Benefits of MACPS w.e.f.1.1.2006, since MACPS is a part of pay structure not as allowances as per Sixth CPC and as per judgment of Supreme Court: IRTSA

Benefits of MACPS w.e.f.1.1.2006, since MACPS is a part of pay structure not as allowances as per Sixth CPC and as per judgment of Supreme Court: IRTSA

INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION
(Estd. 1965, Regd. No.1329, Website http://www.irtsa.net )

M. Shanmugam,
Central President, IRTSA
# 4, Sixth Street, TVS Nagar,
Padi, Chennai - 600050.

Harchandan Singh,
General Secretary, IRTSA,
C.Hq. 32, Phase 6,
Mohali, Chandigarh-160055.
No:IRTSA/CHq/Memo RB/MACPS/2017-12 Date: 27-12-2017

MEMBER STAFF
RAILWAY BOARD
RAIL BHAWAN, NEW DELHI-110001

benefits-of-macps-wef112006-since-macps-irtsa-paramnews


Respected Sir,

Sub: Benefits of MACPS w.e.f.1.1.2006, since MACPS is a part of pay structure not as allowances as per Sixth CPC and as per judgment of Supreme Court. 

Ref: 
  • 1. Recommendations of Sixth Central Pay Commission para 6.1.15, 6.5.2 & 6.5.4
  • 2. Ministry of Finance Resolution No.1/1/2008-I C, dated 29.8.2008
  • 3. OM No. PC-V/2009/ACP/2 (RBE No.101 /2009) dated 10.06.2009 – Regarding Recommendations of Sixth CPC – Modified Assured Career Progression Scheme (MACPS) for Railway Employees,
  • 4. Ministry of Railways Notification RBE No. 103/2008 dated 04.09.2008
  • 5. Railway Service (Revised Pay) Rules, 20008, No. PC-VI/2008/I/RSRP/1 (RBE No:108/2008) dated 11.09.2008
  • 6. Judgement of Supreme Court in Civil Appeal No.3744 of 2016 Dated 8-12-2017 (Copy attached).
1. We seek your kind intervention to urge upon the Government to please reconsider and revise the date of implementation of MACPS w.e.f 1.1.2006 (instead of 1-9-2008), since MACPS has been held by the Hon’ble Supreme Court of India, as a part of pay structure recommended by 6th CPC and not to be considered as allowance which were implemented from 1.9.2008.

2. 6th CPC in Para 6.1.15 (Annexure-I) of its report, had recommended Modified Assured Career Progression Scheme (MACPS). As per the recommendations, financial upgradation was to be available in the next higher Grade Pay whenever an employee completed 12 years continuous service in the same grade. However, not more than two financial upgradations were to be given in the entire career. The Government had accepted the same with further modification to grant three financial upgradations under the MACPS at intervals of 10, 20 and 30 years of continuous regular service. This Scheme was in supersession of previous ACP Scheme and clarifications were issued there under.

3. Sixth CPC Recommendations on Date of implementation:

a) Reg. Pay Structure: 6th CPC in para 6.5.2 & 6.5.4 (Annexure-II) of its report had recommended for implementation of revised scheme of pay bands and grade pay as on 1/1/2006 retrospectively

b) Reg. Allowances: 6th CPC had recommended for implementation of revised allowances to take effect prospectively.

c) Reg. MACPS: 6th CPC had recommended for implementation of MACPS retrospectively from 1-1-2006, as clear from the relevant Para reproduce below:

6.5.2. The Commission has devised the revised scheme of pay bands and grade pay on the basis of price index as on 1/1/2006. Consequently, the revised structure of pay bands and grade pay being recommended in this Report would need to be implemented from 1/1/2006. The Government will have to pay arrears of salary on account of fixation of pay in the revised pay bands and grade pay retrospectively with effect from 1/1/2006.

4. Ministry of Finance vide Gazette of India, Extraordinary Notification of Resolution No.1/1/2008-I C, dated 29.8.2008 had implemented revised pay w.e.f.1.1.2006. But it implemented MACPS and all allowances except DA w.e.f.1.9.2008. Relevant rules of finance ministry notification is attached as Annexure-III

5. Ministry of Railways also implemented revised pay w.e.f.1.1.2006 and all allowances except DA w.e.f.1.9.2008. Relevant part of RBE No. 103/2008 dated 04.09.2008 is attached as Annexure-IV

6. Railway Board implemented the revised rate of NPA effective from the date an employee drawing pay in the revised scale applicable to him in accordance with the provisions of the Railway Services (Revised Pay) Rules, 2008, ie. w.e.f. 1.1.2006, vide its letter No. PC-V/2008/A/O/1(NPA) (RBE No. 122/2008) dated 22.9.2008. Relevant part of RSRP is attached as Annexure-V

7. It is very much evident that 6th CPC recommended MACPS as part of pay structure. Subsequent resolution issued by Finance Ministry, (relevant paras of resolution given in earlier paras of this memorandum) implemented revised pay w.e.f. 1.1.2006. All allowances except DA were implemented w.e.f.1.9.2008.

8. MACPS is a part of pay structure. But MACP order have been implemented w.e.f.1.9.2008, which is against the 6th CPC recommendations and Finance Ministry’s resolution.

9. Hon’ble Supreme Court of India in Civil Appeal No.3744 of 2016 decided on 8-12-2017 (copy attached as Annexure-VI) had upheld the orders of the Armed Forces Tribunal (AFT) vide its order dated 21.05.2014 wherein it was held that the benefit of ACP granted to an employee is part of the pay structure which not only affects his pay but also his pension and, therefore, held that the ACP is not an allowance but a part of pay and will apply from 01.01.2006. The Court had further ordered and held that there can be no dispute that grant of ACP is part of the pay structure.

10. It is, therefore, requested that MACPS may please be implemented from 1.1.2006 since MACPS is part of pay structure – as recommended by 6th CPC and as held by the Apex Court.

Yours’ faithfully


Harchandan Singh, 
General Secretary/IRTSA

Encl: 6 Annexure

➢ 2 Extracts of recommendations of 6th CPC

➢ Reg Date of effect of MACPS as being part of Pay structure Ø 3 Extracts of decisions of Gov. Reg MACPS.

➢ 1 Copy of judgment of Supreme Court
- on Date of effect of MACPS as part of Pay structure



Copy for information & necessary action to:

1. Secretary (Establishment), Railway Board, Rail Bhawan, New Delhi - 110001
2. Executive Director (Pay Commission), Railway Board, Rail Bhawan, New Delhi - 110001

Annexure-I 
6th CPC recommendations on MACPS

6.1.15. …… The Commission, therefore, recommends that the existing scheme of Assured Career Progression may, in future, be continued with two financial upgradations being allowed as at present with the following modifications:-

i) The scheme will also be available to all posts belonging to Group A - whether isolated or not. Organised Group A services will, however, not be covered under the scheme.

ii) Benefit of pay fixation available at the time of normal promotion shall be allowed at the time of financial upgradations under the scheme. Thus, an increase of 2.5% of pay and grade pay shall be available as financial upgradation under the scheme.

iii) The grade pay shall change at the time of financial upgradation under this scheme. The grade pay given at the time of financial upgradation under ACPS will be the immediate next higher grade pay in the hierarchy of revised pay bands and grade pay being recommended. Thus, grade pay at the time of financial upgradation under ACPS can, in certain cases where regular promotion is not between two successive grades, be different than what is available at the time of regular promotion. In such cases, the higher grade pay attached to the next promotion post in the hierarchy of the concerned cadre/ organization will be given only at the time of regular promotion.

iv) Financial upgradation under the scheme will be available whenever a person has spent 12 years continuously in the same grade. However, not more than two financial upgradations shall be given in the entire career as was provided in the extant scheme.

The scheme with aforesaid modifications shall be called modified ACPS and will ensure suitable progression uniformly to all the employees in Central Government.

Annexure-II 
6th CPC recommendations on Date of effect

6.5.2. The Commission has devised the revised scheme of pay bands and grade pay on the basis of price index as on 1/1/2006. Consequently, the revised structure of pay bands and grade pay being recommended in this Report would need to be implemented from 1/1/2006. The Government will have to pay arrears of salary on account of fixation of pay in the revised pay bands and grade pay retrospectively with effect from 1/1/2006.

6.5.4. The Commission is of the view that prospective revision of various allowances is justified as their retrospective revision will give unintended benefits and may also, in some instances, cause loss to the employees as in the case of City Compensatory Allowance. Accordingly, the Commission’s recommendations relating to allowances shall take effect prospectively. All recommendations relating to other facilities, benefits and conditions of service shall also take effect prospectively.

Annexure-III 
Ministry of Finance resolution

Gazette of India, Extraordinary, Ministry of Finance resolution No.1/1/2008-I C, dated 29.8.2008 has implemented revised pay w.e.f.1.1.2006 and all allowances except DA w.e.f.1.9.2008.

rule (iv) of rule 1. With regard to fixation pay in the revised pay bands, the basic pay drawn as on 1.1.2006 on the existing 5th CPC pay scales will be multiplied by a factor of 1.86 and then rounded of to next multiple of 10. This will be the pay in the revised running pay band. Grade Pay, as approved by Government, corresponding to the pre-revised pay scale, will be then added to the pay in the revised pay band. The total of pay in pay band and grade pay will be the revised basic pay as on 1.1.2006.


rule (vii) of rule 1. Three upgaradtion will be granted under Assured Career Progression (ACP) scheme at 10, 20 and 30 years as per Modified ACP scheme recommended by the Commission. ACP scheme will also applicable to Group ‘A’ employees.

rule 3. The revised allowances, other than dearness allowance, will be effective from 1st day of September 2008.

Annexure-IV 
Ministry of Railways Notification RBE No. 103/2008 dated 04.09.2008

Sub rule (2) of rule1 - They shall deemed to have come into force on the 1st January 2006.

Sub rule (1) of rule 7 – The initial pay of Railway servant who elects, or deemed to have elected under sub rule (3) of rule 6 to be governed by the revised pay structure on or from 1st January 2006, shall, unless in case the President by special order otherwise directs, be fixed separately in respect of substantive pay in the permanent post on which he holds a lean or would have held a lean if it had not been suspended, and in respect of pay in the officiating post held by him, in the following manner namely:-

(A) In the case of all employees

(i) the pay in the pay band/Pay scale will be determined by multiplying the existing basic pay as on 1.1.2006 by a factor of 1.86 and rounding off the resultant figure to the next multiple of 10.

Annexure-V

Railway Service (Revised Pay) Rules, 20008, No. PC-VI/2008/I/RSRP/1 (RBE No:108/2008) dated 11.09.2008

Rule 4. The revised rates of all allowances, such as House Rent Allowance, Transport Allowance, Children Education Allowance, Special Compensatory Allowance, Special Duty Allowance, Island Special Duty Allowance, Hard Duty Allowance etc will be paid prospectively w.e.f.1.9.2008. Accordingly no arrears will be paid in respect of these allowances. However, Dearness Allowances and non-practicing allowance for medical doctors at rates notified separately, will be payable w.e.f.1.1.2006 or from the date of option.

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