Death Claims to be Processed within 07 Days and Retirement Claims to be Settled on the Day of Retirement

Press Information Bureau 

Government of India

Ministry of Labour & Employment

18-November-2016 11:25 IST

Death Claims to be Processed within 07 Days and Retirement Claims to be Settled on the Day of Retirement 

Payment of Statutory Contributions Henceforth only through Internet Banking 

The Prime Minister of India during the PRAGATI review meeting held on 26th October desired that claims related to death cases be prioritized and expedited and retirement claims may be settled on the day of retirement. In accordance, the processes have been reviewed and instructions have been issued to field offices to settle death claims within a period of 07 days from the date of receipt of proposal and retirement claims on the day of retirement. The officials in the facilitation centre of field offices have been instructed to scrutinize the claims and guide the claimant regarding submission of required documents in appropriate shape. An official has been posted in the facilitation centers of EPFO this category of claims.

Employers are now increasingly using internet banking to deposit statutory EPF dues since EPFO made it mandatory to use internet banking as the mode of receipt of EPF dues. 96.03% contributions in October 2016 were received online.

In an important judgment delivered by the High Court of Madras in the matter of writ petition filed by Builders Association of India, Madurai, the High Court dismissed the petition praying non enforcement of EPF & MP Act, 1952 every employee employed in or in connection with the work or that factory or establishment, other than an excluded employee, who has not become a member already shall also be entitled and required to become a member of the Fund from the date of joining the factory or establishment.

To expand the reach of convenience offered to EPF members, EPFO has joined the network of Common Services Centers (CSC). A Memorandum of understanding (MoU) has been signed between EPFO and CSC e-Governance Services India Limited (CSC SPV) on 25th October 2016. The MoU is initially for a period of five years. Every year on 14st November, pensioners were required to submit their life certificates. From this year onward, pensioners can submit digital life certificates via Jeevan Pramaan Patra programme through a large number of points of Presence (PoP) of CSC network in addition to those available at EPFO offices. The pensioners living in remote areas can avoid cost and inconvenience of travelling down to the EPF offices or their banks for filing paper based life certificate through this arrangement.

Read More

Retirement Benefits if D.A. Merge with the Basic Pay w.e.f. 01.01.2004 - NFIR

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

RAILWAY BOARD

E(P&A)II-2012/DC/JCM/1

New Delhi, Dated 17.10.2016

The General Secretary,

NFIR,

3, Chelmsford Road,

New Delhi – 110055

Sub: Merger of Dearness Allowance with the Basci Pay w.e.f. 01.04.2004 – computation of emoluments of Running Staff for granting retirement benefits – reg.

Ref: NFIR’s letter No.IV/RSAC/Conf./Part VII dated 05.09.2016

I am directed to refer to your letter dated 05.09.2016 wherein the Federation has mentioned that Northern Railway has vide letter 720/EW/Misc/Union-Items/2015/E.IV/Loose dated 16.11.2015 correctly computed the emoluments of Running Staff with reference to Dearness Allowance and 30% thereon for the purpose of allowing the retirement benefits to those Running Staff who had retired during the period 01.04.2004 and 31.12.2005.

The matter has been examined in Baord’s office and its observed that the methodology for computation contained in Northern Railway’s letter referred to above, is not in conformity with the instructions on the matter as laid down in Baord’s letter No.E(P&A)II-2004/RS-13 dated 12.10.2004, Northern Railway has accordingly been advised to take immediate corrective action in the matter vide Board’s letter No.E(P&A)II-2014/RS-24 dated 22.07.2016.

Yours faithfully,

sd/-

For Secretary/Railway Board

Source: NFIR

Read More

Voluntary Retirement under Fundamental Rule 56(k), 56(m) and Rule 48 - Amendment orders by Dopt

Voluntary Retirement under Fundamental Rule 56(k), 56(m) and Rule 48  - Amendment orders by Dopt

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Personnel and Training

North Block, New Delhi-100 001

Dated : 27th February, 2014

Subject : Voluntary retirement under FR 56(k), etc. and amendment of Rules.

The provisions of Fundamental Rule 56(k), 56(m) and Rule 48 of CCS(Pension) Rules, 1972 relating to acceptance of request of voluntary retirement have been revisited as per the Central Administrative Tribunal, Principal Bench judgement dated 4th August, 2010 in 0.A.No.1600/2009 filed by Shri Gopal Singh Purohit Vs UOI & Others to bring them at par with each other.

2. The matter has ‘been examined in consultation with Department of Pension and Pensioners Welfare and the Ministry of Law. FR 56(k) and 56 (m) have been amended vide Extra Ordinary Gazette Notification No.GSR.27(E) dated 17 th January, 2014. It shall be open to the appropriate authority to withhold permission to a Government servant who seeks to retire under FR 56(k) or 56 (m) in the following circumstances:

    (i) If the Government servant is under suspension ; or

    (ii) If a charge sheet has been issued and the disciplinary proceedings are pending; or

    (iii) If judicial proceedings on charges which may amount to grave misconduct, are pending.

Explanation: For the purpose of this clause, judicial proceedings shall be deemed to be pending, if a complaint or report of a police officer, of which the Magistrate takes cognizance, has been made or filed in a criminal proceedings.

3. Copy of the Gazette Notification No.G.S.R.E.(27) dated 17.1.2014 amending FR 56(k) and FR 56(m) is enclosed.

4. All Ministries/Departments are requested to bring the contents of this O.M. to the notice of all concerned.

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS

(Department of Personnel and Training )

NOTIFICATION

New Delhi, the 17th January, 2014

GS.R. – 27(E) In exercise of the powers conferred by the proviso to article 309 of the Constitution, and in consultation with the Comptroller and Auditor General in relation to persons serving in the Indian Audit and Accounts Department, the President hereby makes the following rule further to amend the Fundamental Rules, 1922, namely :-

I. (1) These rules may be called the Fundamental (First Amendment) Rules, 2014.

(2) They shall came into force on the date of their publication in the Official Gazette.

2. In the Fundamental Rule, 1922, in rule 56, –

(a) in clause (k), in sub-clause ( I), for item (c), the following, shall be substituted namely :-

"(c) it shall be open to the Appropriate Authority to withhold permission to a Government servant, who seeks to retire under this clause, if,-

    (i) the Government servant is under suspension: or

    (ii) a charge sheet has been issued and the disciplinary proceedings are pending; or

    (iii) if judicial proceedings on charges which may amount to grave misconduct, are pending.

Explanation :- For the purpose of this clause, judicial proceedings shall be deemed to be pending, if a complaint or report of a police officer, of which the Magistrate takes cognizance, has been made or filed in a criminal proceedings.";

(b) for clause (m), the following shall be substituted, namely : –

"(m)A Government servant in Group ‘C’ post who is not governed by any pension rules, may, by giving notice of not less than three months in writing to the Appropriate Authority, retire from service after he has completed thirty years service :

Provided that it shall be open to the Appropriate Authority to withhold permission to a Government servant, who seeks to retire proceedings."

    (i) the Government servant is under suspension: or

    (ii) a charge sheet has been issued and the disciplinary proceedings are pending; or

    (iii) if judicial proceedings on charges which may amount to grave misconduct, are pending.

Explanation :- For the purpose of this clause, judicial proceedings shall be deemed to be pending, if a complaint or report of a police officer, of which the Magistrate takes cognizance, has been made or filed in a criminal proceedings.";

[No.25013/3/2010-Estt. (A-IV)]

MAMTA KUNDR A, Jt. Secy.

Source : www.persmin.gov.in

Read More

Tax Liability on Retirement/Superannuation i.e. Leave Encashment & Other amount.

I would like to share important information regarding tax liability on amount received after retirement/superannuation i.e. leave encashment and other.   Let us have a look at the basic provision related to taxability of leave salary. Leave salary, also known as leave encashment, means that employee will receive the cash for leaves which are not taken by the employees. The leave encashment received during the service period is taxable for all the employees as per the income tax slab applicable to the employee. However, the tax treatment is different for the leave encashment received at the time of retirement/ superannuation. Further, the tax treatment is different for Government employee (Central or State) vis a vis  Non –Government employee as under:  

In the case of Central/ State Government employee, any amount received as cash equivalent of leave salary in respect of period of earned leave at his credit at the time of retirement/ superannuation is fully exempt from tax u/s 10(10AA)(i). 

In the case of Non-Government employee (i.e., the employee other than an employee of the Central Government or a State Government) leave salary is exempt from the tax u/s 10(10AA) (ii) to the extent of the least of the following:

• Cash equivalent of the leave salary in respect of the period of earned leave to the credit of an employee only at the time of retirement whether on superannuation or otherwise (earned leave entitlement cannot exceed 30 days for every year of actual service rendered for the employer from whose service he has retired): or
• 10 month “Average Salary” or
• The amount not chargeable to tax as specified by the Government. (Presently, Rs. 3 Lacs has been specified).
• Leave encashment actually received at the time of retirement.
  
  

Average salary, as mentioned above, is to be calculated on the basis of average salary during the period of 10 months immediately preceding the retirement/ superannuation.

        ”Salary” here means basic salary & includes dearness allowances if term of employment so provided. It also includes commission based on a fixed percentage of turnover achieved by an employee as per term of contract of employment but excludes all other allowances & perquisites.

Now, with above basic brief up about taxability of leave salary, the opinions on the issue raised in your queries are as under:

1. Leave salary received at the time of retirement is exempt only in the hands of State or Central Government employee. It will not be exempt in the hands of the employee of PSU or Local Authorities. The definition of “Government Employee” is not specifically given in the Income Tax Act-1961. However, the Act has specifically incorporated the PSU employees, Government undertaking employee, Local Authorities employees etc in various other Sections / clauses in the Income Tax Act-1961 where the benefit is meant to be conferred to them. The same is not there in Section 10(10AA).
2. The Leave Salary is taxable under the head “Income from Salary”. The Salary Income is taxable in the year in which it has accrued or in the year in which it is received, whichever is earlier. Accordingly, the leave encasement is taxable as income of the FY 2012-13 and not FY 2013-14.

TAXABILITY OF LEAVE SALARY AT A GLANCE:

S.No.	Particulars	Tax Treatment
A]	Encasement of leave during service	It is charged to tax.
B]	Encasement of leave at the time of retirement
	1. If Central or State Government Employees	Fully exempt from tax u/s 10(10AA)(i)
	2. For any other employees	Lease of the following is exempt: 1. Earned leave months x Average salary 2. Avg. monthly salary x 10 3. Maximum amount Rs. 3,00,000/- 4. Actually received

Read More

Once Again Parliament denied Retirement Age from 60 to 62.

While answering to a question in Parliament today on 22nd August 2013, the Minister of Personnel, Public Grievances and Pensions Shri. V.Narayanasamy said that ‘at present there is no proposal to increase the age of retirement of Government employees’.

He also added, as per Fundamental Rules 56(a) except as otherwise provided, every Government servant shall retire on attaining the age of 60 years.

Last week formal announcement regarding this policy was expected to declare on 15th August. Now the Central government has denied to pursue the policy of increasing the age of retirement of CG staff once again in Parliament.

Source: CGEN.in

Read More

Voluntary Retirement Scheme (VRS) in CRPF, BSF, ITBP, SSB, CISF and AR

Voluntary Retirement Scheme (VRS) in CRPF, BSF, ITBP, SSB, CISF and AR : Statistics of year wise retired CAPF personnel under VRS...

The below information was submitted in Parliament as a written reply by the Minister of Home Affairs on 6th August, the table of CAPF personnel proceeded on Voluntary Retirement during each of the last three years and the current year. And the action taken by the Central Government as remedial measures to stop such cases and improve the service and working of CAPF.

Last three years and current year report is given below...

YEAR		OFFICERS/GOs#		JCOs/SOs#		ORs#		Total
		Male	Female	Male	Female	Male	Female	Total
2010	CRPF	16	1	230	8	2522	27	2804
	BSF	18	#	171	#	5254	#	5443
	ITBP	2	#	42	2	418	#	464
	SSB	7	#	49	#	391	#	447
	CISF	29	1	235	2	611	10	888
	AR	#	#	18	#	715	3	736
2011	CRPF	26	#	280	25	2026	26	2383
	BSF	26	#	202	#	5649	#	5877
	ITBP	4	#	42	1	342	#	389
	SSB	1	#	35	I	I276	#	313
	CISF	23	1	252	4	682	11	973
	AR	#	#	20	2	774	4	800
2012	CRPF	20	1	321	20	4491	23	4876
	BSF	19	#	225	#	3227	#	3471
	ITBP	8	#	78	2	256	#	344
	SSB	4	#	62	#	381	#	447
	CISF	23	1	230	1	778	7	1040
	AR	#	#	24	1	351	2	378
2013 (upto June, 2013)	CRPF	17	1	129	5	1177	14	1343
	BSF	14	#	108	#	1117	#	1239
	ITBP		3	34	1	98	#	136
	SSB	1	#	18		94	1	114
	CISF	1	1	61	1	256	4	324
	AR	#	#	8	1	273	2	284
Total		262	7	2874	77	32159	134	35513

(GOs-Gazetted Officer, JCO/SOs-Junior Commanding Officer/Subordinate Officers, # ORs- Other Ranks)

From the above, it may be seen that the total number of personnel who have proceeded on voluntary retirement during last three years and the current year is only 35513, which is about 1.18% of the Forces posted strength per year. The personnel proceed on voluntary retirement from service mainly due to various personal and domestic reasons including children/family issues, health/illness of self or family, social/family obligations and commitments etc. The Government has taken following steps to improve the service and working conditions of the personnel:

(i) Implementing a transparent, rational and fair leave policy;

(ii) Grant of leave to the Force personnel to attend to their urgent domestic problems/issues/needs;

(iii) Regular interaction, both formal and informal, among Commanders, officers and troops to find out and address their problems;

(iv) Revamping of grievances redressaI machinery;

(v) Regulating duty hours to ensure adequate rest and relief; 

(vi) Improving living conditions through provision of basic amenities! facilities for troops and their families;

(vii) Motivating the forces through increased risk, hardship and other allowances;

(viii) Provision of STD telephone facilities to the troops to facilitate being in touch th their family members and to reduce tension in the remote locations;

(ix) Better medical facilities for troops and their families including introduction of Composite Hospitals with specialized facilities;

(x) Organising talks by doctors and other specialists to address their personal and psychological concerns;

(xi) Yoga and meditation classes for better stress management;

(xii) Recreational and sports facilities and provision of team games and sports etc;

(xiii) Providing welfare measures like Central Police canteen facility to the troops and their families, scholarships to their wards, etc;

(xiv) Giving status of ex-CAPFs personnel to the retired personnel of CAPFs, which is expected to boost the morale of the existing CAPFs personnel and also expected to provide better identity, community recognition and thus higher esteem and pride in the society to the Ex-CAPFs personnel.

Read More

Cabinet Decision Retirement Age increase from 60 to 62 Years.

Cabinet decision to increase retirement age deferred

The government may make the announcement in the Prime Minister’s 15 August address…

A proposal to increase the retirement age of government employees from 60 to 62 years came to the Cabinet on Thursday but a decision was deferred. The government might make the announcement in the Prime Minister’s Independence Day address, his last before general elections in 2014. The ministry of personnel, public grievances and pensions has proposed an increase in retirement age of government employees from 60 to 62 years, top sources confirmed.

There are around five million central government employees in India. The previous occassion the government raised the retirement age of central government employees was in 1998, from 58 to 60 years. The move is meant to ease the financial burden on the government in terms of its pension liabilities, sources said.

The retirement age of professors in all central universities was recently raised to 65 years. D L Sachdev, national secretary of the All India Trade Union Congress, said his union was totally against the increase of the retirement age beyond 60. It would hurt the youth, especially when the government is doing nothing to create jobs for them, Sachdev said.

Congress-affiliated Indian National Trade Union Congress national president Sanjeeva Reddy said his union had been demanding increase in the retirement age to 62 years and would welcome it.

Minister for Personnel, Public Grievances and Pensions V Narayanaswami had ruled out an increase in the retirement age to a question in Parliament in the winter session this year. An official in the ministry, when asked, refused to speak about it.

Source : www.business-standard.com

Read More

Clarification regarding Senior Citizen Saving Account Scheme and effect of section 80C of Income Tax.

There are some clarification about the scheme of Senior Citizen Saving Account which effect on the Tax u/s. 80C of Income Tax Act as under:

Investment in an account under the senior citizens Saving Scheme Rules-2004 is eligible for deductions u/s. 80C.

The Interest Income on deposit made in the Senior Citizen saving Scheme is not eligible for deduction u/s. 80C.

Interest on specified Bank FD (Fixed Deposit) with a 5 years terms is taxable.  Similarly, Interest on amount deposited under the Senior Citizens Savings Scheme,2004 is also taxable.

Interest payable on the amount invested in the senior citizen deposit account scheme is subject to deduction of tax at source (TDS).  Interest payment has not been exempted from deduction of tax at source.

Read More

Senior Citizens Saving Scheme

SENIOR CITIZENS SAVINGS SCHEME (AMENDMENT) RULES, 2012 - AMENDMENT IN RULE 7

NOTIFICATION NO.GSR 321(E), DATED 25-4-2012

In exercise of the powers conferred by section 15 of the Government Savings Banks Act, 1873 (5 of 1873), the Central Government hereby makes the following rules further to amend the Senior Citizens Savings Scheme Rules, 2004, namely:—

1. (1) These rules may be called the Senior Citizens Savings Scheme (Amendment) Rules, 2012.

(2) They shall deemed to have come into force on the date of their publication in the Official Gazette.

2. In the Senior Citizens Savings Scheme Rules, 2004, in rule 7, in sub-rule (1), the following proviso shall be inserted, namely:—

"Provided that in the case of a deposit made under these rules on or after the 1st day of April, 2012, it shall bear interest at the rate of 9.3 per cent, per annum from the date of deposit."

Read More

SBI - Account to be Closed u/s. 25 of the Payment and Settlement Act, 2007 when 4 Cheques Dishonours.

After the Budget-2012, the Finance ministry has takes more cruel decision regarding transaction of Cash, Cheques etc. and thus it advised to banks to popularise electronic funds transfers to reduce usage of cheques and bank drafts that are prone to fraud, assuring them electronic transfer of funds will have same legal protection as the traditional banking instruments. There are currently over 30 lakh cases of bounced cheque in the courts, a problem the government feels can be addressed through electronic transfers.

We have examined the matter and told banks that this (dishonour of e-payment ) will involve the same penalty clause as in the case of a bounced cheque, said a finance ministry official, emphasizing customers will not be legally disadvantaged if they opted for electronic transfer instead of cheque payments. Officials believe increased awareness can help electronic funds transfer become more acceptable among customers.

Banks agree that increased use of electronic transfers can help track financial transactions and investigate frauds easily. There is a lot of frauds that happen on account of cheques or drafts. In case of electronic transfers, such fraudulent activities will be curtailed and easily tracked, said an official with state-run Punjab National Bank. Last year, after. 1 crore was siphoned off through issue of fake cheques, the Employee Provident Fund Organisation (EPFO), had instructed all regional offices to ensure that most payments take place through national electronic fund transfer (NEFT).

The countrys largest lender, State Bank of India, has already decided to close the accounts of those customers who default on their cheques four times or more in a financial year.

Bankers had recently expressed some concern over the legal implications of electronic transfers in case of inadequate funds in the users account.

The government, in its note to banks, has clarified that the Payment and Settlement Systems Act 2007 accords legal recognition to electronic payment systems and provides for punishment of two years and a monetary penalty twice the amount of electronic funds transfer, or both in case of dishonour.

Section 25 of the Payment and settlement Act 2007 gives the same right and remedies to the beneficiary in cases where electronic settlements are dishonored similar to cheque bouncing cases, explained Hitendra Mehta, Partner, Vaish Associates Advocates The Reserve Bank of India has also been keen to move away from cheques and drafts. Last week, the central bank had reduced the validity period of cheques, drafts, pay orders or banker's cheques to three months from six months.

Read More

What are Tax Liability on Retirement and Benefits ?

On retirement, an employee normally receives certain retirement benefits. Such benefits are taxable under the head ‘Salaries’ as “profits in lieu of Salaries” as provided in section 17(3). However, in respect of some of them, exemption from taxation is granted u/s 10 of the Income Tax Act, either wholly or partly. These exemptions are described below:

GRATUITY (Sec. 10(10)):

1. Any death cum retirement gratuity received by Central and State Govt. employees, Defence employees and employees in Local authority shall be exempt.Any gratuity received by persons covered under the Payment of Gratuity Act, 1972 shall be exempt subject to following limits:-
   

• For every completed year of service or part thereof, gratuity shall be exempt to the extent of fifteen days Salary based on the rate of Salary last drawn by the concerned employee.
• The amount of gratuity as calculated above shall not exceed Rs.3,50,000(w.e.f.24.9.97).

1. In case of any other employee, gratuity received shall be exempt subject to the following limits:-

• Exemption shall be limited to half month salary (based on last 10 months average) for each completed year of service
• Rs.3.5 Lakhs whichever is less.

Where the gratuity was received in any one or more earlier previous years also and any exemption was allowed for the same, then the exemption to be allowed during the year gets reduced to the extent of exemption already allowed, the overall limit being Rs. 3.5 Lakhs. As per Board’s letter F.No. 194/6/73-IT(A-1) dated 19.6.73, exemption in respect of gratuity is permissible even in cases of termination of employment due to resignation. The taxable portion of gratuity will quality for relief u/s 89(1). Gratuity payment to a widow or other legal heirs of any employee who dies in active service shall be exempt from income tax (Circular No. 573 dated 21.8.90). Payment of Gratuity (Amendment) Bill, 2010 has proposed to increase the limit to Rs. 10,00,000.

COMMUTATION OF PENSION (SECTION 10(10A)):

1. In case of employees of Central & State Govt. Local Authority, Defence Services and Corporation established under Central or State Acts, the entire commuted value of pension is exempt.
2. In case of any other employee, if the employee receives gratuity, the commuted value of 1/3 of the pension is exempt, otherwise, the commuted value of ½ of the pension is exempt. Judges of S.C. & H.C. shall be entitled to exemption of commuted value upto ½ of the pension (Circular No. 623 dated 6.1.1992).
   

RETRENCHMENT COMPENSATION (Sec. 10(10B)):
Retrenchment compensation received by a workman under the Industrial Disputes Act, 1947 or any other Act or Rules is exempt subject to following limits:-

1. Compensation calculated @ fifteen days average pay for every completed year of continuous service or part thereof in excess of 6 months.
2. The above is further subject to an overall limit of Rs.5,00,000 for retrenchment on or after 1.1.1997 (Notification No. 10969 dated 25.6.99).

Read More

Benefited Scheme for Capital Gain Deposit Amount.

There are lot of schemes benefited for Capital Gain Deposit Amount. One can invest the amount of Long Term Capital Gain in specified bonds issued by the Rural Electrification Corporation (REC) or National Highway Authority of India (NHAI) within a period of 6 months from the date of transfer of assets to get exemption under this section.

The Scheme of Deposits:

Although under section 54/54F, the assessee has given 2 years to purchase the house property or 3 years for construction of house property, but the capital gain on transfer of the original assets is taxable in the previous year in which the transfer took place. The return of income of that previous year is to be submitted by the specified date. Hence, the assessee will have to take a decision for the purchase/ construction of the house property before the date of furnishing of the return otherwise the capital gain would be taxable. To avoid the above situation, the Income Tax Act has specified an alternative in the form of a Deposit under the Capital Gain Deposit accounts Scheme-1988.

There are two type of accounts.

1. Deposit Account (This is a saving account.)
2. Deposit Account (This is a term Deposit Deposit account.)
   

Read More

Voluntary Retirement Scheme for Railway Employee (Drivers and Gangmen).

Railway has announced very benefited Voluntary Retirement Scheme to their Employee (Drivers and Gangmen) i.e. Safety Related Retirement Scheme (SRRS) was introduced in January 2004 exclusively for two front line safety categories i.e.. Drivers and Gangmen.

The ward of the employee seeking retirement under the scheme is considered for appointment in the respective category subject to fulfillment of eligibility / suitability etc. The existing scheme has been renamed as Liberalized Active Retirement Scheme for Guaranteed Employment for Safety Staff (LARSGESS) and will cover all safety categories including Gangman with grade pay of Rs. 1800/-.

The condition of having minimum 33 years qualifying service has been reduced to minimum 20 years and the eligibility age group from 55-57 years to 50-57 years. However, in the case of Drivers, the condition of qualifying service i.e. 33 years and eligibility age group i.e. 55-57 will remain the same.

The scheme will result in younger workforce and boost morale of staff by way of provision of job to their eligible dependent wards.

This information was given by the Minister of State for Railways, Shri E. Ahamed in a written reply in Rajya Sabha on 12.11.2010.

What are the new Pension Plans?
The New Pension Scheme (NPS) was introduced by the Union Government in 2003. According to the new scheme, employees appointed on or after January 1, 2004 will contribute 10 per cent of their Pay and Dearness Allowance to the Pension Fund Regulatory and Development Authority under the Ministry of Finance. An equal amount will be contributed by the Centre. The scheme is mandatory for Government employees, but optional for other citizens of India. NPS merely declared that tax benefits would be applicable as per the Income Tax Act 1961 as amended from time to time.

How to Revise your Pension?
Subject to the provisions of rule 97 I Pension once authorized after final assessment shall not be revised to the disadvantage of the non-teaching employee, unless such revision becomes necessary on account of detection of the clerical error subsequently.

Provided that, no revision of pension to the disadvantage of the pensioner shall be ordered by the Director of Higher Education without the concurrence of the Finance Department if the clearing error is detected after a period of two years from the date of authorization of pension.

For the purpose of sub-rule (1), the retired non-teaching employee concerned shall be served with a notice by the Director of Higher Education requiring him to refund the excess payment of pension within a period of two months from the date of receipt of notice by him.

In case the non-teaching employee fails to comply with the notice, the Director of Higher Education shall, by order in writing, direct that such excess payment, shall be adjusted in installments by short payments of pension in future, in one or more installments, as the Director of Higher Eduction may direct.

Equity Pension Plans:
Pension regulator, PFRDA, today said that it would like to maintain the 50 per cent limit on investment in equities for the new pension fund, regardless of the recommendation of the Bajpai committee.

These fund managers include LIC Pension Fund Ltd, SBI Pension Funds Ltd, UTI Retirement Solutions, IDFC Pension Fund Management, ICICI Prudential Pension Funds Management, Kotak Mahindra Pension Fund and Reliance Capital Pension Fund.

Read More