THE SALARY, ALLOWANCES AND PENSION OF MEMBERS OF      PARLIAMENT (AMENDMENT) BILL, 2002

a

BILL

further to amend the Salary, Allowances and Pension of Members of Parliament Act, 1954.

Be it enacted by Parliament in the Fifty-third Year of the Republic of  India as follows:—

1. Short title and commencement.-(1) This Act may be called the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2002.

(2) It shall be deemed to have come into force on the 14th day of September, 2001.

2.  Amendment of section 8A of Act 30 of 1954.-In section 8A of the Salary, Allowances and Pension of Members of Parliament Act, 1954, in sub-section (1),—

(a) in the opening portion, for the figures “1993”, the figures “2001” shall be substituted;

(b)  in the second  and third provisos, for the figures and words “1993,  be entitled to a pension of two thousand and five hundred rupees per mensem” at both the places where they occur, the figures and words “2002, be entitled to a pension of three thousand rupees per mensem” shall be substituted.

 

 

 

 

STATEMENT OF OBJECTS AND REASONS

Prior to 14th September, 2001, former members of either House of Parliament with minimum membership of four years were entitled to a pension of rupees two thousand five hundred per month under sub-section (1) of section 8A of the Salary, Allowances and Pension of Members of Parliament Act, 1954 and former members who had served as  members of the House of the People twice for its duration but were not entitled to any pension due to non-completion of four years of membership and also the members of the Provisional Parliament were respectively  entitled to minimum pension of rupees two thousand five hundred per month under the second and third provisos to sub-section (1) of section 8A of the Act. Besides this, former members who had served as members of Parliament for a period exceeding five years were also entitled to an additional pension of rupees five hundred per month for every year in excess of five years.

2. The minimum pension of rupees two thousand five hundred per month to former members of Parliament with four years membership was raised to rupees three thousand per month with effect from 14th September, 2001 by the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2001. The additional pension of rupees five hundred per month for membership of every year in excess of five years was also raised to rupees six hundred per month from the said date. However, the minimum pension for other two categories of former members of Parliament remained unchanged. It is, therefore, proposed to increase the pension of these two categories of  former members of Parliament from rupees two thousand five hundred per month to rupees three thousand per month with effect from 14th September, 2001.

3. The Bill seeks to achieve the above object.

 

New delhi;

The 10th May, 2002.                                                                                                             PRAMOD  MAHAJAN.

 

 

 

 

 

FINANCIAL MEMORANDUM

Clause 2 of the Bill seeks to amend sub-section (1) of section 8A of the Salary, Allowances and Pension of Members of Parliament Act, 1954 to raise pension of former members of Parliament who had served as members of  the House of  the People twice but in aggregate less than four years and the members of Provisional Parliament from rupees two thousand five hundred per month to rupees three thousand per month with effect from 14th September, 2001.

2. The proposed revision of pension would involve expenditure fro m the Consolidated Fund of India to the tune of  seventeen lakhs twelve thousand rupees. Out of this amount, a sum of thirteen lakhs twenty thousand rupees will be recurring expenditure and a sum of approximately three lakhs ninety-two thousand rupees will be non-recurring expenditure.

 

3. The provisions of the Bill do not involve any other recurring or non-recurring expenditure.

 

 

 

 

ANNEXURE

EXTRACT FROM THE SALARY, ALLOWANCES AND PENSION OF MEMBERS OF PARLIAMENT ACT, 1954

(30 of 1954)

*                              *                                              *                                              *                                              *

8A. (1) With effect from the commencement of the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 1993, there shall be paid a pension of three
thousand  rupees per mensem to every person who has served for a period of four years, whether continuous or not,—

(i) as a member of the Council of States; or

(ii) as a member of the House of the People; or

(iii) partly as a member of the Council of States and partly as a member of the House of the People; or

(iv) as a member of the Provisional Parliament; or

(v) parly as a member of the Provisional Parliament and—

(a) partly as a member of the Council of States and partly as a member of the House of the People; or

(b) partly as a member of the Council of States or partly as a member of the House of the People:

Provided that where any person has served as aforesaid for a period exceeding five years, there shall be paid to him an additional pension of six hundred rupees per mensem for every year in excess of five years:

Provided further that where any person has served as a Member of the House of the People twice for its duration as provided in clause (2) of article 83 of the Constitution, whether consecutively or not, and who is not entitled to any pension under the foregoing provisions of this sub-section, he shall with effect from the commencement of the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 1993, be entitled to a pension of two thousand and five hundred rupees per mensem:

Provided also that every person, who has served for any period as a member of the Provisional Parliament and who is not entitled to any pension under the foregoing
provisions of this sub-section, shall, with effect from the commencement of the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 1993 be entitled to a pension of two thousand and five hundred rupees per mensem.

*                      *                       *                        *                       *