Retirees await benefits from cash starved NMC

Nagpur: For the 200-odd retired employees, who completed their service with the Nagpur Municipal Corporation (NMC) in April this year, this Diwali brings no festive spirit as they are yet to receive pensionary and other retirement benefits.

The NMC, which is reeling under acute funds crunch, has stalled payment of around Rs180 crore towards commuted pension, dearness allowance arrears and dearness allowance and retirement benefits since April, said a senior officer from NMC's accounts and finance department. The dues of retired employees till March 2017 have been cleared, the officer said.

A group of retired employees, requesting anonymity, expressed displeasure over the delay in getting retirement benefits. They said the commuted pension (one-third amount of the total pension amount paid in advance) entitled to an employee at the time of retirement was yet to be paid though various deductions were made in their salaries.

Listing out defaults under retirement benefits, working president of NMC employees' union Rajesh Hathibed said payment of DA arrears is pending for more than 60 months, besides 10 months salary, 16 months gratuity and leave salary encashment.

The situation points towards civic administration's struggle to collect revenue. The NMC's target for 2017-18 is Rs2266.97 crore. Major revenue contributors include property tax, town planning, estate, licence and water supply departments but all have failed to achieve even half of their target.

In the first six months, the civic body should have generated Rs1133.485 crore revenue, but it raked in only Rs860 crore.

Through property tax — one of its main sources of income — NMC has earned only Rs96 crore against a target of Rs392.19 crore.

The town planning department has recovered only Rs32 crore against a target of Rs101.25 crore.

Despite increasing water taxes by 5%, the water supply department has been able to earn only Rs70 crore, against a target of Rs170 crore.

The retired employees are running pillar to post to get their pension benefits. They are also planning to knock the court's door.

Standing committee chairman Sandip Jadhav admitted that financial condition of the NMC is poor but it doesn't mean pension benefits of retired employees should be withheld. He assured to look into the matter immediately.