NEW PENSION SCHEME-MORE CLARIFICATION

Sunday, October 25, 2009
Questions & Answers: Related to the New Pension Scheme (NPS)


Clarifications:-

1. Whether a retiring Government servant is entitled for leave encashment after retirement under the NPS?

The benefit of encashment of leave salary is not a part of the retirement benefits admissible under Central Civil Services (Pension) Rules, 1972. It is payable in terms of CCS (Leave) Rules which will continue to be applicable to the government servants who join the government service on after 1-1-2004. Therefore, the benefit of encashment of leave salary payable to the governments/to their families on account of retirement/death will be admissible.

2. Why is it mandatory to use 40% of pension wealth to purchase the annuity at the time of the exit (i.e. after the age of 60 years) from NPS?

This provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.

3. Whether any minimum age or minimum service is required to quit from Tier-I?

Exit from Tier-I can only take place when an individual leaves Government service.

4. Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I?

As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.

5. Whether contribution towards Tier-I from arrears of DA is to be deducted?

Yes. Since the contribution is to be worked out at 10% of (Pay + DP + DA), it needs to be revised whenever there is any change in these elements

6. Who will calculate the interest PAO or Central Pension Accounting office(CPAO)?

The PAO should calculate the interest.

7. What happens if an employee gets transferred during the month? Which office will make deduction of Contribution?

As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month(both individual and government) will be made by the office who will draw salary for the maximum period.

8. Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS?

Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practising Allowance shall countas ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.

9. Whether a government servant who was already in service prior to 1.1.2004, if appointed in a different post under the Government of India, will be governed by the CCS (Pension) Rules or NPS?

In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.

10.Procedure for allotment of Permanent Retirement Account Number (PRAN):-

Immediately on joining Govt. service, the Govt. servant will be required to provide particulars such as his name, designation, scale of pay, date of birth, nominee(s) for the fund, relationship of the nominee etc. in the prescribed for (Annexure I).

The DDO concerned will be responsible for obtaining this information from all Govt. servants covered under the New Pension Scheme.

The PAO concerned will allot a unique 16 digit Permanent Retirement Account Number (PRAN). The first four digits of this number will indicate the calendar year of joining Govt. service, the next digit indicates whether it is a Civil or a Non-civil Ministry, the next six digits would represent the PAO Code (which is used for the purpose of compiling monthly accounts), the last five digits will be the running serial number of the individual govt.

servant which will be allotted by the PAO concerned. PAO will allot the serial number pertaining to individual Govt. servants from 00001 running from January to December of a calendar year. A register will be maintained for allotment of PRAN to ensure that PRAN are allotted in sequence and there is no duplication of PRAN.

For the flow of information from Non Civil Ministries/Departments to the CPAO, each of them will nominate a Nodal Office, which will be responsible for forwarding the consolidated information/particulars in respect of their Ministry/Departments and for correspondence with CPAO.

The particulars of the Govt. servants received from the various DDOs will be consolidated by the Nodal Office identified in each Ministry/Department/Office and sent to the CPAO. The CPAO will keep this information in their computer database.

The accounting heads involved in the operation of the new pension scheme will be intimated in due course.

The first salary bill of the new entrant will be passed after ensuring that the Annexure-I is received.

Tier1 amount equal to 10% of the (basic+da+npa) will be deducted from the payBill and a matching contribution will also be credited to the individuals credit.

Separate paybill should be prepared for the individuals who are covered under this scheme. The schedule information is to be captured in the Annexure-II, which should be carefully checked. The data file of annexure-I and annexure-II will be created and forwarded to CPAO on monthly basis. CPAO on receipt of this information will update its database and generate exception reports for missing credits, mismatches etc.

No withdrawal of any amount will be allowed during the interim arrangements.

At the end of each financial year the CPAO will prepare annual accounts statements for each employee showing opening balance, details of monthly deduction and Govt.’s matching contribution, interest earned, if any, and the closing balance. CPAO will send these statements to Nodal Office concerned.

After the close of each financial year, CPAO will have to report the details of the balances (PAO-wise) to each PAO for the purpose of reconciliation. The PAO will reconcile the figures of contributions with figures as per the books of CPAO.


SOURCE;CGEN

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DIWALI GREETINGS

HAPPY DIWALI WISHES TO ALL MY VIEWERS

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UCIL EMPLOYEES STRICKE ENTERS 9 TH DAY

Saturday, October 17, 2009

UCIL employees' strike enters 9th day, talks still on



Jamshedpur, Oct 16 (PTI) The indefinite strike by employees of Uranium Corporation of India Limited (UCIL) entered the ninth day today affecting production even as its management is holding talks with representatives of four striking labour unions.
The Chairman-cum-Managing Director of UCIL, Ramendra Gupta convened a meeting with the labour unions including Jadugora Labour Union (JLU), Uranium Kamgar Union (UKU), Uranium Mazdoor Sangh and Singhbhum Uranium Mazdoor Union for discussion in regard with their demand for wage revision.
The meeting, which began around 11 am today at Jadugora, was still on as both the management and the labour unions has taken a flexible approach to settle the wage revision issue pending since April, 2008.
Admitting that the negotiation was taking place under a cordial atmosphere, D Acharya, Director (Technical) of UCIL, said the negotiation was still on while expressing hope of a positive outcome later in the night.

SOURCE;PTI
Labels: UCIL

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CHARGEMAN POST -MERGER

Thursday, October 8, 2009
CM-II & CM-I Merger has been done - OFB Order


Information from AIANGOLatest Information about Merger & Protest Highlights1. CM-II & CM-I Merger has been done.

2. Merger of AF & JWM is still pending.

3. Protest Program will continue.

SOURCE;CGEN

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EMPLOYEES HAS NO RIGHT VOLUNTARYRETIREMEN

Thursday, October 8, 2009
Employee has no right to voluntary retirement: SC

An employee has no inherent right to "voluntary retirement" as the same is subject to the rules framed by the employer governing the scheme, the Supreme Court has ruled.
A bench of Justices Tarun Chatterjee and R M Lodha said if the scheme specifically stipulates that the voluntary retirement offer made by an employee is to be approved by the competent authority, then the employee cannot insist that he should be granted retirement even if it is not approved by the management.
The bench passed the ruling while dismissing the appeal by Padubidri Damodar Shenoy, Airport Manager of Indian Airlines, who challenged the state-owned carrier's decision not to accept his offer of voluntary retirement made in 2003.
Regulation 12 of the Service Regulations, (Indian Airlines) enables an employee to seek voluntary retirement on attaining the age of 55 years or on completion of 20 years of continuous service by giving three months notice.
However, the rule stipulated that the plea for voluntary retirement of an employee who has completed 55 years stands automatically accepted, whereas, under clause(B) in the case of those who have completed 20 years of service, but not attained 55 years, the same is subject to the approval of the competent authorities.
Shenoy had completed 20 years of service but did not complete 55 years and his offer of voluntary retirement was rejected by the management.
Source:PTI

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EDUCATION OF MINORITIES

Wednesday, October 7, 2009
EDUCATION OF MINORITIES

Apart from implementing the Prime Minister’s new 15 Point Programme for the welfare of the Minorities, the Ministry took several steps to implement the recommendations of the Prime Minister’s High level Committee on Social, Economic and Educational status of the Muslim Community of India (Sachchar Committee).
University Grants Commission is working out modalities so that all universities could be encouraged to recognize qualifications from Madrassas for the purposes of enrolment on the pattern followed by Jamia Millia Islamia, Aligarh Muslim University, Maulana Azad National Urdu University and Jamia Hamdard, in appropriate courses and programmes of study.
Academics have been established in thee Central Universities – Jamila Millia Islamia University, Aligarh Muslim University and Maulana Azad National Urdu University for training of teachers to teach in Urdu medium.
SOURCE;CENTRAL GOVERNMENT EMPLOYEES PORTAL

Labels: HIGHER EDUCATION

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ULIP SERVICE TO COME CHEAP

Wednesday, October 7, 2009
ULIP SERVICE TO COME CHEAP


For those who have already purchased ULIPs in the past few months, it would make sense to continue to hold on to the same, say financial planners. Choosing right insurance

Reviving lapsed insurance policy

How to go for householder's insurance

Thumb rules of buying an insurance

Check the price before buying an insurance

Exiting these policies during the first year would be a loss-making proposition as typically, commissions in these policies are front-loaded, resulting in merely a small chunk of your initial premiums going towards investments. Besides, since life companies will have to reduce the charges to the stipulated level before December 31, 2009, for existing policies as well, even the existing customers will reap similar benefits.
“The charge structure is in favour of the insured now. In addition, I feel the markets are likely to rise for some more time. A steep, yet temporary, correction may set in a year from now and around the same, interest rates too could rise. That is the time when ULIP holders should look to make use of the switch funds option and shift to debt funds,” advises Mr Aggarwal, adding that policyholders need to remember that ULIP is not a passive product, but one that calls for active monitoring of markets and taking decisions on switching funds accordingly.
“The positive part is that long-term charges like fund management charges, which are levied throughout the policy term, have been capped at 135 basis points,” says financial planning firm Right Horizons CEO Anil Rego. “That is, if you stay invested in a ULIP for over 10 years, you significantly save since this is charged yearly and on the accumulated fund value. This compares favourably with the expense ratios of mutual funds as well, which is positive for a long-term investor.”
While returns and market conditions do play a role, policyholders would do well to take into account the amount of protection required, premiums to be paid, sum assured and the policy tenure before arriving at a decision.
For those who have already purchased ULIPs in the past few months, it would make sense to continue to hold on to the same, say financial planners. Choosing right insurance

Reviving lapsed insurance policy

How to go for householder's insurance

Thumb rules of buying an insurance

Check the price before buying an insurance

Exiting these policies during the first year would be a loss-making proposition as typically, commissions in these policies are front-loaded, resulting in merely a small chunk of your initial premiums going towards investments. Besides, since life companies will have to reduce the charges to the stipulated level before December 31, 2009, for existing policies as well, even the existing customers will reap similar benefits.
“The charge structure is in favour of the insured now. In addition, I feel the markets are likely to rise for some more time. A steep, yet temporary, correction may set in a year from now and around the same, interest rates too could rise. That is the time when ULIP holders should look to make use of the switch funds option and shift to debt funds,” advises Mr Aggarwal, adding that policyholders need to remember that ULIP is not a passive product, but one that calls for active monitoring of markets and taking decisions on switching funds accordingly.
“The positive part is that long-term charges like fund management charges, which are levied throughout the policy term, have been capped at 135 basis points,” says financial planning firm Right Horizons CEO Anil Rego. “That is, if you stay invested in a ULIP for over 10 years, you significantly save since this is charged yearly and on the accumulated fund value. This compares favourably with the expense ratios of mutual funds as well, which is positive for a long-term investor.”
While returns and market conditions do play a role, policyholders would do well to take into account the amount of protection required, premiums to be paid, sum assured and the policy tenure before arriving at a decision.
SOURCE;CENTRAL GOVERNMENT EMPLOYEES PORTAL

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CGHS-GOOD NEWS

Central employees to get health allowances


There’s good news at last for the nearly 1 lakh employees and pensioners of the Central government in the city, who avail of the Central Government Health Scheme (CGHS).

The Union ministry of health and family welfare has revised the rates for reimbursement of medical expenses prescribed under the scheme.

The ministry has also brought 48 city hospitals and 18 diagnostic centres into the CGHS network.

The CGHS beneficiaries, who had to earlier bear 70 per cent of the cost of treatment, will now be treated absolutely free under the scheme, Harish Radhakrishnan of the Confederation of Central Government Employees and Workers, told reporters here on Friday.

For serving employees, the reimbursement rates have been revised to bring them on par with the existing fees in hospitals, in order to ensure that CGHS beneficiaries are not discriminated against on account of lower entitlement.

Earlier, Radhakrishnan, pointed out daily bed charges payable under the CGHS in Pune were Rs 30, while the figure was Rs 200 in Aurangabad. “In fact the prescribed CGHS rates remained the lowest in the country because they had not been revised since 1983,” he added.

As per the new rates, employees with a basic pay of Rs 7,500 will be entitled to treatment in general wards (at Rs 500 per day), those with basic pay between Rs 7,501 and Rs 10,500, will be treated in semiprivate wards (at Rs 1,000 per day), while those earning more than Rs 10,501 per month as basic pay, will be entitled to private ward (at Rs 1,500 per day). Those admitted to daycare centres for six to eight hours are now entitled to reimbursement of Rs 500 per day.

Hospitals included in the scheme have been asked to submit monthly bills of CGHS patients to the scheme joint director. The bills will be settled in 60 days. Among the participating hospitals and diagnostic centres in Pune and Pimpri-Chinchwad areas are: Bharati Vidyapeeth hospital, Sancheti institute, Ruby Hall clinic, KEM, Deenanath Mangeshkar hospital, Pune Institute of Neurology, Ratna and Joshi hospitals, Surya hospital, Poona hospital, Colony nursing home, Pune institutes of neurology and ophthalmology, Jehangir hospital, Ayodhya Charitable Trust’s hospital, Sanjeevan and Inlaks Budhrani.

Radhakrishnan added that in addition to seven CGHS dispensaries which offer treatment to patients and refer cases to hospitals for further treatment, the confederation has demanded four new dispensaries.
Source:The Times of India

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IIM-SECOND CHANCE

Thursday, October 1, 2009
SECOND CHANCE FOR IIM HOPEFULS
Second chance for IIM hopefuls

- Computerised CAT allows applicants to correct entry forms
Online bonus

New Delhi, Sept. 30: IIM aspirants who submitted incorrect application forms have got another chance — a side benefit of computerising the entrance process.
The Indian Institutes of Management have for the first time been able to “salvage the dreams” of thousands as the computerisation of the Common Aptitude Test has allowed students to correct forms that would earlier have been rejected because of errors, officials said.
“Till now, we had to place a granite stone on our hearts and reject erroneous applications. For the first time this year, we have been able to salvage the dreams of thousands of aspirants,” IIM Ahmedabad professor Satish Deodhar, in charge of the computerised CAT, told The Telegraph.
Last year, the premier B-schools had to reject close to 10,000 applications because of errors in the forms and the absence of a corrective mechanism.
The manual nature of the application process till now meant that officials had to physically scrutinise each form, sieving out the erroneous ones.
“This took a lot of time leaving no opportunity to contact each concerned applicant and ask him or her to correct the form,” Deodhar explained.
This year too, applicants initially faced problems adjusting to the online registration process, and several had complained to the IIMs.
The online form, for instance, provided three fields to fill the address, including one where the applicant is required to select his state or Union territory.
But some students, Deodhar said, filled their entire address in the first field. The form was programmed to place Andaman and Nicobar — the first on the alphabetical list — in the state tab by default if the applicant left this field vacant.
The IIMs realised the problem after receiving complaints from across the country that they had been wrongly registered as Andaman residents.
They then revised the online form together with Prometric, a private company that is managing the examination for the IIMs, to include an option enabling applicants to edit forms they had earlier submitted.
On registering, students receive an SMS informing them that their application has been accepted. If a student does not receive the SMS, he can check his form online for errors.
The IIMs had earlier planned to end sale of application forms for this year’s CAT on October 1. They have now decided to extend the deadline by a week till October 8. The last date for online registration has been extended from October 1 to October 11
The CAT — computerised for the first time this year — will be held over a 10-day window from November 28 to December 7. Students can take the test in one of two shifts — morning or evening — on any of these days.
The IIMs have also introduced a set of measures to ease the transition from a pen-and-paper test to a computerised examination, Deodhar said.
Several students usually mark out relevant sections of passages in the test on which they are questioned. The software of the computerised exam will allow students to mark — in yellow — relevant sections of passages, as they are used to doing in pen-and-paper tests.
Similarly, several students arrive at answers to multiple choice questions through a process of elimination.
The examination software will allow students to cross out on the computer screen answer choices that they feel are incorrect, simulating the opportunity to mark out incorrect answers available in traditional tests.

SOURCE;CENTRAL GOVERNMENT EMPLOYEES PORTAL

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PERFORMANCE OF PRODUCTION-RAILWAYS

Performance of production units during April - August 2009


Chitranjan Locomotive Works (CLW) produced 64 electric locomotives against the target of 69 electronic locomotives and Diesel Locomotive Works (DLW) produced 113 diesel locomotives against the target of 105 diesel locomotives during April-August 2009. Rail Coach Factory (RCF) produced 640 coaches against the target of 640 coaches where as Integral Coach Factory (ICF) produced 515 coaches against the targets of 511 coaches during the same period. Rail Wheel Factory (RWF) produced 80550 wheels and 32347 axles during the same period against the target of 79779 wheels and 25855 axles during April-August 2009.

During the month of August 2009, CLW, DLW, ICF, RCF and RWF have produced 19 electric locomotives, 27 diesel locomotive, 112 coaches, 125 coaches, 17284 wheels and 7449 axles respectively against the target of 21 electric locomotives, 22 diesel locomotive, 108 coaches, 125 coaches, 17680 wheels and 5818 axels.

Railways have realized an amount of Rs. 27.63 crore approximately during the month of August 2009 through ticket checking.
SOURCE;CGEN

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AIR INDIA-PLI TO ALL

AI to pay PLI to all sections of employees on Oct 7


Air India today said that it would pay productivity-linked incentive (PLI) to all sections of employees on October 7.

"Air India will pay the August PLI payable in September on October 7," Air India's Executive Director, Jitendra Bhargava, told PTI here.

September salaries have already been paid to the employees' respective bank accounts, he said.

The PLI will be paid in full, Bhargava added.

The national carrier has cancelled 14 international and 79 domestic flights today, the fourth day of the strike by a section of its executive pilots protesting against the up to 50 per cent cut in their PLIs effected by the management.
Source:PTI

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NEW DEARNESS ALLOWANCE FOR AUTONOMOUS BODIES

Wednesday, September 30, 2009
New Dearness Allowance for Autonomous Bodies and who are all getting pay as per 5th CPC



No. 1(3) / 2008 - EII (B)

Government of India

Ministry of Finance

Department of Expenditure

*****

New Delhi, Dated 29th September,2009.


Subject:-Rates of Dearness Allowance applicable w.e.f.1.7.2009 to the employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised scale as per 5th CPC.


The undersigned is directed to refer to this Department's O.M. of even No. dated 19th March, 2009 revising the Dearness Allowance w.e.f. 1.1.2009 in respect of employees of Central Government and Autonomous Bodies who continue to draw their pay and allowances in the Pre-revised scales of pay as per 5th Central Pay Commission.


2. The rates of Dearness Allowance admissible to above categories of employees of Central Government and Central Autonomous bodies shall be enhanced from the existing rate of 64% to 73% w.e.f.1.7.2009. All other conditions as laid down in the O.M. dated 3rd October, 2008 will continue to apply.

3. The contents of this Office Memorandum may also be brought to the notice of the organizations under the administrative control of the Ministries / Departments which have adopted the Central Government scales of pay
SOURCE;CGEN

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DA-FOR PENSIONERS/FAMILY PENSIONERS

Dearness Relief to Central Government Pensioners/Family Pensioners - Revised rate effective from 1.7.2009.


F.No.42/12/2009-P&PW(G)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners' Welfare

3rd Floor, Lok Nayak Bhawan,
Khan Market,New Delhi-03
DAted : 23rd September, 2009

OFFICE MEMORANDUM


Subject:- Grant of Dearness Relief to Central Government Pensioners/Family Pensioners - Revised rate effective from 1.7.2009.


The undersigned is directed to refer to this Department's OM No.42/12/2009-P&PW(G) dated 27th March, 2009 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Relief payable to Central Government pensioners shall be enhanced from the existing rate of 22% to 27% w.e.f. 1st July, 2009.

SOURCE;CGEN

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RESTORATION OF1/3 RD COMMUTED PORTION OF PENSION.

thursday, September 24,2009
Restoration of 1/3rd commuted portion of pension - in public sector undertaking/autonomous bodies



F.No.4/38/2008-P&PW(D)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners' Welfare

Lok Nayak Bhawan,
Khan Market,New Delhi-03
dated 17.9.2009

OFFICE MEMORANDUM

Subject:- Representation on mentioned of revision of restorable 1/3 commuted portion of pension consequent to 6th Pay Commission recommendations in respect of Govt. Servants who had drawn lump-sum payment on absorption in public sector undertaking/autonomous bodies - regarding.


This Department has been receiving representations on the above noted subject. In this regard, the undersigned is directed to state that the Government had issued instructions on restoration of 1/3rd commuted portion of pension on absorption in public sector undertaking/autonomous bodies implementing the Andhara Pradesh high court judgment dated 24.12.03 in Writ petition No. 8532 of 2003 followed by the Supreme Court judgment dated 29.11.08 in Civil appeal No.5269 of 2006 srising out of SLP Nos 21647 -648 of 2005 and the Supreme Court judgment dated 24.7.2007 in Review petition No.643 of 07 vide O.M.No.4/79/2006-P&PW(G) dated 6.9.2007 in consultation with Ministry of Law & Justice and Ministry of Finance (Deptt. of Expenditure). It was further clarified vide OM dated 13.5.08. In pursuance of Government's decision on the recommendations of Sixth Central Pay Commission, Instructions have been issued for revision of 1/3rd restorable pension of such absorbees vide Deptt. of Pension & Pensioners Welfare's OM of even No. dated 15th September 2008 followed by OM dated 27.5.2009.

2. The formula for arriving at 1/3rd restorable pension in the OM dated 15.9.2008 is on the same lines which the Hon'ble Court has prescribed in the above mentioned judgment as the revision of restorable pension of such absorbees is governed by the Hon'ble Court judgment mentioned above. It is pertinent to mention that pension is revised as per instructions for any other pensioners as it is not regulated by Hon'ble Court order. So far as instructions contained in O.M.dted 27.5.2009 are concerned this has been issued so as to protect this class of pensioners in case there is loss in 1/3rd restorable pension plus DA w.r.t.pre-revised 1/3rd restorable pension plus DP plus DR.



source;cgen

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IIT-PRIS

Tuesday, September 22, 2009
IIT-PERFORMANCE RELATED INCENTIVE SCHEME
Directors of the Indian Institutes of Technology (IITs) are fine-tuning a Performance Related Incentive Scheme (PRIS) which they are expected to place on the table later this week to defuse the stand-off with protesting faculty across all seven IITs.
Under this, an incentive equivalent to “two to four months of salary” could be offered annually to faculty depending on their performance which will be quantified on key indicator
“While it’s very difficult to define and assess performance in academia, a distribution curve is being worked on which will help assess a faculty member’s performance for the year — on a scale from Average to Excellent,” a highly placed source told The Indian Express.
“There will be a scientific way of developing this distribution curve depending on teaching outcomes, research work, publications, etc. Based on performance on all these parameters, a faculty member would be eligible for PRIS.” The PRIS will be based on the Sixth Pay Commission, sources said.

SOURCE;CENTRAL GOVERNMENT EMPLOYEES PORTAL

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CHECK CHANGE IN FLOATING RATE

CHECK CHANGE IN FLOATING RATE
Check change in floating rate
MUMBAI: Bank customers can look forward to a flourish of consumer-friendly initiatives. One, if you have borrowed against a floating rate of

interest, you can now view any change in reference rate to which your interest rate is pegged on the bank’swebsite. Your bank’s website will also have to mention changes to the reference rate as and when they take place.
Two, beginning October, youwill be able to access free credit counselling at a centre set up by the Banking Code and Standards Board of India (BCSBI), the independent and autonomous watchdog for rules that most banks in India follow.
The centre, situated at BCSBI’s Bandra-Kurla Complex office, will provide credit education to both retail borrowers and banks’ micro &small enterprise (MSE) customers, K J Udeshi, chairperson, BCSBI, said during a joint media briefingwhere officials of RBI and Indian BanksAssociation (IBA)were also present.
The Code — which was first put in place in 2006 ‘‘to provide customerswith a reference document of their rights’’—has been revised to bring in more transparency, better banking practices and a more responsive grievance redressal mechanism in banks. Its objective is to enhance efficiency standards and provide greater protection to customers, said Udeshi.
‘‘The code is meant for those who don’t have (financial) muscle,’’ said KC Chakrabarty, deputy governor, RBI, at the meet.
However, while the Code provides a broad regulatory framework for banks, it leaves pricing and other commercial considerations to banks and market forces. Additionally, there are no provisions under the code to penalise banks for any violations.
SOURCE;CGE PORTAL

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HOME LOANS

Festive spirit: Banks soften home loan norms









NEW DELHI: State Bank of India, Deutsche Postbank, ING Vysya Bank and Punjab & Sind Bank are attempting to light up the festival season by How do you judge the true worth of a property?
Facts on down payments
Understanding Sub-PLR loans
Check out certain rights of a mortgagor

lending more for home purchases than they did six months back, thanks to availability of funds and rising trust in the borrower. But individuals are still not buying as high home prices keep them away from their dreams.

“The economy has improved and the liquidity situation is much better and interest rates have eased off considerably,’’ Anoop Pabby, joint managing director at Deutsche Postbank Home Finance, told SundayET. “It is only natural then that the home buyers expect the reduced risks to result in reduction in interest rates and relaxation of margin money norms.”

The housing finance company is now funding up to 80% of the property value to most salaried people and in a few cases up to 85%, depending on the credit worthiness of the borrower. This is more than the 70% it used to lend a few months back.

Indian mortgage lenders, who were funding as much as the full value of the property in some cases, tightened lending standards after the collapse of Lehman Brothers last year this month because of the liquidity crisis and a rise in defaults due to job losses. But the scene has improved since with the Reserve Bank of India cutting lending rates to record lows and pumping in unprecedented amount of money into the system.

Lenders such as ING Vysya Bank, and Punjab & Sind Bank have reduced the margin money requirement to 15-20% from 25-30% towards the cost of the house on their home loans — as they try to tap the potential home buyers. This leads to a borrower paying investing lesser capital than before. So on a home loan of Rs 25 lakh, a customer would need to pay only Rs 3.75 lakh now against Rs 6.25 lakh demanded earlier, where the margin norm is relaxed to 15% from 25%.

State Bank of India, which has cut the margin requirement to 20% from 25%, may reduce it a further 5%.
SOURCE;ET

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DEARNESS ALLOWANCE

Friday, September 18, 2009
Finance Mininstry order issued to pay Dearness Allowance in revised rates effect from 1.7.09



No.1(6)/2009-E- (B)

Government of India

Ministry of Finance

Department of Expenditure

------

NewDelhi,Dated 18th September,2009.




Subject:- Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 1.7.2009.




The undersigned is directed to refer to this Ministry's Office Memorandum No.1(6)/2009-E- (B) Dated 13th September,2009 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 22% to 27% with effect from 1st July, 2009.

2. The provisions contained in paras 3, 4 and 5 of this Ministry's O.M.No.1(6)/2009-E- (B) Dated 29th August,2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

4. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditor General of India.

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BONUS

Union Cabinet approved to Railway Employees for payment of Bonus (PLB)


Productivity Linked Bonus for Railway Employees

The Union Cabinet today approved the proposal of the Ministry of Railways for payment of Productivity Linked Bonus (PLB) equivalent to 75 days’ wages for the financial year 2008-2009 for all eligible non-gazetted Railway employees (excluding RPF/RPSF personnel).

The salient features of the PLB scheme evolved as a result of review of the scheme and approval of the Cabinet on 23.09.2000 and applied for making payment for the financial years 1998-99, 1999-2000, 2000-01 and 2001-02 are as under :-

a) The output for a year is reckoned by the equated net tonne kilometres by adding together:-

(i) Total goods revenue net tonne kilometres.
(ii) Non-suburban passenger kilometres converted by a factor of 0.076.
(iii) Suburban passenger kilometres converted by a factor of 0.053.

b) The input is taken as the non-gazetted staff strength (excluding RPF/RPSF personnel), increased by the incremental increase/decrease in capital during the year. Incremental capital is confined to Rolling Stock utilised for movement of trains. The measurement of capital is in terms of tractive effort (Diesel Electric & Electric) for Locomotives, carrying capacity for Wagons and seating capacity for Coaches. The tractive effort of locomotives and carrying capacity of Wagons/Coaches together are given equal weight. The relative weight of wagons and coaches is determined on the basis of ratio of goods train kilometres and passenger train kilometres in the total train kilometres. Based on this principal, the relative weights are 0.50 for Tractive Effort, 0.20 for Wagon Capacity and 0.30 for Seating Capacity. Thus, the percentage increase in Tractive Effort over the base year is multiplied by 0.50; similarly the percentage increase in Wagon Capacity and Seating Capacity is multiplied by 0.20 and 0.30 respectively and added up to arrive at the total percentage increase in capital. The labour input i.e. non-gazetted staff strength is then increased to the extent of this percentage increase in the incremental capital.

c) The ratio of the output to the input is the productivity index for the year.

Background :

Railways were the first departmental undertaking of the Government of India wherein the concept of PLB was introduced. The main consideration at that time was the important role of the Railways as an infrastructural support in the performance of the economy as a whole. In the overall context of Railway working, it was considered desirable to introduce the concept of PLB as against the concept of Bonus on the lines of ‘The Payment of Bonus Act – 1965’. Even though the Payment of Bonus Act does not apply to the Railways, yet the broad principles contained in that Act were kept in view for the purpose of determining the “Wage/Pay Ceiling:, definition of ‘Salary’/’Wage’, etc. The PLB Scheme for the Railways came into force from the year 1979-80 onwards and was evolved in consultation with the two recognised federations viz. All India Railwaymen’s Federation and National Federation of Indian Railwaymen and with the approval of the Cabinet. The scheme envisages a review every three years.

Implementation Strategy and targets:

Sixth Central Pay Commission in para 4.4.5 of their report had recommended that all Departments should ultimately replace the existing productivity linked bonus schemes with Performance Related Incentive Scheme (PRIS) and also that in places where PLB is applicable and it is not found feasible to implement PRIS immediately, the existing productivity linked bonus schemes may be continued in a modified manner where the formula for computing the bonus has a direct nexus with the increased profitability/productivity under well-defined financial parameters. In respect of the Railway’s PLB scheme, the VIth CPC in Para 4.412 of their report have opined that a new formula for computing PLB that is based on financial parameters and where profit is computed as per the established principles of commercial accounting, wages with appropriate adjustments for increases, the impact of the capital investment, element of subsidy, etc. needs to be devised in case the PRIS is not implemented immediately in Ministry of Railways.

The Government on the said recommendations of the Sixth CPC relating to the PLB schemes has decided to examine the same separately. However, the recommendation regarding PRIS has been accepted by the Government. Thus individual Ministries / Departments are required to devise PRIS in accordance with their own organizational structure and need as per guidelines to be issued by the nodal Ministry. Since no guidelines on PRIS have been received so far and as such PLB scheme is to continue till introduction of PRIS.

Major Impact

This will be the highest PLB payment ever to be made by Railways. PLB is based on the productivity indices reflecting the performance of the Railways.

Expenditure involved:

The financial implication of payment of 75 days’ PLB to railway employees has been estimated to be Rs.889 crores. The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees (excluding RPF/RPSF personnel) is Rs.3500/- p.m.

Number of beneficiaries:

About 13.05 lakh non-gazetted Railway employees are likely to benefit from the decision.

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Railway employees to get 75 day’s wages as productivity linked bonus for the year 2008-09

The Union Cabinet has approved the proposal of the Ministry of Railways for payment of Productivity Linked Bonus (PLB) to the Railway employees to the extent of 75 days’ wages for the financial year 2008-09. Approximately 13.05 lakh non-gazetted Group B, C and D employees are likely to benefit from this decision. This will be the highest PLB payment ever to be made by Railways. PLB is based on the productivity indices reflecting the performance of the Railways.

The financial implication of payment of 75 days’ PLB to railway employees has been estimated to be Rs. 889 crore. The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees (excluding RPF/RPSF personnel) is Rs. 3500/- per month.



Labels: Bonus, Railways
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PENSION ADALAT

95th DEFENCE PENSION ADALAT at TIRUCHY(TN) in the First/Second week of November, 2009


Defence Pension Adalat

As per the Annual Action Plan of Controller General of Defence Accounts, New Delhi in consultation with the Ministry of Defence, the Principal Controller of Defence Accounts(Pensions) Allahabad will be organising the 95th DEFENCE PENSION ADALAT at TIRUCHIRAPALLI(TN) in the First/Second week of November, 2009 for redressal of grievances of Defence Pensioners / Defence Family Pensioners / Defence Civilian Pensioners drawing pension through PUBLIC SECTOR BANKS, DPDOs and Treasuries in the State of Tamil Nadu.

Objective

Any Defence Pensioners / Defence Family Pensioners / Defence Civilian and their families having any specific grievances relating to sanction or disbursement of defence pension are requested to submit their representation, in writing, in duplicate , to :

Sri P S Davakare,
Pension Adalat Officer
O/o Principal CDA (Pensions),
Draupadi Ghat,
Allahabad-211014,

A format of the representation is given on this website. Applicants are advised to apply as per the format, for easy processing of their applications.

Kindly Note

1.Applications can either be sent by post or by E-Mail
2.Two copies of the applications should be sent
3.Xerox copies of Pension payment order, Corr PPO, discharge certificate (wherever required) and other documents must be enclosed
4.Each application will be allotted a unique Adalat Registration Number. The same should be quoted in all future correspondence.
5.Individual call letters notifying the date and venue of the Adalat will be sent in due course
6.Incomplete and unsigned representations will be rejected.

The venue and date of Adalat will be notified in electronic and print media shortly.

TA/DA will not be reimbursed to pensioners/individuals attending the Adalat for redressal of their pension related problems.


SOURCE;CGEN

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RETAIL SALE OF TAMIFLU

Notification issued on retail sale of Tamiflu

AP File photo of the antiviral drug Tamiflu. Photo: AP
The Union Health and Family Welfare Ministry has issued a notification under Section 26 E of the Drugs and Cosmetics Act, 1940, allowing regulated retail sale of Zanamivir and Oseltamivir Phosphate (or Tamiflu) used for treating A(H1N1) influenza.

Prior to this, the retail sale of Oseltamivir Phosphate was banned by the Centre and its distribution was allowed only through public health institutions. There was no restriction, however, on the retail sale of Zanamivir.

Taking into account the current spread of the A(H1N1) influenza in the country, the Ministry decided that the retail sale of Oseltamivir Phosphate and Zanamivir should be allowed in a regulated manner.

After issue of the notification, only chemists who have the license to sell, stock or distribute drugs specified under Schedule X of the Drugs and Cosmetics Rules, 1945, would be authorised to sell the drugs against proper medical prescriptions.

Pharmaceutical companies manufacturing the drugs have been kept in a state of readiness to roll them out into the retail market after the issue of the notification.

Both drugs are expected to be available within the next five to seven days. State governments have also been advised to augment the number of chemists with Schedule X licences by granting the licences expeditiously.

SOURCE;THE HINDU

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SWINE FLU VACCINE

US drug regulator approves swine flu vaccine
AFP 16 September 2009, 04:28am IST
|

WASHINGTON: US drug regulators approved a swine flu vaccine on Tuesday, keeping officials on track to begin a mass vaccination campaign by next
month, Health Secretary Kathleen Sebelius said.

"I am pleased to report that today, the Food and Drug Administration (FDA) has approved applications for vaccine for the 2009 H1N1 virus for four of the (five) manufacturers of the US licensed seasonal influenza vaccine," Sebelius told US lawmakers.

FDA Commissioner Margaret Hamburg welcomed the approval in a statement.

"Today's approval is good news for our nation's response to the 2009 H1N1 influenza virus," she said. "This vaccine will help protect individuals from serious illness and death from influenza."

The vaccine treatments are produced by CSL Limited, MedImmune LLC, Novartis Vaccines and Diagnostics Limited, and Sanofi Pasteur Inc, and the FDA said all four firms use the same processes.

The US government has purchased 195 million doses of swine flu vaccine and will make shots against the influenza A(H1N1) virus available free of charge starting next month, Sebelius said, although providers might charge a fee to administer them.

"The large-scale 2009 H1N1 vaccine program will begin mid-October with small amounts of vaccine becoming available the first week of October," she said.

The fifth US manufacturer was also expected to be licensed, she added.

Preliminary data from clinical studies showed the approved vaccines "induce a robust immune response in most healthy adults eight to 10 days after a single dose," the FDA said, noting that clinical studies underway would determine the best dose for children.

Vaccination will be on a voluntary basis, with priority given to five groups deemed to be at particular risk from the novel swine flu virus.

The US Centers for Disease Control and Prevention (CDC) has recommended that pregnant women, people in contact with infants, medical personnel, people aged six months to 24 years and adults under the age of 65 with underlying medical conditions should be the first to get the shots.

That is about 160 million people in the United States -- less than the 195 million doses of vaccine purchased by the government, only about one third of which are expected to be ready by October.

The vaccine will be available as either a flu shot made with dead A(H1N1) virus, or as a nasal spray made with live, weakened virus, Sebelius said.

Clinical trials are underway to determine if there is "any harm" in having a seasonal flu vaccine -- which is already available -- at the same time as the vaccine against influenza A(H1N1), Sebelius said. SOURCE;THE TIMES OF INDIA

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NEW PENSION SCHEME ARCHITECTURE

NPS Architecture













Main Features and Architecture of the New Pension System


The new pension system would be based on defined contributions. It will use the existing network of bank branches and post offices etc. to collect contributions. There will be seamless transfer of accumulations in case of change of employment and/or location. It will also offer a basket of investment choices and Fund managers. The new pension system will be voluntary.


The system would, however, be mandatory for new recruits to the Central Government service (except the armed forces). The monthly contribution would be 10 percent of the salary and DA to be paid by the employee and matched by the Central Government. However, there will be no contribution from the Government in respect of individuals who are not Government employees. The contributions and returns thereon would be deposited in a non-withdrawable pension account. The existing provisions of defined benefit pension and GPF would not be available to the new recruits in the central Government service.


§ In addition to the above pension account, each individual can have a voluntary tier-II withdrawable account at his option. Government will make no contribution into this account. These assets would be managed in the same manner as the pension. The accumulations in this account can be withdrawn anytime without assigning any reason.





Individuals can normally exit at or after age 60 years from the pension system. At exit, the individual would be required to invest at least 40 percent of pension wealth to purchase an annuity. In case of Government employees, the annuity should provide for pension for the lifetime of the employee and his dependent parents and his spouse at the time of retirement. The individual would receive a lump-sum of the remaining pension wealth, which she would be free to utilize in any manner. Individuals would have the flexibility to leave the pension system prior to age 60. However, in this case, the mandatory annuitisation would be 80% of the pension wealth.


There will be one or more central record keeping agency (CRA), several pension fund managers (PFMs) to choose from which will offer different categories of schemes.


The participating entities (PFMs, CRA etc.) would give out easily understood information about past performance & regular NAVs, so that the individual would able to make informed choices about which scheme to choose.

source;pfrda

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ABOUT PENSION

Pension :
1 Invalid pension and disability pension are distinct pensions and their payments are regulated as per CCS (Pension) Rules and CCS (Extraordinary Pension) Rules, respectively. Thus the minimum limit on the total of two pensions does not apply. However the amount of disability pension and invalid pension, combined together, should in no case exceed the last pay drawn.
2 The maximum limit for commutation has been raised to 40% w.e.f. 1.1.1996.A Government servant is now entitled to commute for a lumpsum payment up to 40% of his/her pension.
3 Dearness Relief equal to 50% of basic pension/family pension is treated as Dearness Pension w.e.f. 1.4.2004.
4 Provisional pension and provisional gratuity (up to 100%) should be sanctioned by the Head of Office if he were of the opinion that the Government servant is likely to retire before his pension or gratuity or both can be finally assessed and settled in accordance with the relevant rules.
5 In the case of a missing Government servant, family pension can be paid after a period of one year from the date of lodging an FIR with the police authorities.
6 A judicially separated spouse of the deceased Government servant with children can get family pension after the children cease to be eligible till his/her death/remarriage, whichever is earlier.
7 Dependent parents and widowed/divorced daughter/unmarried daughter are now included in the definition of family for the purpose of consideration for grant of family pension.
8 Family pension is also admissible to a posthumous child and also to children from the void or the voidable marriage as per the relevant provisions in the rules.
9 Normal family pension is now at a uniform rate of 30% of pay last drawn, subject to a minimum of Rs. 3500 (w.e.f. 1.1.2006).
10 Family pension is admissible to children from the void or voidable marriage in their own turn, after the legally wedded wife ceases to be the recipient of the family pension.
11 In the event of death of a family pensioner, the arrears of family pension is automatically payable to the eligible member of the family next in line. Succession certificate for payment of the arrears is required only in such cases where there is no eligible family member after the death of the family pensioner.
12 Full pension is payable for govt. servants rendering 20 or more year of service as per 6th pay commission recommendations w.e.f. 1.9.2008
SOURCE;PENSIONERS PORTAL

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NEW PENSION SCHEME

1. Whether a retiring Government servant is entitled for leave encashment after retirement under the NPS?
The benefit of encashment of leave salary is not a part of the retirement benefits admissible under Central Civil Services (Pension) Rules, 1972. It is payable in terms of CCS (Leave) Rules which will continue to be applicable to the government servants who join the government service on after 1-1-2004. Therefore, the benefit of encashment of leave salary payable to the governments/to their families on account of retirement/death will be admissible.
Top

2. Why is it mandatory to use 40% of pension wealth to purchase the annuity at the time of the exit (i.e. after the age of 60 years) from NPS?
This provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.
Top

3. Whether any minimum age or minimum service is required to quit from Tier-I?
Exit from Tier-I can only take place when an individual leaves Government service.
Top

4. Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I?
As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.
Top

5. Whether contribution towards Tier-I from arrears of DA is to be deducted?
Yes. Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements
Top

6. Who will calculate the interest PAO or CPAO?
The PAO should calculate the interest.
Top

7. What happens if an employee gets transferred during the month? Which office will make deduction of Contribution?
As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month (both individual and government) will be made by the office who will draw salary for the maximum period.
Top

8. Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS?
Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practising Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.
Top

9. Whether a government servant who was already in service prior to 1.1.2004, if appointed in a different post under the Government of India, will be governed by the CCS (Pension) Rules or NPS?
In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.
SOURCE;PENSION PORTAL

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DEFENCE CIVILIAN BONUS

MONDAY, September 14, 2009
40 DAYS BONUS(PLB) FOR CIVILIANS EMPLOYEES


MINISTRY OF DEFENCE ISSUED ORDER REGARDING THE PAYMENT OF PRODUCTIVITY LINKED BONUS FOR THE CIVILIANS OF THE ARMY ORDNANCE CORPS(AOC) FOR THE YEAR 2008-2009

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NEW PENSION SCHEME -FAQ3

New Pension Scheme : Some clarifications..!


ADMINISTRATIVE STRUCTURE
The administrative setup of NPS subscription is planned as:

Employee>Paying officer>DDO>PAO>PrAO>PFRDA/CRA/NSDL>Trustee Bank>Pension Fund managers

IS THE NEW PENSION SCHEME GOOD?

If calculated,we can see that the new pension scheme employees are actually getting 10 % less pay than the old pension scheme staff.There is a wide spread rumour that the new pension scheme offers amount in Lumpsum amount and therefore it is better than the old pension scheme.How much truth is there in it?Let's see...

Please note:The below calculations are based on pay of a Group C cadre of scale 5200-20300(2500 Grade Pay) and if the government puts the whole investment in fixed instruments of 8% annual interest.The percentage of investments in equity which is speculated cannot be calculated.It purely depends on how efficient the appointed fund manager is.The principal amount of contribution without interest otherwise is:

Based on 10 years-210000(employee contribution)+210000(Govt contribution)=Rs420000
Based on 20 years-540000(employee contribution)+540000(Govt contribution)=Rs1080000

Therefore the amount of pension you get is purely based on the scheme you chose.As per now,there is no scheme which allows to put 100% in fixed instruments and the figures are just to compare.

Old and New Pension scheme comparison after completing 10 years(before 60 years)

CPF Calculation

Contribution Amt. year Sub.+Bal.+8%Interest Total Amt.
1300 i st year 15600 + 1248 16848
1400 ii year 16800 + 16848 + 2691 36339
1500 iii year 18000 + 36339 + 4347 58686
1600 iv year 19200 + 58686 + 6230 84116
1700 v year 20400 + 84116 + 8361 112877
1800 vi st year 21600 + 112877 + 10758 145235
1900 vii year 22800 + 145235 + 13442 181477
2000 viii year 24000 + 181477 + 16438 221915
2100 ix year 25200 + 221915 + 19769 266884
2200 x year 26400 + 266884 + 23462 316746



If equal government contribution also provides interest, Total tier-1 amount is 316746x2=Rs633492

80% in pension fund=506794

Amt you get at the time of retiring=Rs126698+Rs 3378 monthly pension (8% interest of Rs506794 in a pension fund)+no gratuity

For old pension scheme after 10 years

GPF =316746
Gratuity=110000[1/4*(last bp+da)*(10*2)]
Total amount= Rs426746+Monthly pension Rs 3500+da (minimum pension )

Thus Comparison of old and new pension scheme gives over Rupees 3 lakh less benefits in lump sum amount and lesser monthly pension for new employees after ten years of service for below 60 years retirement.

Old and New Pension scheme comparison after completing 10 years(reaching 60 years age)

If equal government contribution also provides interest, Total tier-1 amount is 316746x2=Rs633492

40% in pension fund=253396 Amt you get at the time of retiring=Rs380096+Rs 1689 monthly pension (8% interest of Rs253396 in a pension fund)+no gratuity

For old pension scheme after 10 years

GPF =316746
Gratuity=110000[1/4*(last bp+da)*(10*2)]
Total amount=Rs426746+Monthly pension Rs 3500+da (minimum pension )

Thus Comparison of old and new pension scheme gives over Rupees 50000 less benefits in lump sum amount and Rs 1800 lesser monthly pension for new employees after ten years of service for age 60 retirement.

Old and New Pension scheme comparison after completing 20 years(before 60 years)

CPF Calculation

Contribution Amt. year Sub.+Bal.+8%Interest Total Amt.
1300 i st year 15600 + 1248 16848
1400 ii year 16800 + 16848 + 2691 36339
1500 iii year 18000 + 36339 + 4347 58686
1600 iv year 19200 + 58686 + 6230 84116
1700 v year 20400 + 84116 + 8361 112877
1800 vi st year 21600 + 112877 + 10758 145235
1900 vii year 22800 + 145235 + 13442 181477
2000 viii year 24000 + 181477 + 16438 221915
2100 ix year 25200 + 221915 + 19769 266884
2200 x year 26400 + 266884 + 23462 316746
2300 xi year 27600 + 316746 + 27547 371893
2400 xii year 28800 + 371893 + 32055 432748
2500 xiii year 30000 + 432748 + 37019 499767
2600 xiv year 31200 + 499767 + 42477 573444
2700 xv year 32400 + 573444 + 48467 654311
2800 xvi st year 33600 + 654311 + 55032 742943
2900 xvii year 34800 + 742943 + 62219 839962
3000 xviii year 36000 + 839962 + 70076 946038
3100 xix year 37200 + 946038 + 78659 1061897
3200 xx year 38400 + 1061897 + 88023 1188320



If equal government contribution also provides interest, Total Tier-1 amount is 1188320x2=Rs2376640

80% in an annuity pension fund scheme=1901312

Amt you get at the time of retiring=Rs475328+Rs 12675 monthly pension (8% interest of Rs506794 in a pension fund)+no gratuity

For old pension scheme after 20 years

GPF =1188320
Gratuity= 320000 i.e. [1/4*(last bp+da)*(no of every completed six month of service)]
Total amount= Rs1508320+Monthly pension approax Rs 16000+da (half of last bp+da )

Thus Comparison of old and new pension scheme gives over Rupees 10 lakh less benefits in lump sum amount and Rs 4000 lesser monthly pension for new employees after twenty years of service for below age 60 retirement.

Old and New Pension scheme comparison after completing 20 years(reaching 60 years age)

If equal government contribution also provides interest, Total Tier-1 amount is 1188320x2=Rs2376640

40% in an annuity pension fund scheme=950656

Amt you get at the time of retiring=Rs1425984+Rs 6300 fixed monthly pension (8% interest of Rs950656 in a pension fund)+no gratuity

For old pension scheme after 20 years

GPF =1188320
Gratuity= 320000 i.e. [1/4*(last bp+da)*(no of every completed six month of service)]
Total amount=Rs1508320+Monthly pension approax Rs 16000+da (half of last bp+da )

Thus Comparison of old and new pension scheme gives over Rupees 1 lakh less benefits in lump sum amount and Rs 9700 lesser monthly pension for new employees after twenty years of service for age 60 retirement.

And some final questions:

1.The Government notifications only explains about giving a fixed pension with this amount through a annuity and not about giving this huge amount of money back to the employee at anytime.So what happens to the huge principal amount(19 lakh in the case of a VRS) when the pension ceases after the pensioner and his dependent's death?

2.Why doesn't the government give the whole money of contribution as on EPF for the employee at the time of retirement to invest in bank atleast and enjoy interest or his choice of investment?Why is the government putting restrictions of 40% and 80% to be only invested in annuity pension scheme without giving any other choice to employee's hard earned money?

3.Isn't it a violation of Payment of Gratuity Act-1972 when the employer,who is the Government of India,has decided to give no gratuity to new employees without passing the new bill?

4.While EPF provides loan upto 36 months of wage,there is no scope for any loan in CPF,the money is blocked until the employee retires.What should a new employee do in case of an urgent requirement for building a house or marriage of children?
Source: newpension

SOURSE;NEWPENSION
Labels: NPS

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ADOPTION LEAVE

Adoption leave
New Delhi, Sept. 11: The government has decided to treat couples who have adopted a child on a par with natural parents while granting maternity and paternity leave.

The government will grant six months’ maternity leave to a woman employee and 15 days’ paternity leave to a male employee.

During leave, the adoptive mother’s salary will be equal to that drawn immediately before going on leave. The benefit will not be available to an adoptive mother who has two surviving children at the time of adoption.

SOURCE;TELEGRAPE

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BIOMETRIC ATTENDANCE SYSTEM

Friday, September 11, 2009
Biometric Attendance Control system - Fisrt time in India...!


For the first time in India in the 2nd of last September, Biometric Attendance Control system installed in the Ministry of Home Affairs. The recording of finger prints of Central Government employees by means of a finger print accumulating device known as BACS was introduced by the Honorable Home Minister Mr.P.Chidambaram . In his speech delivered on that occasion the minister indicated that the system was put forth with the thought o f exulting wholesome work in meaningful allotted time form the employees. (That is, a working day consists of 8 hours - 9 a.m. to 5.30 p.m with half an hour lunch break in Ministry of Home Affairs and all officers/officials are expected to work for this minimum period.)

The BACS device has been installed to be in vigil of the incoming (Mustering) of employees to their respective institutions.

This clearly shows the lack of confidence upon the employees. But Government said, the purpose of introducing the system is to regulate this aspect, i.e. 8 hours of work in a day and 40 hours in a week. It is noted that some persons may get delayed due to transport/traffic problem or some other reasons. Such late arrivals within a reasonable period of 15-25 minutes will be acceptable subject to their adjusting their working hours upto 8 hours by delayed departure.

Earlier, before the installation of BACS the recorded the late comings of employees but ceased to record those who muster out late in the evening due to work load. Now the employees have to their knowledge that after the introduction of BAC system this will also be accurately recorded.

In this trend triumphs it would put this system in to operation in other Central Government Institutions.

Outsides will not easily get in filtrated into Government institutions easily as a result. Moreover, due to the fear of terrorists thronging everywhere the government may decide to put inter action this operation of BACS everywhere.

It has been in talks that duplication of identities in other systems will not be eligible in BAC system.

Employees receiving salaries without proper attendance would be largely deterred by this new systems

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1%SUBSIDY TO HOUSING LOAN

1% interest subvention on housing loans upto Rs.10 lakh


The Cabinet today approved the Scheme of 1% interest subvention on housing loans up to Rs.10 lakh and the allocation of a sum of Rs.1000 crore for the Scheme.

Point-wide Details

• Interest subvention of 1 percent will be made available on individual housing loans upto Rs.10 lakh for construction / purchase of a new house or extension of an existing house provided the cost of the construction/price of the new house/extension does not exceed Rs. 20 lakh.

• The Scheme will be implemented through Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) registered with the National Housing Bank (NHB).

• The first twelve instalments of all such loans sanctioned and disbursed during the period of twelve months from the date of publication of the scheme will be eligible for interest subvention.

• Subsidy of one percent will be computed for 12 months on disbursed amount and adjusted upfront in the principal outstanding irrespective of whether the loan is on fixed or floating rate basis.

• Reserve Bank of India (RBI) will be designated the nodal agency for SCBs and National Housing Bank (NHB) will be designated the nodal agency for HFCs.

Background

There has been a notable deceleration in the sectoral flow of credit to the housing sector which is attributable to increase in the price of houses, slackening of income growth and a rise in interest rates for housing loans.

The Finance Minister in his reply to the debate on the Finance Bill in the Lok Sabha on 27th July, 2009 made the announcement that housing, particularly lower and middle income housing, deserved to be supported. In order to stimulate this segment of house owners, he proposed to provide support to borrowers by way of interest subvention of 1% on all housing loans up to Rs.10 lakh to individuals, provided the cost of the house does not exceed Rs.20 lakh.

Implementation Strategy and targets

All Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) will submit a monthly consolidated return to the Reserve Bank of India (RBI) and National Housing Bank (NHB) respectively, specifying interest subvention given.

The nodal agencies will put up a demand to the Government of India for release of subsidy amount and the Government of India in turn will sanction and release the subsidy amount based on demand received.

The number of beneficiaries covered under the scheme will depend, interalia, upon the size of the loan amount and the number of beneficiaries approaching the nodal agency for interest subvention. Being a demand driven scheme no specific targets for coverage of beneficiaries have been fixed.

Major Impact:

It is expected that cut in interest rates should reduce Equated Monthly Instalments (EMIs) of borrowers and create additional demand for housing. This in turn should stimulate demand in construction industry as well as industries such as steel & cement having employment potential and income multiplier effect.

Expenditure involved:

An amount of Rs.1000 crore will be allocated in the Budget for the year 2009-10 for implementation of the Scheme.

No. of beneficiaries:

On a housing loan of Rs.10 lakh, the 1% interest relief available wil amount to Rs.10,000/- per account. As such, the Scheme of a size of Rs.1000 crore is expected to cover 10 lakh beneficiaries in one year period.

States/Districts covered:

The scheme will cover all States & Union Territories of the country, including rural & urban areas.
SOURCE;CGEN

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DEARNESS ALLOWANCE HIKE 5

Cabinet has approved to issue 5% additional Dearness Allowance from 1.7.2009


Release of additional instalment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2009

The Cabinet has decided to release an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2009 representing an increase of 5% over the existing rate of 22% of the Basic Pay/Pension, to compensate for price rise.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs4355.35 crore in a full year and Rs.2903.55 crore in the financial year 2009-2010 (for a period of 8 months from July, 2009 to February, 2010).

Related Posts:

DA is waiting for Cabinet Approval...!

Expected DA (Dearness Allowance) for Central Government Employees from July 2009 is 27%

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NEW WAGE TO PORT AND DOCK WORKERS

New Wage structure for Port and Dock workers


Shri G.K. Vasan, the Union Minister of Shipping took initiative to break the impasse in the negotiations between the recognized Federations and Indian Ports Association (IPA) which averted the impending strike, signalling a great sigh of relief to the maritime community.

A Bipartite Wage Negotiation Committee (BWNC) consisting of representatives of Management and the Federations of Port and Dock workers was earlier constituted by Ministry of Shipping in January 2007. The BWNC held about 20 meetings on wage related matters of Port & Dock employees/workers. During negotiations, while Management, inter alia had offered a fitment benefit of 18% of Pay plus Dearness Pay plus Dearness Allowance, the Unions were insisting on fitment benefit of 34%. Being dissatisfied with management offer, the Unions had threatened to go on strike on or after 15.9.2009.

The Minister of Shipping intervened in the matter and held a meeting yesterday to discuss the matter with the Trade Unions, Ministry officials and IPA. After having extensive day long discussions, the impasse was broken when the Minister offered a fitment benefit of 23% to the Federations.

The Federations expressed their happiness and thanked the Minister, the Minister of State, Ministry officials and IPA for showing the pragmatism in resolving this important matter.



SOURCE;CGEN

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NEW PENSION SCHEME +ALL INDIA SERVICE

New Pension Scheme for Members of the All India Service...



No. 25014/14/2001-AIS (II)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances & Pensions

Department of Personnel & Training

Norht Block,New Delhi,
the 8th September, 2009

To
The Chief Secretaries,
All the State Governments/UTs




Subject:-Introduction of New Pension Scheme for Members of the All India Service joining the All India Service on or after 1/1/2004.




Sir/Madam,

The undersigned is directed to say that the pension of the members of the All India Services appointed on or after 1.1.2004 is regulated by the new Defined Contribution Pension Scheme (known as the New Pension Scheme) notified by the Ministry of Finance (Department of Economic Affairs) vide their O.M. No. 5/7/2003- ECB 2 PR dated 22.12.2003. On introduction of the New Pension Scheme, the All India Service (Death Cum retirement Benefit) Rules, 1958 and the All India Service (Provident Fund) Rules, 1955 were amended on 7.02.2004 & 17th May 2004 respectively. Under the amended Rules, benefits of the old Defined Benefit Pension Scheme and of GPF are not available to the members of the service appointed on or after 1.1.2004.

2. The New Pension Scheme will work on a defined contribution basis and will have two tiers – Tier I and II. Contribution to Tier I will be mandatory for all members of All India Services joining the All India Service on or after 1/1/2004, whereas Tier II will be optional and at the discretion of members of All India Service.

3. In Tier I, members of All India Service will make a contribution of 10% of his/her basic pay plus DA, which will be deducted from his/her salary bill every month by the DTO/TO concerned. The Government will also make an equal matching contribution..

4. Tier I contributions (and the investment returns) will be kept in a non-withdrawable pension Tier I account. Tier II contributions will be kept in a separate account that will be available for withdrawal at the option of the member of the Service. Government will not make any contribution to Tier II account.

5. A member of the service can exit at or after the age of 60 years from the Tier I of the scheme. At exit, it would be mandatory for him/her to invest 40 percent of pension wealth to purchase an annuity (from an IRDA regulated Life Insurance Company), which will provide for pension for the lifetime of the employee and his dependent parents/spouse. In the case of members of the All India Service who leave the Scheme before attaining the age of 60, the mandatory annuitisation would be 80% of the pension wealth.

6. Recoveries towards Tier I contribution will start from the salary of the month following the month in which the member of the service has joined service. No recovery will be made for the month of joining.

7. As the existing provisions of Defined Benefit Pension and GPF would not be available to new members of All India Service joining All India Service on or after 1/1/2004, in case any GPF deduction has been made then it would have to be refunded to the concerned All India Service Officers.

8. Deduction towards Group Insurance will, however, continue to be made from the salary of new members of the All India Service joining the service on or after 1/1/2004.

9. The State Service officers appointed to the IAS/IPS/IFS by way of promotion/selection, who are already covered under the old pension scheme will continue to be governed by the old pension scheme.

10. The pension funds of members of the All India Service would be managed by pension fund managers nominated by the Pension Fund Regulatory Development Authority (PFRDA) and the records would be maintained by a Central Record Keeping Agency, the National Security Depository Limited (NSDL).

11. All State governments would be required to designate a State Nodal Officer (SNO) at the State capital for all NPS related activities. District Treasury Officer (DTO)/Treasury Officer (TO) would be entrusted the responsibility of deducting the amount of employee's subscription from the salary of the AIS subscriber and would forward the same to the State Nodal Officer.

12. The amount and contribution details from each of the TO would be consolidated for all subscribers by the designated State Nodal Officer at the State capital. The SNO would also compile and consolidate Employers contribution.

13. The designated officer in the State Nodal Office would prepare and upload the Subscriber Contribution file (SCF) on CRA system; transfer funds to the Trustee Bank and send information to Department of Personnel & Training for control purposes.

14. Immediately on joining the All India Service, each member of the service will be required to provide particulars such as his/her name, designation, scale of pay, date of birth, nominees (s) for the fund, relationship with the nominee etc. in the prescribed form (Annexure-I). The same procedure should be followed for all AIS officers appointed on or after 1.1.2004. Accordingly all AIS officers recruited on or after 1.1.2004 are advised to fill up the registration form at Annexure-I immediately.

15. The DTO would be responsible for getting the physical registration form filled by all AIS officers and would also fill up their own registration form (DDO registration form) and send it to the State Nodal Officer (SNO). The State Nodal Officer would act as the PAO in the NPSCAN. He would collate the physical registration forms and also fill up the registration form for the PAO and send all these filled forms to NDSL preferably within a month of issuance of these orders. NDSL would process the details and send all the kits to the SNO by the end of October 2009.

16. On receipt of the Permanent Registration Allotment Number (PRAN), the SNO would start the regular uploads and funds transfers. After this is done the legacy data would be send in one or maximum two tranche.

17. For the legacy data, the DDOs would then prepare the arrears-SCF for month wise contribution details and send the same to SNO who will upload the same to NPSCAN and transfer the funds.Accounting procedure for the above would be devised by the State Government in consultation with Accountant General.

18. Payment to Trustee bank: The salary bills and the bills for Government contribution will be passed by TOs after exercising the checks prescribed under financial rules and Treasury Manual. The amount of NPS subscriptions (member contribution) recovered from the salary bills will be shown under the “Recoveries” column of the salary bill and will be classified under the Head “8342-Other Deposits-00-117-Defined Contribution Pension Scheme” in the State Section of Accounts by opening suitable separate sub-heads thereunder for “01-Government Servants Contributions under Tier-1” and “02-Government‟s Contribution under Tier-II”. The amount of Government‟s Contribution shall be debited to “2071-Pension Scheme -01-Civil-117-Contribution for Defined Contribution Pension Scheme-01 –Government Contribution– 00.04-Pensionary Charges” in the Consolidated Fund of the State Government.

19. After the bills are passed, the SNOs will upload the data relating to contributions (both of members of service‟s and Government‟s contributions) into NPSCAN of NDSL and also tally the figures uploaded with that booked. Further, all the accumulated balances under the DCPS would be transferred to the Trustee bank i.e. the Bank of India.

20. After uploading is completed, SNO will get Transaction ID and draw the total amount by minus crediting the head mentioned above either by cheque in favour of the Trustee Bank or remit the amount through RTGS/NEFT. SNO will also ensure the amount of contributions booked is duly tallied with the Subscriber's Contribution File (SCF) being uploaded in the NPSCAN and the same amount is drawn in the Cheque and passed on to the Trustee Bank.

21. The SNO/TO would have to maintain the Alphabetical Index Register in Annexure V wherein they would have to indicate the PRAN numbers allotted to each of the subscriber; the particulars of remittances of contributions to the Trustee bank in the Proforma prescribed vide Annexure VI; and the individual-wise account indicating the amounts of contributions paid to the Trustee Bank and the details of remittance.(vide Annexure VII).

22. In order to enable NSDL to carry out reconciliation and credit the amounts against the individuals‟ accounts, Treasury Officers/ SNOs will have to ensure that their TO Registration numbers / SNO Registration numbers respectively and the month to which the contributions pertain /Transaction ID in NPSCAN are mentioned in the NEFT / RTGS application form (in the 'Remarks' column) to be submitted to their banker. Where payments are made through cheques in favour of the Trustee Bank, these particulars would have to be furnished on the reverse of the cheque as well as in the forwarding letter. The time schedule prescribed will have to be strictly adhered to by SNOs, TOs and DDOs.

23. The SNO along with the State Government would have to ensure that arrears of contributions both of Government and Subscribers, are recovered and transferred to the trustee bank within a definite time span. If the contributions have been recovered but kept elsewhere, then also they must be transferred immediately to the Trustee Bank.

24. If the State Governments decide to recover the contributions in instalments, it may be ensured that the instalments of Government contributions drawn and transferred to the fund do not exceed the individual's contributions.

25. In the case of post 01.01.2004 entrants into the service, whose contributions to NPS are yet to be deducted, the State Government may consider deducting their contribution (arrears from 01.01.2004 or from their date of entry into service) from the second instalment of arrears of revision of pay due on account of the 6th Pay Commission recommendations. Further the pay arrears may be released only after individual application forms for registration to the New Pension Scheme have been obtained by the DDO/SNO from the concerned member of the service.

26. Whenever any member of the service is transferred from one office to another or goes on Central deputation etc, the TO will indicate in the Last Pay Certificate of the member of the service, the PRAN in respect of that individual and the month up to which his contributions have been recovered/ drawn. 27.Accountant Generals/Finance Departments of all State Governments are requested to bring these instructions to the notice of their TOs\DDOs\ SNOs for strictcompliance
SOURCE;CGEN

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DEFENCE MCM -4200 GRADE PAY

Wednesday, September 9, 2009
Railway MCM = Defence(Ordnance) MCM




MINISTRY OF DEFENCE ISSUED ORDERS FOR REDESIGNATION OF HIGHLY SKILLED GRADE INTO HS-I AND HS-II.,AND GRADE PAY RS .4200 FOR MCM GRADE

This is really a happy news for workshop staff .Actually its a decade long demand of defence civilian workshop staff for Rs.5000-8000 for MCM Grade at par with Railway.

But unfortunatly the Sixth CPC turned down this demand and recommended Rs.4500-7000 to Railway employees too.After the strong protest of all federations this issue was placed before Fast Track Committee and finally this decision was arrived.
Source: Government Employees News

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REGULATION OF JOURNEY -LTC

Wednesday, September 9, 2009
clarification reg. - Air Travel while availing LTC



No.3101112/2006-Estt.(A)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances & Pensions

Department of Personnel & Training

Norht Block,New Delhi,
the 9th September, 2009

OFFICE MEMORANDUM




Subject:- Regulation of Journey by air while availing Leave Travel Concession - clarification regarding.




The undersigned is directed to refer to this Department's O.M. of even No. dated 27.7.2009 on the above subject and to say that consequent to issue of Ministry of Finance, Department of Expenditure O.M.No. 7(1) E.Coord/2009 dated 7/9/2009 on expenditure management the reimbursement of the expenses on air travel while availing of the Leave Travel Concession by Government servants will be restricted to the cost of travel by the economy class, irrespective of entitlement, with immediate effect.

source;fm

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EASY WAYS TO LOWER TAX

The government is considering a proposal to raise the tax exemption limit on monthly transport allowance, a move that could enrich taxpayers by as much as Rs 9,000 a year, but at the same time put further pressure on its already-strained finances.

The proposal to increase the tax exemption limit for transport allowance to Rs 3,200 a month from Rs 800 follows a similar hike for government servants under the Sixth Pay Commission award. It is likely to find adoption in the private sector too, triggering greater spending across the economy and boosting the bottom lines of companies in a wide swath of sectors.

A decision on the proposal, following representations from some quarters in the government, is expected soon, a finance ministry official told ET, on condition of anonymity. The government, which is facing the worst economic growth prospects since 2003 due to credit crisis and drought, is leaving no stone unturned to boost consumer demand and revive economic growth to the record 9% seen before the 2008 crisis. It has cut taxes, raised spending on social and infrastructure projects and enabled lower interest rates for companies and individuals.

Private final consumption expenditure nearly halved to 27% of gross domestic product (GDP) in the last fiscal year from 53.8% a year earlier as consumers restricted spending fearing job losses amid slowing sales growth and reduced profits. The consumption fall was partly offset as government final consumption to GDP rose four-fold to 32.5% from 8%, according to Reserve Bank of India data.

The move is expected to lead to an yearly additional exemption of Rs 28,800, which would yield a tax saving of Rs 8,899 a year, including the cess, to those in the highest tax bracket. While this may boost demand, the government, which is already running a record deficit of 6.8% of GDP, could lose significant tax revenues and many assesses would also fall out of the tax net.

Collections of both direct and indirect taxes are under pressure following tax rate cuts and economic slowdown. Direct tax collections grew by a modest 4% in April-August period to Rs 87,888 crore. The Central Board of Direct Taxes, which has the power to formulate and change rules, is exploring the possibility of hiking the exemption through a notification.

Allowances such as transport are governed by the rule 2BB of the Section 10(14) of the Income Tax Act. The board is only required to place the new rule before Parliament whenever it has its next session.

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RBI-PLASTIC NOTES

RBI to introduce 100 crore Rs 10 plastic notes



NEW DELHI: Soiled notes may soon be a thing of past with the Reserve Bank planning to introduce Rs 10 polymer banknotes whose life span would be 4
times the normal currency notes and would be difficult to imitate.

The apex bank has initially decided to introduce 100 crore pieces of Rs 10 polymer notes, for which it has floated a global tender, a senior central bank official said.

Explaining the rationale for introduction of polymer notes, the official said, these notes would have an average life span of 5 years compared to one year for the currency notes.

Besides, the official said, these notes are cleaner than paper notes and it would be difficult to counterfeit the currency.

The polymer notes were first introduced in Australia to safeguard against counterfeiting of currency.

Besides Australia, other countries which have introduced plastic notes include New Zealand, Papua New Guinea, Romania, Bermuda, Brunei and Vietnam.SOURCE;PTI

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NEW PENSION SYSTEM

TODAYS FAVOURITE TOPIC AMONG NEW RECRUITERS IS NEW PENSION SYSTEM AND 60%ARREARS.RECENTLY GOVT GAVE ONE NOTIFICATION REGARDING 60% ARREARS TO NEW RECRUITERS.IN THAT THEY WILL GET ARREARS ONLY AFTER SIGN IN A OPTION FORM.THE REASON FOR GETTING SIGNATURE IS CORRECT BUT THE WAY IS NOT GOOD.THEESE THINGS MAY RISE THEIR DOUHT REGARDING NPS.
MOSTLY SHARE MARKET IS NOT A SAFE INVESTING SPOT.EVERYBODY LIKES THEIR MONEY IN A SAFE HAND.IN 2008 JANUARY SENSEX SHOWS 21000 POINTS.AFTER FEW MONTHS LATER IT SHOWS 8000 POINTS.NOW IN 16000 POINTS.MOST OF THE EMPLOYEES DOES NOT LIKE VOLATILE MARKET INVESTMENT.ANY HOW OUR ECONOMY IS GROWING FASTAND FUNDAMENTALLY STRONG.GOVT SHOULD GIVE WIDE PUBLICITY ABOUT NPS AND INVESTING PORTALS IN THEIR REGIONAL LANGUAGE.
ALL UNION REPRESENTATIVES SHOULD GIVE THEIR OPENION AND GUIDE AFTER 2004 RECRUITERS TO TRAVEL IN A SAFE WAY.

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DEFENCE FAMILY PENSIONERS-FAQ

Common Questions Asked in Defence Pension Adalats
By Pensioners/ Family Pensioners

Question-No.1: My husband was a defence civilian and removed from service Am I entitled for family pension?

Answer: Not entitled to family pension. However, if your husband was in receipt of compassionate allowance, you are entitled to family pension.
Question-No.2: I am widow of a deserter and have not been sanctioned family pension?
Answer: No family pension is admissible.
Question-No.3(I): I have given option and undertaking but my Pension Disbursement Agency is not paying the fixed medical allowance.
Answer: Fixed medical allowance is paid with reference to the area where the pensioner is residing. If the pensioner is residing in an area not covered by the CGHS, he is entitled to payment of fixed medical allowance.

If the Civilian Pensioner is residing in an area covered by CGHS, he is not entitled to payment of fixed Medical Allowance. As regards the payment of fixed medical allowance in respect of Armed Forces pensioners they are entitled to it subject to option and undertaking to be given by them that they do not want to avail OPD medical facility at MH/MI Room.

Question-No.3(II): I am an ex-serviceman and re-employed in a Bank. My Pension Disbursement Agency is not paying me fixed medical allowance on the ground that I am getting medical facilities from the re-employing authority.
Answer: A person who is re-employed in Bank is not entitled to payment of Medical Allowance during re-employment since medical facility would be available in the Bank.
Question-No.4: My family pension has been stopped on the ground of hearsay allegation that I have remarried.
Answer: Family Pension should not be stopped on the basis of hearsay allegation but the fact should be reported by the PDA to Pr. CDA(P) who will get the case investigated and pass appropriate orders. In case the widow's family pension has been stopped she should report the matter to Pr. CDA (P) who will issue orders for continuance or otherwise of family pension after investigation .
Question-No.5: Pensioner of the same rank, group & qualifying service who was discharged from service from the same date is getting more pension than me.
Answer: Full details of colleague pensioner is required for checking the entitlement and making comparison. However, generally there may not be any variation between the pensions of those who are of the same rank, group, qualifying service and are of the same date of discharge unless there is some wrong fixation of pension.
Question-No.6: Whether the widows of Armed Forces Pensioners who are in receipt of family pension under EPF scheme 1971, 1995 are entitled to family pension from Army side also?
Answer: Yes. Previously the widows of Armed Forces Pensioners who were in receipt of ordinary family pension under EPF scheme 1971, 1995 had to opt for one pension which was advantageous. Now, the Govt. has liberalised family pension scheme and they are entitled to family pension from Army side in addition to family pension drawn from EPF scheme 1971 or 1995. For this purpose, ROs will initiate pension claims and submit them to PSAs for sanction of family pension. The benefit is available w.e.f. 27.07.2001 in past cases and from the date following the date of death in later cases.
Question-No.7: What is the procedure for joint notification of family pension in respect of Armed Forces Pensioners?
Answer: Joint notification of family pension simultaneously with service pension in the same PPO in respect of PBOR commenced from 1.3.85 i.e. the PPOs notified on or after 1.3.85 were issued sanctioning family pension with service pension. However, this joint notification of family pension is done only in favour of wife. Children, parents etc. are not covered under joint notification system. Joint notification is also not done in cases of more them one wife or in cases of re-employment. For those who were sanctioned pension prior to 1.3.85, in their cases endorsement of family pension on the PPOs of living pensioners was issued under Ministry of Defence Letter dated 30.06.88. For this purpose, pensioner is to apply on Appendix I to MOD letter dated 30.06.88 with joint photograph of spouse and send it to the concerned RO through his PDA. PDA after verification of entries in the application will send it to RO concerned who will send the application form to PSA for endorsement of family pension.
Question-No.8: What has the pensioner to do for restoration of commuted portion of pension? From what date is it restored?
Answer: Commuted portion of pension is to be restored after 15 years from the date of commutation. This restoration was introduced w.e.f. 1.4.85 i.e. those who completed 15 years on or after 1.4.85, their pension was to be restored.

This 15 years is to be counted from date of discharge provided commutation was sanctioned simultaneously with service pension in the same PPO.

However, where commutation was sanctioned subsequent to the date of discharge the restoration of commuted portion of pension will be done on completion of 15 years from the date from which the amount of capitalized value is paid or credited to the pensioner's account.

Every pensioner has to apply to his PDA through an application after completion of 15 years for restoration.

Question-No.9: What is the procedure for transfer of pension from one PDA to another PDA?
Answer: If a pensioner is drawing pension from one PDA and desires that his pension should be transferred to another PDA, he is simply to apply on Annexure 'C' of PSB Scheme Booklet of 1987 to his PDA from where he is getting pension, giving full particulars of the PDA i.e. the name of specific treasury, particular branch of the bank with Saving Bank Account Number etc. and the present PDA will transfer his pension accounts to desired PDA. For transfer of PDA, sanction/instructions from PCDA(P) is not required. However, while forwarding pension documents to New PDA, the present PDA will intimate month and year upto which pension has been paid to the pensioner and the month from which pension is to be commenced by the New PDA. In all such cases Pension Sanctioning Authority as well as Principal CDA(P) will be informed for updating their records.
Question-No.10: What procedure is to be followed for revision of pension of Pre-86/Pre-96 Hony Commissioned Officers under modified parity formula order?
Answer: Modified Parity Formula Orders issued by Govt. of India, Ministry of Defence under their letter dated 07.06.99 envisage that w.e.f. 1.1.96 service pension of a pensioner will not be less than 50% of the minimum of the revised pay scale introduced w.e.f. 1.1.96 for 33 years service. If the actual service plus admissible weightage is less than 33 years, the service pension will be reduced proportionately. Similarly family pension w.e.f. 1.1.96 will not be less than 30% of the minimum of the revised pay scale introduced w.e.f. 1.1.96.

In case of PBOR, modified parity is beneficial only to Hony Commissioned Officers. For revision under modified parity, pensioner should apply on prescribed application form i.e. Annexure II to Govt. letter dated 14.07.98 (available with PDAs) to their PDA who will, after verification of particulars, send the application to RO concerned. In Pre-86 cases the Record Office will send the application form to the PAO concerned for notional fixation of pay as on 1.1.86 (on Annexure IV). The Annexure II (along with Annexure IV where applicable) is ultimately received by the Office of the Pr. CDA (Pensions), Allahabad for issue of corrigendum PPO revising the pension.

Question-No.11: What is the procedure for revision of Pension/Family Pension in respect of Pre-86/Pensioners/Family Pensioners?
Answer: For revision of pension/family pension of Pre-86Pensioners/Family Pensioner, the individual is required to apply to his PDA on a prescribed application form i.e. Annexure II to Govt. of India, Ministry of Defence letter dated 14.07.98. PDA will revise service pension as per Tables to the ibid MOD letter with reference to rank, group and qualifying service of the pensioner where OP (Original Pension) in his records tally with the OP shown in the Tables. If OP does not tally, these cases will be referred to Pr. CDA(P) by the PDAs who will fix revised pension w.e.f. 1.1.96 and issue clarificatory instructions to PDA for eventual payment.
Question-No.12: What is the protection for ordinary family pension, Special Family Pension and liberalised family pension to the family of a Major General?
Answer: OFP/SFP/LFP in respect of Major General was less than the corresponding family pension of a Brigadier because of the fact that a Brigadier gets Rank pay which, added to basic pay, becomes higher than the pay of a Major General. It has now been clarified by the Govt. that family pension in respect of Major General will not be less than the family pension of a Brigadier. All cases of Major General are being revised suomoto.
Question-No.13: What are the revised rates of disability element for 100% disability in pursuance of Vth CPC Govt. Orders?
Answer: Rates of disability element for 100% disability in r/o Armed Forces Pensioners have been revised w.e.f. 1.1.96 as under:



(i) Commissioned Officer of the three services including Hony Officers Rs.2600/- pm
(ii) JCOs of Army and equivalent ranks in AF and Navy Rs.1900/- pm
(iii) PBOR of the three services Rs.1550/- pm


If the disability is lower than 100% the above rates will be proportionately reduced.



The revised rates are applicable w.e.f. 1.1.96 to all the pensioners in receipt of disability pension irrespective of the date of discharge i.e. applicable to post 96 pensioners as well as Pre-96 Pensioners.

Question-No.14: To whom is rounding off benefit of percentage of disability pension admissible?
Answer: In pursuance of Vth CPC recommendations, Govt. of India, Ministry of Defence vide their letter dated 31.01.2001 have issued orders for revision of disability pension in respect of Post 96 discharge/invalidment/death cases. For purposes of grant of disability pension, following two criteria have been adhered to.

Invalidment Cases: In invalidment cases disability element will be computed as under:

Less than 50% 50%
Between 50 and 75% 75%
Between 76 and 100% 100%



DE on Discharge Release Cases: In discharge release cases, no disability element shall be payable for disabilities less than 20%. Rounding off benefit in such cases will not be allowed.

Question-No.15: Under Vth CPC orders remarriage of widow even with a person other than real brother of the deceased does not debar her from payment of special family pension. What is the exact rule position in this regard?
Answer: Before Vth CPC orders a widow, recipient of special family pension, on remarriage with real brother of the deceased was allowed special family pension. In case of remarriage of widow with a person other than the real brother of the deceased special family pension was discontinued from the date of marriage. However, in case of liberalised family pension ordinary family pension was payable on re-marriage with other than real brother.

Under Vth CPC orders applicable from 1.1.96 the position has undergone a change. Now the payment of SFP to the widow in the event of remarriage will depend upon the circumstances as to whether or not she has children and whether she supports them after remarriage.


(i) If she has no children She will get full SFP
(ii) If she has children and supports them Full SFP
(iii) If she has children but does not support 50% SFP to children & OFP to widow



The above position is valid only when the widow is the nominated heir, However, where first life award is sanctioned to parents, the payment of family pension will be regulated as under: -



(aa) If widow continues to support child(ren) after re-marriage or has no issues 50% of SFP to Parents, 50% of SFP to Widow.
(ab) If widow does not support children after re-marriage but the children are supported by the parents. Full SFP to parents, Ordinary Family Pension to widow
(ac) If children are not supported either by the remarried widow or the parents. 50% of SFP to parents, 50% of SFP to eligible children, Ordinary Family Pension to widow.
(ad) On death or disqualification of parents and the widow supports the children or has no issues. Full SFP to widow.
(ae) On death or disqualification of parents and the widow does not support the children Full SFP to children' Ordinary Family Pension to widow.

Question-No.16: Whether Dearness relief is admissible to a re-employed pensioner?
Answer: Yes with the following conditions: -

(i) Not admissible to class A Pensioners/Officers.

(ii) Admissible to PBOR and below class 'A' Pensioners.

(iii) Admissible w.e.f. 18.07.97

(iv) Admissible only when the pay on the re-employed post has been fixed on the minimum scale of pay on which re-employed.

(v) Whole of pension has been ignored while fixing his pay.

Question-No.17: What is the admissibility of Ex-gratia lump-sum compensation to the families of Armed Forces personnel who are killed in action in international wars or while taking action against extremists/anti-social elements/terrorists etc. and those killed due to accidents?
Answer: Ex-gratia lump-sum compensation is admissible to NOKs of Armed Forces personnel as under:
Rs. 1 Lakh 20.08.93 to 31.03.95 Killed by extremists/terrorist
Rs. 2 Lakh 01.04.95 to 31.07.97
Rs. 5 Lakh 01.08.97 onwards Killed due to accidents.
Rs. 7.5 Lakh 01.08.97 onwards Killed in action against terrorists
Rs. 10 Lakhto those who were killed in Operation Vijay between 01.05.99 to 31.10.99 Killed in OP Vijay.

Question-No.18: How War Injury Pension is calculated in r/o Post 96 Invalidment/discharge cases?
Answer: War Injury pension consists of two elements: -

(i) Service element

(ii) War Injury element



The procedure for calculation of War Injury Pension on invalidment and discharge is as under: -

War Injury Pension on Invalidment:

Service element in respect of Commissioned Officers will be calculated with reference to pay drawn at the time of Invalidment but counting service upto the date on which he/she should have retired in that rank in normal course including weightage as admissible. Whereas in respect of PBOR service element will be calculated on the basis of the rank and group and maximum length of service for that rank.

War Injury Element:

WIE will be equal to reckonable emoluments last drawn for 100% disablement. For lower percentage it will be reduced proportionately. However aggregate of SE and WIE will not be more than last pay drawn.

War Injury Pension on discharge: -

Service element equal to service pension War Injury element Rs. 5200/-, 3800/- or 3100/-, for officers, JCOs & PBOR respectively, for 100% War Injury. For lower % it will be proportionately reduced.

Question-No.19: Whether family pension may be sanctioned to a handicapped child during lifetime of a pensioner who has no wife or any other children.
Answer: No. Family Pension in this case may be sanctioned only when the contingency arises. However, a note of such child will be kept in record of RO/HOO and P.S.A.
Question-No.20: Whether reservists who have opted for lump-sum gratuity in lieu of pension are also entitled to pension?
Answer: Yes. They are entitled to Ex-gratia pension @ Rs. 600/- pm w.e.f. 01.11.97 provided they have not received any rehabilitation assistance from the Govt. and are not in receipt of any other pension.
Question-No.21: Whether a Sepoy who was discharged from service in 1966 and awarded Sena Medal for gallantry is also entitled to any monetary allowance.
Answer: Yes. He is entitled to Rs. 250/- p.m. from 01.02.99 and not from 1966.
Question-No.22: Whether a PBOR pensioner who has got his pension commuted to the extent of only 30% of pension can subsequently commute the remaining 15%?
Answer: Yes. He can get his remaining percentage of pension commuted.
Question-No.23: I was discharged from service on 31.10.96 i.e. after 1.1.96 but my pension is lesser than pension of a pensioner of my rank, group & qualifying service discharged in 12/97. I should get the same pension under one rank, one-pension formula.
Answer: We are not aware of any Govt. letter regarding one Rank, one pension. Govt. Orders on modified parity have been issued which do not envisage that pension of all the pensioners of the same rank, group and qualifying service will be the same.

In-fact pension in respect of PBOR is calculated on maximum of the pay of the rank and group in which last served. Since Pay Scales of those who are discharged on or after 10.10.97 are higher than of those who are discharged between 1.1.96 and 9.10.97, pensions of these two categories of pensioners differ.

Question-No.24: Whether Special Family Pension in respect of JCO who has nominated his mother for pension may be divided between mother and widow.
Answer: Yes. If the mother who is nominated heir does not support her daughter-in-law who requests for division of SFP. The Pr. CDA (P) on the investigation and recommendations of civil authority/BRO, may divide the Special Family Pension in the ratio decided by him. But in no case widow's share will be less than the Ordinary Family Pension.
Question-No.25: Continuance award of Special Family Pension is admissible from which date and in whose favour is the SFP continued?
Answer: When Special Family Pension is sanctioned to widow and she becomes disqualified or dies and it is sanctioned to father or mother it is called continuance award of Special Family Pension. It is sanctioned from the date of application by the parents.
Question-No.26: Whether in all cases service element is payable along with disability element in disability pension cases?
Answer: No. Those who are discharged from service on completion of their terms of engagement with service gratuity without earning a service pension, if found suffering from a disability which is accepted as attributable to or aggravated by service at 20% or above, may be sanctioned Disability Element in addition to service gratuity. Service element is not payable in such cases.
Question-No.27: Whether restoration of commuted portion of pension is admissible to those who were absorbed permanently in autonomous bodies/PSUs and have drawn lump-sum capitalised value in lieu of pension?
Answer: Yes. Only 1/3rd portion of pension which was normally allowed to be commuted may be restored after 15 years from the date of commutation and dearness relief is also payable on this.
Question-No.28: In case of Naval Personnel whole of the Boy Service is taken as qualifying service for pension. Do similar orders exist on Air Force/Army side?
Answer: NO. However, the matter stands referred to Govt. for necessary orders.
Question No. 29: Are two service pensions/family pensions admissible?
Answer: Yes. However two pensions will be admissible for the services rendered in two organisations/Depts. Two family pension are admissible for two casualties. For example a mother who is in receipt of family pension for her husband may also get family pension for her son provided the son has left no widow/eligible child.
SOURCE;PENSION PORTAL

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