Cabinet approves BSNL pension revision

By allowing the benefit of merger of 50% DA/DR with basic pay

The Union Cabinet at a meeting here chaired by Prime Minister Narendra Modi on Tuesday approved pension revision to the retirees of public sector telecom company Bharat Sanchar Nigam Limited (BSNL) by allowing the benefit of merger of 50 per cent DA/DR with basic pay.

The pension revision for BSNL pensioners and family pensioners will amount to 78.2 per cent DA/DR for the purpose of fitment and modifying BSNL's liability towards pensionary benefits payments to retired employees.

"The decision of the Cabinet has come in the wake of an anomalous situation created in the difference of pension formula among the BSNL retirees, who retired before and after June 10, 2013," said a cabinet communique.

Pension has been revised with effect from January 1, 2007 for BSNL pensioners who retired before June 10, 2013 to be on par with serving BSNL employees.

Also, the pension liability of Department of Telecommunications (DOT), Department of Telecom Services (DTS) and Department of Telecom Operations (DTO) who retired before October 1, 2010 will be solely borne by the central government while BSNL will have no liability in respect of these employees.

The revision will entail an estimated recurring annual expenditure of approximately Rs 129.63 crore for pensioners and Rs 24.93 crore for family pensioners while arrears from 2013-14 would amount to Rs 239.92 crore for pensioners and Rs 44.62 crore for family pensioners.

As many as 1,18,500 pensioners are across the country are slated to benefit from the revision.