever package given by any Central Government to the executives of CPSE. The entire exercise was based on the premise that the existing disparity between the salary of private sector and the salary of the public sector executives should be minimized as far as practicable. This will certainly lower the feeling of deprivation amongst the Central PSU executives and also arrest the attrition of employees who are migrating to private sectors.”
The Minister said this package has been finalized in the fastest possible mode. The 2nd
Pay Revision Committee was constituted in November, 2006 with Justice Rao as the
Chairman and Dr. Nitish Sen Gupta, Dr. Parakh and Shri Bhaskarudo as Members. The
Committee submitted its report on 30th May, 2008.
Shri Santosh Mohan Dev said that in this package, the ministry has taken care of not
only the salary structure but also the future growth, so that the executives are encouraged to
perform better.
The salient feature of the decisions of the Government which have been taken today for pay revision of CPSE executives are as follows:-
􀂾 There would be a single set of pay scales for below Board level executives with an
elongated span, which includes the Risk Pay at the minimum and maximum level
instead of 5 sets of scales of pay. The revised pay scales are being circulated to you
separately.
􀂾 The Government has decided to give uniform fitment @ 30% of Basic Pay + DA as on
01.01.2007 to all executives, instead of graded fitment of 3% to 42%.
􀂾 Government has decided to give running pay scales for Directors and CMDs
depending upon the schedule of the CPSE, by including Risk Pay at the maximum
instead of Fixed Pay, which was suggested by the Committee.
􀂾 The existing categorization of CPSEs into 4 schedules will continue.
􀂾 The Government has accepted the recommendations of the 2nd Pay Revision
Committee with regard to Dearness Allowance, House Rent Allowance, Leased
Accommodation, City Compensatory Allowance, other allowances/ perks, Variable
Pay/ Performance Related Pay, Performance Management System, Remuneration
Committee, Long Term Incentives, Cost to the Company, retirement age and
Superannuation Benefits.
􀂾 The benefit of one additional increment for every two increments would be provided to
mitigate the problem of junior and senior executive getting the same pay.
􀂾 A uniform rate of annual increment as well as stagnation increment @ 3% of Basic
Pay in all CPSEs will be adopted.
􀂾 The Government has even provided pay increase to the marginally profit making
CPSEs at the fitment of 10% or 20% of their existing pay + DA, depending upon the
affordability of concerned CPSE.
􀂾 A big demand by CPSEs employees regarding raising the limit of gratuity has been
accepted by the Government and the ceiling of gratuity for the executives would now
stand increased to Rs. 10 lakhs. So far the said ceiling was Rs. 3.5 lakhs.
􀂾 Appropriate compensation package in respect of non unionized supervisors would be
decided by the respective Board of Directors of CPSEs.
􀂾 Expenditure on account of pay revision would be borne by the CPSEs, out of their
earnings.
􀂾 Even if there is any specific issue/problem of CPSEs employees, government has also
constituted Anomalies Committee to look into such issues.
􀂾 The effective date of pay revision will be 01.01.2007.
REVISED SCALES OF PAY AT BOARD AND BELOW BOARD LEVELS IN CPSEs
*E7 only in CPSEs of Schedule A, B & C.
* E7 only in CPSEs of Schedule A,B & C.
*E8 only in CPSEs of Schedule A & B.
*E9 only in CPSEs of Schedule A.
REVISED PAY SCALES

GRADE	EXISTING	REVISED
EO	6550-200-11350	12600-32500
E1	8600-250-14600	16400-40500
E2	10750-300-16750	20600-46500
E3	13000-350-18250	24900-50500
E4	14500-350-18700	29100-54500
E5	16000-400-20800	32900-58000
E6	17500-400-22300	36600-62000
E7	18500-450-23900	43200-66000
E8	20500-500-26500	51300-73000
E9	23750-600-28550	62000-80000
Directer(D)	18500-450-23900	43200-66000
CMD(D)	20500-500-25000	51300-73000
Directer(C)	20500-500-25000	51300-73000
CMD(C)	22500-600-27300	65000-75000
Directer(B)	22500-600-27300	65000-75000
CMD(B)	25750-650-30950	75000-90000
Directer(A)	25750-650-30950	75000-100000
CMD(A)	27750-750-31500	80000-125000

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NEW PENSION SCHEME-PFRDA

New Pension Scheme-Features
The NPS is a new contributory pension scheme introduced by the Central Government for its own new employees. Under the new pension system, each new central government employee will open a personal retirement account on joining service. Every month, and till the employee retires or leaves government service, a part of the employee's salary will be transferred into this account. When the person retires, he will be able to use these savings to take care of the needs and expenses of his family during old age.
Pension Fund Regulatory and Development Authority was established by the Government of India on 23rd August 2003 to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.
When you join Government service, you will be allotted a unique Personal Pension
Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account and this unique PPAN from any location and also if you change your job. The PPAN will provide you with two personal accounts:
1. A mandatory Tier-I pension account, and
2. A voluntary Tier-II savings account.
1. Tier-I account: You will have to contribute 10% of your basic+DA+DP into your Tier-I (pension) account on a mandatory basis every month. You will not be allowed to withdraw your savings from this account till you retire at age 60. Your monthly contributions and your savings in this account, subject to a ceiling to be decided by the government, will be exempt from income tax. These savings will only be taxed when you withdraw them at retirement.
2. Tier-II account: This is simply a voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.
Main Features and Architecture of the New Pension System
The new pension system would be based on defined contributions. It will use the existing network of bank branches and post offices etc. to collect contributions. There will be seamless transfer of accumulations in case of change of employment and/or location. It will also offer a basket of investment choices and Fund managers. The new pension system will be voluntary.
The system would, however, be mandatory for new recruits to the Central Government service (except the armed forces). The monthly contribution would be 10 percent of the salary and DA to be paid by the employee and matched by the Central Government. However, there will be no contribution from the Government in respect of individuals who are not Government employees. The contributions and returns thereon would be deposited in a non-withdrawable pension account. The existing provisions of defined benefit pension and GPF would not be available to the new recruits in the central Government service.
In addition to the above pension account, each individual can have a voluntary tier-II withdrawable account at his option. Government will make no contribution into this account. These assets would be managed in the same manner as the pension. The accumulations in this account can be withdrawn anytime without assigning any reason.
Individuals can normally exit at or after age 60 years from the pension system. At exit, the individual would be required to invest at least 40 percent of pension wealth to purchase an annuity. In case of Government employees, the annuity should provide for pension for the lifetime of the employee and his dependent parents and his spouse at the time of retirement. The individual would receive a lump-sum of the remaining pension wealth, which she would be free to utilize in any manner. Individuals would have the flexibility to leave the pension system prior to age 60. However, in this case, the mandatory annuitisation would be 80% of the pension wealth.
There will be one or more central record keeping agency (CRA), several pension fund managers (PFMs) to choose from which will offer different categories of schemes.
The participating entities (PFMs, CRA etc.) would give out easily understood information about past performance & regular NAVs, so that the individual would able to make informed choices about which scheme to choose.
Individual will not be eligible to Gratuity
The General Provident Fund (Central Service) Rules, 1960 also do not apply to them. They will not be permitted to contribute towards GPF
more details:http://www.pfrda.org.in/index.asp

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CHILD CARE LEAVE -NEW TURN

CCL –Clarification-fear of staff shortage
The CCL, which is over and above the existing six-month maternity leave, will now be available only after the women employees exhaust their earned leave or EL.
The CCL was announced two months ago on the recommendations of the Sixth Pay Commission to help women employees take better care of their children and family. But the more virtually backfired with several central government departments being flooded with applications from women employees for CCL.
Alarmed, department heads then petitioned the government, arguing that granting such leave for long periods would cause acute staff shortage.
The department of training and personnel (DoPT) has now modified the earlier order saying women employees cannot demand the special leave as a matter of right and can avail themselves of it only after they have exhausted their EL.
“The intention of the pay commission in recommending CCL for women employees was to facilitate them to take care of their children at the time of need. However, this does not mean that CCL should disrupt the functioning of central government offices. The nature of this leave was envisaged to be the same as that of earned leave.
Accordingly, while maintaining the spirit of the pay commission’s recommendations and also harmonising the smooth functioning of the offices, clarifications are issued. CCL can be availed only if the employee concerned has no EL to her credit,” the new DoPT circular says.
Accordingly, CCL will be treated like EL and Saturdays, Sundays, gazetted holidays falling during the period of leave would also be counted in it, as is the case with EL.

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BONANZA TO CPSU OFFICERS

50 to 300 percent increase in pay package
In a bonanza to officers of Central Public Sector Undertakings, the government on Thursday announced a hefty 50 to 300 per cent increase in pay-packages with effect from January 1, 2007.A Cabinet meeting, chaired by Prime Minister Manmohan Singh, approved the new scales for 1,20,000 non-unionized supervisory staff and 2,58,000 board level officers in 216 operational Central PSUs.It approved uniform fitment of 30 per cent of basic pay plus dearness allowance for profit making PSUs with effect from January 1, 2007. For weak and non-profitable PSUs, the fitment will depend on their affordability and will range between 10 per cent and 20 per cent.The package would include revision in other allowances like house rent allowance, besides performance related incentives, Minister of State in Prime Minister's Office Prithviraj Chavan told reporters in New Delhi"The revised pay scales would be implemented by issue of Presidential Directive in respect of each CPSE separately by the administrative ministry concerned," he said.While the new pay structure would be implementable from January 1, 2007, the new allowances would accrue to employees only after the decision is notified by individual units.The Cabinet relied on the Committee of Secretaries recommendations to classify PSUs into four categories - A, B, C and D, instead of five categories - A+, A, B, C and D recommended by the Rao Committee in May.The chairman of 'A' category PSU will now be eligible for Rs 80,000 to 1,25,000 pay scale as against Rs 18,500 to 23,900 currently.
source:NDTV

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PSU PAY REVISION- PRESS RELEASE

Pay Revision of Executives ( Board level Executives, below Board level Executives and Non-Unionized Supervisors) of Central Public Sector Enterprises (CPSEs) w.e.f. 1.1.2007
14:29 IST
The Union Cabinet today gave its approval for accepting the recommendations of 2nd Pay Revision Committee (PRC) as a package with regard to Dearness Allowance, House Rent Allowance, Leased Accommodation, City Compensatory Allowance, other allowances / perks, Variable Pay / Performance Related Pay, Memorandum of Understanding, Performance Management System, Remuneration Committee, Long Term Incentives, Cost to the Company, retirement age, Non Unionized Supervisory staff, pay of executives moving from holding companies to subsidiary companies or vice-versa on deputation / transfer, pay of Government officers on deputation to CPSEs and Superannuation Benefits. The decision has been approved on the recommendations of Committee of Secretaries (CoS). The revised pay scales would be implemented by issue Presidential Directive in respect of each CPSE separately by the concerned Administrative Ministry / Department. The revised pay scales will be effective from 1.1.2007. The payment of HRA, perks and allowances based on the revised scales will, however, be from the date of issue of Presidential Directives. The expenditure on account of pay revision has to be entirely borne by the CPSEs, out of their earnings and therefore, no financial outgo from the Government on account of pay revision is envisaged. An Anomalies Committee consisting of Secretaries of DPE, DOE and DoPT may be constituted to look into further specific issues / problems that may arise in implementation.
MORE DETAIL:
http://pib.nic.in/release/release.asp?relid=44922

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