The TS government is seriously contemplating issuing bonds with a validity of 10 years due to financial constraints with a lock in period of five years. After five years, employees can encash these bonds. But employees are raising several doubts over these 10-year bonds pointing out that what if government changes during the general elections in 2019 and 2024 and there is no guarantee that the subsequent government will honour these bonds. Employees argue that they were originally eligible for revised pay scales from July 2013, but agreed from June 2014 with a view that TS was only formed in June 2014 and they did not want to burden the government by claiming arrears from the united AP state.
Employees are opposing the issuing of bonds and demanded that they be paid in cash or by way of GPF account. CM K. Chandrasekhar Rao had promised to pay arrears of RPS 2015 in cash to employees or GPF/ CPS accounts . He has to keep his word now. If not, employees will be forced to launch state-wide agitations against issuing of bonds, according to major teachers organisations in Telangana State.
Telangana Govt nod for payment of Pay Revision Commission arrears: It is good news for government employees. Chief Minister K Chandrasekhar Rao on Monday gave his nod for the payment of long-pending arrears under the PRC (Pay revision Commission) which came into force on June 2, 2014 to the employees in two installments.
The Chief Minister has signed the file pending for the last two years. Officials said the pending arrears for nine months between June 2, 2014 and February 2015 would be paid in two installments.
The first installment amount would be released in the present financial year and the remaining 50 per cent in 2018-19 financial year. The government brought into force the 10th PRC by providing 43 per cent fitment to all government employees in the newly-formed Telangana.
BOND SYSTEM TO PENSIONERS
Since the announcement of 43% fitment, all the employees are very happy and celebrated that occasion grandly. But as the days passing many problems are raising as we discussed before, that the employees will be issued the bonds instead of crediting them in G.P.F accounts.But the pensioners can get the net amount every time. But now TS govt decided pensioners to give bonds only instead of money. But the period limits to 5 years where as others have the duration of 10 years. They can avail it from 2016, and completes the process by 2020. If the bonds were issued to pensioners some problems may araise after detail and deep study only the G.o’s will be released on this concerned issue. If the pensioner dies, the nominee should also wait for 5 years or can avail the amount before such questions are raising. So, first our G.O’s will release and then the pensioners. As many leaders and employees are unsatisfactory on this bond system but the government view is that before there is neither given such better 43% fitment nor there is a vast period like 9 months. So, govt have stepped for bond system due to lack of funds also. BOND SYSTEM TO GPF and CPS Holders
After every P.R.C some period will considered as notional and the rest of period amount will be credited to our GPF accounts. But this time in our new govt, new system is going to inaugurate i.e., Bond system. In this P.R.C every employee’s 9 months period i.e., salary should credit to G.P.F but he/she gets in the form of bond. After 5 years he/she can claim 20% of that amount, and next 20% in next year, this process continuous for 5 consecutive years and completes at 10 years period i.e., at 2025 employee can claim with its interest of the amount to be claimed. Employee can claim the amount in the above said manner or total amount after 10 years i.e., at 2025 also, then employee can get the amount with its interest. Employee can claim according to their wish/necessity etc. But pensioners gets the net amount. Those who appointed after September 2004 and going to avail their pension on C.P.S will be issued these bonds only.
Merits and Demerits by this system:
This process may act as FD for 10 years and can plan for that amount at that particular period.
It may relax an employee for some needs and can take 20% amount every year for the period of 5 years.
It may vary in GPF amount, because employees can get huge amount after retirement, but by this system it may change.
If this continuous for every PRC employees can loose the huge amount, because they never save the money till retirement which he claims by bond system.
But additional G.O’s are not yet released they may be released in this month.
4 G.O’s were released on March 18, 2015
The related 4 G.O’s were released after the keen study and observation by the officials.
1. The 1st G.O is the main G.O which includes 43% fitment, Master scale method, Bond system, eligible employees for PRC etc. GO.25
2. The 2nd G.O consists of calculation of HRA.
3. The 3rd G.O consists of calculation of D.A
4. The 4th G.O consists of increase of CCA
There will be late of increase in salary by this month because the finance dept should send circular memo to all department, scale (pay fixation). So, employees may get this increased amount by supplementary bill or May 1st, 2015