TN govt to implement scheme for govt staff

To also roll back commutation table & leave encashment norms

The Tamil Nadu Government has decided to implement a scheme to settle the arrears of pay and allowances, additional commutation and gratuity to the government employees, which have accrued with the implementation of the Sixth Pay Commission's recommendations.

While this scheme will freeze the arrears pile to an extent, it will cost the government Rs 355.44 crore in the current fiscal. The government is also rolling back the commutation table and leave encashment norms announced in April 2003, as an interim measure.

In a statement issued here, chief minister J Jayalalithaa has offered to clear the arrears of gratuity along with interest due to the state government employees who retired between January 1, 1996 and March 31, 1998. The same set of employees will get their arrears on commutation in three equal annual installments with interest, starting from 2004-05.

As for arrears on pay and allowances to employees who retired between January 1,1996 and March 31, 2004, 60 per cent of the amount due along with interest will be blocked into a non-interest bearing account with retrospective from April 1, 2003.

This will then be paid out in the form of small savings scrips in their names, in three annual installments from 2004-05.

Similarly, in the case of arrears of pay and allowance for those who have been in service as April 1, 2004, 60 per cent of the dues will be retained in a non-interest bearing deposit account from April 1, 2003, and will be paid only at the time of retirement in the form of small savings scrips in three equal installments.

The government employees and teachers have also represented their case to the government to take a sympathetic view on disbursal of lump sum commutation dues and better encashment of accumulated leave at the time of retirement. A working group will be constituted to go into the determination of the commutation table.

Pending the report of the working group, the government order dated April 30, 2003, revising the commutation table will be cancelled and the calculations will revert to the table used earlier, with effect from April 1, 2003.

Similarly, orders issued by the Finance (Pension) Department on March 19, 2003, will also be cancelled to enable encashment of earned leaves accumulated up to 240 days and unearned leaves on private affairs of 180 days (which will be converted to 90 days of full pay).

In effect the encashment will be for 330 days in all. This will be applicable to all retiring employees with effect from April 1, 2003.

To justify this freezing of arrears, the statement drew attention to the financial strain the scheme will put on the government's finances.

"While this will involve a huge financial outgo in the current year, I have decided to implement it forthwith to settle a long-pending grievance of government employees and teachers. Despite continuing financial strain, my government has come forward to settle this large amount in order that the government employees and teachers are motivated to serve the people of the state better," Jayalalithaa said in a statement.

She pointed out that the major problem faced by the Tamil Nadu government is making payment of pension dues of retired government staffers, since the implementation of Sixth Pay Commission's recommendations.

The pension payments of the state has risen from Rs 787.03 crore in 1995-96 to Rs 3,808 crore in the revised estimates of 2003-04. She blamed this outflow as one of the reasons for the fiscal being faced by her government.

It became necessary to make some modifications in the scheme of pension payments, which the government undertook in March 2003, the chief minister said.

She also referred to the working group constituted by the Reserve Bank of India (RBI) to go into the problem of galloping pension payments faced by all the states.

The modifications made in Tamil Nadu are in line with the changes recommended by this working group, she pointed out.