ALL VETERANS ARE REQUESTED TO SEE THE WEB SITE & GIVE YOUR VALUABLE COMMENTS/SUGGESTIONSGet this Widget

Wednesday, 2 March 2016

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

Indian Military Veterans

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on such withdrawals provided the account has sufficient balance of accumulated pension wealth to cover the amount being withdrawn.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.

CGEGIS Table 2016 – Finmin issued tables of Benefits for the savings fund for the period from 01.01.2016 to 31.12.2016

Indian Military Veterans

No.7(1)/EV/2014
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, Dated the 26th February, 2016
OFFICE MEMORANDUM
Sub: Central Government Employees Group Insurance Scheme-1980 – Tables of Benefits for the savings fund for the period from 01.01.2016 to 31.12.2016
Every year two Table of Benefits are issued by the Ministry of Finance on calendar year basis for the savings fund to the beneficiaries under Central Government Employees Group Insurance Scheme (CGEGIS)-1980. While one Table of Benefits for the savings fund of the scheme is based on a subscription of Rs.10 per month per unit from 1.1.1982 to 31.12.1989 and Rs.15 per month per unit w.e.f. 1.1.1990 onwards, the other Table of Benefits for the savings fund is based on a subscription of Rs.10 per month in respect of the employess who had opted out of the revised rates of subscription w.e.f. 1.1.1990.
2. The two Table of Benefits under CGEGIS-80 for the calendar year 2016, prepared by IRDA, are enclosed. The benefits in the Tables have been worked out on the basis of interest @8.7% per annum (compounded quarterly), as notified by Department of Economic Affairs.
3. While calculating the amount it has been assumed that the subscription has been recovered or will be recovered from the salary of the month in which a member ceases to be in service failing which it should be deducted from accumulated amounts payable.
4. In its application to the employees of Indian Audit and Accounts Department this Office Memorandum issues in consultation with the Comprtroller and Auditor General of India.
sd/-
(Amar Nath Singh)
Deputy Secretary to the Government of India
Authority: www.finmin.nic.in

Meeting with Cabinet Secretary on 1st March

Indian Military Veterans

No commitment from official side so far.
Empowered Committee of Secretaries headed by Cabinet Secretary has held first round of discussion with JCM National Council  Standing Committee members on strike Charter of demands on 1st March 2016. Staff Side explained the justification of each and every demand  and conveyed the large scale resentment among the Central Government Employees to the Cabinet Secretary . Cabinet Secretary has not made any commitment on any demand. He informed that this is only a preliminary interaction with the Staff Side. 

Com. M. Raghavaiyya Leader Staff Side, Com. Shiva Gopal Mishra Secretary Staff Side and other Standing Committee members attended. 

Confederation was represented by Coms. KKN Kutty , M. Krishnan & M.S. Raja . 

Meeting commenced at 0645 P.M. & ended at 0845 P.M. 

7th Pay Commission, OROP: 'Burden of pay hike yet to be assesed'; Govt to prioritise expenses

Indian Military Veterans
New Delhi, Mar 1: In what may be a good news for the central government employees, Finance Minister Arun Jaitley said that the Modi government is open to meet these employees' demand seeking a better pay hike over the recommendations of the 7th pay commission. He also said that the final burden of pay hike of central govt employees is yet to be assesed.

Jaitley on Monday said that government will prioritise its expenditure as the outgo due to the 7th Central Pay Commission award and implementation of One Rank One Pension (OROP) for defence forces will lead to additional burden on the exchequer.

"The financial years 2015-16 and 2016-17 have been and will be extremely challenging for government expenditure. The next financial year will cast an additional burden on account of the recommendations of the 7th Central Pay Commission and the implementation of Defence OROP.

The Government, therefore, has to prioritise its expenditure", Jaitley said while presenting the Union Budget 2016-17 in Lok Sabha on Monday.

During the financial year 2016-17, central government has to make provision for about Rs 1.10 lakh crore to meet the liabilities on account of the Pay Commission and OROP, Jaitley said earlier this month.

In his Budget speech on Monday, the Finance Minister said the government has been able to improve its budgeted expenditure due to revenue buoyancy in the current fiscal, despite a steep cut in central share of taxes.

 "We see these challenges as opportunities... We wish to enhance expenditure in the farm and rural sector, the social sector, the infrastructure sector and provide for recapitalisation of the banks.

"This will address those sectors which need immediate attention. Once the Government discharges these priority obligations, it shall then focus on other areas which are also of utmost priority to the Government," Jaitley said.

Finance Minister Arun Jaitley is open to meeting central government employees' demand seeking a better pay hike over the recommendations of the 7th pay commission.
"The secretaries panel will decide the final burden on the government, a significant part of liabilities arising out of 7thCPC have already been factored in the Budget", said Jaitley, while replying to a question in his post -Budget interaction with media on Monday.

 The central government employees unions have been seeking a minimum pay hike of Rs 26,000, a hike of around 44% on the pay panel's recommendation. OneIndia News (With inputs from agencies)

Read more at: 
http://www.oneindia.com/india/7th-pay-commission-orop-pay-hike-govt-employee-yet-assessed-govt-prioritise-expenses-2028491.html


Blog Archive

Disclaimer

The contents posted on these Web Site are personal reflections of the Viewers and do not reflect the views of the "Indian Military Veterans- Web" Team. Neither the "Indian Military Veterans -Web" nor the individual authors of any material on these Web accept responsibility for any loss or damage caused (including through negligence), which anyone may directly or indirectly suffer arising out of use of or reliance on information contained in or accessed through these Web.
This is not an official Web site. This forum is run by team of ex- Indian Army, Veterans for social networking of Indian Defence Veterans. It is not affiliated to or officially recognized by the MoD or the AHQ, or Government/ State.
The Indian Military Veterans Forum will endeavor to edit/ delete any material which is considered offensive, undesirable and or impinging on national security. The WebTeam is very conscious of potentially questionable content. However, where a content is posted and between posting and removal from the Web in such cases, the act does not reflect either the condoning or endorsing of said material by the Team.
Web Moderator: Capt KS Ramaswamy (Retd)

Useful links for Veterans

Resources