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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