Posts Tagged ‘New Pension Scheme’

REINTRODUCTION OF OLD PENSION SCHEME

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Reintroduction Of Old Pension Scheme

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
UNSTARRED QUESTION NO. 4075
TO BE ANSWERED ON AUGUST 10, 2018/SHRAVANA 19, 1940 (SAKA)
REINTRODUCTION OF OLD PENSION SCHEME

Shri Rakesh Singh

Will the Minister of FINANCE be pleased to state

  • the details of drawbacks of the New Pension Scheme (NPS) introduced for the Government officials;
  • whether the NPS is not as beneficial monetarily as the Old Pension Scheme (OPS) and if so, the details thereof;
  •  whether the Government employees are disgruntled with the NPS and if so, the details thereof; and
  • whether the Government proposes to reintroduce the OPS replacing the NPS, if so, the details thereof and the action taken by the Government in this regard?

ANSWER

The Minister of State in the Ministry of Finance
(Shri Shiv Pratap Shulda)

(a) & (b) National Pension System (NPS) has been designed giving utmost importance to the welfare of the subscribers. Government has made a conscious move to shift from the defined benefit pension scheme to defined contribution pension scheme i.e. NPS, due to rising and unsustainable pension bill. There are a number of benefits available to the employees under NPS. Some of the benefits are enlisted below:

  • NPS is a well designed pension system managed through an unbundled architecture involving intermediaries appointed by the Pension Fund Regulatory and Development Authority (PFRDA) viz. pension funds, custodian, central record keeping and accounting agency, National Pension System Trust, trustee bank, points of presence and Annuity service providers. It is prudently regulated by PFRDA which is a statutory regulatory body established to promote old age income security and to protect the interest of subscribers of NPS.
  • The pension wealth which accumulates over a period of time till retirement grows with a compounding effect. The all-in-costs of the institutional architecture of NPS are among the lowest in the world.
  • Contribution made to the NPS Tier-I account is eligible for tax deduction under the Income Tax Act, 1961. An additional tax rebate of Rs.50000 is also allowed for contributions made to NPS Tier-I under Section 80CCD (1B) of the Income Tax Act, 1961.
  • Subscribers can withdraw up to 25% of their own contributions before attaining age of superannuation, subject to certain conditions. Further, PFRDA vide “PFRDA (Exits and Withdrawals under the NPS) (First Amendment) Regulations, 2017″ dated 10.08.2017 has liberalized norms for partial withdrawals which also include reduction of requirement of minimum years of being enrolled under NPS from 10 years to 3 years from the date of joining.
  • PFRDA has increased the maximum age limit from 60 years to 65 years for joining NPS-All Citizen Model and Corporate Sector Model, vide “PFRDA (Exits and Withdrawals under the NPS) (Second Amendment) Regulations, 2017” dated 06.10.2017.
  • PFRDA vide “PFRDA (Exits and Withdrawals under the NPS) (Third Amendment) Regulations, 2018″ dated 02.2018 has facilitated easy exit & withdrawal in case of disability and incapacitation of the subscriber covered under NPS.
  • Transparency and Portability is ensured through online access of the pension account by the NPS subscribers, across all geographical locations and portability of employments.

(c) & (d) Representations have been received which inter alia also include the demand that the Government may revert to old defined benefit pension system. However, due to rising and unsustainable pension bill and competing claims on the fiscal, there is no proposal to replace the NPS with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

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Be the first to comment - What do you think?  Posted by admin - August 10, 2018 at 5:14 pm

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Defined Contribution Pension Scheme (National Pension System) – Salient Features

Defined Contribution Pension Scheme (National Pension System)
(Salient Features)


  • The National Pension System works on defined contribution basis and will have two tiers – Tier-I and II. Contribution to Tier-I is mandatory for all Government servants joining Government service on or after 1-1-2004 (except the armed forces in the first stage), whereas Tier-II will be optional and at the discretion of Government servants.
  • In Tier-I, a Government servant will have to make a contribution of 10% of his basic pay plus DA, which will be deducted from his salary bill every month by the PAO concerned. The Government will make an equal matching contribution. However, there will be no contribution from the Government in respect of individuals who are not Government employees.
  • Tier-I contributions (and the investment returns) will be kept in a limited partial withdrawable Pension Tier-I Account. Tier-II contributions will be kept in a separate account that will be withdrawable at the option of the Government servant. Government will not make any contribution to Tier-II account.
  • The existing provisions of Defined Benefit Pension and GPF would not be available to the new recruits in the central Government service, i.e. to the Government servants joining Government service on or after 1-1-2004. However, retirement gratuity and death gratuity would be extended to the central government employees covered under NPS on the same terms and conditions as applicable under CCS(Pension) Rules, 1972.
  • In order to implement the Scheme, there will be a Central Record Keeping Agency (CRA) and several Pension Fund Managers (PFM) to offer three categories of Schemes to Government servants, viz., options A,B and C based on the ratio of investment in fixed income instruments and equities. The participating entities (PFMs and CRA) would give out easily understable information about past performance, so that the individual would be able to make informed choices about which scheme to choose.
  • An independent Pension Fund Regulatory and Development Authority (PFRDA) will regulate and develop the NPS.
  • A Government servant can exit at or after the age of 60 years from the Tier-I of the Scheme. At exit, it would be mandatory for him to invest 40 per cent of pension wealth to purchase an annuity (from an IRDA-regulated Life Insurance Company) which will provide for annuity for the lifetime of the employee and his dependent parents/spouse. He would receive a lump-sum of the remaining pension wealth which he would be free to utilize in any manner. In the case of Government servants who leave the Scheme before attaining the age of 60, the mandatory annuitization would be 80% of the pension wealth.
  • Provisionally, central government employees covered under NPS has option to choose benefits under old pension scheme or NPS in the event of their death or discharge from service on invalidation.

2. FAQs about the National Pension System

Frequently Asked Questions (FAQs)
(National Pension  System)

Last updated/Reviewed:  18.12.2017

NPS.1 The  CCS(P)  Rules are applicable to govt. servants appointed on  or  before 31.12.2003. Are the employees who joined pensionable establishments  of  Govt. of India after 31/12/2003 eligible for any benefits under these rules?

In  accordance with DoP&PW O.M. No.  38/41/06 – P&PW(A) dated 5.5.2009 such  employees  who  joined  after  31/12/2003  and/or  their families may be given the benefit of disability pension  or  family  pension  provisionally  till  the finalization of rules under the National Pension System   (NPS) on death/injury.
Further,  the  benefit of Retirement Gratuity and Death Gratuity have  been extended to the Central Government civil employees covered under NPS in the  same  terms  and conditions  as applicable under CCS Pension Rules, 1972 vide this OM no. 7/5/2012 – P&PW(F)/B dated 26/08/2017.

NPS.2 What are the guidelines/orders in regard to settlement of dues of the deceased Government employees covered under NPS?
As per the Department of Pension & PW O.M. No.38/41/06 – P&PW(A) dated 5.5.2009 (available on website) the benefits under the CCS(Pension) Rules has  been  provisionally  extended to the families of deceased employees covered under NPS. Family Pension/gratuity in terms of O.M. dated 5.5.2009 shall  be  payable  to  the  family of the deceased employee if the deceased  employee was  covered  under  NPS  and fulfils the conditions. These payments are provisional and  will  be  adjusted  as  per the final provisions. As per Para 7 of the O.M., the accumulations in pension wealth of deceased employee under NPS  will not be paid during the period provisional benefits under the aforementioned O.M. are payable. The Head of Office will prepare the pension papers as per provisions of the relevant rules and proceed as per the procedure for making the provisional payments to  eligible  Government  servants families explained in Ministry  of  Finance O.M. No.1(7)/DCPS(NPS)/2009/TA/221 dated 2.7.2009 read with corrigendum dated 29.9.2009.

Source: pensionersportal.gov.in

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Abolition of Contributory Pension Scheme

Not Possible to Revert Back to Old Pension Scheme
It is not possible for the government to revert back to old pension scheme – Minister replied in Parliament on 24.7.2018

Abolition of Contributory Pension Scheme

Representations have been received from various Associations of Government Employees on the problems being faced and the demand to withdraw the National Pension System (NPS).

The 7th Central Pay Commission (CPC) also in its report examined the issues related to NPS and made recommendations for addressing these issues. Pursuant thereto, it was decided to constitute a Committee of Secretaries to suggest measures for streamlining NPS. The Committee has submitted its report.

Due to rising and unsustainable pension bill and keeping in view of fiscal imperatives, it is not possible for the government to revert back to old pension scheme.

Be the first to comment - What do you think?  Posted by admin - July 28, 2018 at 9:04 am

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BPMS: Grant of Minimum Guaranteed Pension under NPS

 BPMS: Grant of Minimum Guaranteed Pension under NPS

The Central Government had introduced the National Pension System (NPS) with effect from 1 January, 2004 (except for armed forces). During the budget session of 2003-2004 the Government announced introduction of the “New Defined Contribution Pension Scheme” then known as the New Pension Scheme. It was formally notified vide Ministry of Finance, Department of Economic Affairs letter dated 22-12-2003. Later, it was adopted by various State Governments and Central and State Public Sector Corporations.

Upto 28.02.2018, the total figure of subscribers of NPS working in Central Government Establishments/ Offices including Public Sector Undertaking has reached to 19,12,871 with a corpus of Rs 61,145.65 crore and in State Governments Establishments/ Offices including respective Public Sector Undertaking, it has reached to 38,21,266 with corpus of Rs. 86,897.31 crore.

The above mentioned Scheme was made operative since 01.01.2004 without any concrete instructions and with passage of time, Govt has been trying to develop a system regarding its functioning. But the future as well as retiremental security (Social Security) of the employees is at stake without guarantee of Minimum Pension under the Scheme.

This Federation has been consistently demanding that Government should frame a policy to ensure that irrespective of the financial/market conditions at the time of Retirement of the subscriber under NPS, he should get a guaranteed minimum pension equivalent to 50% of his last drawn Basic Pay plus Dearness Relief for neutralization of price rise.

A resolution to this effect was also passed in the CEC Meeting held at Hyderabad during September 2015 and subsequently several correspondence have also occurred. However, in spite of lapse of such a large time, no tangible action is seen from the Government side on the issue.

After having deliberated the issue in details, the Central Executive while recording its displeasure over the absence of action on the part of the Government on such an important issue, hereby calls upon the Government to immediately notify the subject issue.

This resolution is being passed in the Central Executive Committee held at Dehu Road (Pune) on 28/03/2018.

Source: BPMS

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NFIR: Exemption of Railway employees appointed on or after 01.01.2004 from the purview of National Pension System (NPS)

NFIR: Exemption of Railway employees appointed on or after 01.01.2004 from the purview of National Pension System (NPS)

Government of India (BHARAT SARKAR)
Ministry of Railways (RAIL MANTRALAYA)
(RAILWAY BOARD)

No.2012/F(E)III/1(1)/4-Pt.

New Delhi, dated 13/02/2018

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi – 110055

Dear Sir,

Sub : Exemption of Railway employees appointed on or after 01.01.2004 from the purview of National Pension System (NPS) – regarding

The undersigned is directed to refer to NFIRs letter No. IV/NPS/PFRDA BILL/Part- I dated 13.02.2017, 26.10.2017 and 11.12.2017 on the above subject.

2. In this regard it is informed that on the request of NFIR, Hon’ble former Minister of Railways, Sh.Suresh Prabhu had written a D.O letter dated 11.04.2017 to the Hon’ble Minister of Finance and Corporate Affairs, Sh.Arun Jaitley, to have a second look on the issue of exemption of Railway employees from the application of National Pension System (NPS). In reply, Hon’ble Minister of Finance and Corporate Affairs Sh. Arun Jaitley has communicated that the matter was reconsidered in consultation with pension Fund Regulatory and Development Authority (PFRDA) and that the request for exemption railway servants appointed on or after 01.01.2004 from the application of NPS does not seem to be feasible proposition.

Yours faithfully,
sd/-
for Secretary/Railway Board

Source: NFIR

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Age Limit for NPS

Age Limit for NPS

Vide PFRDA (Exits and Withdrawals from National Pension System) Second Amendment Regulations, 2017, dated 6th October, 2017, the Pension Fund Regulatory and Development Authority (PFRDA) has permitted any Indian citizen who is in the age group of 18-65 years to join the National Pension System (NPS) on voluntary basis. As informed by PFRDA, a total of 1056 persons between the ages of 60-65 years have joined up to 31st January, 2018.

Be the first to comment - What do you think?  Posted by admin - February 13, 2018 at 1:55 pm

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New Contributory Pension Scheme setting up of the Committee

NPS Committee Report Finalised and Submitted to Govt – NC JCM Staff Side
“New Contributory Pension Scheme setting up of the Committee – report”

Shiva Gopal Mishra
Secretary

Ph: 23382286
National Council (Staff Side)
Joint Consultation, Machinery
For Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
E.Mail : nc.jcm.np@gmail.com.

No. NC-JCM-2017/Fin

January 16, 2018

The Cabinet Secretary,
Government of India,
Cabiner Secretariate,
Rastrapati Bhawan,
New Delhi

Sub: New Contributory Pension Scheme setting up of the Committee – report reg.

Dear Sir,
As per the 7th CPC recommendations, Govt had set up a committee under the Chairmanship of the Secretary, to look into the various complaints received by the commission on the new contributory Pension Scheme. As the stake holders, we had interacted with the Committee. We have now come to know that the committee, having finalised its report, submitted the same to you.

We request that the Staff Side-JCM may be provided with a copy of the report and our views are heard and presented, before the Government takes a final view on the matter.

Thanking you,
sd/-
Yours faithfully,
Shiva Gopal Mishra

Source: Confederation

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Exemption of Railways from New Pension Scheme (NPS): NFIR

Exemption of Railways from New Pension Scheme (NPS): NFIR

No. IV/NPS/PFRDA BILL / Part I

Dated : 11/12/2017

Shri Piyush Goyal,
Hon’ble Minister of Railways,
Rail Bhavan,
New Delhi

Respected Sir,

Sub : Exemption of Railways from New Pension Scheme (NPS) – reg.

Ref (i) Hon’ble MR’s D.O. No. 2012/F(E)III/1/4-Pt dated 29th March 2014 to Hon’ble Finance Minister, Government of India.
(ii) Hon’ble MR’s D.O. No. 2012/F(E)III/1/1/4-Pt dated 20th Nov 2015 to the Hon’ble Finance Minister Shri Arun Jaitely.
(iii) NFIR’s letter No. IV/NPS/PFRDA BILL Part I dated 13th Feb.2017 & 26th Oct. 2017.

While enclosing copy of NFIR’s letter sent to you vide dated 26th Oct, 2017, I request you to kindly make special efforts at the level of the Government as well by reaching Hon’ble Prime Minister for the purpose of exempting Railways from the National Pension System (NPS). I also desire to bring to your kind notice that your predecessors Shri Mallikarjun Kharge and Shri Suresh Prabhu have already sent proposals to the Government of India (Ministry of Finance) highlighting the uniqueness of Railways working and the necessity to exempt Railways from the NPS.

 

I trust that you would do the needful for obtaining favourable decision which would motivate all sections of Railway employees to work with grater determination and commitment for providing efficient services.

With regards,

Yours sincerely,

S/d,
(Dr.M.Raghavaiah)
General Secretary


No.IV/NPS/PFRDA BILL/Part 1

Dated : 26 Oct,2017

Shri Piyush Goyal,
Ho’ble Minister of Railways,
Rail Bhavan,
New Delhi

Respected Sir,

Sub: Exemption of Railways from New Pension Scheme (NPS) – reg.

Ref:  (i)    Hon’ble MR’s D.O. No. 2012/F(E)111/1/4-Pt dated 29th March 2014 to Hon’ble Finance

Minister, Government of India.

(ii)           Hon’ble MR’s D.O. No. 2012/F(E)111/1/1/4-Pt dated 20th Nov 2015 to the Hon’ble Finance Minister Shri Arun Jaitely.

(iii)          NFIR’s letter No. IV/NPSIPFRDA BILL/Part I dated 13th Feb, 2017.

Federation invites kind attention of the Hon’ble AIR relating to exemption of Railways from New Pension Scheme (NPS), which was agreed upon by the Railway Ministry, consequently the Railway Minister Shri Suresh Prabhu bad sent proposal to the Hon’ble Finance Minister vide letter No. 2012/F(E)III/1/1/4-Pt dated 20th November, 2015, seeking Government’s approval to exempt Railways from New Pension Scheme (NPS) now called “National Pension System“. Shri Mallikarjun Kharge then Railway Minister had also urged upon the Government to exempt Railways from New Pension Scheme (letter No. 2012/F(E)III/1/4-Pt dated 29th March 2014).

 

In this connection, NFIR desires to reiterate that Pension is very sensitive issue so far as Railways is concerned, due to the reason that the Railway employees have been working at remote places, stations located in jungle areas and have been facing all odds foregoing basic necessities of life, similar to the Defence Forces Personnel, safeguarding the Nation’s Borders, and are involved fully in ensuring uninterrupted flow of Railway Traffic. The Railway employees in their day-to-day working face war like situations to ensure that movement of trains is not adversely affected under any circumstances and in the process they get killed on duty as confirmed by the High Level Safety Review Committee (BLSRC) headed by Shri Anil Kakodkar (Chapter 11-2.3).

 

NFIR, therefore urges upon you to kindly reach the Hon’ble Prime Minister and apprise the Railways unique nature of working as already highlighted by previous Railway Ministers and impress the need for granting exemption of Railways from the New Pension Scheme to enable those Railway employees appointed from January, 2004 get covered by the Liberalized Pension Scheme for receiving guaranteed Pension. Federation strongly believes that your kind intervention and Ell&WS-fivi: with the Hon’ble Prime Minister would result positive decision for exempting Railways from New Pension Scheme soon.

With regards,

Yours sincerely,/

S/d,
(Dr. M. Raghavaiah)
General Secretary

Source : NFIR

 

Be the first to comment - What do you think?  Posted by admin - December 13, 2017 at 9:50 am

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

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/

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

Be the first to comment - What do you think?  Posted by admin - December 17, 2016 at 5:43 pm

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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

Be the first to comment - What do you think?  Posted by admin - December 1, 2016 at 10:33 am

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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/

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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

Be the first to comment - What do you think?  Posted by admin - June 27, 2016 at 8:02 am

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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.

Be the first to comment - What do you think?  Posted by admin - June 24, 2016 at 10:10 am

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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.

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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

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