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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