Posts Tagged ‘New Pension Scheme’

Additional benefit on death/disability of Government servant covered by New Pension System

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Additional benefit on death/disability of Government servant covered by NPS

“It is once again reiterated that the aforesaid instructions may be followed scrupulously and to review all the cases for ensuring the payment of family pension, disability pension and extra-ordinary pension to the NPS subscribers in case of death/disability”

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No.2012/F(E)111/1(1)/4

New Delhi, Dated: 23/08/2017

The GMs/FA & CAOs,
All Zonal Railways/Production Units.

 

Subject: Additional benefit on death/disability of Government servant covered by New Pension System – clarification regarding.

 

Please refer to the instructions issued vide Board’s letters No. 2008/AC-II/21/19, dated 29/05/2009, No.2010/AC-II/21/18 dated 02/07/2013 and 13/07/2010, letters of even number dated 08/09/2014 and 13/01/2016 on the above mentioned subject.

 

2. Now, one of the recognized Federations (NFIR) have again raised the issue of non-compliance of the above instructions by Zonal Railways and reluctance on the part of Railways in providing additional relief to the widows of NPS subscribers/ NPS subscribers who have been declared invalidated. The Federation have also stated that Zonal administrations are not taking initiatives to ensure additional relief in terms DOP&PW’s D.M. dated 05/05/2009 and that they are reluctant in providing additional relief on death and disability of NPS subscribers.

 

3. It is once again reiterated that the aforesaid instructions may be followed scrupulously and to review all the cases for ensuring the payment of family pension, disability pension and extra-ordinary pension to the NPS subscribers in case of death/disability. Further, Zonal Railways are also advised to sensitize the administration at lower level towards the problems faced by the employees and their families.

sd/-
(G.Priya Sudarsani)
Joint Director, Finance (Estt.),
Railway Board.

Authority: http://www.indianrailways.gov.in/

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Be the first to comment - What do you think?  Posted by admin - August 25, 2017 at 4:01 pm

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Dispensing with the requirement of submission of physical application form in case of NPS account being opened on Aadhaar verification followed by e-Signature

Pension Fund Regulatory and Development Authority circular regarding opening of NPS account with Aadhaar Card.

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan Qutab Institutional Area,
Katwaria Sarai, New Delhi-110016
Phone : 011-26517503
Fax: 011-26517507
Website : www.pfrda.org.in

Dispensing with the requirement of submission of physical application form in case of NPS account being opened on Aadhaar verification followed by e-Signature

CIRCULAR

PFRDA/2016/25/PD/1

15 December 2016

To,

All Stakeholders in the National Pension System

Subject: Dispensing with the requirement of submission of physical application form in case of NPS account being opened on Aadhaar verification followed by e-Signature

1. PFRDA vide circular no. PFRDA/2013/18/PDEX/11 dated 24th October 2013 has allowed acceptance of e-KYC as a valid process for KYC verification in addition to the other allowed valid documents of Identity and address for KYC verification.

2. The Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2015 has been notified on 27th January 2015. As per the rule the Electronic Signatures facilitated through eSign -Online Electronic Signature Service is legally valid provided the eSign signature framework is operated under the provisions of Second Schedule of the Information Technology Act and Guidelines issued by the Controller of Certifying Authorities. E-authentication technique using Aadhhar e-KYC services is legally valid authentication.

3. It has now been decided by PFRDA that in case the POPs integrate the eSign-online electronic signature service, within their applications for online account opening for NPS, the requirement of sending the physical application form to the Central Record keeping Agency by the subscribers/Points-of Presence shall be dispensed with.

4. The Points-of-Presence shall be allowed to charge a maximum of Rs.5/- plus service tax and cess thereon per application for the e-Signature service being provided to the subscribers.

5. In case of account opened through eKYC, the Points of presence will send the soft copy of the application form (along with the supporting documents, if any) to the Central Record keeping Agency.

6. The Points-of-Presence shall adhere to the requirement of submission of KYC details of the subscribers to CERSAI.

7. With the application of the eSign facility, a large number of the subscribers having Aadhaar number will be able to open NPS account without any physical document requirement.

This is being issued in the interest of the subscribers under National Pension System.

Yours faithfully,
(Akhilesk Kumar)
Deputy General Manager

Download PFRDA Circular PFRDA/2016/25/PD/1 dated 15.12.2016

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Submission of Pre-budget Views of Central Government Employees – Confederation

Submission of Pre-budget Views of Central Government employees for consideration and inclusion in the Central Budget for the year 2017-18 – Request – Regarding

REF: CONFDN/BUDGET/2016-17

DATED  -12-2016

To,
Shri. Arun Jaitley,
Hon’ble Finance Minister,
Government of India,
North Block, New Delhi – 110001

Sub: Submission of Pre-budget Views of Central Government employees for consideration and inclusion in the Central Budget for the year 2017-18 – Request – Regarding.

Respected Sir,

Confederation of Central Government Employees and Workers is the umbrella organization comprising of various Unions/Associations/Federations of the Central Government employees. Central Government employees are the important segment of the society and contributing for the growth of this country through effective implementation of the policies of the Government of India. Hence, the views of this segment of important stakeholders, I submit, may also be heard and considered. With this request, this organization is bringing the following views for consideration by your good self, as a part of the pre-budget exercise to finalize the budget for the year 2017-18.

Issues of the Central Government employees:

1. New Pension Scheme: Lakhs of employees who joined the Central Government Departments on or after 01-04-2004 are vulnerable to the market fluctuations due to the NPS. It has been pleaded several times to scrap this NPS or grant guarantee of minimum pension at the rate of 50% of last pay drawn. It is requested to concede this request in this budget by making required amendments.

2. Income Tax: It is submitted that Government employees are the most tax compliant segment of the society. At the same time they are the hard hit with heavy tax burden. For many years it is requested to raise the tax exemption limit. It is requested to consider increasing the tax exemption limit for employees to Rs. 5,00,000/-. It is also requested not to include the compensatory allowances in the taxable income.

3. Interest concession on loans and advances: Nationalized Banks are extending housing loans, personal loans for their employees at a lesser rate than the market rate. This facility may also be extended to the Central Government employees.

4. Education loans to the Children of the Central Government employees: In the present set up no bank is giving education loans for pursuing higher studies without keeping immovable property as collateral security. One has to cross many hassles for obtaining education loan for his ward. It is requested that education loan for the ward of a Central Government employee should be hassle free and without any guarantee or collateral security except the employee himself/herself. The total loan should cover the entire fee and living expenses without any restrictions.

5. Minimum Wage & Fitment formula: The minimum wage of Rs.18000/- recommended by 7th CPC is needed to be revised to Rs.26000/- to confirm to the realistic and accepted norms of the wage determination. Accordingly the fitment factor should also be proportionately changed.

6. Curtailment of litigation: Presently due to the policy of DOP&T the Central Government employees are forced to engage in avoidable litigation in the Courts of Law, even on those similar Service matters, which were decided by the Highest Court of the Land. This is resulting in lot of expenditure of Government employees. The judgments of the Courts should be applied to all the similarly placed employees without forcing them to file cases on the very matter.

7. Compassionate appointments: The eligible wards of the employees who died in harness should be given employment by removing the present artificial ceiling of 5% on such employment.

8. Housing needs of the employees working in N.E and Assam Circles: The employees working in these States are facing hardship due to lack of housing facilities. Hence, it is requested to construct more General Pool Resident staff quarters for all the Central Government employees working in N.E. and Assam regions.

9. It is also requested that cash less and Hassle free Medical facilities to serving and retired employees for in-patient and out-patient may also be favourably considered.

General Issues:

Central Trade Unions in their Memorandum dated 19-11-2016 has brought several issues like price raise, strengthening the Public Distribution System, safeguarding the Public Sector, Foreign Direct Investment, employment generation, Same Pay for Same Work, Social Security for unorganized workers, Labour Law Reforms, regularization of Contract and Casual Labour, which has a bearing on the lives of the common masses, employees and workers. This Federation completely endorses their viewpoint on these important issues and requests you to kindly initiate necessary corrective steps in this Budget.

It is earnestly requested to seriously consider the above suggestions for inclusion in the Budget for the year 2017-18, which will go a long way in fulfilling the long pending aspirations of the Central Government employees.

Thanking you,

Yours Sincerely,
(M. Krishnan)
Secretary General
Mob:09447068125
E-mail: mkrishnan6854@gmail.com

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Implementation of National Pension System (NPS) in Central Autonomous Bodies (CABs)

Implementation of National Pension System (NPS) in Central Autonomous Bodies (CABs)

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PRESS RELEASE

Conference on Implementation of National Pension System (NPS) in Central Autonomous Bodies (CABs)

A conference on implementation of National Pension System (NPS) in Central Autonomous Bodies (CABs) was organized by PFRDA on 27th July 2016 at New Delhi. The prime objective of the conference was to understand and address the concerns of the Central Autonomous Bodies who have not yet registered for NPS.

Shri Hemant Contractor, Chairman, PFRDA in his key note address stressed on the need for a regular and steady source of income for old age income security. He informed the participants that it was mandatory for all CABs which had offered CPF to its employees earlier to switch to NPS, but some CABs had not done so, and he urged them to adopt NPS without further delay, in view of the benefits of doing so, apart from the mandatory requirement. He gave the example of State Governments which had voluntarily adopted NPS in view of its merits. He further mentioned that it was important for CABs to offer a pension benefit to their employees in view of the many advantages, which could never be matched by lump sum payments such as CPF payment. He urged the CABs to comply with the Government directives and join NPS at the earliest so that the employees could get the benefit of pension under NPS for their old age income security.

Dr. B. S. Bhandari, Whole Time Member (Economics), PFRDA, while speaking on the occasion highlighted on the introduction of NPS for all Central Government Employees (except armed forces) joining services on or after 01st January 2004 and also informed the participants about the various notifications issued by Government for implementation of NPS in the Central Autonomous Bodies. He also briefed about the basic operational aspects of the NPS, investment pattern & NPS architecture. He also illustrated the benefit of higher return under NPS and power of compounding on this higher return resulting to better yield in comparison to other superannuation benefits.

Shri R V Verma, Whole Time Member (Finance) PFRDA, also urged to all the CABs present in the conference to be part of NPS and said that there is no reason why CABs have not implemented despite all the benefits in NPS. He informed that though the scheme is mandatory for all Central Autonomous Bodies having contributory Provident fund, many of the CABs are yet to join NPS. He expressed PFRDA is confident that this conference will help the participating CABs to understand NPS in a better way and will help them to join NPS at the earliest without further delay. Currently, NPS has more than 1.30 crore subscribers with total Asset Under Management (AUM) of more than Rs.1.37 lakh crores.

Place: New Delhi
Date: 27.07.2016

Authority: http://www.pfrda.org.in/

Be the first to comment - What do you think?  Posted by admin - October 17, 2016 at 12:37 pm

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New Pension System Features released recently for NPS Subscribers

New Pension System – Features released recently for NPS Subscribers

New Pension System (NPS) and its-implementation

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBA No. :54/2016
New Delhi, dated: . 16.08.2016

No.2016/AC-II/21/7

General Managers, FA&CAOS and CPOs,
All Indian Railways. and PUs

 

Sub: New Pension System (NPS) and its-implementation.

 

Please find enclosed PFRDA’S letter no. PFRDA/19/CG/1/39 dated 01.08.2016 on the above subject. In this regard, the “following has been desired:

 

  1. Distribution of comprehensive brochure prepared by PFRDA for government Sector subscribers.
  2. Updation of contact details of all the underlying offices in the records of CRA for better communication flow.

iii Setting up of dedicated NPS Cell

  1. Displaying related information on the website of in the Ministry and incorporating the same link in the ‘Employee’s corner’.

 

As regards (iv.) above, all, the important instructions issued by Accounts Dte are available on the Indian Railway’s website as under:

www.indianrailways.gov.in

About Indian Railways

Railway Board Directorates

Accounts

Instructions on NPS

 

Kindly ensure circulation of these instructions so that the subscribers and nodal. offices are aware of initiatives taken for their benefit.

 

DA: As above

sd/-
(Amitesh Kumar Sinha)
Director Finance/CCA

Railway Board

 

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
b-14/A, First Floor, Chhatrapati Shivaji Bhawan,
Qutab Institutional Area, Katwaria Sarai, New Delhi-110016

R.V. Verma
Member

FILE NO. PFRDA/19/CG/1/39

01st August, 2016

Subject: National Pension System (NPS) and its implementation.

I am writing in the context of the National Pension System (NPS) and its implementation in the Central Government sector – Ministries & departments including the Central Autonomous Bodies under their jurisdiction. I would like to highlight the important measures taken by PFRDA in strengthening the systems, in the interest of the ultimate beneficiary- the subscriber and other stakeholders.

 

  1. After the passage of PFRDA Act, 2013, various regulations have been framed by PFRDA under the ambit of the Act. The basic purpose of framing regulations is to ensure protection of subscriber interest. Prominent ones among the regulations are PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 and PFRDA (Exits Withdrawals under the NPS) Regulations, 2015. You will appreciate that PFRDA (Redressal of Subscriber Grievance) Regulations, 2015, had laid down clear guidelines with respect to redressal of subscriber grievances. Further, Exit Regulations of PFRDA have specified the provisions and process relating to exit and withdrawal in detail.

 

  1. It has been PFRDA’S endeavour to take various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS) for ease of transaction for subscribers. Towards this end, we have introduced a number of new functionalities under NPS architecture such as simplification of account opening, withdrawal, grievance management etc. In this regard, recently many new functionalities have been released by the Central Recordkeeping Agency (CRA) to ease operations for the benefit of subscribers and nodal offices. The details of the functionalities released recently for the nodal offices under Govt. Sector are enclosed as Annexure A.

 

  1. As our main focus is on the subscriber, around whom the entire system revolves, we have also provided several facilities to them for easing the process and making them more user friendly. The following are the important initiatives taken in this direction:

(i) SMS and email alerts,

(ii) Centralized Grievance Management System (CGMS) with a pre-determined turnaround time for resolution of grievances related to different services.

(iii) Call Centre facility.

(iv) Periodic consolidated SoT (Statement of Transactions)

(v) Web based access to all subscribers to view SoTs and facility to modify certain data like mobile number & email id on their own.

(vi) Subscriber awareness programs at various locations and centers.

In addition to the above, several new functionalities have also been introduced in the CRA system for the benefit of the subscribers. The details of the same are enclosed as Annexure B.

 

  1. We would very much appreciate if the Central Government ministries departments may undertake the following measures to enhance the effectiveness of the system:

(a) Distribution of comprehensive brochure prepared by PFRDA for government sector subscribers (copy enclosed).

(b) Updation of contact details of all the underlying offices in the records of CRA for better communication flow.

(c) Setting up of a dedicated NPS Cell

(d).Displaying NPS related information on the website of your Ministry and incorporating the same in link like ‘ Employee’s corner’.

  1. We feel that there is urgent need to disseminate more information among the dealing officials -Pay & Accounts Offices(PAOs) Drawing & Disbursing officers (DDOs) of the CG Ministries & Departments for resolving the concerns and covering the gaps. We have recently engaged Crux Management Services Pvt. Ltd. as a training agency for imparting training to the nodal officers of CG Ministries/ Departments. We request you to nominate maximum number of DDOs from your Ministry to the training programmes which PFRDA is coordinating. Besides, workshops may be organized by CG Ministries & Department for their respective nodal offices also in order to increase

subscriber awareness and for imparting operational knowledge to PrAOs/PAOs/DDOs, wherein PF RDA and CRA officials may also participate.

 

We are confident that the implementation of NPS and streamlining .of the process is receiving your due attention. You may like to convene regular meetings to review the implementation of NPS and the new fun’ctionalities which wrll go a long way in ensuring smooth implementation of NPS. PFRDA will be glad to provide all necessary support and cooperation. Should your office need further clarifications, they are welcome to contact Sh. Ashish Kumar, General Manager at ashish.kumar@pfrda org.in.

With Regards,

Yours sincerely
sd/-
(R.V.Verma)

Mr. S. Mookerjee,
Financial Commissioner
Ministry of Railways,
Room No.232, Rail Bhavan,
New Delhi – 110001.

Encl.: A/a

Annexure A

 

Functionality for nodal offices on Tier-II

operations and voluntary contribution processing under Tier-I

 

The Govt. Sector Nodal Offices have now been provided with utility for activating the Tier II account and its operation for all Government employees. The Government subscribers (mandatorily covered under NPS) can also approach their “associated Nodal Office for making additional investment (Voluntary Contributions) in their PRAN – Tier I account in order to claim tax benefits.
Upload of unequal contribution for Govt.
employees
In, case of Govt. sector employees, the Nodal Office is required to prepare and upload the contribution file wherein the Employee and Employer Contribution are equal for each subscriber. This functionality will now allow the Nodal Offices to prepare and upload contribution files where Employer and Employee contribution amount are not. same due to various exceptional reasons.
Insertion of QR Code facility on backside of PRAN For new PRAN cards, a Quick Response (QR) code will be inserted, which when scanned on a smart phone will enable easy access to CRA website for any information on NPS.
Grievance resolution by monitoring office in CRA
system
In case of Govt. Sector Nodal offices, only the PAOs/DTOs can provide resolution remarks for the grievances raised against them by ‘ their associated subscribers in Central Grievance Management System (CG-MS) module. However, the mapped Pr.AOs/DTAs can only monitor the status of the grievances (using ‘Token No’) raised against underlying PAOs/DTOs. Now, with the new facility made available in the CRA system, the Pr.AOs/DTAs can verify whether the PAO/DTO has resolved the grievance.
Pop-Up window for resolution of pending grievance
in CRA system
To aid the Nodal Offices, a pop-up alert is displayed on the home page immediately after the User logs in to CRA website (www.cra-nsdl.com). The pop-up displays the count of grievances pending (if any) for more than 30 days. The User has two options i.e., either to resolve the grievances immediately by selecting the option ‘Resolve Now’ (which will guide the user to ‘grievance resolution’ screen) or to select ‘Resolve Later’ to continue with regular operations and provide resolutions to the grievances later, The pop-up window is a reminder to all the Nodal Offices which have any grievance pending for resolution beyond 30 days in Central
Grievance Management system (CGMS) module. Functionality for capturing bank details and contact details of the nodal offices  ‘A facility has been provided to Nodal Offices of Central Government to enter the contact details of their Nodal Officer (along with details of alternate Nodal Officer) and the Bank account details of respective Nodal Office in CRA system. This will help Trustee Bank and CRA to identify the nodal offices for better coordination.
Login facility for, DDOs in CRA system The DDOs can login the CRA system using User ID & I-PIN (password). The DDOs can generate their l-PIN by capturing a request through instant reset option in the CRA system (www.cra-nsdl.com) and getting it authorized by their associated Nodal Office (PAOs/DTOs). This facility has been granted to the DDOs to enable them to view various reports, which is quite helpful in day to day functioning.

Annexure B

Features released recently for NPS Subscribers

 

  1. Mobile App
    Mobile App for NPS’ is nowavailable to the Subscriber’s in ’Google Play Store’ as NPS by NSDL e-Gov’ for installation and use. The following features are available to the Subscribers in Mobile App:
  2. a) Transaction Statement: Using this feature, Subscriber will be able to raise the request for Transaction Statement for a. particular financial year. The statement will be sent to the Subscriber’s registered mail ID at end of the day.
  3. b) Account details view: Subscriber can view his / her NPS account details.
  4. c) Statement of Holding view: Details of scheme Wise units alongwith latest NAV and the total value of the schemes (as on date) is available.
  5. d) View of last 5 contributions: Details of the last five contributions credited will be available i.e.,‘ credit date, tier type, amount and. contribution remarks.
  6. e) Change in contact details (Telephone/ Mobile no./ email ID): At present, Subscriber can change his/ her contact details in CRA system using login credential. The same feature has been extended in Mobile App.
  7. f) Change password/ Security Question: Subscriber can add / modify his her password and set security question (for password reset) through Mobile App. Subscriber will also be able to reset his/ her password by answering secret questions.
  8. g) Notifications: Notifications, if any, from CRA will be available to the Subscriber. Short messages will be displayed here.

 

  1. Change of address using Aadhaar authentication
    The Subscribers can now update/modify their address on their own using Aadhaar based authentication. After logging in CRA, Subscriber will use the menu Update Address”. After clicking on the menu ”Update Address”, Subscriber will prevode the Aadhaar No and “click on the ’submit’ button. ‘On clicking on submit button, ‘ an OTP will be sent to Subscriber’s mobile. Once the Subscriber authenticates by submitting the OTP, address details from Aadhaar system will be fetched and updated in the CRA system. In this process, Subscriber will be able to update permanent as well as correspondence address. At present, this feature has been made available to All Citizens of India and Corporate sector. It will be extended to Government Subscriber Shortly.

 

  1. Scheme Preference change facility
    The NPS Subscribers associated to All Citizens of India (UoS), Corporate sector and Government sector (for Tier‘SII-only) can now change their Scheme Preference after logging in. An OTP will be sent to the Subscriber (on their registered mobile number) once Subscriber topts to change his / her Scheme Preference. After authentication is done with OTP, the Subscriber can change their PFM, Asset Class, Allocation ratio, Scheme Options.

 

  1. Tier II activation through eNPS
    Any subscriber having Tier I account in NPS can now activate Tier II account online through eNPS. To initiate the Tier‘II activation, Subscriber has to enter his/her PRAN, DOB and PAN. An OTP will be generated and will be sent to the registered mobile number. Subscriber has to enter the OTP and proceed for Tier II activation under

 

  1. KYC re-verification using Aadhaar authentication
    A Subscriber whose Bank has not confirmed (rejected) his / her KYC verification request can now update the address details and confirm KYC using Aadhaar based authentication. The Subscriber need to simply go to eNPS site, click on Update details and proceed.

 

  1. 6. Facility to contribute Online
    Subscribers are contributing through online mode using eNPS portal of. NPS Trust. Now, a facility has been made available to contribute online by Subscribers using IPIN credentials in CRA system. Subscriber can login into the CRA system and click to ”Contribution” menu. On submission, the Subscriber will be redirected to eNPS contribution page from Where he / she can contribute as per existing process of eNPS.

 

  1. Withdrawal from Tier II account
    At present, for Withdrawal from Tier II account, the NPS subscribers are required to visit the branch of the’ Point of Presence (POPS) or Nodal Office which is mapped to him / her. Now, the NPS Subscribers have a facility to initiate Withdrawal request from Tier II account using their login credentials and OTP authentication on registered mobile number.

 

  1. Online IPIN generation
    The eNPS Subscribers can now access the CRA system immediately after registering without waiting for physical I-PIN to be despatched. Facility is now available where the Subscriber will generate I-PIN instantly and access his/her NPS account.

 

Source: http://www.indianrailways.gov.in/

Be the first to comment - What do you think?  Posted by admin - September 19, 2016 at 7:35 am

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7th CPC Resolution for Pensioners and Family Pensioners

7th CPC Resolution for Pensioners and Family Pensioners

(TO BE PUBLISHED IN THE GAZETTE OF INDIA (EXTRAORDINARY), PART I, SECTION 1)

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Pension and Pensioners’ Welfare)

RESOLUTION

New Delhi, the 4th August, 2016

No.38/37/2016-P&PW (A) – The Terms of Reference of the Seventh Central Pay Commission as contained in Ministry of Finance (Department of Expenditure) Resolution No.1/1/2013-E.1I1 (A) dated 28.2.2014 included the following:

“To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).”

2. The Commission, on 19th November, 2015, submitted its report to the Government on Terms of Reference as contained in aforementioned Resolution dated 28.02.2014. Government, after consideration, has decided to accept the recommendations of the Commission on pensionary benefits to the Central Government civil employees, including employees of the Union Territories and Members of All India Services subject to certain modifications, as specified hereinafter ..

3. Detailed recommendations of the Commission relating to pensionary benefits and the decisions taken thereon by the Government are listed in the statement annexed to this Resolution.

4. The revised provisions regarding pensionary benefits, which have been accepted as indicated in the Annexure, will be effective from 01.01.2016.

sd/-
(Vandana Sharma)
Joint Secrtary to the Govt of India

Authority: http://www.pensionersportal.gov.in/

Be the first to comment - What do you think?  Posted by admin - August 5, 2016 at 3:39 pm

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ONE MORE CLARIFICATION REGARDING NJCA’s STAND ON NEW PENSION SCHEME (NPS)

ONE MORE CLARIFICATION REGARDING NJCA’s STAND ON NEW PENSION SCHEME (NPS)

 

QUERY —

 

Just like the issues of Salary hike, Fitment formula or parity of Pension, the issue of NPS is common to all Central Govt. Departments. In spite of that, this issue appears to be less highlighted. I represent a unit where 80% of the employees belong to NPS and all of us are aware of the pros & cons of the scheme and we are really concerned about our future

 

Com. S. Das, Circle Secretary, AIPAEA (NFPE), Postal Accounts, Assam Circle, Guwahati.

 

REPLY —–

 

Thanks for your concern. The problem of NPS employees are well taken care of by the NJCA. Please see the Press Statement issued by NJCA on 6th July 2016 after taking the decision to defer the strike which is published in confederation website. The last paragraph reads as follows——- “The NJCA particularly notes that the Govt. has set up a separate committee for reviewing the New Pension Scheme, which has been a matter of concern to all employees and workers who are recruited to Govt. services after 01.01.2004.” Please also see the para -12 of the Press Communique issued by the Govt. through Press Information Bureau immediately after the Cabinet decision on 29th June 2016 which reads as ——— “Para-12— The Cabinet also decided to constitute a separate committee to suggest measures for streamlining the implementation of New Pension System (NPS)”. Cabinet decision is taken as it is one of the important demand of the Charter of demands of NJCA submitted to Govt. NJCA shall take follow up action on this particular demand as all of us are very much concerned about this important demand. This demand is directly linked to the policy of the NDA Govt. as all of you are aware that it is the previous NDA Govt. which took a Cabinet decision in 2003 to implement New Contributory Pension Scheme to Central Govt. Employees from 01.01.2004.

 

M. Krishnan
Secretary General
Confederation

 

Source : http://confederationhq.blogspot.in/

Be the first to comment - What do you think?  Posted by admin - July 10, 2016 at 10:29 pm

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Exemption of Railways from National Pension System – NFIR

Exemption of Railways from National Pension System – NFIR

 

Exemption of Railways from National Pension system (NPS) as recommended by the Railway Ministers – kind intervention and approval requested

 

NFIR
National Federation of Indian Railwaymen

 

No.IV/NPS/PFRDA BILL/Part I

Dated: 26.6.2016

Shri Narendra Modiji,
Hon’ble Prime Minister of India,
South Block,
Raisina Hills,
New Delhi-110011

 

Sub: Exemption of Railways from National Pension System (NPS) as recommended by the Railway Ministers – kind intervention and approval requested.

 

The National Federation of Indian Railwaymen (NFIR) brings to your kind notice to the standing demand raised by the Federations seeking exemption of National Pension System (NPS) and restoration of Defined Benefit Pension Scheme [Liberalized Pension Scheme i.e. Railway Services (Pension) Rules 1993].

In this connection, the NFIR brings to your kind notice that the nature of duties performed by the Railway employees are akin to those in the armed forces. The NFIR also invites your kind attention that since British Rule, the Railways was conceived and operated as un auxiliary wing of the Army. It is an admitted fact that by virtue of its complex nature, Railways required a high level of discipline and efficiency to be able to perform its role as the prime transport mode. Railways is an operational organization required to run the services round the clock throughout the year. The Railway employees are expected to work in inhospitable conditions, braving extreme weather conditions under open sky, unfriendly law and order scenario and inherent risks associated with the Railways operations itself.

 

It needs to be appreciated that as in the armed forces, large number of Rail Workforce stays away from their families for long period while performing duties in remote and jungle areas where minimum required facilities are lacking. The nature of duties of Railway employees is critical and complex & hazards involved are also very high. Though efforts are made for enhancing safety measures, a large number of Railway employees lose their lives or meet with serious injuries in the course of performance of their duties each year. This was also admitted by Dr. Anil Kakodkar, Chairman, High Level Safety Review Committee in his report presented to the Railway Ministry.

 

Conceding the plea of NFIR, the former Railway Minister Mallikarjun Kharge and also the present Railway Minister Suresh Prabhu have sent proposal to the Finance Minister in March, 2014 and November 2015 respectively urging upon the Government to exempt Railway employees from the purview of National Pension System OPS). In spite of proposals of the Railway Ministers, the Government has not yet accorded approval for exempting Railways from National Pension System (NPS). There is alround dissatisfaction and resentment among the Railway employees against.New Pension System.

 

The Railway employees are also a dissatisfied lot as the 7’r’ CPC has not done justice in respect of their pay structure etc. Added to this, non-abolition of National Pension System [NPS) has generated anger among all sections of Railway employees which compelled us to serve Strike Notice on 09’n June 2016.

 

NFIR, therefore, requests your kind intervention in the matter to see that the proposals of the Railway Minister seeking exemption of Railways from National Pension System (NPS), is approved by the Government without further loss of time.

 

With regards,

Yours sincerely,
(Dr.Raghavaiah)
General Secretary

Source: NFIR

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New Pension Scheme: Guidelines for processing of Family Pension Cases

New Pension Scheme: Guidelines for processing of Family Pension Cases

PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area, Katwaria Sarai
New Delhi~110016

F. No. PFRDA/24/Exit/1

May 26, 2016

Shri Amit Sinha
Executive Vice President,
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower.
Kamla Mills Compound,
Senapati Bapat Marg, Lower Parel,
Mumbai – 400013

Subject: Guidelines for processing of Family Pension Cases.

Dear Mr Sinha,

This has with reference to regulation 6(e) of the PFRDA (Exit and Withdrawals under NPS) Regulation 2015 relating to family pension and transfer of corpus from subscribers NPS account to government nodal office, if the subscriber or the family members of the deceased subscriber avails the benefit of family pension.

The Authority after examining the issue has finalized the policy with respect to transfer of accumulated pension wealth of the subscribers to government and where the subscribers family has availed the additional relief given by the government in the family of family pension Accordingly, the guidelines for processing of such claims are being enclosed herewith for your guidance and implementation of the same.

Therefore, you are advised to intimate to all the accounting formations under the central government, state governments (excluding the states which have clarified that they do not provide the benefit including Punjab & Sikkim) and autonomous bodies falling under their jurisdiction about the policy guidelines and also the process to be followed

The same shall be made part of the online exit module. In case if you want any clarifications on the matter. you may write back to us

Yours sincerely,
(Venkateswarlu Peri)
General Manager

Enclosure: a/a
CC:
Shri Kamal Chaudary
Chief Executive Officer,
National Pension System Trust,
3’d Floor, Chatrapati Shivaji Bhawan
B-14/A, Qutab Institutional Area
New Delhi 3100 016

Guidelines for processing of Family Pension cases

Online processing of Withdrawal request in case family pension is provided by the Nodal Office to the claimant(s)/subscriber(s)
 1. The family member(s)/subscriber(s) who is/are availing Family Pension from will submit the No objection certificate (Annexure-II) to the concerned Nodal Office.

2. Nodal Office will authenticate the Annexure II.

3. Nodal Office shall fill in the declaration form Annexure I & provide necessary authentications.

4. Nodal Office (first User) will login into CRA system to select the option that the family pension is being/ has been granted to the family members of the deceased subscriber or to the subscriber.

5. Nodal office will enter the details of family member(s)/subscriber(s) into the CRA system to whom the family pension is being given (as mentioned under Annexure II).

6. A new field – Nodal Office bank detail will be enabled. Nodal Office will provide its bank details as per Nodal Office Declaration form (Annexure I).

7. Nodal Office (first User) will submit post entering the complete details.

8. Nodal Office (second User) will authenticate and authorise the said request. Claim ID will get generated on successful submission of Withdrawal request.

9. Nodal Office will print the online form dispatch the same along with duly filled attested both the Annexures – I and II to CRA.

10. On receipt of documents, CRA will initiate the withdrawal request in the CRA system.

11. The accumulated pension wealth, of the particular deceased subscriber or the subscriber (in case of disability) for whom the withdrawal request is raised, will be transferred to the Nodal Office bank account as per the settlement cycle.

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Tax benefit available under National Pension System (NPS) – AIRF

Tax benefit available under National Pension System (NPS) – AIRF

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

RBE No. 31/2016

No 2012/F(E)III/1(1)/4

Dated: 07.04.2016

The GMs/FA&CAOs,
All Indian Railways/Production Units/RDSO.
(As per mailing list)

Subject: Tax benefit available under National Pension System (NPS)

A copy of Pension Fund Regulatory & Development Authority (PFRDA)’s letter No.PFRDA/23/CORP/20/5 dated 25.02.2016 on the above subject is enclosed for information and compliance. The contents of the letter regarding opening of e-NPS account shall apply mutatis mutandis on the Railways also. ·

2. Please acknowledge receipt.

(Sanjay Prashar)
Deputy Director Finance, (Estt.)lll,
Railway Board.

Source: AIRF

Click to view the PFRDA Letter dt:25.2.2016

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7th Pay Commission expressed its regret about transition from OPS to NPS

7th Pay Commission expressed its regret about transition from OPS to NPS

7th Pay Commission expressed its regret about transition from Old Pension Scheme to New Pension Scheme in its report.

2004-2011 Entrants : Government employees who have joined service between 2004 and 2011 have suffered due to delay in finalizing the structure of the NPS and the issue of detailed instructions. Although they have made regular contributions, in many cases, this money and/or counterpart contributions were not deployed in the market. In the case of AIS officers, some states are yet  to release counterpart contributions or pay interest on delayed contributions. This has led to a situation where the accumulated corpus even after 11 years of service could be meagre. It is necessary that this situation which arose during the transition from OPS to NPS be addressed.

The Commission therefore recommends that Central Governments and State Governments should, in a time bound manner, ensure that all the due contribution along with compounded interest, where contributions have been delayed, be deposited in the accounts of the beneficiaries. Advisories should be issued to the State Governments to deposit amounts, if not already done, in respect of NPS beneficiaries belonging to All India Services.

Many Association have pointed out that unlike the facility under GPF, it is not possible to make withdrawals under NPS, even to meet obligatory social expenditure. This forces employees towards increased indebtedness as they have to borrow from elsewhere.

The Commission notes that under the NPS Tier-I account, a subscriber is permitted to make partial withdrawal of twenty five percent of the contributions made to his/her individual pension account for certain specified purposes. Such withdrawals are permitted a maximum of three times during the entire tenure of subscription and a period of at least five years should have elapsed between two such withdrawals.

The Commission further notes that there exists a voluntary Tier-II account. Under this account, a subscriber can, at any time, withdraw the accumulated wealth either in full or part and there is no limit on such withdrawals provided the account has sufficient balance of accumulated pension wealth to cover the amount being withdrawn. However, the Tier-II account is yet to be made operational. The Commission therefore recommends that PFRDA should take steps to make the Tier-II accounts operational as early as possible to enable the NPS subscribers the facility of withdrawals from their accounts in case of requirement.

Transparency under NPS : Many associations and individuals have complained that the information relating to the NPS is inadequate, resulting in high degree of uncertainty in the minds of contributors about post-retirement benefits. The Commission noted that PFRDA sends a communication to every participant each month with the current pension wealth and the latest contribution that has been credited. The Commission recommends that focused efforts be made to capture email addresses and mobile numbers of subscribers so that seamless communication is ensured for all subscribers. The Commission recommends that consultation with stakeholders should also be held periodically in different parts of the country.

The Commission notes that no department of Government of India is taking ownership of the NPS. The Commission recommends that a Committee consisting of Secretary, Department of Financial Services, Secretary, Department of Pensions and Pensioners Welfare and Secretary, Department of Administrative Reforms and Public Grievances may be constituted to review the progress of implementation of NPS. The Commission also recommends that steps should be taken for establishment of an Ombudsman for redressing individual grievances relating to NPS.

Tax Treatment under the NPS : NPS is under the Exempt–Exempt – Tax (EET) regime while the General Provident Fund under the OPS is under Exempt–Exempt–Exempt (EEE) dispensation. Under the NPS, while the contributions and the accumulations are tax-exempt, withdrawals are taxable. As such, this is an inferior tax treatment when compared to other pension programmes such as General Provident Fund, Contributory Provident Fund, Employees Provident Fund and Public Provident Fund wherein contributions, accumulations and withdrawals are tax-exempt.

The Commission feels that tax neutrality should be ensured across various avenues for long term savings for post retirement incomes so that the employees covered by NPS are not at a disadvantage. The Commission therefore recommends that withdrawals under the NPS should be tax-exempt to place NPS at par with other pension schemes. The Commission also recommends that the service tax levied at the time of annuity purchase by NPS subscribers should be exempted.

Be the first to comment - What do you think?  Posted by admin - March 2, 2016 at 3:02 pm

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Casual Labourers with temporary status-clarification regarding contribution to GPF and Pension under the old pension scheme

Casual Labourers with temporary status-clarification regarding contribution to GPF and Pension under the old pension scheme

No.49014/2/2014-Estt (C)
Government of India
Ministry of Personnel, Public Grievances and PG
Department of Personnel and Training
Establishment Division

New Delhi, North Block,
February 26th , 2016

OFFICE MEMORANDUM

Subject: Casual Labourers with temporary status-clarification regarding contribution to GPF and Pension under the old pension scheme

Undersigned is directed to refer to this Department’s OM No. 51016/2/90-Estt (C) dated the 10th September, 1993 vide which a scheme for grant of temporary status to the casual employees was framed. The scheme applied to those casual labourers who were in employment on the date of the issue of the OM and had rendered one year of continued service in Central Government offices, which meant that they must have been engaged for a period of at least 240 days (206 days in the case of offices observing 5 days week). The scheme did not apply to Departments of Telecom & Posts and Ministry of Railways.

2. As per the scheme, after rendering three years’ continuous service after conferment of temporary status, the casual labourers were to be treated at par with temporary Group ‘D’ employees for the purpose of contribution to the General Provident Fund. Further, after their regularisation, 50% of the service rendered under temporary status would be counted for the purpose of retirement benefits.

3. As per para 8 of the scheme, two out of every three vacancies in Group ‘D’ cadres in respective offices where the casual labourers have been working would be filled up as per extant recruitment rules and in accordance with the instructions issued by Department of Personnel and Training from amongst casual workers with temporary status. However, regular Group ‘D’ staff rendered surplus for any reason will have prior claim for absorption against existing/future vacancies. In case of illiterate casual labourers or those who fail to fulfill the minimum qualification prescribed for post, regularisation will be considered only against those posts in respect of which literacy or lack of minimum qualification will not be a requisite qualification. They would be allowed age relaxation equivalent to the period for which they have worked continuously as casual labourer.

4. Vide the O.M. No.49014/1/2004 -Estt (C) dated the 26 thApril, 2004, the above scheme was reviewed in the light of introduction of New Pension Scheme in respect of persons appointed to the Central • Government service on or after 1.1.2004 as under:

(i) As the new pension scheme is based on defined contributions, the length of qualifying service for the purpose of retirement benefits has lost its relevance, no credit of casual service, as specified in para 5 (v), shall be available to the casual labourers on their regularisation against Group ‘D’ posts on or after 1.1.2004.

(ii) As there is no provision of General Provident Fund in the new pension scheme, it will not serve any useful purpose to continue deductions towards GPF from the existing casual employees, in terms of para 5 (vi) of the scheme for grant of temporary status. It is, therefore, requested that no further deduction towards General Provident Fund shall be effected from the casual labourers w. e. f. 1.1.2004 onwards and the amount lying in their General Provident Fund accounts, including deductions made after 1.1.2004, shall be paid to them.

2. The existing guidelines contained in this Department’s OM No. 49014/2/86-Estt.(C) dated 7.6.88 may continue to be followed in the matter of engagement of casual workers in the Central Government Offices.

5. The OM dated 26th April, 2004 has been quashed by various benches of CAT/High Courts who have decided that the scheme could not be modified retrospectively. The SLPs filed in the Hon’ble Supreme Court have been dismissed by the Apex Court in UOI & Ors v Rameshwar Singh, CC 1829/2014, UOI & Ors v Ramsaran & Ors, SLP (C) No. 25360-25362 of 2008, SLP 17358/2008, SLP 25360-62/09, Union of India etc v Ajay Kumar & Ors, SLP No.19673-19678/2009.

6. The position has been reviewed in the light of the Court judgements in consultation with the Department of Expenditure. It has now been decided that the casual labourers who had been granted temporary status under the scheme, and have completed 3 years of continuous service after that, are entitled to contribute to the General Provident Fund.

7. 50% of the service rendered under temporary status would be counted for the purpose of retirement benefits in respect of those casual labourers who have been regularised in terms of para 8 of the OM dated 10.09. 1993.

8. It is emphasised that the benefit of temporary status is available only to those casual labourers who were in employment on the date of the issue of the OM dated 10th September, 1993 and were otherwise eligible for it. No grant of temporary status is permissible after that date. The employees erroneously granted temporary status between 10.09.1993 and the date of Hon’ble Supreme Court judgement in Union Of India And Anr vs Mohan Pal, 2002 (3) SCR 613, delivered on 29 April, 2002, will however be deemed to have been covered under the scheme of 10.09.93.

9. Ministries/Departments are also requested to identify cases where temporary status has been granted wrongly to those not covered under the OM dated 10.09.1993 and fix responsibility for the same.

sd-
(Mukesh Chaturvedi)
Director (E)

Authority: www.persmin.gov.in
Click to view the order

Be the first to comment - What do you think?  Posted by admin - February 26, 2016 at 2:59 pm

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Online Subscriber Registration and contribution under NPS using eNPS platform

Online Subscriber Registration and contribution under NPS using eNPS platform

In light of Prime Minister’s “Digital India” campaign on promoting e-governance for providing last mile connectivity through extensive use of ICT (Information and Communications Technology) platforms, Pension Fund Regulatory and Development Authority (PFRDA) has been pursuing the development and operationalization of online transaction facilities for the prospective as well as existing subscribers of NPS.

PFRDA introduced eNPS online portal whereby PAN (Permanent Account Number) and savings bank account of new subscribers to NPS who are already customers of the banks are accepted as KYC with active participation of the banks acting as POPs for opening of accounts under NPS.

PFRDA has received feedback from prospective subscribers and other stakeholders that those who voluntarily seek to use Aadhaar as their document of identity for availing of the eNPS online platform to join NPS should not be deprived of this eNPS facility.

As the identity and address for such account holders is established through e-KYC facility with the express consent of the subscriber through One Time Password (OTP) and as Aadhaar is a unique number, its use as a KYC document rules out the possibility of opening duplicate retirement (PRAN) accounts. PFRDA has accordingly revisited the issue and believes that enabling eAadhaar in addition to PAN and bank account based KYC for the eNPS platform can reduce the cost and time of operation and ensure wider coverage to the citizens of India under the old age income security schemes and thus help in fulfilling the mandate given to it under the provisions of the PFRDA Act, 2013.

PFRDA has accordingly modified the eNPS functionality to accept PAN and bank account or eAadhaar as the KYC document for online registration of subscribers under NPS. With the operationalization of this modified eNPS platform, the subscriber will now have the following options for opening of account:

• Opening of account through any of the Points-of- Presence- Service Provider (POP-SP).

• Opening of account online using PAN and net banking of the selected bank. In this case KYC verification is done by the Bank. The PRAN gets activated only after KYC verification by bank.

• Opening of account online using Aadhaar No. and OTP received from UIDAI. In this case, the subscriber can instantly get their PRAN generated and can contribute.

The eNPS platform using Aadhaar based KYC verification is one of the options for any prospective subscriber to join NPS and it is optional and purely voluntary on the part of the prospective subscriber.

To register under NPS through eNPS using Aadhaar, the prospective subscriber needs to have Aadhaar Number/Card with access to the mobile number registered with Aadhaar.

With the use of this Aadhaar based KYC verification, the subscriber would be able to open his NPS account online. The Prospective subscriber will require to follow the undernoted process for opening of NPS account:

• The prospective subscriber will go to eNPS platform hosted on NPS Trust website www.npstrust.org.in and enter Aadhaar and validate the same using OTP (Sent on the mobile number registered with Aadhaar).

• Then he will be required to fill up the mandatory details like choice of Pension Fund, Investment Scheme, nominations etc.

• Address and Date of Birth details will be auto-populated from details available with Aadhaar.

• He will be required to provide a mobile number and email ID (Mandatory requirement).

• He will be required to Scan and upload the signature. Subscriber may also upload a scanned photograph, in case he/she wishes to replace the photo obtained from Aadhaar, if the Aadhaar photo is blurred or hazy.

• He will be required to make online payment (Minimum amount of Rs 500/-).

• After completion of this process, the PRAN will be generated instantly.

Subscriber will be required to print the form, paste photograph, affix signature and submit the physical form to CRA within a specified period of time while continuing contributing online.

A prospective subscriber can visit NPS Trust website www.npstrust.org.in and select NPS Online menu to register and contribute to NPS.

The complete information about eNPS is available on PFRDA website www.pfrda.org.in and also on NPS Trust website www.npstrust.org.in .

Through this facility, it is expected that the subscriber will have multiple advantages like seamless onboarding experience where he need not visit a Point of Presence and can register from anywhere through an internet connection, contribution with minimum cost of transaction and reduction in errors resulting from various manual activities.

PIB

Be the first to comment - What do you think?  Posted by admin - February 18, 2016 at 8:05 am

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Railway Union Members Oppose New Pension Scheme

Railway Union Members Oppose New Pension Scheme

 

New Delhi: Members of a railway union has opposed the new pension scheme (NPS) and demanded that the employees should be kept out of the ambit of the scheme.

 

All-India Railwaymen’s Federation (AIRF) General Secretary Shiv Gopal Mishra said that the union has urged Railway Minister Suresh Prabhu to raise the matter with Finance Minister Arun Jaitley to ensure the government keeps railway employees out of the ambit of new pension scheme.

 

Apprising Prabhu about railwaymen’s work in most precarious and arduous conditions, Mishra said, “Many employees lay down their lives while working on duty to keep the nation on move and trains on the run, therefore, like Armed Forces, concept of New Pension Scheme may also be abolished from Railways.”

 

He said the National Pension System introduced from January 2004 has totally eroded the social security, and the staff appointed on or after this crucial date is always worried about their future.

 

AIRF also raised the issues of Seventh Pay Commission recommendations with Prabhu and sought redressal.

 

Describing the recommendations as “retrograde”, Mishra said the report is not in the interest of railway men.

He urged upon the Railway Minister to raise the matter with Ministry of Finance before accepting the report of Seventh Pay Commission.

PTI

Be the first to comment - What do you think?  Posted by admin - December 24, 2015 at 10:01 pm

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New Pension Scheme : Analysis of the Issues by the 7th Pay Commission

New Pension Scheme : Analysis of the Issues by the 7th Pay Commission

10.3.12 The Commission has examined these concerns raised by the stakeholders. The Commission also interacted with Chairman, PFRDA, and representatives of the Department of Pensions and Pensioners Welfare (DPPW), Department of Personnel and Training (DoPT), Department of Expenditure (DoE) and the Department of Financial Services (DFS).

10.3.13 In so far as the future value of pension under NPS is concerned, the Commission notes that this would depend upon a combination of factors:

(i) performance of the invested fund, which in turn would depend on the asset mix of the investment and general economic situation of the country,
(ii) cost of financial intermediation,
(iii) contribution rates,
(iv) period of contribution,
(v) performance of the fund manager and
(vi) development of the annuity market.

Grievances against the NPS

The NPS has now been in effect for over 10 years. During this period, there has been perceptible progress in putting together the architecture and providing information to subscribers. Major concerns, however, remain. Broadly, these are as under:

i. The larger federations and staff associations advocated scrapping the NPS on the ground that it discriminates between two sets of government employees.

ii. Individuals covered under NPS have pleaded for reverting to the OPS on the grounds of uncertainty regarding the actual value of their future pension in the face of market related risks.

iii. Individuals have pointed out that under NPS, the effective salary becomes less since the employee has to mandatorily contribute 10 percent of pay towards the pension fund.
iv. Individuals have stated that grievance redressal facility is not effective and consultation with stakeholders has been non-existent. This communication gap has generated insecurity in the minds of stakeholders including staff and Group ‘A’ officers of Central Government as well as All India Service Officers.

v. Associations have complained that Family Pension after the death of the employee is not ensured in the NPS. Moreover, if an employee dies at an early age, the family would suffer since annuity from the contribution would be grossly inadequate.

vi. Individuals have complained that NPS subscribers have no recourse to GPF for their savings. Their personal savings (10% of salary) are considered part of a larger corpus. It has been pointed out that the justify approach would be to consider only government’s contribution and the returns earned on it as the effective amount available for purchase of annuities.

vii. Associations have pointed out that unlike the facility under GPF, it is not possible to take refundable advances under NPS, even to meet obligatory social expenditure. This forces employees towards increased indebtedness as they have to borrow from elsewhere.

viii. Grievances also relate to tax treatment under NPS. While contributions and accumulations in NPS are exempt, lump sum withdrawals from NPS at any time are
taxable at par with any other income. In addition, there is a service tax liability on any amount utilised for purchase of annuity.

ix. It has been pointed out that though NPS became effective from 2004, detailed instructions were issued only in late 2009 and in many cases the credit of contributions began from 2012. In the case of AIS officers in some States, contributions by the concerned State Government are yet to be fully made and deployed. The net result of this has been that contributions for the period 2004-2012 have not been made in full or have earned simple interest and did not get any market linked returns. Because of the prevailing confusion, contributions made by some AIS officer have been returned to them without interest. This will have a huge impact on the eventual corpus as the benefits of compounding were not available for the first 8 -9 years.

x. Individuals, in their presentation before the Commission, stated that annuities under NPS have no compensation for inflation unlike dearness relief under OPS. Further, in the case of OPS there is a revision in basic pension itself after every Pay Commission. This too is not available in respect of annuity of NPS subscribers.

xi. It has been pointed out that government employees are not given freedom of choice in choosing their fund manager based on performance and track record as the contributions are divided in a pre-specified ratio among selected Pension Fund Managers. It has been stated that government employees have no say in asset allocation
of their money.

xii. Concerns were raised that the contribution of 10% + 10% will not be sufficient to create a corpus which provides reasonable assurance that pension will be 50 percent of the last pay drawn.

Authority : http://7cpc.india.gov.in/

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Counting of past service for admissibility in old pension scheme, new pension scheme, pay protection and leave accumulation to All India Services officers

No.25011/6/2014-AIS(II)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

North Block, New Delhi-110001
Dated: 4/11/2015

 

OFFICE MEMORANDUM

Subject: – Counting of past service for admissibility in old pension scheme, new pension scheme, pay protection and leave accumulation to All India Services officers: clarification regarding.
I am directed to say that while introducing the New Pension Scheme from 01/01/2004, amendments to various existing rules including second proviso to Rule 1 of the All India. Services (Death Cum Retirement Benefits) Rules, 1958 were made whereby these rules became inapplicable to those appointed to All India Service and posts from 01/01/2004. The pension of the member of All India Services appointed on or after 01/01/2004 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 Notification No.5/7/2003-ECB2 PR dated 22/12/2003 now rechristened as National Pension System as per Section 8 of Pension Fund Regulatory Development Authority Act, 2013. The guidelines for New Pension Scheme in respect of All India Services was issued by this Department vide letter No.25014/14/2001-AIS(H) dated 08/09/2009 in terms of the instruction/guidelines notified by the Ministry of Finance.

2. Therefore, in view of the above new and changed position, this Department has received references from the State Governments and member of services for clarification in regard to counting of past services for the purpose of pensionary benefits, pay protection and leave accumulation. The matter has been examined by this Department in consultation with the Ministry of Finance (Department of Expenditure) and Department of Pension and Pensioners Welfare and has decided as under :

(i) The member of All India Services who had been an employee in pensionable establishment viz. Central/State Governments or autonomous bodies as on 31/12/2003 and appointed to All India Services on or after 01/01/2004 with proper permission shall be covered under the old non-contribution pension scheme in terms of Office Memorandum No. 28/30/2004-P&PW(B) dated 28/10/2009, which has been made applicable Mutatis-Mutandis to members of All India Services by this Department vide letter No. 25014/112013-AIS(H) dated 18/3/2013. The pay protection and leave accumulation arising out of previous service would be admissible as per
relevant rules of respective All India Services (Pay) Rules and All India Services (Leave) ‘
Rules, 1955.

(ii) Those under CPF etc will not be allowed entry into the old pension scheme on appointments from 01/01/2004.
(iii) The member of All India. Services who were appointed to government service in the Central/state governments or autonomous bodies, whether in a pensionable or non-pensionable establishment, on or after 01/01/2004 before being appointed to All India Services shall be governed by the New Pension Scheme. The pay protection and leave accumulation arising out of their previous service would be admissible as per the relevant rules of the respective Services (Pay) Rules and All India Services (Leave) Rules, 1955.
(iv) The admissibility of counting of past services for the purpose of benefits as mentioned at point (i) and (iii) above shall be subject to continuous service and technical resignation.

3. The State Governments are competent to determine the past service rendered by the member of services for such benefits as mentioned above. The service rendered by a member of All India Services before his appointment to the service under the Central Government or a State Government will count as before the said benefits subject to the fulfilment of the specific conditions provided in the All India Services (Leave) Rules, 1955 and the respective All India Services (Pay) Rules. Approval of the Central government is not necessary for counting the previous service, for such benefits. In such cases the Government of the State on whose cadre the member of service is borne/the Accountant General concerned, will have to take necessary action in consultation with the Central/Department or the State Government, if the officer had worked under the Central Government or another State Government, as the case may be, before joining the All India Services, to count such service as qualifying service for the aforesaid benefits. If any clarification is required or condonation of brea.k in service is involved, a reference may be seat to the Department of Personnel and Training in the case of members of the Indian Administrative Services, the Police Division of the Ministry of Home Affairs in the case of Indian Police Service and the Ministry of Environment. Forest and Climate Change in the case of members of Indian Forest Service.

Rajiv Jain
Under Secretary to the Government of India

http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02ser/25011_6_2014-AIS-II-04112015.pdf

Be the first to comment - What do you think?  Posted by admin - November 6, 2015 at 3:35 pm

Categories: Defence, Pension   Tags: , , , , ,

Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore

Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore: PFRDA Press Release
PENSION FUND REGULATORY AND DEVELOPMENT  AUTHORITY

PRESS RELEASE

Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore

NPS has been implemented for all Government Employees (except armed forces) joining Central Govt. on or after 01 January 2004. Most of the State/UT Governments have also notified the National Pension System (NPS) for their new employees. NPS has been made available to every Indian Citizen from 01st May 2009 on a voluntary basis.

Further, from 1st June 2015, the Atal Pension Yojana, has been launched which has given the much required impetus to the social security schemes Currently, NPS and APY together have more than One Crore subscribers with total Asset Under Management (AUM) of Rs.1,00,275 crores. The segment wise status of the NPS and APY as on 03.10.2015 is as under:

Segment No. of Subscribers Asset Under Management (Rs. Cr.)
Central Government 15,71,136 32,381
State Governments 27,74,459 49,974
NPS-Private Sector 5,24,143 7,943
NPS-Lite/Swavalamban 44,67,733 1,865
Atal Pension Yojana (APY) 7,94,467 112
Total 1,01,31,938 1,00,275
PFRDA has taken various steps at the policy as well as operational level to make NPS more subscriber friendly. In addition to this additional tax benefits made available exclusively to NPS has given a fillip to the scheme. This is further expected to result into a substantial increase in the subscriber base by end March 2016.

The following steps have been taken in the recent past for the convenience of the subscriber:

  •  The investment guidelines for NPS have been revised to expand the investment avenues for optimisation of the returns.
  •  Partial withdrawal upto 25% of subscriber’s own contribution for specific purposes like higher education of children, marriage of children, construction of house and specified illness have been allowed to the NPS subscribers after completion of 10 years in NPS.
  • NPS Private Sector subscribers can continue contributing beyond 60 years upto 70 years of age.
  • NPS Subscriber can defer the withdrawal of lumpsum amount upto the age of 70 years and also have the option to defer purchase of annuity upto 3 years from the date of superannuation or 60 years. The funds during this period remain invested in the system.
  • The Statement of Transactions (SOT) being sent by CRA to the existing subscribers has been modified to reflect the returns of the individual subscriber since the date of account opening and also the return generated during the last
    financial year.
  •  To facilitate and operationalize the deposit of additional contribution of Rs.50,000/- to avail of the additional tax benefit under Section 80 CCD(1B), Government Subscribers already covered under NPS have been provided the
    facility to deposit voluntary contributions in their Tier I account through any POPSP. Government employee covered under old pension scheme can also avail this tax benefit by opening individual Tier I account through any POP-SP and contributing to the same.
  •  Online reset of password and facility to change mobile no. and email Id have been provided to all the NPS subscribers.
SMS alerts on balances in the NPS account being sent to the subscribers on quarterly basis, in addition to regular monthly alerts on contribution and other changes in the PRAN.
APY scheme provides minimum Govt guaranteed monthly pension to subscribers ranging from Rs 1000 to Rs 5000. Further, Govt. of India also co-contributes 50% of the total contribution made by a subscriber during a financial year subject to maximum of Rs 1,000/- per annum for a period of five years, if eligible subscribers open the account by 31st December 2015. All Indian Citizens, in the age group of 18-40 years are eligible to join the scheme through any bank branch. About 8 lakh subscribers have joined APY till date.
Source: PFRDA
[http://pfrda.org.in/WriteReadData/Links/Approved%20Press%20Release%20Milestone%20of%201%20lac%20crores%208d3ccf28-4a6e-44e4-91ad-61e1edfa08d8.pdf]

Be the first to comment - What do you think?  Posted by admin - October 16, 2015 at 8:19 am

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Payment of Gratuity and Guaranteed Benefits under NPS Beneficiaries – BPMS Resolutions

Removal of ceiling for Compassionate Appointment, Payment of Gratuity to NPS Beneficiaries and Minimum Guaranteed Benefits under NPS

BPMS Resolutions adopted in CEC Meeting held in Hyderabad

BHARATIYA PRATIRAKSHA MAZDOOR SANGH
(An All India Federation of Defence Workers)
(An Industrial Unit of B.M.S.)
(Recognized by Govt of India, Min of Defence)
Central Office: 2A, NaVin Market, Kanpur – 208001

REF: BPMS/ RESOLUTION/ 10(7/1/M)

Dated: 21.09.2015

To,
The Secretary,
Govt. of India, Min of Defence,
South Block, DHQ PO,
New Delhi – 110011

Subject: Resolutions adopted in the Central Executive Committee meeting of BPMS.
Respected Sir,

With due regards, it is submitted for your kind information that the Central Executive Committee meeting of this federation has held on 08th & 09”” Sep. 2015 at Dr APJ Abdul Kalam Complex, DRDO Township, Kanchanbagh, Hyderabad and 03 Resolutions have been unanimously adopted by the CEO of the federation & the same are enclosed herewith for your kind consideration and further necessary action please.

This federation is in full hope to get favourable consideration in this regard.

Thanking you in anticipation.

Sincerely yours

(M P SINGH)
General Secretary

RESOLUTION No. 1: Payment of Gratuity to NPS Beneficiaries

In spite of our strong opposition, the Government has made the New Pension Scheme applicable to all recruits after 01-01-2004. While continuing our opposition to the scheme, BPMS have given several inputs from time to time to ensure that maximum benefit be given to the employees.
As a part of this, the entire bye-laws and other issues pertaining to the formulation of the New Defined Contribution Pension System (popularly known as the NPS) was studies and it was found that as per clarification issued by the Ministry of Finance (Department of Economic Affairs) the NPS is a replacement for only Pension, and thus, other benefits provided to employees like Gratuity remains constant i.e. the employees enrolled under NPS are also eligible for Gratuity as per provision of extant law.

After vigorously pursuing the issue, the Department of Pension & Pensioners Welfare had issued O.M. No. 38/41/06/P&PW (A) DT. 05-05-2009, with the approval of Cabinet to provide for Invalid Pension, Family Pension, Disability Pension, Extra-Ordinary Family Pension, Retirement Gratuity and Death Gratuity in respect of NPS subscribers on provisional basis.

Consequent thereof, BPMS has been consistently demanding that this “Provisional” basis be converted into a PERMANENT BASIS feature of the NPS. The Government has, now vide DC. No. 1(4)/E-2006 DT. 17-08-2015 of JS (Pers) of the Ministry of Finance (Department of Expenditure) circulated a note proposing that the budget for the payment of gratuity be projected from the office of the Controller General of Accounts.

Subsequently, the issue has been earmarked to various Ministries, who in turn have further asked comments from various channels.

The federation having taken stock of the present situation feels that asking comments etc. is not required on a Policy decision and demands that the feature of payment of Gratuity to all NPS subscribers upon Retirement or Death, be made a Permanent feature, without further loss of time.

This resolution is therefore, unanimously adopted at the Central Executive Committee Meeting of the Federation on September 08th, 2015.

RESOLUTION No. 2: Minimum Guaranteed Benefits under NPS

In spite of our strong opposition, the Government has made the New Pension Scheme applicable to all recruits after 01-01-2004. While continuing our opposition to the scheme, BPMS have given several inputs from time to time to ensure that maximum benefit be given to the employees.

Even after a lapse of more than 10 years since the arbitrary implementation of the scheme, the Government has failed to formulate a policy ensuring “Guaranteed Minimum Pension” to the subscribers of the NPS.

Having examine the issue in detailed, BPMS now demands that without any further waste of time, the Government should frame a policy to ensure that irrespective of the financial/market conditions at the time of Retirement and/or Death of the NPS subscriber, he should get a minimum guaranteed pension equivalent to FIFTY PERCENT of his last drawn Basic Pay plus dearness relief for neutralization of price rise.

This Central Executive Committee Meeting of the Federation held at Hyderabad, on September 08th, 2015, hereby RESOLVES, to call upon the Government to frame a policy to ensure that the NPS subscribers receive a minimum guaranteed pension equivalent to FIFTY PERCENT of his last drawn Basic Pay plus dearness relief thereupon at par with Central Government Employees/Pensioners.

RESOLUTION No. 3: One time relaxation & removal of ceiling for Compassionate Appointment

The Government has imposed an arbitrary limit of 5% only for filling up of vacancies on compassionate grounds, subject to several conditions. As a result of this decision, many families are living in distress and the very concept of helping the families of those employees who die in harness, stands defeated due to imposition of this ceiling.

The Federation has been taking up the issue at all levels to relax the ceiling to enable the deserving candidate get employment and thereby provide help to the families of the deceased. Having examine the issue in detailed, BPMS now demands that without any further waste of time, the Government should frame a policy to ensure that as a onetime measure, all existing cases of compassionate appoints are provided suitable employment assistance immediately.

This Central Executive Committee Meeting of the Federation held at Hyderabad, on September 08th , 2015, hereby RESOLVES, to call upon the Government to frame a policy to ensure that one time measure, all existing cases of compassionate appoints are provided suitable employment assistance immediately and to further scrap the artificial ceiling of 5% with immediate effect.

(M P SINGH)

 

Source: BPMS

Be the first to comment - What do you think?  Posted by admin - September 22, 2015 at 9:29 am

Categories: Pension   Tags: , , , , , ,

New Pension Scheme (NPS) v/s Old Pension Scheme

NPS is far beneficial than Government Pension – Comparison of New Pension Scheme (National Pension Scheme) and Central Government Pension
The Central Government employees who have joined after 1/1/2004 and are put under National Pension Scheme (NPS) have been demanding abolition of NPS and have been persuading the Central Government to make the government pension scheme applicable to them.
This only exhibits their ignorance of the fact that the New Pension Scheme is highly lucrative and make the government employees who joined after 1/1/2004 far richer than the government employees who enjoy government pension scheme. By doing so they are in the process of ruining the great fortunes that lies in store under New Pension Scheme. Let me compare both the scheme:

Comparison of New Pension Scheme (National Pension Scheme) and Central Government Pension
Benefits under NPS

Let me take a case of Upper Division Clerk(UDC) who joins government service in 2014 at the age of 25 and renders 35 years of service till attaining 60 years of age. He / She gets 3% annual increment every year and gets one promotion every 10 year under M.A.C.P. Although he / she is likely to get 14 to 20% increase in D.A every year as per Consumer Price Index I just take 12%(assuming 6 + 6%) 2 times D.A in a year

* MACP / Promotion Years

(A) Therefore, the total pension wealth of a government servant who joined in 2014 and retiring under New Pension Scheme shall at the time of his retirement be Rs. 2,87,26,201/-

(B) 60% of the lump-sum pension wealth which he / she will be getting on retirement:
Rs.1,72,35.720

(C) 40% invested in an annuity scheme which he / she can receive before 70 years:
Rs.1,14,90,481

(D) Earned Leave Encashment: Rs. 215625 x 10 months : Rs. 21,56,250
TOTAL of (A) (B) (C) and (D) will be Rs. 3,08,82,451

Death Gratuity:

Although not entitled for retirement gratuity, but eligible for Death Gratuity If died during the service

Monthly Pension:

At the assumed Interest at the rate of 8.7% per annum on the other 40% of pension wealth of Rs.1,14,90,481 invested in annuity shall fetch  monthly pension of at least : Rs.83,306/ –

Not only this, before he / she attains the age of 70 he / she can withdraw the remaining 40% of his pension wealth of Rs. 1,14,90,481/- which if invested in Fixed Deposit of a nationalised bank can fetch interest and take care of not only of his wife and children but his descendants also for generations to come.

This is just a tip of the iceberg. If we consider the other 4 pay commission benefits that materialize on1/1/2016, 1/1/2026, 1/1/2036 and 1/1/2046 which a NPS pensioner who joins as UDC shall be getting before his retirement in 2049,his total pension wealth will be undoubtedly double the above amount which comes to more than Rs.5 crores. While a person who joins as U.D.C. gets this much, one will be rocked out of stupor to know what a Group A officer who renders 35 years of service may get – undoubtedly his total pension wealth will be more than Rs.10 crores.
Benefits under Central Government Pension Scheme

Now let us see what will be the retirement benefits of the above person if he / she is put in government pension scheme:
1.Gratuity for 16.5 months :

Rs.2,15,625 x 16.5 months = Rs.35,57,812/- Restricted to Rs.10,00,000
2. Earned Leave Encashment:

Rs. 215625 x 10 months : Rs.21,56,250
3. Pension Commutation:

Rs.17195 x 40% = Rs.6878 x 12 x 8.194 years Rs 6,76,300
Total Benefits under Central Government Pension Scheme: Rs.38,32,550
4. GPF Balance:

As it is a general tendency of the government servants to withdraw from GPF frequently, there will be very little left at the time of retirement
5. Monthly pension

i) Rs.34390 / 2 = Rs.17195 (basic pension being 50% of pay and grade pay Less 40% of basic pension towards commutation (Rs 6878) which will be restored after 15 years
Balance basic pension is Rs. 10317

ii) DA @ 527% of basic pension of Rs.17195 = Rs. 90617 (subject to increase in DA every 6 months based on consumer price index)
Total pension is Rs.1,00,934 per month.

After the death of government servant say after 67 years, spouse can take only 60% of the basic pension i.e.Rs.17195 x 60% = Rs.10317 plus D.A.at the prevailing rates. After spouse’s death children are unlikely to draw the pension as they would have already crossed the age limit. Thus, unlike the dependents of NPS pensioners, there will be nothing left for financial security of the dependents of the government pensioners .

Thus it is unwise on the part of government servants who have joined after 1/1/2004 to demand for abolition of NPS scheme and grant of government pension.

Mr.M.Dorai
Deputy Director
ESIC Model Hospital,
Bangalore (Ministry of Labour, Government of India) is the author of this Article.

Be the first to comment - What do you think?  Posted by admin - September 21, 2015 at 10:16 am

Categories: Pension, Promotion   Tags: , , , , , , , , ,

Railwaymen demand OROP

Railwaymen demand OROP

 

New Delhi: With the government giving in-principle approval to the one rank one pension scheme for defence personnel, Railway employees are now asking for similar pension benefit, arguing that their duties too are “hazardous, risky and complex”.

 

In a letter to Prime Minister Narendra Modi, National Federation of Indian Railwaymen has demanded uniform pension policy for railway employees.

 

“On an average, 800 railway employees get killed per year in the course of duty and nearly 3,000 sustain injuries at work,” M Raghavaiah, general secretary of NFIR, said.

 

Railways, one of the largest employer in the country, has about 13 lakh employees.

 

He said over 85 per cent of railway employees work in remote locations and extremist-affected areas.

 

Raghavaiah appealed to scrap the New Pension Scheme in railways and grant OROP to employees “as has been agreed to in the case of retired defence personnel”.

PTI

Be the first to comment - What do you think?  Posted by admin - September 13, 2015 at 5:01 pm

Categories: OROP, Pension, Railways   Tags: , , , , , ,

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