MOD ORDERS - REVIEW OF THREE YEARS TIME LIMIT FOR MAKING COMPASSIONATE APPOINTMENT

No.19(9)/2012/D(Lab)

Government of India

Ministry of Defence

New Delhi, the 8th Aug, 2012.

Subject: Review of three years time limit for making compassionate appointment.

The undersigned is directed to say that the Hon’ble CAT Allahabad Bench has quashed the three year time limit of offer of appointment on compassionate grounds vide Department of Personnel and Training OM. No. 14014/19/2002/ Estt(D) dated 5.5.2003. 

The Writ Petition filed against the Order was also dismissed on 7.5.2010. The Department of Personnel and Training has re-examined the above Judgement in consultation with Ministry of Law and has decided to withdraw the instruction contained in OM dated 5.5.2003 referred to above. Accordingly DoP&T OM. No. F.No. 14014/3/2011-Estt(D) dated 26.7.2012 (copy enclosed) is circulated for information, compliance, guidance and/ necessary action.

RETD EMPLOYEES CAN'T BENEFIT FINANCIALLY AT EXCHEQUER'S COST - JUDGEMENT OF NAGPUR BENCH OF MUMBAI HIGH COURT IN THE CASE FILED BY RETD POSTAL EMPLOYEES

NAGPUR: A recent judgment of the Nagpur Bench of the Bombay High Court can serve as a guideline for retired employees. The court ruled in favour of Union of India which had approached the judiciary against gratuity claims of two of its former employees for getting added pension benefits. "The retired employees, on the basis of their meritless, unreasonable and excessive claim, cannot be allowed to make money and enrich themselves unjustly by causing undue financial loss to the state exchequer," a division bench comprising justices Bhushan Dharmadhikari and Ashok Bhangale ruled.
Two city based government employees working with the Postal Department - Venkatraman Rajgopalan and Mukund Paranjape - retired on superannuation on the afternoon of March 31, 1995. They applied for enhanced gratuity claims and other retirement benefits from the government which came into effect from April 1, 1995. However, it was rejected on the grounds that these benefits would be applicable to them if they had retired on or after this date. The senior citizen duo then approached Central Administrative Tribunal (CAT), Mumbai Bench camp at Nagpur. They pleaded that they should be deemed in service till midnight of March 31 and retired on next day.
The ministry of communication, however, opposed the move contending that the respondents retired on March 31 and not on April 1, and hence are not entitled to the benefits. However, the full bench of CAT decided in favour of the duo on October 15, 1999. It ruled that a government servant completing the age of superannuation on March 31, 1995, and relinquishing charge of his office in the afternoon of that day is deemed to have effectively retired from service with effect from April 1, 1995.
The ministry then moved the judiciary challenging the tribunal's order in 2000. It cited Karnataka High Court verdict stating that "the date of retirement is the last date of the month in which the government servant retires and the gratuity is to be calculated as per rules in force as on that date".
The judges observed that Rajgopalan was born on March 3, 1937, while Paranjape on March 29, 1937, and both of them retired on March 31, 1995. "But law clearly lay down that their date of retirement and last working day has to be the same. Due to Rule 5(2) of Pension Rules, they could continue till March 31; which in reality was beyond their actual completion of the age of superannuation. Legally, respondents retired on the last working day," they stated.
The court before quashing CAT's order stated that such benefits which were available with effect from the later operative date - April 1, 1995, but wrongly granted by the tribunal to the respondents who retired with effect from the previous date, were not only undeserved and unwarranted, but also were detrimental to the state exchequer/revenue.

Source : http://timesofindia.indiatimes.com

Employee is not entitled to regular pension till the departmental and judicial proceedings against him are concluded-CAT

New Delhi, October 01, 2012(PTI): The Central Administrative Tribunal (CAT) has dismissed a former Indian Telecommunication Services (ITS) officer’s plea for a hike in his pension, saying he is not entitled to it till the departmental and judicial proceedings against him are concluded.

A bench of CAT Chairman Syed Rafat Alam and member Ramesh Chandra Panda gave the order on a plea by ITS officer R P S Panwar against whom six disciplinary proceedings and one criminal case is pending.

Panwar had contented his current pension of Rs 23,913 should be hiked to Rs 38,772 as per the Sixth Central Pay Commission’s recommendations  as the disciplinary proceedings and criminal case  pending against him have been stayed by the concerned judicial authorities.

The CAT, however, dismissed his plea saying “We are of the considered view that the applicant is not entitled to get his provisional pension revised as per the sixth CPC until the departmental and judicial proceedings pending against him are finally decided,”

Panwar, in his application, had told the Tribunal that he was placed under temporary suspension from September 2003 and was allowed to retire on reaching the age of retirement in April 2006.

He had contented that he is entitled to a higher pension as he had retired after the recommendations of the sixth pay commission had come into effect from January 1, 2006.

The counsel for the Department of Telecommunications had argued that Panwar should not be given any relief as he is facing “serious” charges of amassing disproportionate assets.

Agreeing with the DoT’s argument, the Tribunal ruled that he was not entitled to arrears of leave encashment and other dues till the matters pending against him are resolved.

One Rank One Pension Scheme approved by the Cabinet

Rs.2300 crore approved to meet the demands of Ex-servicemen pensioners

Press Information Bureau 

Government of India

Ministry of Defence 

24-September-2012 21:35 IST

Rs.2300 crore approved to meet the demands of Ex-servicemen pensioners

The Union Cabinet has approved the recommendations of the Committee headed by Cabinet Secretary for benefits to ex-servicemen on four issues.   The financial implications of the improvements made as per the Cabinet decision on the four items are broadly estimated at Rs.2300 crore per annum.  The details are as follows:

I.One Rank One Pension:

On One Rank One Pension, the demand of the Defence Forces and Ex-Servicemen Associations is that uniform pension be paid to the Defence Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension be automatically passed on to the past pensioners. 

The difference in the pension of present and past pensioners in the same rank occurs on account of the number of increments earned by the defence personnel in that rank.  There is also a difference between the pension of pre 1.1.06 and post 1.1.06 retirees belonging to a particular rank.  The UPA Government on two previous occasions has taken decisions to narrow the gap between the present and past pensioners, particularly those belonging to the ranks of JCOs and Other Ranks.

On the issue of One Rank One Pension, the following have been approved by the Cabinet:

(i) Bridging of the gap in the pension of pre 1.1.06 and post 1.1.06 JCO/OR retirees by determining the pension of pre 1.1.06 retirees on the basis of notional maximum for ranks and groups across the three Services as in the case of post 1.1.06 retirees.  In addition, the weightage of qualifying service in the ranks of Sepoys, Naik and Havaldar would be increased by two years for both pre and post 1.1.06 retirees.

(ii) The pension of pre 1.1.06 Commissioned Officer pensioners would be stepped up with reference to the minimum of fitment table for the ranks instead of the minimum of pay band.

These are expected to largely meet the demands of the defence pensioners on one rank one pension. 

II. Enhancement of Family Pension :

(i) The pension of pre - 1.1.2006 family pensioners(Commissioned Officers, Honorary Commissioned Officers, JCOs/ORs ) be stepped up based on the minimum of the fitment table instead of the minimum of the Pay Band;

(i) Establishing linkage of the family pension with the pension of JCOs/ORs, in those cases where the death takes place after the retirement of the JCO/OR since such a JCO/OR drew a pension based on the maximum of the pay scales, 60% of the pension applicable to JCO/OR pensioners would be granted to the family pensioner in case of normal family pension calculated a 30% of last pay drawn. Accordingly, based on the rank, group and length of service of the deceased JCO/OR pensioner, his pension would first be determined on notional basis. In cases where death of JCO/OR took place after retirement, the family pensioners in receipt of normal family pension would become entitled to 60% of the said pension determined on notional basis and those in receipt of enhanced family pension will be entitled to 100% of this pension. Similar entitlements would be determined in the case of Special Family Pension; and

(ii) The family pensioner of the JCO/OR would be granted pension arrived at on the basis of the family pension worked out as per the formulation at (i) above or the pension on the basis of stepping up with reference to the minimum of the fitment table, whichever is beneficial. Further, the linkage of family pension with retiring pension be applied in the case of post 1.1.2006 family pensioners of JCOs/ORs also.

III. Dual Family Pension:

Dual family pension would be allowed in the present and future cases where the pensioner drew, is drawing or may draw pension for military service as well as for civil employment.

IV. Family pension to mentally / physically challenged children of armed forces personnel on marriage:

Grant of family pension to mentally/physically challenged children who drew, are drawing or may draw family pension would continue even after their marriage.

The above recommendations made by the Committee on pension issues of Ex-Servicemen may be implemented from a prospective date and payment made accordingly.

NATIONAL PENSION SCHEME FEE HIKE TO MAKE PENSION FUND MGMT SUSTAINABLE: IDFC

National Pension Scheme fee hike to make pension fund mgmt sustainable: IDFC

IDFC, one of the fund managers of National Pension Scheme (NPS), today said the proposed revision in fund management charges will help sustain the retirement fund industry in the long-run as all players are losing money under the present fee structure.

"The proposal to raise fund management charges in NPS will sustain the pension fund industry in the long-run as all players are losing money with the current charges," IDFC Chief Executive for Pension Funds Vikash Raj told reporters here.

He said as per the revised NPS guidelines, management charges will be revised soon, which is a welcome step.

At present, fund management fee is a dismal 0.0009 per cent per Rs 10 lakh in which all fund managers are losing money.

However, the revised guidelines have a provision for raising the commission with a cap provided by the pension fund regulator, PFRDA.

"If it (the charge) is fixed at around 0.25 per cent, then the business model will be sustainable," Raj said.

Reacting to new norms about appointing any number of fund managers from the existing six, he said this would help in garnering a higher number of subscribers.

Total corpus of NPS, a contribution-based scheme launched in May 2009, is around Rs 18,000 crore, majority of which is contributed by the public sector employees.

"As the number of players (fund managers) increase, this will help in raising the investor base," Raj said.

NPS, among the low-cost pension schemes in the world, has failed to take off among general public and private sector employees due to less awareness about the plan, he said.

"As awareness increases, the NPS is likely to become popular among the private sector employees and general public," he added.

Source: Indian Express

10 Things To Do Before You Retire

Don’t put off today what you can’t afford to do tomorrow. In spite of the world wide pension crisis and a growing acceptance that we must plan and save for our retirement, the harsh reality is we are actually not saving enough. Research reports reveal that only 15% of the individuals are saving sufficiently for their retired life. Here are a few tips on things to do before you retire so that your retired life is more comfortable and enjoyable.

  

Get Rid of All Your Debts

If you are taking a housing loan, personal loan, car loan or any other loan make sure that you will be repaying them on or before your retirement. You need to choose the term of the loan in accordance with your retirement age. You can enjoy your retired life when you have 100% financial freedom, not when you have to repay your loans.

Protect Your Emergency fund

Emergency expenses can happen any time. But the possibility goes up during the old age. So we need to enhance the emergency reserve year on year based on the inflation and change in your expense levels. Emergency fund will give you a sense of security and also you need not touch your other investments during emergency where you need to pay pre-closure penalty. Also don’t forget to refill the emergency fund once you met an expense out of emergency fund.

Establish a Retirement Budget

You need to visualize your retired life well in advance and need to create a budget for your retirement. That is you will not be going to office. So the expenses on transport and clothes may come down. Also you will have more time to spend. You may need to spend more on leisure travel and health care.

Examine Your Cash Flow

GPF - FAQ

1.      What is the minimum contribution towards GPF subscription? Whether the amount can be altered by the DDOs?

Ø As per Rule 8(b), the subscription towards GPF should not be less than 6% of emoluments and not more than total emoluments. The DDOs are having no right to alter the subscription fixed by the Government servant. The subscription may be increased twice and reduced once at any time during the year. 

2.      What are all the reasons for which GPF advance can be availed?

Ø  One can take GPF Advance for the reasons of higher education of self, children, legal expenditure, religious vow, obligatory expenses towards betrothal, marriage and other like ceremonies, for purchase of consumer durables such as TV, VCR, washing machines, computers etc.

CABINET DEFERS DECISION ON PENSION REFORMS BILL

Amid differences among allies, the government on Thursday deferred a decision on the changes in the crucial Pension Fund Regulatory and Development Authority Bill, 2011.

“It (the PFRDA Bill) was taken up and deferred”, said a Minister after the Cabinet meeting in New Delhi.

Among the UPA allies, Trinamool Congress has been quite vociferous in opposing the pension and insurance reforms.

Railway Minister Mukul Roy, who represents TMC in the UPA government, did not speak on the issue during the Cabinet meeting, sources said.

Proposed Amendments in PFRDA bill to make NPS more attractive

The Cabinet is likely to approve three amendments proposed in the Pension Fund Regulatory Development Authority (PFRDA) Bill, the law relate to New Pension Scheme (NPS). Central Government Employees who joined in Government Service on or after 01.01.2004 are under NPS. This pension scheme has also been extended to all Indian Citizens.

The Cabinet will meet to move amendments to the Pension Fund

Regulatory Development Authority (PFRDA) Bill. According to reports, three changes are being made to PFRDA Bill.

•  The first amendment will reportedly allow contributor to withdraw funds from the pension scheme in case of an emergency. The present law does not provide for withdrawing funds for emergency purposes from NPS.

Do’s and Dont’s for Pensioners

DOs

1. A copy of every communication regarding pension is required to be endorsed to the pensioner by each node of pension delivery. Please ensure that your full contact postal address (preferably with PIN code) is always updated. Promptly intimate any changes of address to: -

a. Your Bank Branch

b. The Head of Office and the PAO in the Ministry from where you retired;

c. Central Pension Accounting Office

2. There should be proper nomination for pension account. Please retain the acknowledgement received from the bank carefully. It is advisable to open a joint account with your spouse if you are pensioners so that she/he does not hardship later.

3. Please direct your bank branch with proof establishing your Identity for first appearance at Paying Branch along with the copy of the special seal authority.

4. CPAO has sent two halves of PPO – the pensioner’s and the Bank’s. Your half of the PPO is to be handed over to you by your Bank branch when they call you for verification. Your signature will be obtained on their half for their record.

5. Please produce proper and acceptable evidence of eligible savings from time to time for the purpose of Income Tax calculation by the Bank.

EPFO may provide 8.6 per cent interest rate for 2012-13

Faced with criticism for slashing interest rate on deposits by 1.25 per cent for 2011-12, the retirement fund body EPFO may raise it to 8.6 per cent for this fiscal to benefit about 5 crore subscribers.

EPFO Logo

Last month, the Employees’ Provident Fund Organisation (EPFO) had brought down the rate of interest to 8.25 per cent for 2011-12 from 9.5 per cent provided in 2010-11, evoking sharp criticism within and outside Parliament.

“EPFO is working on income estimates to provide 8.6 per cent rate of return on provident fund deposits during this fiscal,” a source privy to the development said.

He further said the EPFO’s apex decision making body, Central Board of Trustees (CBT), headed by the Labour Minister could meet next month to take a call on the issue.

The source said EPFO can provide higher returns in the current fiscal as the government has increased interest rate on Special Deposit Scheme (SDS) 1975 to 8.6 per cent from 8 per cent with effect from December 1, 2011.

How to calculate Pension,DCRG,Commutation etc...

Types of Pension Cases              (1)       Superannuation             (2)       Family Pension             (3)       Voluntary Retirement (VR )             Rules (i)           The qualifying service for evaluation of pension is reduced to 10 years w.e.f. 02 09.2008. Earlier it was 33 years. (ii)       Pension is evaluated on the basis of the last 10 months average pay or last pay drawn whichever is beneficial to retiring employee

Terms related to the PENSION Calculation                                     (i)        PENSION             (ii)       DCRG (Death Cum Retirement Gratuity)             (iii)      COMMUTATION             (iv)      RESTORATION of Pension             (v)       FAMILY PENSION

GOVERNMENT FILES APPEAL AGAINST JUDGMENT ON MODIFIED PARITY IN PENSION

GOVERNMENT FILES APPEAL AGAINST JUDGMENT ON MODIFIED PARITY IN PENSION

LEGAL BATTLE FOR JUSTICE CONTINUES FOR PENSIONERS

The Government has filed an Appeal against the 1ST November 2011 judgment of the Principal Bench of Delhi Central Administrative Tribunal on modified parity in pension to the pensioners retired prior to 1.1.2006. You may remember that the Principal Bench of Delhi CAT had directed implementation of OM dated 1.9.2008 based on the Government's Resolution dated 29.08.2008 accepting the recommendation of 6th CPC for modified parity of pension to pre 1.1.2006 pensioners by nullifying the clarificatory orders issued subsequently that denied the real content of the 6th CPC recommendation as accepted earlier by the Union Cabinet through its Resolution dated 29.08.2008. However now the Government has filed an Appeal against the judgment of the CAT.

National Pension Schemes will be linked to Aadhar, says Jairam

The Rural Development Minister Shri Jairam Ramesh today said that National Social Assisstance Programme, NSAP will be completely restructured and all payments under the scheme will be done through Aadhar-based payment system. Talking to a select group of media persons here, he said, the restructured system will be in place by 10th of March this year and it will ensure that each beneficiary under old age, disabilities and widow pension schemes will get one’s entitlement every month and there will be no delay in payments. He said, the Central government spends nearly 8,000 crore rupees under the NSAP scheme, but the devolvement of funds is being done in a complicated process in a layered manner, which he said will be rectified and only one State Agency will be identified for receipt of funds for final disbursement to pass book holders through Aadhar-based system.

The Minister informed that he had already written to the Finance Ministry for relaxation of certain norms like reducing the criteria for disability to 40% from the existing 80%, which leads to exclusion of a very large number of disabled persons in rural areas

Clarification regarding regulation of payment of employer’s share of contribution to the Contributory Provident Fund

No 6/8/2009-Estt.(Pay II)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

New Delhi, the 15th February, 2012

OFFICE MEMORANDUM

Subject:- Clarification regarding regulation of payment of employer’s share of contribution to the Contributory Provident Fund during the period of reverse deputation.

The undersigned is directed to refer to this Department’s 0.M,No. 6/8/2009.Estt.(Pay II) dated 17th June, 2010 vide which instructions were issued for regulating the terms and conditions of pay, Deputation (duty) allowance etc. on transfer on deputation/foreign service of Central Government employees to ex-cadre posts under the Central Government/State Governments/Public Sector Undertakings/Autonomous
Bodies, Universities/UT Administration, Local Bodies etc. and vice-versa,

2. As per para 7.7 (ii) of the above cited 0M., in the case of deputation on foreign service terms to PSUs etc., leave salary contribution and pension contribution/CPF contribution are required to be paid either by the employee himself or by the borrowing organisation to the Central Govt.

3. The issue of payment of employer’s share of Contribution to the Contributory Provident Fund in case of reverse deputation has been considered in this Department. It is clarified that in case of reverse deputation the employer’s share of Contributory Provident Fund for the period on deputation to the Central Government will be borne either by the employee himself or the borrowing organization i.e Central Government depending on the terms of deputation. A clear mention of the stipulation on whether the Central Government or the employee would bear the liability may be made in the terms of deputation.

(Mukesh Chaturvedi)
Deputy Secretary (Pay)

SOURCE :PERSMIN,sapost

Pension- Harassment in Pension Delivery

Pension takes the form of provision of annuities for the senior population. Historically, old age pensions, guaranteed by a government to its employees emerged in France in 19th century,followed by its introduction in the United Kingdom in 1834 and in Germany in 1873.

The pension system eventually spread to many countries of Europe and North America in the first decade of 20th century. In India, pension for older population was first introduced in 1924, primarily for the government employees under the British colonial rule.

The Government Pension Package

Government pension is granted to a Government employee on his/her retirement from Government service on the basis of length of qualifying service rendered and amount of emoluments last drawn. In the case of appointment in the public service, government fixes an age limit. In certain cases, this age limit is relaxed. According to general recruitment rules, a person can enter into Government service from minimum eighteen years’ age provided that the person has requisite qualification for service.

A citizen enters into service at young age for serving the people and for the welfare of the country. He/She then spends the most valuable time of his/her life in the service and ultimately at age of 60 years retires from service because of old age. Being adjusted in routinized life profile, it is difficult for a public employee to adjust with the other occupations of the society after retirement. His/her capability of work gets reduced.

Identification of Pensioners Associations under Pensioners’ Portal – A Mission Mode Project under NeGP

Department of Pension & Pensioners’ Welfare

(Desk – C)

Subject: – Identification of Pensioners Associations under Pensioners’ Portal – A Mission Mode Project under NeGP.

A Mission Mode Pensioners’ Portal under NeGP entrusted to Department of P&PW aims at the welfare of Central Civil Pensioners across the country. Its specific objective is to facilitate redressal of Pensioners grievances and provide detailed information, guidance etc. on pension and other retirement related matters through various stake holders. The project envisages, inter-alia association of Pensioners Associations other welfare organizations in the implementation process.

Under the above project this Department had envisaged identification of a total number of 30 Pensioners Associations on the basis of the following criteria.

One Rank One Pension

Parliament of India

(Rajya Sabha Secretariat)

Press Release

Hundred and Forty-second Report on the petition praying for grant of one rank one pension

to the armed forces personnel.

The Committee on Petitions of Rajya Sabha under the Chairmanship of Shri Bhagat Singh Koshyari, MP, presented its Hundred and Forty-second Report to the Rajya Sabha on 19_th December, 2011 on the petition praying for grant of one rank one pension to the armed forces personnel.

2. The Petition was submitted by Shri Sanjay Prabhu and others, resident of Bangalore and countersigned by

Rajeev Chandrasekhar, MP, Rajya Sabha.

3. The Committee during the course of its deliberations interacted with the petitioners, representatives of

Departments of Ex-servicemen Welfare (M/o Defence), Expenditure (M/o Finance) and Pensions and Pensioner's Welfare (M/o Personnel, Public Grievances and Pensions) and some organizations/individuals.

Amendment in Pension Scheme

Pension under the Employees’ Pension Scheme, 1995 is linked with pensionable service and pensionable salary. As per Section 6A of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, contribution in Employees’ Pension Fund is mandated @ 8.33% of wages which is restricted upto wage ceiling of Rs.6500/- only. However, option is available to the member to contribute at the higher rate than the wage ceiling (i.e. Rs. 6500/-) which entitles him/her for a higher pension.

The Central Government had constituted an Expert Committee for revision of Pension. The Expert Committee submitted its report to the Central Government on 5th August, 2010 and the recommendations of the Committee were placed before the Central Board of Trustees, Employees’ Provident Fund [CBT) EPF)] for consideration on 15th September, 2010. The CBT (EPF) directed that the report be first considered by the Pension Implementation Committee (PIC). The PIC has since finalized its report and sent it to Employees’ Provident Fund Organisation for placing before the CBT (EPF) for taking a final decision in the matter in its ensuing meeting.

New Pension Scheme-FAQ

1. Whether a retiring Government servant is entitled for leave encashment after retirement under the NPS?
The benefit of encashment of leave salary is not a part of the retirement benefits admissible under Central Civil Services (Pension) Rules, 1972. It is payable in terms of CCS (Leave) Rules which will continue to be applicable to the government servants who join the government service on after 1-1-2004. Therefore, the benefit of encashment of leave salary payable to the governments/to their families on account of retirement/death will be admissible.

2. Why is it mandatory to use 40% of pension wealth to purchase the annuity at the time of the exit (i.e. after the age of 60 years) from NPS?
This provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.