Retrospective increase in ECHS rates challenged
Vijay Mohan
Tribune News Service
Chandigarh, January 31
Claiming to have taken up the cudgels on behalf of personnel of lower ranks, two retired Lieutenant-Generals from the Tricity have challenged the “unilateral and forced” retrospective increase in the one-time subscription rates of the Ex-Servicemen Contributory Health Scheme (ECHS) by the Defence Ministry.
In September 2010, the rates of ECHS subscription were increased by 3-8 times, depending upon the category, of the earlier rates. While the rate for the lowest rank of Sepoy was increased from Rs 1,800 to Rs 15,000, that of General ranks was increased from Rs 18,000 to Rs 60,000.
The ministry made the new rates retrospectively applicable from June 2009 and forcibly recovered the differential from the pensions of affected retirees. Not only the personnel retiring after September 2010 but also those who had retired even before and had already become ECHS members by paying the subscription were imposed with the new rates.
Taking up the petition, the Chandigarh Bench of the Armed Forces Tribunal comprising NP Gupta and Lt Gen HS Panag today issued a notice to the Defence Ministry.
The petitioners have contended that the new rates could only have been imposed prospectively. They have cited the example of the Central Government Health Scheme applicable to civilian employees wherein rates were increased prospectively and that too after giving an opportunity to non-members to join at old rates. In case of the defence services, new rates have been imposed even on old members who had already paid the life-time subscription.
The petitioners have also claimed that their move is not to claim monetary benefits but is based on principle and is in the interest of personnel of lower ranks who have no say in such unilateral decisions. The petitioners have also stated that the increase in rates may have been justified in the light of increased pay, allowances and running costs, but the same could not have been done retrospectively.
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Vijay Mohan
Tribune News Service
Chandigarh, January 31
Claiming to have taken up the cudgels on behalf of personnel of lower ranks, two retired Lieutenant-Generals from the Tricity have challenged the “unilateral and forced” retrospective increase in the one-time subscription rates of the Ex-Servicemen Contributory Health Scheme (ECHS) by the Defence Ministry.
In September 2010, the rates of ECHS subscription were increased by 3-8 times, depending upon the category, of the earlier rates. While the rate for the lowest rank of Sepoy was increased from Rs 1,800 to Rs 15,000, that of General ranks was increased from Rs 18,000 to Rs 60,000.
The ministry made the new rates retrospectively applicable from June 2009 and forcibly recovered the differential from the pensions of affected retirees. Not only the personnel retiring after September 2010 but also those who had retired even before and had already become ECHS members by paying the subscription were imposed with the new rates.
Taking up the petition, the Chandigarh Bench of the Armed Forces Tribunal comprising NP Gupta and Lt Gen HS Panag today issued a notice to the Defence Ministry.
The petitioners have contended that the new rates could only have been imposed prospectively. They have cited the example of the Central Government Health Scheme applicable to civilian employees wherein rates were increased prospectively and that too after giving an opportunity to non-members to join at old rates. In case of the defence services, new rates have been imposed even on old members who had already paid the life-time subscription.
The petitioners have also claimed that their move is not to claim monetary benefits but is based on principle and is in the interest of personnel of lower ranks who have no say in such unilateral decisions. The petitioners have also stated that the increase in rates may have been justified in the light of increased pay, allowances and running costs, but the same could not have been done retrospectively.
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