Memorandum Regarding Implementation of MACPS w.e.f. 1.1.2006 as Per Judgment of Supreme Court – IRTSA

No:IRTSA/CHq/Memo RB/MACPS/2017-12

Date: 27-12-2017

MEMBER STAFF
RAILWAY BOARD
RAIL BHAWAN, NEW DELHI-110001

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.

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