Posts Tagged ‘defence accounts’

Booking of CGHS Recovery into Heads of Defence Accounts

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Booking of CGHS Recovery into Heads of Defence Accounts

CGHS

OFFICE OF THE CONTROLLER GENERAL OF DEFENCE ACCOUNTS
ULAN BATAR ROAD, DELHI CANTT -110 010

No. A/1/11336/OBS/2017-18

Dated: 09.07.2018

To
PCsDA/CsDA (through website)

Subject: Booking of CGHS Recovery into Heads of Defence Accounts.

As per list of Major & Minor Heads of Accounts, recovery on accounts of CGHS contribution should be booked under Receipt Head 0210.01.103.00.00 {code heads 094/16-Defence, 095/16-MoD(Civ) & 098/20-CSD}.

2. However, Test Audit of pay bills pertaining to Defence Civilians in one of our Controller Offices revealed that a recovery of CGHS subscription is being booked under MH-0076, Minor Head 800-Other receipts (code head 01/575/30). Similarly, CGHS contribution of Civilians of Navy and Air Force is being booked under MH-0077, Minor Head 800-other receipts (code head 01/670/30) and Major Head 0078, Minor Head 800-Other receipts (code head 01/710/30) respectively.

3. While your office is booking a significant amount under the code head 094/16, it may be possible that the recovery on account of Defence Civilians not being booked under the appropriate heads.

4. It is therefore, requested to review the booking on account of recovery of CGHS contribution by your office and furnish the practice being followed and code heads being used by your office for booking of said recovery in r/o both DAD & Non-DAD subscribers. The review may be completed by 27.06.2018.

(Sumit Gajbhiye)
Sr.ACGDA (A&B)

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Be the first to comment - What do you think?  Posted by admin - July 10, 2018 at 9:32 pm

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Leveraging for maximizing Digital Life Certification

PCDA Circular No. 196 : Leveraging for maximizing Digital Life Certification

Office of the Principal Controller of Defence Accounts (Pension), Draupadi
Ghat, Allahabad -211014

Circular No. 196

No. AT/Tech/30-XIX

Dated: 10.01.2018

To,

1. The Chief Accountant, RBI Deptt. of Govt. Bank Accounts, Central office C-7, Second Floor, Bandre- Kurla Complex, P B No. 8143, Bandre East Mumbai-400051
2. The Director of Treasuries of all state …….
3. The Manger CPPC of Public Sector Banks including IDBI
4. The CDA (PD) Meerut……….
5. The CDA-Chennai……….
6. The Nodal Officers (ICICI/ AXIS/HDFC Bank)….
7. The Pay & Accounts Officers…………
8. Military and Air Attache, Indian Embassy Kathmandu, Nepal.
9. The DPDO…………
10 The Post Master…………..

Sub: Leveraging for maximizing Digital Life Certification.

Since, Aadhaar Act has now mandated by Govt. of India and the pensioner is required to furnish Aadhaar was for using the Aadhaar information. Therefore, Pension Disbursing Authorities are advised to obtain the consent of all the defence pensioners/family pensioners drawing their pension/family pension from their offices as per the sample Template for Jeevan Pramaan / Digital Life Certificate enclosed herewith.

Encl: As above.

S/d,
(Shubash Kumar)
DCDA (P)

Sample Consent Template for Jeevan Pramaan/Digital Life Certificate- I < Name of the Aadhaar holder >, the holder of Aadhaar number < < xxxx-xxxx-xxxx > >, hereby give my consent to < (Name and Address of PDA) > to use my Aadhaar Number and Fingerprint/Iris/OTP for annual identification and generation of Digital Life Certificate(DLC). I also give my consent for sharing my Aadhaar number and my DLC with my < (Name of PDA) > for e-KYC and authentication from UIDAI through Meit/NIC/NPCI/other ASA.

< (Name of PDA) >………. has informed me on behalf of Meit/NIC/NPCI/other ASA that during authentication, Meit/NIC/NPCI/other ASA shall submit my information to UIDAI and that my core biometrics (Fingerprint and/or Iris scans will not be stored/shared). I have also been informed that the information submitted to < (Name of PDA) >………. shall not be used for any purpose other than that mentioned above or as per any requirement of law.

(Signature)
Name:…..……………………………………
Rank/Designation:………………………
Personal No./Regimental No………..
PPO No.:……..……………………………

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Implementation of Govt’s decisions on the recommendations of the Seventh Central Pay Commission-Revision of pension of pre-2016 pensioners/family pensioners, etc.

7th CPC Revision of Pension of Pre-2016 Defence Civilian Pensioners: PCDA Circular No. C-168 (In amendment of C-164)

OFFICE OF THE PR. CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS)

DRAUPADI GHAT, ALLAHABAD- 211014

Circular No. C-168

No: G1/C/0199/Vol-I/Tech

Dated: – 10 .07.2017.

To,
————————————–
——————————–
(All Head of Department under Min. of Defence)

Subject: – Implementation of Govt’s decisions on the recommendations of the Seventh Central Pay Commission-Revision of pension of pre-2016 pensioners/family pensioners, etc.

Reference: – (i) GOI, Deptt. of P&PW O.M. No. 38/37/2016-P&PW(A), dt. 6th July, 2017.

(ii) This office important circular no. C-164, bearing no.G1/C/0199/Vol-I/Tech, dated 30th May 2017.

GoI, Ministry of Personnel, Public Grievance and Pensions, Department of Pension & Pensioners’ Welfare has issued a CONCORDANCE TABLE vide O.M. No. 38/37/2016-P&PW(A), dated 6th July, 2017 for revision of pension of pre-2006 pensioners/family pensioners based on notional pay fixed as on 01.01.2016. A copy of the same has been uploaded on this office website www.pcdapension.nic.in for easy accessibility of all concerned. This table should be used to arrive at notional basic pay in the pay matrix of 7th CPC.

2. Reference of this office DO letter of even no. dt. 02/06/2017 is also invited, under which it was requested to all HODs that a Nodal Officer may be nominated who can be contacted for expediting the process and resolving any issue which is encountered. Details such as telephone number, mobile no., email -id etc. may kindly be intimated immediately if not already done, by email to gograntonecivil.dad[at]hub.nic.in .

3 Reference may kindly be made to this office circular no. C-164 dated 30.05.2017 wherein methodology for revision of pension consequent upon issue of GOI, DP&PW OM No. 38/37/2016-P&PW(A), dated 12.05.2017 was conveyed. Several queries in form of letter, email, phone calls are being received for clarification of certain provisions of the ibid circular. It has been decided, therefore to circulate such clarification through this circular. Hence, topic wise clarifications are appended below:-1

a). HOO Code:

(i) At Para 20 of the circular C-164 dated 30.05.2017, it was mentioned that HOO code shall to be obtained by sending email to pcdapedp.cgda@nic.in in the prescribed proforma duly signed by Head of Office (HOO) and Head of Department (HOD). It has been seen that request for HOO code allotment is being received in this office in very sparse manner. Since, this code is mandatory for preparation of LPC-cum- Datasheet and also for transmission of PPOs to Head of Offices, it is requested to impress upon the Head of Offices functioning under your jurisdiction to kindly forward the request for allotment of HOO code immediately in prescribed manner. It is worthwhile to mention here that the term ‘Head of Department’ refer to organization such as OFB, AOC, ENG., DRDO, AF, Navy, DAD, Coast Guard etc. and Head of Office indicates the Unit (say a Factories under OFB, a laboratories under DRDO etc.) which are required to send claim for pension sanction/revision to this office. It is also planned to soon modify existing LPC-cum- Datasheet which is presently being used for processing regular pension claims for other types of pension including superannuation etc. Therefore, timely allotment of HOO Code will avoid any delay in preparation of pension claims.

(ii) It may be kept in mind while filling HOO registration form that column ORGANISATION should be filled with organisation code(as being filled in 1st column of existing LPCs) of HOD. For example if HOD is Factory organisation then ORGANISATION Column shall be filled as : 01.

(iii) It has been observed that in some cases HOO Code has been allotted, but the same isshowing error while filling LPC-cum- Datasheet through Utility because the leading zero is dropped and then the code consists of 5 digits only. The utility has been updated and the revised version of the utility is now available on this office website www.pcdapension.nic.in .

b) LPC-CUM-DATA SHEET

(i). HOO Name (Column2):- It has also been observed that in the field of ‘HOO Name’ name of officer holding that appointment is mentioned. In this regard, attention is invited to filling instructions of Column 2 which mentions clearly that the column will be filled with ‘office name’ of the pensioners. For example if Govt. employee retired from HQ CWE SHIMLA HILLS JUTGAON CANTT SHIMLA, this column shall be filled as HQ CWE SHIMLA. In no case, name of the officer who is Head of the Unit or appointed to act as HOO under Delegation of Financial Power Rules 1976 should be mentioned.

(ii) In the field of PPO no., slashes ‘/’ are also being indicated. While it is clearly mentioned in filling instruction that PPO no. should be filled without slashes. For example if PPO no. is C/MISC/10250/2016, it should be filled as CMISC102502016 .

(iii) Date of Birth, Date of Appointment and Date of Retirement should be filled in (MMDDYYYY) format. For example if Date of Birth is 5th February 1950 it shall be filled as 02/05/1950. Alternatively calendar facility provided in the utility may be used.

(iv) It has been observed that pay scale at the time of retirement is not being filled in the corresponding column as provision mentioned under the caption ” PAY DETAILS”. For example: if, Govt. employee retired under 4th CPC in Pay scales 5900-200-7300 with last pay drawn 6100/- all columns from 4th CPC Pay Scale and onward should be filled properly. For example :-

4th CPC Scale (as 01.01.1986) : 31 (5900-200-7300)
4th CPC Pay/Notional Pay (as 01.01.1986) : 6100
5th CPC Pay (as 01.01.1996) : 29 (18400-500-22400)
5th CPC Pay/Notional Pay (as 01.01.1996) : 18400
6th CPC Pay Band(as 01.01.2006) : 4 (PB-IV)
Grade Pay (as 01.01.2006) : 10000
6th CPC Pay/Notional Pay (01.01.2006) without grade pay : 44700
7th CPC Level of Pay : L14
7th CPC Pay Index : 1
7th CPC Notional Pay (as on 01.01.2016) : 144200

(v) Basic Pension as on 01.01.2016 (Column 29) It has been observed that in some cases this column is filled with 50% of notional pay as on 01.01.2016, which is not correct. Filling instruction in this regard is very clear, this column is meant to reflect basic pension as on 01/01/2016 as per pre-revised scale of 6th CPC. In other words pensionary entitlement under 6th CPC should be multiplied by 2.57 and this results need to be reflected in this column.

(vi) Name of PDA (Column 45) : As per filling instructions if PDA is Bank (Code-9), then filling of Column no. 45 to 51 i.e. PDA Station, Name of Bank, Bank Account no., IFSC code of Paying Branch and BSR Code of CPPC must not be left blank.

c) Vetting of Data Sheet

(i). At Para 20 of the circular C-164 dated 30.05.2017, it was mentioned that in the annexed proforma of LPC-Cum-Data Sheet, the claim will be forwarded along with all concerned documents by the H.O.O/H.O.D to PCDA (Pension) Allahabad after getting it vetted from PAO/LAO attached. In this connection it is clarified that it is not necessary to get LPC-cum- Datasheet vetted by both authority i.e by PAO and LAO. Any one of the two may vet the LPC-cum- Datasheet before forwarding to this office.

4. In view of the foregoing, Head of Departments are requested to issue suitable instructions (along with copy of this circular) to all the Head of Offices under their administrative control to ensure that claims on the subject matter are floated in accordance with clarification given in above Paras without delay. It is further requested that HOD’s may evolve suitable mechanism to monitor progress in forwarding of LPC-cum-Data Sheet by their sub -offices functioning as on Head of Office.

(Rajeev Ranjan Kumar)
Dy. CDA (P)

No: G1/C/0199/ Vol-I/Tech
Dated: 10 /07/2017

Source: http://pcdapension.nic.in/

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Air Travel Entitlement for JCOs in Defence Forces

Air Travel Entitlement for JCOs in Defence Forces

According to the Gazette Notification issued by the Government on 6.7.2017, Junior Commissioned Officers (JCOs) are now eligible to travel by Air.

Those who are in Level 6 to 8 of Pay Matrix (Pre-Revised Grade Pay 4200, 4600 and 4800), as the Travel entitlement for them so far is AC II by Train only. Now the are entitled to Travel By Air in Economy Class.

Level 6 to 8 pertain to the three ranks of JCOs – Naib Subedar, Subedar and Subedar Major – in the Army, and their equivalents in the Navy and Air Force. Level 5 A of Defence Forces to be clubbed with Level 6 for travelling entitlements.

7th CPC Recommendations on Travel Entitlements: The 7th Pay Commission opines that the present provisions are adequate. Hence, status quo is recommended with the present system of differentiation based on Grade Pay duly substituted by the Levels of the Pay Matrix.

travelling-allowances-7thCPC

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Revision of rates of honorarium for Guest Faculty for training activities in Defence Accounts Department

CENTRE FOR TRAINING AND DEVELOPMENT (CENTRAD)
CONTROLLER GENERAL OF DEFENCE ACCOUNTS

OPPOSITE ARMY BASE HOSPITAL, BRAR SQUARE, DELHI CANTT.- 110010
Ph: 011-25694268, 25694298 Fax: 011-25694308 Email: trgdiv-brar.cgda@nic.in

No.TD/3332/Circular/17

Dated: 29.03.2017

Circular No.2 (z)

To
All RTCs/NADFM Pune/DPTI & OTI Gurgaon
All PCsDA/CsDA

Subject: Revision of rates of honorarium for Guest Faculty for training activities in Defence Accounts Department.

Min of Defence (Fin), DAD (Coord) vide their letter No.F.26 (1)/C/2009 dated 07.03.2017 has conveyed the sanction for revising the rates of honorarium for Guest Faculty for taking lectures in the training institutes of our department. The revised rates of honorarium are as under:

SI.NO Training Establishment Rate of Honorarium(Rs.)
1 Serving Faculty 750/-
2 Non- Serving Faculty 1500/-
3 Experts/Eminent Resources Persons 4000/-
4 In addition, honorarium of Rs.5000/- may be granted by the CGDA as per conditions of DoP&T OM No.13024/2008-Trg.I dated 03.03.2009

2. Selection of the faculty shall be strictly on merits and reasons shall be recorded for the same. It is also requested to ensure adherence to the ceilings as prescribed in DoP&T OM No. 13024/2/2008-Trg.I dated 03.03.2009.

3. It is requested to take action accordingly.

(T Kabilan)
Dy. CGDA (HRD)

Original Order

Be the first to comment - What do you think?  Posted by admin - April 4, 2017 at 10:09 pm

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Promotion to the grade of Additional Controller General of Defence Accounts (Higher Administrative Grade+)

Promotion to the grade of Additional Controller General of Defence Accounts (Higher Administrative Grade+)

Office of the Controller General Of Defence Accounts
Ulan Batar Road, Palam, Delhi Cantt – 110 010

Tele No.011-25674810
No.AN-I/1201/1/XXVII

Fax No.011-25674781
Dated: 02.03.2017

To

  1. The PCDA (R&D), New Delhi
  2. The PIFA (Army-M), New Delhi
  3. The PCDA, New Delhi

Subject: Promotion to the grade of Additional Controller General of Defence Accounts (Higher Administrative Grade+).

The Appointment Committee of the Cabinet (ACC) has approved the following two officers for promotion to the grade of additional controller General of Defence Accounts of the India Defence Accounts service in the pay scale of Rs.75500-80000 (HAG+) 6th CPC/Level 16 of pay matrix (7th CPC)

Sl.No Name of Officers Present Office
1 Shri Upendra Sah (IDAS : 1983) The PCDA (R&D), New Delhi
2 Shri R S Rana (IDAS:1983) The PIFA (Army-M), New Delhi

The promotion shall be with immediate effect or from the date of assumption of the charge of the post, whichever is later and until further orders. It may please be ensured before relief of the officer that no disciplinary/criminal case is pending against the officer and the officer is not under suspension.

  1. It is, therefore, requested that the above named officers may please be relieved of their present duties immediately with the request to assume charge as Additional Controller General of Defence Accounts in the office of CGDA, Delhi Cantt on promotion. TA/Joining time as admissible under the rules is authorized.
  2. The blank MTPAR form is enclosed for initiating the MTPAR of the officer till date of relief from the present charge/post. The same may please be handed over to the officer after completing Part I of the form with the request to complete the Part-II (Self Appraisal)and submit the same to the respective Reporting Officer, within 15 days from the date of relief, under intimation to the HQrs office. The officer may also be informed that if he fails to submit his appraisal within the aforesaid period, action would be initiated to get the MTPAR reported by the Reporting Officer without his self appraisal.
  3. Copy of the office Order regarding his relieving may please be forwarded to this HQrs. Office.

(Sham Dev)
Jt.CGDA (Admin)

Signed Copy

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Air Travel: Accounting and Payment by PAO

Air Travel Accounting and Payment by PAO

Government of India
Controller General of Defence Accounts
Ulan Batar Road, Delhi cantt  110066
(Defence Travel System, E Ticketing Project)
Phone No.: 011-26108268/26163404 /Fax No.: 011 26163403

No. Mech/EDP/861/E-T /Air

Dated: 15/09/2016

To,
The PCsDA/CsDA,

Subject: Air Travel Accounting and Payment by PAO

Reference: HQrs Office letter no. Mech/EDP/861/E-Ticketing/Phase-III dated-21-12-2015.

It is intimated that under the e-Ticketing system wherein Rail Tickets are being booked in lieu of warrants, an Air travel module has also been launched in collaboration with Balmer Lawrie to cover all types of moves like Temporary Duty, Permanent Transfer, LTC All India and LTC Home Town. Air tickets are being booked through DTS since 11 September 2015 by various units across Services under different PAOs. The payment procedure as agreed between CGDA and Balmer & Lawrie is post payment.

2. All PCsDA/CsDA/PCA{Fys) along with this HQrs office has been issued two set of tokens/login-id for this purpose.

(a) One set of Token /Login-Id for DAD Employee:  For booking of Air Tickets i.e. Master Booker Tokens and Competent Authority Approval Tokens for booking of Air Tickets for entitled DAD officers (already issued during training in the Jan, 2016).

(b) PAO tokens for generating and downloading of system generated booking details /Bills and invoices of air tickets booked for DAD entitled officers for payment. Such Tokens (Issued recently) cannot be used for booking of Air Tickets.

3. Process of Booking of Air Tickets: As mentioned in para 2(a) above, one set of Token/Login Id has already been issued for DAD Employee for profile creation of all officer/staffs entitled to travel by Air and booking of Air Tickets.

Air Tickets. Initially, profiles of all the officers/staffs working under jurisdiction of each PCsDA/CsDA and PCA(Fys) need to be created for booking of Air Tickets. The creation of profile is a onetime process and need not be done again. When an officer/staffs will be transferred from one PCsDA/CsDA to another, in such case his profile need to be “Transferred out” by the old office and accordingly his new office will perform the activity of “Transfer in” of such officers/staffs. All such activities like profile creation, editing of profile, Air Travel Booking request and cancellation request are performed by master booker /Booker token. At the same time, Approval/Approving token is used for approval of all such request as forwarded by the master booker token through DTS system. Accordingly, once travel request is approved by Competent Authority/Approving Authority, Master Booker/Booker Token can book the Air Ticket as per Travel Regulation and Movement Sanction.

4. Process of Payment of Air Tickets to Balmer Lawrie & Co:  As mentioned above, the booking of Air Tickets has been launched in collaboration with Balmer Lawrie, the payment procedure as agreed between CGDA and Balmer & Lawrie is post payment. Following steps are involved in processing of payment of Air Tickets to Balmer Lawrie & Co.

(a) Online Accounting and Payment Module for Air Travel:  As mentioned in para 2(b) above, Air Ticket booking details and voucher for Air Ticket booked during a particular period can be generated by logging in to the PAO Module for further processing of payment to Balmer & Lawrie Co.

(b) Preparation of Punching Medium:  After generation of the voucher by logging-in to the PAO Module, PCsDA/CsDA will prepare Punching Medium to compile under respective code head as per classification hand book.

(c) Payment Through NEFT:  After preparation of Punching Medium and Daily Payment Sheet, PCsDA/CsDA will make payment of the due amount through NEFT or through any other process is being followed in their offices.

(d) Voucher Settlement:  After payment PCsDA/CsDA will log-in to the PAO Module and will mark against each invoices as payment done.

(e) Voucher Acknowledgement:  All payment will be acknowledged by Balmer & Lawrie through System and PCsDA /CsDA will be able to download Receipt voucher of payment from the system.

4. Claim Submission:  As the Air Ticket booked through system is given to the officer is as good as advance to the officer/staff serving in the PCsDA/CsDA offices, traveler will submit his final claim within one month after completion of the journey along with original boarding pass and a copy of the Air Ticket booked through DTS

5. In this regard it is intimated that PCsDA/CsDA who are not having PKI tokens (One set of Booking Token with two tokens (One for Master Booker/Booker Token and another for Approval Token)) for booking of Air Tickets through DTS and one PKI token (PAO Token) for generation of voucher and processing payment are requested to intimate to this HQrs office for issuing of the same. PCsDA/CsDA/PCA(Fys) offices in possession of one set of PKI token (One for Master Booker/Booker token, another for Approval token) are requested to start booking of Air Tickets through DTS immediately.

Jt. CGDA (IT&S) has seen.

Sd/-
Deepak Kumar
Sr.ACGDA(IT & S)

Source : cgda.nic.in

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Provision of Minimum Pension of Rs.1000 per month the Pensioners under the Employees Pension Scheme 1995

Provision of Minimum Pension of Rs.1000 per month the Pensioners under the Employees Pension Scheme 1995 

Office Of the Principal Controller of Defence Accounts (Central Command)
Cariappa Road, Cantt., Lucknow, Pin code – 226002

No.PT/3088/CGDA/Vol-VI

Date: 19-05-2016

To,

1. The Area Accounts Office (CC) Allahabad
2. The Area Accounts Office (CC) Kanpur
3. The Officer in-Charge Pay-I/II/III & Store Audit (Local)

Sub: Provision of Minimum Pension of Rs.1000 per month the Pensioners under the Employees Pension Scheme 1995 – publicity of.

Ref: HQr Office letter No.AT/V/DAD/15001/EPS-1995 dated 10-05-2016.

Please find enclosed a copy of Ministry of Defence. D (Civ-II) Section ID No.20(1)/2016/D (civ-II) dated 01-04-2016 received from HQr office regarding the subject matter is forwarded herewith for your information and necessary action please.

Encl: As above

sd/-
ACDA(PT)

—-

Office of the Controller General Of Defence Accounts
Ulan Batar Road, Palam, Delhi Cantt. – 110010

No.AT/V/DAD/15001/EPS – 1995

Dated: 06-05-2016

To

All PCDAs/CDAs
PCDA(CC)Lucknow

Sub: Provision of Minimum Pension of Rs.1000 Per month the pensioners under the Employees pension Scheme 1995 – publicity of.

Please find enclosed a copy of Ministry of Defence, D (Civ-II) Section ID No.20(1)/2016/D (Civ-II) dated 01.04.2016 on the above mentioned subject is forwarded herewith for information and necessary action please.

Encls: As stated above.

sd/-
Rajesh Sharm
S.A.O. (AT/P)

—–

Ministry Of Defence
D(Civ-II) section

Subject: Provision of Minimum Pension of Rs.1000 Per month the Pensioners under the Employees Pension Scheme, 1995 – publicity of

The Employees Provident Funds & Misc Provision (EPF&MP) Act gives the framework for operating three important social security schemes for the workers of the country. These Schemes are (i) The Employees Provident Funds (EPF) Scheme 1952; (ii) The Employees Pension Scheme (EPS) 1995; and (iii) The Employees Deposit Linked Insurance (EDLI) Scheme, 1976. Under the provisions of the Employees pension scheme, 1995, pension security is provided for the employees who joined on or after 16.11.1995. In order to provide a bare minimum amount as pension which may help towards social security of EPS Pensioners, the Govt had started providing a minimum pension of Rs.1000/- p.m. to the pensioners under the scheme initially form 1.9.2014 for the year 2014-15.

sd/-
(Gurdeep Singh)
Under Secretary

—-

Ministry Of Defence (Finance)
DAD – Coord

Room No.24-A, south Block, New Delhi

Sub: Provision of Minimum Pension of Rs.1000 Per month the Pensioners under the Employees Pension Scheme, 1995 – publicity of.

A copy of Ministry of Defence D(Civ-II) Id bearing No.20(1)/2016/D(Civ-II) dated 01.04.2016 on the above mentioned subject is forwarded herewithfor information and necessary action please.

sd/-
(Rajesh Kalia)
SO (DAD Coord)

Source: http://pcdacc.gov.in/

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Categories: Pension   Tags: , , , , , ,

No TDS on Disability Pension to Armed Forces Personnel

No TDS on Disability Pension to Armed Forces Personnel
By Prashant Thakur -February 3, 2016

The tax exemption of disability pension received by Armed Force Personnel are among those exemptions under Income Tax Act for which you may not get a direct reference in the Income Tax Act.

However , such tax exemption are allowed by the executive instruction issued by either Finance Ministry notification or under the delegated powers to CBDT . Armed Forces personnel get the disability pension which is basically aggregate of two components-disability pension and service pension. Previously , this website had posted earlier 3 Types of Pension to Armed Forces Completely Tax Free!

Disability Pension to Armed Forces : What is it ? Update :

The below portion is modified as the government, has issued new circular for minimum disability pension .

The circular is applicable to all Pre-2006 Armed Forces Disability/War Injury Pensioners who were/ are in receipt of Disability Pension/ Liberalized Disability Pension/ War Injury Pension as on 24th September 2012.

Download the Circular 542 dated 27/05/2015

As per the website of Principal Controller of Defence Accounts (Pension), where an Armed Forces Personnel is invalided out of service, which is accepted as attributable to or aggravated by military service, he shall be entitled to disability pension consisting of Service Element & Disability Element as follows:-

Service Element The amount of service element shall be determined as 50% of less emoluments drawn as given in para 6 of MOD letter dt- 12.11.2008 which is subject to minimum Rs 3500/- p.m.

Disability Element The rates of disability elements for 100% disability for various ranks shall be 30% of emolument last drawn subject to Rs. 3510/- per month. Disability lower than 100% shall be computed by reducing proportionately.

Disability Element on Invalidment Where an Armed Force personnel is invalided out of service under circumstances mentioned in para 4.1 of Govt. letter dt. 31.01.01, the extent of disability shall be determined as follows for the purpose of computing the DE :- Percentage as finally assessed by Competent AuthorityPercentage to be reckoned for computing DE Between 1 to 4950 Between 50 & 7575 Between 76 &100100 Disability Element on Retirement/Discharge Where an Armed Forces personnel is retained in service despite disability and subsequently retired/ discharged on completion of tenure or on attaining the age of retirement, he shall be entitled to Disability Entitlement at the rate prescribed for 100% disablement. For disablement less than 100% but not below 20%, the rates shall be reduced proportionately.
No disability element shall be payable for disability less than 20% .

Is Disability Pension to Armed Forces Tax Free ?

Yes, although there is nothing in section 10 of the Income Tax Act , which is a general exemption section under Income tax Act , the disability pension has been made tax free through Finance Ministry notification No 878-F (Income Tax) dated 21-3-1922 .

The following instruction from CBDT explains that the entire disability pension is exempt

INSTRUCTION NO 136F.NO. 34/3/68-IT(AI)GOVT OF INDIA CENTRAL BOARD OF DIRECT TAXES NEW DELHI, DATED THE 14TH JAN 1970
FROM :SHRI S N NAUTIALSECRETARY, CBDT

TO:ALL COMMISSIONERS OF INCOME TAX

SUBJECT : EXEMPTION – SERVICE AND DISABILITY ELEMENT OF DISABILITY PENSION GRANTED TO A DISABLED OFFICER OF THE INDIAN ARMY –

WHETHER EXEMPTED FROM INCOME TAX. REFERENCE IS INVITED TO THE BOARD’S LETTER F NO 42/9/59-IT(AI), DATED THE 5TH SEPT 1960 ON THE ABOVE SUBJECT WHEREIN IT WAS MENTIONED THAT IN THE CASES FALLING UNDER ITEM (29) OF FINANCE DEPTT NOTIFICATION NO 878-F (INCOME TAX) DATED 21-3-1922, THE‘DISABILITY ELEMENT’ OF THE DISABILITY PENSION RECEIVED BY AN OFFICER OF THE ARMY WILL ONLY BE EXEMPTED FROM TAX AND THAT THE ‘SERVICE ELEMENT’ WILL BE SUBJECTED TO TAX.

2. ON RECONSIDERATION OF THE MATTER, IN CONSULTATION WITH THE MINISTRY OF LAW, THE BOARD ARE ADVISED THAT ITEM 29 OF THE NOTIFICATION DOES NOT DIFFERENTIATE BETWEEN TYPES OF PENSIONS. ACCORDINGLY IN THE CASES FALLING UNDER ITEM 29 OF THE ABOVE NOTIFICATION, ENTIRE DISABILITY PENSION WILL BE EXEMPTED FROM INCOME-TAX.

3.THE ABOVE INSTRUCTIONS MAY BE BROUGHT TO THE NOTICE OF ALL ASSESSING OFFICERS INYOUR CHARGE. YOURS FAITHFULLY,
SD/- (S N NAUTIAL) SECRETARY ,CBDT

Confusion on Exemption Disability Pension & Service Element As the disability pension is aggregate of two elements- disability element and service element- a confusion was created in filed formation of tax authorities , whether the disability element only is tax free and not the service element. CBDT , therefore , in order to wipe out any confusion , issued another instruction

F. No. 200/51/00-ITA-1 dt. 02.7.2001 to stress that both element of disability pension is tax exempt.
Read the instruction below :

[F. NO. 200/51/00-ITA-1 DT. 02.7.2001 FROM MINISTRY OF FINANCE DEPTT. OF REVENUE CENTRAL BOARD OF DIRECT TAXES, NEW DELHI.]

SUBJECT: EXEMPTION FROM INCOME TAX TO DISABILITY PENSION, I.E. ” DISABILITY ELEMENT” AND “SERVICE ELEMENT” OF A DISABLED OFFICER OF THE INDIAN ARMED FORCES- INSTRUCTIONS REGARDING.

REFERENCE HAVE BEEN RECEIVED IN THE BOARD REGARDING EXEMPTION FROM INCOME TAX TO DISABILITY PENSION, I.E. “DISABILITY ELEMENT” AND “SERVICE ELEMENT” OF A DISABLED OFFICER OF THE INDIAN ARMED FORCES.

2. IT APPEARS THAT FIELD FORMATIONS IN CERTAIN CASES ARE NOT UNIFORMLY ALLOWING DISABILITY, PENSION IN SPITE OF BOARD’S INSTRUCTION NO.136 DATED 14TH JANUARY, 970 (F.NO.34/3/68-IT(A.1)).

3. THE MATTER HAS BEEN RE-EXAMINED IN THE BOARD AND IT HAS BEEN DECIDED TO REITERATE THAT THE ENTIRE DISABILITY PENSION, I.E. ” DISABILITY ELEMENT” AND “SERVICE ELEMENT” OF A DISABLED OFFICER OF THE INDIAN ARMED FORCES CONTINUES TO BE EXEMPT FROM INCOME TAX.

4. THIS MAY BE BOUGHT TO THE NOTICE OF ALL THE OFFICERS WORKING UNDER YOU.
SD/- B.L. SAHU OFFICER ON SPECIAL DUTY (ITA .1)

No TDS on Disability Pension to Army Personnel
As it happens in India, everyone becomes the super authorities against the common man. The government received complaint that certain banks are deducting the tax on the disability pension .

So , government issued a press release that no TDS is required on the said disability pension paid to Armed Forces personnel.
Read below the excerpt. PRESS RELEASE, DATED 20-12-2007

IT HAS BEEN REPORTED IN THE PRESS THAT SOME BANKS WERE DEDUCTING TAX FROM PENSION OF DISABLED EX-SERVICEMEN IN VIOLATION OF GOVERNMENT INSTRUCTIONS.

RBI WAS REQUESTED TO HAVE THE MATTER INVESTIGATED AND REMEDIAL ACTION TAKEN. AFTER EXAMINATION, RBI DISCOVERED THAT IN ONE SPECIFIC INSTANCE, DUE TO OVERSIGHT, THE PENSIONER’S DISABILITY PENSION WAS WRONGLY TAKEN INTO ACCOUNT WHILE CALCULATING INCOME-TAX.

RBI HAS ISSUED INSTRUCTIONS TO ALL AGENCY BANKS TO STRICTLY ADHERE TO THE PROVISIONS OF PARA 88.3 OF DEFENCE PENSION PAYMENT INSTRUCTIONS, 2005, REGARDING EXEMPTION OF INCOME-TAX OF THE DISABILITY PENSION OF THE PENSIONERS OF ARMED FORCES.

BANKS HAVE BEEN ADVISED TO ISSUE SUITABLE INSTRUCTIONS TO ALL THEIR PENSION DISBURSING BRANCHES THAT INCOME-TAX SHOULD NOT BE DEDUCTED FROM THE DISABILITY PENSION PAID TO THE PENSIONERS OF THE ARMED FORCES.

Conclusion

The disability pension given to Armed Forces Personnel are having two components-disability element & service element. Both are tax free vide Ministry of Finance notification read with clarification from CBDT and also there can not eb any TDS as the amount is fully tax free.

Be the first to comment - What do you think?  Posted by admin - May 30, 2016 at 9:08 am

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Increase in Bonus Eligibility and ceiling – Advisory Note by Defence

The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit under section 2(13) from Rs.10,000/- per month of Rs. 21,000/- per month and Calculation Ceiling under section 12 from Rs.3500 to Rs.7,000

Increase in Bonus Eligibility and ceiling – Advisory Note by DGR advisory of Defence on Payment of Bonus to all Guards & Other Staff employed by DGR

Defence circular on increase of bonus to guards based on the Payment of Bonus (Amendment) Bill, 2015

ADVISORY ON BONUS

The Payment of Bonus (Amendment) Bill, 2015 notified : Increase in the Eligibility Limit under clause (13) of Section 2 and Calculation Ceiling under Section 12 of the Payment of Bonus Act 2015

1. The Payment of Bonus (Amendment) Bill, 2015 was passed by the Parliament in the just concluded Winter Session of the Parliament. The Payment of Bonus (Amendment) Act, 2015 has been published in the Gazette of India, Extraordinary on 1st January, 2016 as Act No.6 of 2016. The provisions of the Payment of Bonus (Amendment) Act, 2015 shall be deemed to have come into force on the 1st day of April, 2014.

2. The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit under section 2(13) from Rs.10,000/- per month of Rs. 21,000/- per month and Calculation Ceiling under section 12 from Rs.3500 to Rs.7,000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher. The Payment of Bonus (Amendment) Act, 2015 also mandates previous publication of draft subordinate legislations, framed under the enabling provisions under the said Act, in the Official Gazette for inviting objections and suggestions before their final notification.

3. The Government has been receiving representations from trade unions for removal of all ceilings under the Payment of Bonus Act, 1965. It is also one of the demands made by them during the country-wide General Strike held in February, 2013 and September, 2015. As the last revision in these two ceilings were made in the year 2007 and was made effective from the 1st April, 2006, it was decided the Government to make appropriate amendments to the Payment of Bonus Act, 1965.

4. These changes in the Payment of Bonus Act, 1965 will be benefit thousands of work force.

(Gangesh Kumar)

Commodore

Principal Director (Employment)

Dte Gen Resettlement

Ministry of Defence

New Delhi – 110066

File : 2112/SA/Bonus/Emp

Date : 24 Feb 16,

Place : New Delhi

Download Defence circular dated 24.02.2016

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CSD Canteen facilities to retired Defence Civilians – Clarification

Defence Accounts department clarifies various aspects of recent Extension of CSD Canteen Facilities to retired Defence Civilians

 

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEFENCE ACCOUNTS DEPARTMENT

No. AN/VII/7063/CSD/Misc

Dated: 20.10.2015

All PCsDA/PCA(Fys) Kolkata, CsDA
(Through CGDA website)

Subject: Extension of CSD Canteen Facilities to retired Defence Civilians

Reference: This office letter of even No. dated 21.08.2015.

In continuation of the above, the following clarification on some of the common points raised in various representations received in this office is as under:

Sl.No. Common Points raised in therepresentations Clarification
a) Whether the retired employees of the Defence Accounts facility as the orders from the DDGCS does not explicitly say so. Yes. The retried employees of the Defence Accounts Department are eligible for the C.S. D Canteen facility
b) Whether the DAD Pensioners can get the application forms authenticated only from the office from which they have retired. The authentication of the application forms may be carried out by the nearest Controller, under the jurisdiction, the pensioner is currently residing or the application is made. Also, the nominated Officers are directed to authenticate/countersign the application forms of any DAD pensioner, if the application is submitted to him/her.The authentication is to be carried out, based on submission of the documents as required by the Canteen authorities.
c) What is termed as ‘Govt Order for Retirement? The Part II. Office Order issued by the Controllers in respect of the retiring employee will suffice the requirement.
d) The said order does not speak about the eligibility of the Family Pensioners.Whether the same are eligible for the C.S.D Canteen Facilities? The extension of CSD Canteen Facilities to the Family Pensioners is implied as the QMG branch letter dated 12.08.2015 does not make any distinction between the Retired Defence Civilian Employees and Family Pensioners. The term DAD Pensioners includes within its ambit the Family Pensioners also, as they are drawing pension authorized by PCDA(P) Allahabad.

(Mustaq Ahmad)

Sr. ACGDA (AN)

Download Defence Accounts letter No.AN/VII/7063/CSD/Misc dated 20.10.2015

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TRANSFER POLICY OF GROUP A OFFICERS IN DEFENCE

Transfer Policy of Group A officers in Defence Accounts up JAG / NFSG level – Re-constitution of Defence Accounts Placement Board (DAPB)

Controller General of Defence Accounts issued Notification regarding Constitution of Defence Accounts Placement Board (DAPB) for implementation of Supreme Court’s Judgement dated 31.10.2013 in WP (Civil) No. 82/2011.

Office of the Controller General of Defence Accounts
Ulan Batar Road, Palam, Delhi Cantt – 110 010

Notification

No. AN/I/1201/SC/82/2011                                                  Dated : 16 June 2015

Subject : Constitution of Defence Accounts Placement Board (DAPB) for implementation of Supreme Court’s Judgement dated 31.10.2013 in WP (Civil) No. 82/2011.

Reference : Office of the CGDA Notification of even No. dated 31.12.2013.

The Defence Accounts Placement Boards (DAPB) were constituted for implementation of Supreme Court’s judgment dated 31.10.2013 in WP (Civil) No. 82/2011, for various levels of officers and staff. The purpose of DAPB is to put in place an arm’s length system and bring about efficiency in decentralized decision making in the process of transfer/posting of personnel for the sake of fairness and transparency. Keeping this in view, it has been decided by the Competent Authority to reconstitute the DAPB for Group ‘A’ officers up to JAG/NFSG level. Accordingly in partial modification of this office earlier notification quoted above (issued with approval of the then CGDA), the following shall be the composition of the DAPB so far as it relates to Group ‘A’ officers up to JAG/NFSG level:

Level – II: For Group ‘A’ officers up to JAG / NFSG level

Chair Shri Alok Chaturvedi, Deputy Director General (F), UIDAI, New Delhi
Member  Ms. Anuradha Prasad, Joint Secretary, Ministry of Food Processing Industries, New Delhi
Member Shri SG Dastidar, Controller of Aid Accounts & Audit, New Delhi

2. The convener of the Committee will be the Senior ACGDA (AN-I) who shall be responsible for the data integrity. The DAPB will meet at regular intervals as on required basis for finalizing proposals for transfer/posting of Group ‘A’ Officers up to JAG/NFSG level. The DAPB quorum will be treated as complete with presence of Chair and one member, in case one member is not available. When the Chair is not present, the senior most member will preside over the meeting. Representations, if any, on the transfer/posting will also be considered by the DAPB during its regular meeting.

3. In order to ensure fairness and transparency as enjoined in Supreme Court’s Judgement dated 21.10.2013, the DAPB has been reconstituted by co-opting officers presently serving outside of the Department on deputation and are not likely to return to the cadre in next 6 months. Steps will be taken to make the process of transfer/posting as transparent as it can get, based on feedback from stakeholders from time to time. The composition of the DAPB will be reviewed periodically every six months.

(A N Das)
Joint CGDA (Admin)

Download Controller General of Defence Accounts Notification No. AN/I/1201/SC/82/2011 Dated 16 June 2015

Be the first to comment - What do you think?  Posted by admin - June 18, 2015 at 10:12 am

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General Observations on Medical Bills in respect of Defence Civilians – PCDA writes to all field formations

Principal  Controller  of Defence  Accounts has pointed out common defects in the Medical Bills submitted in respect of Defence Civilians (Non DAO)

Office  of the  Principal  Controller  of Defence  Accounts (CC) Cariappa Road,
Lucknow Cantt.-226002

REGISTERED/CIRCULAR

No. Pay/lV/MED/7007/CIR
0/o  the PCDA (CC)

Lucknow
Dated   15/05/2015

To,

THE OFFICER IN CHARGE/COMMANDANT

…………………………..

………………………….

(All Units under jurisdiction  of central command)

SUB: General observations: regarding Medical Bills in respect of Defence Civilians (NON DAO).

During scrutiny/ audit of medical  reimbursement  claim the following  observations are communally observed:-

1.  Scrutiny certificate not found enclosed

2.  Check list, MEO 2004/97/MRCs not  attached/  not  completed  along with  date and signed/ not countersigned

3.  The specimen signature of competent  authority  not available or does not tally with the sample specimen signature.

4.  The attested  photocopy of CGHS  card along with  family photograph/  family detail with  D.O.B. not enclosed/not verified by unit authority.

5.   Original  Discharge/Emergency Certificate  of  the hospital in admission cases not enclosed.

6.  The referral letter from CGHS dispensary not enclosed.

7.  Original bills  not  attached  or  duplicate  bills  attached  without   certificate  of  lost vouchers as specified In FR-II RULE 43 and affidavit,  for duplicate claim, on stamp paper.

8.  The CGHS Package  deal/  CGHS Package  no. For Pathological test not mentioned.

9.  Original  Discharge/Emergency certificate  of  the  hospital  In   admission cases not enclosed.

10. Time barred sanction by Competent Authority  (HOD) in case delay by more than one month/three month from date of discharge/treatment  (in case of med advance).

11.  Legal heir affidavit on stamp paper for claiming medical reimbursement claim along• with  no objection  certificate  on stamp paper in  case of death of card holder  not enclosed.

12. 10%  discount  may  be  obtained  from   the  hospital  on  the  final  bill  on  cash payment/advance taken from Govt as per MOA signed by the each hospital with.

13. In  IOL  implantation     the  sticker  ID  not  attached  / verified by operating surgeon along with  name & type of IOL lens and the cash receipt.

14. All test copy may be enclosed.

15. The  claim  may  please   be  forwarded  to  Addl  Director,  CGHS (as  per  letter  s-11012/91-CGHS(P) (Vol-I) dt 18/03/1992 para 3(xiii)).

16. Certified copy of Emergency Certificate is not found enclosed.

17. The pay slip of the employee showing pay in  pay band and grade pay is  not found enclosed for assessment of entitlement.

18. As per this Office Circular  No.Pay/lv/Med/7007/0rd dt 23/05/2014  medical bill/final bill of hospital concerned (raised on or after 01/07/2014) received without  printed PAN, TAN, TIN  would not be entertained.

19. After discharge the CGHS  reference is not enclosed for follow up treatment.

20. Intimation  within  24 hours to concerned unit and CGHS wellness centre regarding emergency admission in hospital has not been found attached.

21. Heavy medicines  have been tendered  to  the  patient;   therefore   the  amount  of medical  claim paid to the  individual/hospital  may please be assessed by Addl  Dire CGHS (concerned city).

22. The CGHS doctor has not verified  the (ATP) Cash Memos (ADD. DIR. CGHS LUCKNOW Letter N0.3-151/2013-CGHS/LKO  Dot 30/09/2013).

Therefore it is requested that the above points  should be kept in mind before forwarding the claim to this office for reimbursement of claim to avoid unnecessary delay in disposal of medical claims raised by your office.

In  this context the compendium regarding orders under CGHS and Medical Attendance Rules may also be consulted for-guidance.

ADCA (Pay/Med)

Download Principal Controller of Defence Accounts (PDCA) Circular No.Pay/lV/MED/7007/CIR dated 15.05.2015

Be the first to comment - What do you think?  Posted by admin - June 3, 2015 at 11:48 am

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PCDA Clarification on Dearness Relief to re-employed Ex-servicemen

PCDA Clarification on Dearness Relief to re-employed Ex-servicemen

Office of the Principal Controller of Defence Accounts (Pension),

Draupadi Ghat, Allahabad-211014

Date:12.05.2015

Sub: Payment of Dearness Relief to re employed pensioner: Clarification thereof.

As per para l(a) of MOD letter No. 7(1)/95/D(Pen/Services) dated 28.8.2000, entire pension admissible to ex-servicemen who held post below commissioned officers (PBOR) at the time of retirement, is ignored and their pay on re-employment is to be fixed at the minimum of the pay scale of the post in which they are re-employed. Such pensioners will consequently be entitled to dearness relief on their pension.
Deptt. of Pension and Pensioners Welfare, vide their UO No.41/42/2007/P&PW(G) dt. 03.04.2008, reproduced under this office circular No. 386 dt. 19.06.2008, further clarified that if the pay is fixed at a higher stage because of advance increments and no protection of last pay drawn is given, the pay should be treated as fixed at a minimum only for the purpose of ignoring the entire pension and allowing dearness relief on pension. For availing this benefit the ex-servicemen would have retired at post below commissioned officers Rank (PBOR) before attaining the age of 55 years.

Now representations from the banks, where number of ex-clarify the elements to be taken into account for assessing the last pay drawn by the ex-servicemen for the purpose of last pay protection.

The dearness relief on re-employment should be regulated by the Pension Disbursing Agencies on the basis of certificate issued by re-employer, clearly stating whether benefit of last pay protection has been given or not. However, on examination of cases submitted by the banks it has been found that pay scale in banks are still on old pattern, whereas ex-servicemen have been retired with Pay in Pay Band, Grade Pay, MSP, Group Pay etc. In such cases it is clarified that for the purpose of assessing the last pay drawn for last pay protection, the elements to be taken into account should be last pay in pay band i.e. Band Pay plus Grade Pay, last drawn before retirement as envisaged vide MOP, PG & P, DOPT OM NO. 3/19/2009 Estt. Pay II dt. 8th Nov 2010 and no other elements should be taken for this purpose.

In view of the above, it is advised that all the cases of dearness relief where pay of ex-servicemen has been fixed at a higher stage because of advance increments may be reviewed and regulated accordingly.

No. AT/Tech/263-XVIII

sd/-
(A.D.Mishra)
Asst.CDA (P)

Click to view the order

Authority: www.pcdapension.nic.in

Be the first to comment - What do you think?  Posted by admin - May 15, 2015 at 9:30 am

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PROPOSAL FOR CENTRALISED PENSION DISBURSEMENT SYSTEM

Proposal for Centralised Pension Disbursement System for Ex-Servicemen – CGDA presentts Concept Paper

CONTROLLER GENERAL OF DEFENCE ACCOUNTS

CENTRALISED PENSION DISBURSEMENT SYSTEM

CONCEPT PAPER

Ministry of Defence disburses appx Rs. 51,000 crore every year as pension benefits to 24.16 lakh defence pensioners – both service personnel as well as defence civilians. While pension sanction is being done in a centralised way – by PCDA (Pension) Allahabad in r/o Army and defence civilians; by PCDA (Navy) in r/o Navy personnel and by JCDA (AF) Subroto Park, New Delhi in r/o Air Force personnel, pension disbursement is being carried out by a number of agencies who are working as PDAs (Pension Disbursing Agencies) – 28 Public Sector and 4 Pvt Sector Banks, 63 DPDOs, State Treasuries and Post Offices.

Banks have the largest number of pensioners on their roll – appx 18.06 lakh pensioners or 75% of the total number of defence pensioners. And they disburse Rs. 3800 crores every month (or Rs. 45,600 crores per annum which is almost 90% of the total pension disbursement to defence pensioners) as pension to these pensioners. Instances have come to notice where different practices have been followed by banks or where different interpretation have been arrived at and implemented for one government order, resulting in complaints from pensioners. An analysis of grievances received at the Ministry or at CGDA office or at PCDA (Pension) office reveal that more than 95% of the complaints pertain to pensioners drawing their pension from the banks. The task of addressing these grievances and providing services to pensioners to their complete satisfaction is an arduous one. This, however, could be changed by adopting a new paradigm for pension disbursement.

2. This new paradigm is centralised disbursement of pension. This simply means disbursing pension from a central agency viz. Centralised Pension Disbursement Agency (CPDA) to all the pensioners.

3. The present system of pension imbursement is an opaque one in the sense that it does not easily provide details reg. no of pensioners, category wise distribution of pensioners, amount of pension disbursed in a month and govt’s pension liability. Collation of the information from various sources is quite difficult and the output is not always accurate.

4. Further, in the existing system, there is a multiplicity of PDAs ‐ 29 Banks, 63 DPDOs and a large number (500+) of State Treasuries. As mentioned earlier, many a times PDAs tend to interpret Govt. Orders differently. This, in some cases delays the implementation of the order itself and in some other cases the order gets to be implemented differently by different PDAs. In both cases, generally, pensioner is the sufferer. There are other issues/difficulties in the existing pension disbursement system:‐

I. With multiple PDAs, the system is not amendable to effective monitoring as well as grievance handling. It makes the task of all decision makers including the Ministry, a very difficult one.

II. There is a delay in booking the pension amount to Govt. account. This also makes it relatively difficult to know the exact pension liability.

III. Even at a given time, it becomes an arduous task to exactly find out the number of active defence pensioners (including categories‐wise) as the information is to be collated from a large no. of PDAs.

IV. Maximum pensioners are drawing pension from banks. It has been experienced that they (Banks) do not have dedicated staff to deal with pensioners’ issues. Also, they are not well conversant with orders/issues peculiar to Defence pension.

The Proposed System

5. The proposed system of Centralised disbursement of pension is not only transparent but easy for information processing and retrieval.

6. Under the proposed system, after sanctioning pension and issuing Pension Payment Order (PPO), the pension sanctioning authority will forward the PPO and other details – including bank details – of the pensioner to the Centralised PDA (CPDA) on soft format through a secured channel. It could be on the CGDA intranet and for enhanced security could also be with digital signature. The CPDA will process the papers and will initiate first payment as well as subsequent monthly pension payments for credit to the pensioners’ bank accounts (as given by the PSA along with the PPO) through the NEFT/RTGS or the CMP (on‐line payment mechanism with SBI). Since the CPDA is making payment of pension – he can directly book the amount to the government account, avoiding any delay or suspense head booking. For the pensioners, there will be no change as they would receive pension in their

bank account, as is the status presently. The proposed system only replaces the multitude of PDAs with a single PDA without affecting the pensioners’ interest and rather bringing about a focused delivery mechanism. There are a number of benefits of the proposed system

i. Uniform interpretation and implementation of govt orders ii. Instant booking of pension payment to govt accounts – giving authorities a true picture of the pension liability and payment.

iii. Better grievance monitoring system can be instituted with a single PDA.Easier for everybody.

iv. Centralised database will help in better exploitation of information and communication technology for the betterment of services to the pensioners.

v. There will be no change as far as pensioners are concerned. They will continue to receive their pension in their given bank accounts.

vi. No loss to the banks in terms of accounts maintenance as they will continue to be the final pension paying agency.

vii. Future scalability is possible and relatively simple. For example, a centralised call centre could provide solutions to the pensioners for their queries or complaints.

7. In addition to these benefits, the proposed system will also result into a large saving to the Ministry of Defence (MoD). Presently, MoD pays Rs. 60 per transaction to Banks; and with 12 regular payments and 4 DA payments in a year, MOD pays Rs 960 per pensioners per year. For 18.06 lakh Bank pensioners, this amounts to almost Rs. 180 Cr. every year. If all pensioners are brought under the centralised PDA system ‐ where CPDA will credit pension in pensioners Bank A/c through NEFT/RTGS ‐ saving of Rs. 180 Crore could be achieved.

Implementation Modalities

8. Phase I can cover all new pensioners – appx. 80,000 per year – coming into pension fold. This can be done from a particular date which can be decided after taking decision on centralised pension disbursement and creating necessary IT and Communication infrastructure.

9. In Phase II all DPDO pensioners can be covered. All original files may be shifted to the CPDA DPDO‐wise. Given that out of 63 DPDOs, 52 have been centralised under Project Ashraya (Pension disbursement system), this is likely to be smoother phase wherein shifting of files and their appropriate indexing will be the main activity / focus.

10. In Phase III existing bank pensioners can be covered depending upon the response of the banks.

This would be the toughest phase both in terms of making banks agree to the new model and in database management Banks revenue loss will also be a big issue from their perspective. As such this phase will require perseverance and a different strategy (including for database management) which can be derived and decided later from the success of the first two phases.

11. An issue which may require a conscious decision would be whether the centralised disbursement should be from one location or multi‐location. It is considered that in a networked environment, location may not be an important factor from the view‐point of users. However, for the ease and adaptability with the existing pension set‐up, it is recommended to have three centres associated with the existing pension sanctioning authorities, viz. PCDA

(P), Allahabad, PCDA (N), Mumbai and JCDA (AF), New Delhi. It is also recommended to have a centralised call centre, which can have access to the complete database of the three centres of CPDA. The call centre can be co‐ located with one of the three centres for the purpose of administrative convenience.

Role of DPDOs in the proposed centralised system

12. DPDOs are Pension Disbursement Agencies (PDAs) in the exiting set‐up. Each DPDO is a distinct PDA. Presently, 63 DPDOs – 51 in northern India and 12 in Southern India (Eastern central and Western India have no DPDOs) – are working as PDAs for 4.7 lakh pensioners.

13. If we divide the role of a DPDO in terms of (i) processing of monthly pension payments and (ii) identification exercise (which is not restricted to any specific month (e.g. November for bank pensioners) and continues for the whole year) then it can be stated that in the proposed CPDA paradigm, role of DPDOs will not be there for first part (i.e. payment processing). However, they can be effectively used for the second part ‐ identification of pensioners. This would mean that DPDOs would need to be remodelled as service centres for pensioners/ which will carry out their annual identification, accept change requests/applications on behalf of CPDA (for cases related to re‐marriage, re‐ employment, death, Bank account changes etc.) and can also act as grievance handling /settlement centre as they would be linked with the CPDA server and can have a higher protocol communication with the CPDA call centre. It is considered that in the proposed model ‐ one DPDO may only require one AO, one AAO (or two AAOs) and one MTS ‐ all proficient on the new system. Savings achieved in manpower (to be assessed) can be used for opening up a few more service centres in areas where pensioner concentration is relatively very high or in existing offices of DAD or even with the Zila Sainik Board Offices.

Infrastructure requirements

14. To start the work at the CPDA, it is assessed that manpower strength of one IDAS, One AO, two AAOs, 4 Adrs and 2 MTS would be sufficient and can even last for the first two phases with 2‐4 additional Adrs. It is assessed that this manpower can be spared from the existing resources of the organization of CDA (PD).

Source: CGDA

Be the first to comment - What do you think?  Posted by admin - March 26, 2015 at 11:59 am

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