MEMORANDUM TO DR. MANMOHAN SINGH
| Source: BMS |
HON’BLE PRIME MINISTER OF INDIA ON 12-10-2012
We bring to your kind notice that the WORKERS are very much worried due to the decision of the Government to allow FDI in Pension and Retail Trade and also with the increase of FDI in Insurance sector up to 49%. We feel that such decisions are against the interest of Indian economy in general and workers in particular. Sir, you are well aware of the fact that Pensionwasfirstintroduced in the Royal Services of Britain, in the year 1920 to bring in citizens with ability and of hard working in the administration. It arrived in our Country by The Act of India, 1935. The Supreme Court of India held that “The Pension is neither a bounty nor a grace bestowed by sweet will of 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 employee in old age is not left in the lurch.”(AIR-1983-SC-130) The V Central Pay Commission held “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””. In succession, The VI Central Pay Commission stated that operating pension scheme concurrently for the same set of employees is an open violation of Article 14 of our Constitution. Further, the existing system of pension are increasingly becoming complicated after the introduction of New Pension Scheme””... “Caution has to be exercised in initiating any further reforms”
Objective of Pension Scheme.
Sir, you will agree that the sole objective of Pension is to assist the retired, old aged person, weak, widow and disabled person for surviving and live happily and meet their need based requirements linked with consumer price index.
Hence various types of Pension Schemes came in to existence as following two categories :-
A. Contributory Pension Schemes.
(i) Government employees
(ii) Public Sector Employees.
(iii) Industrial workers under EPFO
(iv) Some schemes are also run by Post Office, Insurance and various Financial
Institutions. Under these schemes minimum and maximum pension is reportedly Rs. 12/- to 25000/- per month
B. Non-contributory schemes.
(i) Central Government and State Governments as per their various welfare
schemes provide Pension for weak, old, widow and destitute person in which minimum pension is nearly Rs. 300/- per month.
(ii) Hon’ble Ministers, M Ps and M L As and some others are provided pension after their retirement which is reportedly minimum Rs. 25,000/- per month. Thus it is to be noted that Pension varies from Rs. 12/- to 25,000/- per month or even much more. Some pensions are linked with consumer price index (CPI) numbers while most others are not.
It is also noted that while contributory pensioners get a meagre amounts, non-contributory pensioners like Ministers, MPs, MLAs and others get much higher rate of pension. When all pensioners have to face the same market for their needs why such a big gap is existing? This is neither rational nor justified. Introduction of new pension scheme for Government employees recruited from April, 2004 has created more problems.It is earnestly requested that all types of pensions must be linked to CPI numbers. When Government is unable to provide guaranteed pension linked with CPI numbers, how it decided to allow FDI ? As such introduction of FDI in pension will definitely create more anxiety to pensioners. Similar is the case of Retail Trade which provided employment for about 4 crores. In case of FDI in this sector they are going to lose their jobs and their family is bound to face poverty and hunger which will push them to commit suicide. Our LIC is the biggest service provider in the world and most successful in its operations. Then why Government wants to introduce FDI in this sector By hastily permitting FDI, Government is trying to cater to the interests of foreign investors and speculative market. It facilitates back door entry to foreign investors in the large area of Pension Funds. Government of India has not learned lessons from what had happened to lakhs of pensioners in US and European countries when their pension funds were invested in private funds and stock market. It had ended in social calamity from which their societies have not so far recovered. Government is working as a canvassing agent, facilitating big businesses and private industries at the expense of workers. Whereas, the Government is negligent in providing the much needed fund for welfare schemes under the Unorganised Workers Social Security Act, 2008 for the benefit of over 42 crore workers in the Unorganized Sector.
The Government had Nationalised Insurance sector due to widespread malpractices on the part of private companies. Now, again that is being reversed. This will facilitate foreign insurance companies to gain control over the savings of the people. Disinvestment is an outright sale of public property at throw away price. Government should stop disinvestment of PSUs, especially profit making ones like NALCO, RINL, MMTC, IOC, NMDC. Hence BMS demands the Government to bring out a white paper on the impact of 21 years of reforms in the country, before it takes reforms further. The pleas of collecting more fund for rapid development of infrastructure with the hard earned money of workers and at the cost of retailer has no precedent.
As such it is most irrational and so we oppose. We demand :-
1. Complete Ban on entry of FDI or share market in Pension, Retail and LIC sectors.
2. All Pensions must be linked with Consumer Price Index.
3. Uniform Pension for all as they have to meet similar market conditions.
4. Immediate meeting with All Central Trade Unions must be held by your good office.
With regards,
Sincerely yours,
(Baij Nath Rai)
General Secretary
We bring to your kind notice that the WORKERS are very much worried due to the decision of the Government to allow FDI in Pension and Retail Trade and also with the increase of FDI in Insurance sector up to 49%. We feel that such decisions are against the interest of Indian economy in general and workers in particular. Sir, you are well aware of the fact that Pensionwasfirstintroduced in the Royal Services of Britain, in the year 1920 to bring in citizens with ability and of hard working in the administration. It arrived in our Country by The Act of India, 1935. The Supreme Court of India held that “The Pension is neither a bounty nor a grace bestowed by sweet will of 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 employee in old age is not left in the lurch.”(AIR-1983-SC-130) The V Central Pay Commission held “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””. In succession, The VI Central Pay Commission stated that operating pension scheme concurrently for the same set of employees is an open violation of Article 14 of our Constitution. Further, the existing system of pension are increasingly becoming complicated after the introduction of New Pension Scheme””... “Caution has to be exercised in initiating any further reforms”
Objective of Pension Scheme.
Sir, you will agree that the sole objective of Pension is to assist the retired, old aged person, weak, widow and disabled person for surviving and live happily and meet their need based requirements linked with consumer price index.
Hence various types of Pension Schemes came in to existence as following two categories :-
A. Contributory Pension Schemes.
(i) Government employees
(ii) Public Sector Employees.
(iii) Industrial workers under EPFO
(iv) Some schemes are also run by Post Office, Insurance and various Financial
Institutions. Under these schemes minimum and maximum pension is reportedly Rs. 12/- to 25000/- per month
B. Non-contributory schemes.
(i) Central Government and State Governments as per their various welfare
schemes provide Pension for weak, old, widow and destitute person in which minimum pension is nearly Rs. 300/- per month.
(ii) Hon’ble Ministers, M Ps and M L As and some others are provided pension after their retirement which is reportedly minimum Rs. 25,000/- per month. Thus it is to be noted that Pension varies from Rs. 12/- to 25,000/- per month or even much more. Some pensions are linked with consumer price index (CPI) numbers while most others are not.
It is also noted that while contributory pensioners get a meagre amounts, non-contributory pensioners like Ministers, MPs, MLAs and others get much higher rate of pension. When all pensioners have to face the same market for their needs why such a big gap is existing? This is neither rational nor justified. Introduction of new pension scheme for Government employees recruited from April, 2004 has created more problems.It is earnestly requested that all types of pensions must be linked to CPI numbers. When Government is unable to provide guaranteed pension linked with CPI numbers, how it decided to allow FDI ? As such introduction of FDI in pension will definitely create more anxiety to pensioners. Similar is the case of Retail Trade which provided employment for about 4 crores. In case of FDI in this sector they are going to lose their jobs and their family is bound to face poverty and hunger which will push them to commit suicide. Our LIC is the biggest service provider in the world and most successful in its operations. Then why Government wants to introduce FDI in this sector By hastily permitting FDI, Government is trying to cater to the interests of foreign investors and speculative market. It facilitates back door entry to foreign investors in the large area of Pension Funds. Government of India has not learned lessons from what had happened to lakhs of pensioners in US and European countries when their pension funds were invested in private funds and stock market. It had ended in social calamity from which their societies have not so far recovered. Government is working as a canvassing agent, facilitating big businesses and private industries at the expense of workers. Whereas, the Government is negligent in providing the much needed fund for welfare schemes under the Unorganised Workers Social Security Act, 2008 for the benefit of over 42 crore workers in the Unorganized Sector.
The Government had Nationalised Insurance sector due to widespread malpractices on the part of private companies. Now, again that is being reversed. This will facilitate foreign insurance companies to gain control over the savings of the people. Disinvestment is an outright sale of public property at throw away price. Government should stop disinvestment of PSUs, especially profit making ones like NALCO, RINL, MMTC, IOC, NMDC. Hence BMS demands the Government to bring out a white paper on the impact of 21 years of reforms in the country, before it takes reforms further. The pleas of collecting more fund for rapid development of infrastructure with the hard earned money of workers and at the cost of retailer has no precedent.
As such it is most irrational and so we oppose. We demand :-
1. Complete Ban on entry of FDI or share market in Pension, Retail and LIC sectors.
2. All Pensions must be linked with Consumer Price Index.
3. Uniform Pension for all as they have to meet similar market conditions.
4. Immediate meeting with All Central Trade Unions must be held by your good office.
With regards,
Sincerely yours,
(Baij Nath Rai)
General Secretary
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