Friday, July 29, 2011




26th July, 2011

Dear Comrades,


More than 800 delegates representing AISGEF, Confederation of CGE & W, AIRF, AIDEF, STFI, AIFUCTO, BSNLEU, DREU and various Pensioners Associations participated at the National Convention on PFRDA Bill held at MPCU Shah Auditorium on 22nd July,2011. The proceedings of the convention were conducted by a presidium consisting of the following comrades:

Com. R.G.Karnik(AISGEF)

Com.S.K.Vyas(Confederation of CGE&W)


Com.Sardara singh(AISGEF)

Com.N.Narayaana (STFI)

Com.V.A.N. Namboodiri (BSNLEU)

The declaration was presented by Com. Sukomal Sen, Vice President( AISGEF) and seconded by Com. S.K.Syas(Confederation of CGE&W), Com.Basudeb Acharya, M.P., Com. Tapan sen, Genl.Secy (CITU), Com. M.K.Pandhe, Vice President (CITU), Com. Bhatnagar (AlIEA), Com. Pradeep Biswas (BEFI) addressed the convention. Besides, leaders of all participating Federation, viz shiv Gopal Misra (AIRF), Com. Rajendran(STFI), Com. Ashok Kumar Burman(AIFUCTO), Com. R. Muthusundaram (AISGEF),Com. Abhimanyu (BSNLEU)Com.Sardara singh(AIDEF), Com.Elangovan(DREU), Com. M. Krishnan(NFPE), Com. Shyam Sundar(BCPC) spoke to detail the dangers posed to the existing pensioners and the serving employees when the contributory scheme is brought in operation. Com. K.K.N Kutty, Secy.Genl., Confederation of CGE&W summed up the discussion and sought and obtained the approval of the house for the following programmes of action.

1. To organise a mass signature campaign to be submitted to the Prime Minister. (The draft prepared and circulated was felt to be too lengthy to employ it for a signature Campaign. Therefore it was decided to have a small petition (copy given enclosed) which could be used for the campign.)

2. The standing committee can be approached for a hearing by the participating organizations. The original draft letter addressed to the PM may be used as a background paper to prepare the petition to the Chairman, Standing Committee.

3. To organise joint State level Conventions between 1-8-2011 and 6-9-2011.

4. To organise March to Raj Bhawan preferably on 6-9-2011 at all state capitals.

5. To organise March to Parliament.

6. To organise a day’s strike.

The dates for the program at (5) and (6) will be finalized by the Steering Committee consisting of representatives of all participating Federations. The Steering Committee is expected to meet in the last week of August, 2011. The convention approved the setting up of the steering committee.

On behalf of the Presidium, the concluding speech was delivered by Com. R.G.Karnik. He appealed to all the participating organizations to take strenuous efforts to ensure full participation of their members in the programmes to compel the Government to rescind their decision and withdraw the Bill from the parliament.

With greetings,

Yours faithfully,


Secretary General


We submit this petition to bring to your kind notice certain aspects of the re-introduced PFRDA Bill which will have an extremely adverse impact on the pension and retirement benefits of the Government employees. We may also state in this connection that the contributory pension scheme will be a drain on the exchequer.

The guiding principle adopted in determining the pay package of civil servants is to spread out the wage compensation over a long period of time because of which the wages during the work tenure is low to enable pension payment on retirement. This makes the pension a ”deferred wage”, which the Supreme Court has upheld as such in their landmark judgment in the case of D.S. Nakara Vs. Union of India. As the bill does not provide implicit or explicit assurance of a minimum pension except marked based guarantee, the civil servant even after contributing huge sums to pension fund may end up with no annuity if the invested company become bankrupt or the equity market crashes. Moreover the annuity which would be the pension under the new scheme being not cost indexed will make it difficult for the pensions to make the both ends meet.

The Committee set up by the 6th CPC has concluded that the new contributory pension scheme will increase the outflow from the exchequer from Rs. 14,284 Crores to Rs. 57088 Crores by 2038. The Committee has also observed that the pension liability of the Government which was 0.5% of the GDP in 2004-05 under the defined benefit scheme is likely to decline if the same is not replaced by the contributory pension scheme as envisaged in the PFRDA bill. The Committee has ultimately recommended that the existing “Pay as you go” pension which is presently in vogue will be ideal and may be continued.

Since the new scheme is neither in the interest of the country as it increases the outflow on account of pension liability nor to the Civil Servants for it does not guarantee a minimum pension, we appeal to you kindly cause withdrawal of the PFRDA Bill from the Parliament immediately.

Thanking you,

Yours faithfully,