AIR INDIA-PLI TO ALL

AIR INDIA-PLI TO ALL



AI to pay PLI to all sections of employees on Oct 7

Air India today said that it would pay productivity-linked incentive (PLI) to all sections of employees on October 7.

"Air India will pay the August PLI payable in September on October 7," Air India's Executive Director, Jitendra Bhargava, told PTI here.

September salaries have already been paid to the employees' respective bank accounts, he said.

The PLI will be paid in full, Bhargava added.

The national carrier has cancelled 14 international and 79 domestic flights today, the fourth day of the strike by a section of its executive pilots protesting against the up to 50 per cent cut in their PLIs effected by the management.



Source:PTI

AIR INDIA-PLI TO ALL

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Filed Under: AIR INDIA

PERFORMANCE OF PRODUCTION-INDIAN RAILWAYS

Wednesday, September 30, 2009





PERFORMANCE OF PRODUCTION-RAILWAYS

Performance of production units during April - August 2009

Chitranjan Locomotive Works (CLW) produced 64 electric locomotives against the target of 69 electronic locomotives and Diesel Locomotive Works (DLW) produced 113 diesel locomotives against the target of 105 diesel locomotives during April-August 2009. Rail Coach Factory (RCF) produced 640 coaches against the target of 640 coaches where as Integral Coach Factory (ICF) produced 515 coaches against the targets of 511 coaches during the same period. Rail Wheel Factory (RWF) produced 80550 wheels and 32347 axles during the same period against the target of 79779 wheels and 25855 axles during April-August 2009.

During the month of August 2009, CLW, DLW, ICF, RCF and RWF have produced 19 electric locomotives, 27 diesel locomotive, 112 coaches, 125 coaches, 17284 wheels and 7449 axles respectively against the target of 21 electric locomotives, 22 diesel locomotive, 108 coaches, 125 coaches, 17680 wheels and 5818 axels.

Railways have realized an amount of Rs. 27.63 crore approximately during the month of August 2009 through ticket checking.



SOURCE;CENTRAL STAFF NEWS

PERFORMANCE OF PRODUCTION-INDIAN RAILWAYS

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Filed Under: RAILWAYS

UPPSC-2006 RESULTS DECLARED

Breaking News:









UPPSC-2006 results declared



TNN 29 September 2009, 11:11pm IST

ALLAHABAD: The list of candidates who have qualified for the interview in the combined state/subordinate services (main) examination 2006 conducted



by Uttar Pradesh Public Service Commission have been declared. As against the 160 vacancies a total of 476 candidates have been selected for interview which shall begin from November 16.

Murli Dhar Dubey, controller of exams, UPPSC said that the result shall be subject to the final decision in petitions for special leave to appeal (civil) nos 14299- 14301/ 2007, UPPSC and others versus Paras Nath Pal and others pending before the Supreme Court.



SOURCE;THE TIMES OF INDIA

UPPSC-2006 RESULTS DECLARED

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UGC TO BAN SECOND TERM FOR VCs IN SAME VARSITY.

UGC to ban second term for VCs in same varsity





CHARU SUDAN KASTURI



New Delhi, Sept. 27: The University Grants Commission will ban varsities across the country from re-appointing the same vice-chancellors for a second term after the end of their five-year tenure in a move aimed at limiting politicisation of post.

In new regulations setting minimum qualification requirements at all Indian varsities, the UGC is specifically barring reappointments for VCs at the same university, The Telegraph has learnt.

“There shall not be a re-appointment of the vice-chancellor for the second term in the same university,” according to the draft regulations to be published in the Gazette of India.

The draft regulations do, however, clarify that “appointment for another term as vice-chancellor is admissible in other central/state universities” based on the candidate’s performance in his first stint as VC.

The tenure of a VC, his service conditions and whether he can be re-appointed at present can technically vary from university to university.

Till now, these conditions were laid down by the statutes accompanying the act — of Parliament or Assemblies — that created the university, and not by the UGC.

While all other central universities already specifically forbid a second term for a VC, the statutes governing Jamia Millia Islamia — also a central university — allow the re-appointment of a VC.

State universities in different parts of the country follow different norms at present.

But once the new UGC regulations come into effect, all universities across the country have to — if necessary — amend their statutes to meet the minimum qualifications for appointments that the commission is laying down.

UGC sources expressed hope that the move would end any fears of the incumbent VC influencing the selection panel that has to either re-appoint him or find a new choice.

The bar on a second term at the same university for VCs comes amid stated efforts by human resource development minister Kapil Sibal to reduce political interference in appointments of varsity chiefs.

Sibal has already announced intentions to set up an independent collegium of academic experts that will recommend central university VCs, replacing the current practice under which an HRD ministry-appointed team shortlists candidates.

The current mechanism to appoint VCs has repeatedly drawn criticism from academics who allege that it allows the HRD ministry to appoint pliant members on the VC selection panel.

The UGC move also comes close on the heels of a long-drawn battle for the post of VC at Jamia, which eventually embroiled even advisers to UPA chairperson Sonia Gandhi.



SOURCE;THE TELEGRAPE

UGC TO BAN SECOND TERM FOR VCs IN SAME VARSITY.

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AIR INDIA PILOTS TO GO ON MASS LEAVE

Air India pilots not ready for talks, to go on mass leave

26 Sep 2009, 2018 hrs IST,

MUMBAI: Around 400 Air India pilots, who threatened to go on mass sick leave to protest the airline's decision to cut their incentives, on Saturday Top 15 global airlines



Top performing airports



Wackiest aircrafts

rejected the management's offer for talks and said they will stick to their agitation plan.

Senior executives as well as other pilots have decided not to take part in the negotiations with the management on Sunday, a pilot said.

While 400 senior executive pilots will go on sick leave en masse, 700 others are still discussing their options.

"We all are going on mass leave. Pilots will not report for duty for coming days. This was followed today also," Captain V K Bhalla, who leads the agitating pilots, said.

He also said the pilots would not take part in any talks with the management unless it revoked the decision to cut productivity linked incentives (PLI).



"One thing is for sure. No one is going to take part in the talks unless they assure us on revoking our PLI," Bhalla said.

Kapil Raina, former president of the Indian Commercial Pilots Association that represents middle rung and junior pilots of Air India, said they were yet to take a decision on mass leave.

Raina, however, told IANS that the association members would not meet the management until it gave assurance on restoring the PLI.



Earlier in the day, the management had invited the agitating pilots for talks on Sunday.

"Air India management can address the concerns of the employees and we will meet on Sunday," the airline's spokesperson Jitendra Bhargave said.

Meanwhile, the carrier said 11 flights were cancelled Saturday as several pilots failed to report for duty.

The beleaguered carrier had on Wednesday decided to cut the productivity linked incentives of employees by 25 to 50 percent as part of its cost cutting measures.

The airline's current debt is about Rs 16,500 crore with losses standing at Rs 7,200 crore in 2008-09. However, the affected pilots did not accept the management decision and demanded its reversal at the earliest.

Earlier Sep 8, at least 500 pilots of private carrier Jet Airways went on mass sick leave after the airline sacked two pilots for forming a pilots' union. The strike continued for five days, which led to a loss of over Rs 200 crore ($40 million) to the airline.

AIR INDIA PILOTS TO GO ON MASS LEAVE

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CITU DENOUNCES UNILATERAL CURTAILING PENSION BENIFITS

CITU Denounces Unilateral Notification Curtailing Pension Benefits



The Centre of Indian Trade Unions denounces the unilateral action by the Govt of India in amending the Employees Pension Scheme to drastically reduce the pension benefits of the early retirees (retired or separated before 58 years ) vide Labour Ministry notification no GSR 546(E) dated 23rd July 2009.



In the face of millions of workers losing livelihood owing to recession since last six months, this move of the Govt would further squeeze the workers rendered jobless before the retirement age for no fault of theirs, of their legitimate pension benefit.

While issuing this amendment notification, the Govt ignored the statutory Tripartite Forum—the Central Board of Trustees of Employees Provident Fund Organisation, responsible for administering the Employees Pension Scheme, thereby making a mockery of principle of tripartism.

This is the second unilateral move for curtailing the pension benefit of the workers within a span of one year. The first move by the same UPA regime had been in September 2008 in the same manner ignoring the statutory tripartite forum, which rewarded the defaulting employers on the one hand by drastically reducing the penalty for default and simultaneously curtailing the pension benefit of the workers by way of withdrawal of commutation facility and withdrawal of the option for availing combination of reduced pension and return of capital besides reducing the pension amount for the early-pensioners.

The second one is through the recent executive order which would deprive the worker who has rendered 20 years service but has to retire or lose his job prematurely from the provision of weightage benefit in pensionable service on which pension is calculated. The millions of workers losing job prematurely owing to recession, who deserve urgent support and relief from the Govt, would be cruelly squeezed further while the employers continue to enjoy stimulus package funded by public exchequer. And through this action, the patently anti-worker anti-people character of the Govt stands thoroughly exposed.

CITU condemns such anti worker action by the Govt and calls upon the working class to force the Govt to rescind the notification through united struggle.

SOURCE;CITU

CITU DENOUNCES UNILATERAL CURTAILING PENSION BENIFITS

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Filed Under: NEW PENSION SCHEME

RESTORATION OF 1/3RD COMMUTED PORTION OF PENSION

RESTORATION OF1/3 RD COMMUTED PORTION OF PENSION.







thursday, September 24,2009



Restoration of 1/3rd commuted portion of pension - in public sector undertaking/autonomous bodies





F.No.4/38/2008-P&PW(D)





GOVERNMENT OF INDIA





Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners' Welfare



Lok Nayak Bhawan,



Khan Market,New Delhi-03



dated 17.9.2009







OFFICE MEMORANDUM





Subject:- Representation on mentioned of revision of restorable 1/3 commuted portion of pension consequent to 6th Pay Commission recommendations in respect of Govt. Servants who had drawn lump-sum payment on absorption in public sector undertaking/autonomous bodies - regarding.





This Department has been receiving representations on the above noted subject. In this regard, the undersigned is directed to state that the Government had issued instructions on restoration of 1/3rd commuted portion of pension on absorption in public sector undertaking/autonomous bodies implementing the Andhara Pradesh high court judgment dated 24.12.03 in Writ petition No. 8532 of 2003 followed by the Supreme Court judgment dated 29.11.08 in Civil appeal No.5269 of 2006 srising out of SLP Nos 21647 -648 of 2005 and the Supreme Court judgment dated 24.7.2007 in Review petition No.643 of 07 vide O.M.No.4/79/2006-P&PW(G) dated 6.9.2007 in consultation with Ministry of Law & Justice and Ministry of Finance (Deptt. of Expenditure). It was further clarified vide OM dated 13.5.08. In pursuance of Government's decision on the recommendations of Sixth Central Pay Commission, Instructions have been issued for revision of 1/3rd restorable pension of such absorbees vide Deptt. of Pension & Pensioners Welfare's OM of even No. dated 15th September 2008 followed by OM dated 27.5.2009.





2. The formula for arriving at 1/3rd restorable pension in the OM dated 15.9.2008 is on the same lines which the Hon'ble Court has prescribed in the above mentioned judgment as the revision of restorable pension of such absorbees is governed by the Hon'ble Court judgment mentioned above. It is pertinent to mention that pension is revised as per instructions for any other pensioners as it is not regulated by Hon'ble Court order. So far as instructions contained in O.M.dted 27.5.2009 are concerned this has been issued so as to protect this class of pensioners in case there is loss in 1/3rd restorable pension plus DA w.r.t.pre-revised 1/3rd restorable pension plus DP plus DR.





SOURCE;CENTRAL STAFF NEWS

RESTORATION OF 1/3RD COMMUTED PORTION OF PENSION

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DA-PENSIONERS/FAMILY PENSIONERS

Dearness Relief to Central Government Pensioners/Family Pensioners - Revised rate effective from 1.7.2009.

F.No.42/12/2009-P&PW(G)

GOVERNMENT OF INDIA



Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners' Welfare



3rd Floor, Lok Nayak Bhawan,



Khan Market,New Delhi-03



DAted : 23rd September, 2009

OFFICE MEMORANDUM

Subject:- Grant of Dearness Relief to Central Government Pensioners/Family Pensioners - Revised rate effective from 1.7.2009.

The undersigned is directed to refer to this Department's OM No.42/12/2009-P&PW(G) dated 27th March, 2009 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Relief payable to Central Government pensioners shall be enhanced from the existing rate of 22% to 27% w.e.f. 1st July, 2009.

SOURCE;CENTRAL STAFF NEWS

DA-PENSIONERS/FAMILY PENSIONERS

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IIT -HUNGER STRIKE-TOMORROW

IIT faculty on their first-ever hunger strike tomorrow

NEW DELHI: With the HRD Ministry and IIT faculty refusing to budge from their respective stand, the teachers of prestigious Indian Institutes of



Technology will stage a hunger strike tomorrow for the first time on the issue of pay structure.

The IIT faculty has submitted a memorandum on its charter of demands, including withdrawal of 40 per cent cap on promotion of professors to senior grade. However, the HRD Ministry has not responded to the faculty's demands.

"We had asked for a meeting with the HRD Ministry representatives on the issue. But there is no response. Hence, will go on fast tomorrow," Prof M Thenmozi told PTI.

HRD Minister Kapil Sibal, however, said the government wants to give more freedom to the elite institutes provided they come up with futuristic vision to achieve excellence.

"IITs are brand institutes. We respect them. We want to give them more freedom to achieve excellence. If they discuss their vision plan, we are ready to give them more autonomy," he told reporters here.

Sibal said the vision should reflect their strategy on how to raise their income level so that they do not rely on government and achieve excellence.

As there is no solution to the issue, over 1,500 teachers of the elite institutes will go on the hunger strike tomorrow but will not boycott classes



SOURCE;ET

IIT -HUNGER STRIKE-TOMORROW

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Filed Under: IIT

IIT-PERFORMANCE RELATED INCENTIVE SCHEME

Directors of the Indian Institutes of Technology (IITs) are fine-tuning a Performance Related Incentive Scheme (PRIS) which they are expected to place on the table later this week to defuse the stand-off with protesting faculty across all seven IITs.

Under this, an incentive equivalent to “two to four months of salary” could be offered annually to faculty depending on their performance which will be quantified on key indicator

“While it’s very difficult to define and assess performance in academia, a distribution curve is being worked on which will help assess a faculty member’s performance for the year — on a scale from Average to Excellent,” a highly placed source told The Indian Express.

“There will be a scientific way of developing this distribution curve depending on teaching outcomes, research work, publications, etc. Based on performance on all these parameters, a faculty member would be eligible for PRIS.” The PRIS will be based on the Sixth Pay Commission, sources said.



SOURCE;The Indian Express

IIT-PERFORMANCE RELATED INCENTIVE SCHEME

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CHECK CHANGE IN FLOATING RATE

Check change in floating rate

MUMBAI: Bank customers can look forward to a flourish of consumer-friendly initiatives. One, if you have borrowed against a floating rate of



interest, you can now view any change in reference rate to which your interest rate is pegged on the bank’swebsite. Your bank’s website will also have to mention changes to the reference rate as and when they take place.

Two, beginning October, youwill be able to access free credit counselling at a centre set up by the Banking Code and Standards Board of India (BCSBI), the independent and autonomous watchdog for rules that most banks in India follow.

The centre, situated at BCSBI’s Bandra-Kurla Complex office, will provide credit education to both retail borrowers and banks’ micro &small enterprise (MSE) customers, K J Udeshi, chairperson, BCSBI, said during a joint media briefingwhere officials of RBI and Indian BanksAssociation (IBA)were also present.

The Code — which was first put in place in 2006 ‘‘to provide customerswith a reference document of their rights’’—has been revised to bring in more transparency, better banking practices and a more responsive grievance redressal mechanism in banks. Its objective is to enhance efficiency standards and provide greater protection to customers, said Udeshi.

‘‘The code is meant for those who don’t have (financial) muscle,’’ said KC Chakrabarty, deputy governor, RBI, at the meet.

However, while the Code provides a broad regulatory framework for banks, it leaves pricing and other commercial considerations to banks and market forces. Additionally, there are no provisions under the code to penalise banks for any violations.



source;ET

CHECK CHANGE IN FLOATING RATE

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Filed Under: HOUSING LOAN

DIRECT TAX CODE-REVIEW

KOLKATA: A raft of tax experts and professional bodies including chambers of commerce across the country thinks virtually every line of the new Non-taxable Incomes in India



Ten ways to lower your tax bill



Tax planning for self employed



direct tax code may have to be rewritten to shield domestic companies and their operations, both in India and overseas.



“The new code will have an effect on India’s IT companies, especially those with business operations abroad,” said Himanshu Patel, senior tax expert with Deloitte, at a meeting organised by the Eastern Regional Council of the Institute of Company Secretaries of India (ICSI- EIRC).

According to Mr Patel, the transfer pricing mechanism provisions will have a negative impact on international transactions unless these are revised sufficiently to deal with some of the crucial issues like period of agreement and threshold equity limits.

“Stock market stalwarts like Rakesh Jhunjhunwala and Shankar Sharma too have expressed their fear about outflows of foreign funds by the end of the current financial year if the new Tax Code sought to be in place by April 2011 is not revised,” a tax expert pointed out.

ICSI-EIRC chairman Ashok Pareek thinks that the draft direct tax code, which is doing the rounds across the length and breadth of the country, is likely to take time before it is finalised.

“Views and comments from various sections will have to be taken into account by the ministry before they can introduce the final version in Parliament,” he added.

The code has, for the first time, introduced the advance pricing agreement in which the definition of ‘associated enterprises’ has been made more stringent by lowering some of the important threshold limits currently existing under the scope of transfer pricing regulations. While voting power thresholds have been lowered to 10% from 26% earlier, loan threshold has been reduced to 26% compared to 51% prescribed earlier to qualify entities as associated enterprises.

Indeed, the previous threshold limits on shareholding, loan, directorship etc, Mr Patel explained, was linked to a “reasonable” control over a business entity. For instance, an equity holding of 26% gives the shareholder power to block special resolutions. A 10% holding in a foreign entity may not give a shareholder even minimum control over its activities.

“To consider such an entity as an associated enterprise for the purpose of taxation under transfer pricing regulations, is certainly unfair,” he said



SOURCE;ET

DIRECT TAX CODE-REVIEW

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Filed Under: DIRECT TAX

IIT -HUNGER STRIKE

In a rare protest action, around 1,500 faculty members including professors at the coveted IITs across the country will go on a hunger strike on Thursday agitated over “anomalies” in pay structure but there will be no disruption in classes.









The decision putting the Faculty on a collision course with the Government was taken at a meeting of its Federation at IIT Kharagpur. The structure put restriction on promotions and lacked performance-based incentives, the Federation said.







The action by the IITs came even as the IIM-Ahmedabad Board decided to meet on September 25 to deal with the situation arising out the faculty members rejecting the Union HRD ministry’s latest order on pay structure for Centrally Funded Technical Institutions (CFTI).







The IIT Faculty Federation assured that classes at the 13 IITs will, however, not be affected during the strike. In all there are 800 professors in the IITs.







“We will observe strike on September 24. But we will not boycott work. The classes will go on. We will protest the pay structure that puts a number of curbs on the IIT system,” Prof M Thenmozhi, president of the federation, told PTI after the meeting.







Prof Thenmozhi said the federation will seek an appointment with HRD Minister Kapil Sibal on the issue and submit a fresh memorandum on their demands.







A faculty spokesperson said the pay-scales had been made in a manner which would destroy the excellent status of the institutes and not attract the best of talent in future.







The HRD Ministry had notified the pay structure for Central Funded Technical Institutes (CFTIs), including IITs and IIMs, on August 18. However, the IIT faculty opposed certain provisions, including 40 per cent cap on promotion of professors to senior grade.

IIT -HUNGER STRIKE

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EASY HOME LOANS?

NEW DELHI: State Bank of India, Deutsche Postbank, ING Vysya Bank and Punjab & Sind Bank are attempting to light up the festival season by How do you judge the true worth of a property?





Facts on down payments



Understanding Sub-PLR loans



Check out certain rights of a mortgagor







lending more for home purchases than they did six months back, thanks to availability of funds and rising trust in the borrower. But individuals are still not buying as high home prices keep them away from their dreams.







“The economy has improved and the liquidity situation is much better and interest rates have eased off considerably,’’ Anoop Pabby, joint managing director at Deutsche Postbank Home Finance, told SundayET. “It is only natural then that the home buyers expect the reduced risks to result in reduction in interest rates and relaxation of margin money norms.”







The housing finance company is now funding up to 80% of the property value to most salaried people and in a few cases up to 85%, depending on the credit worthiness of the borrower. This is more than the 70% it used to lend a few months back.







Indian mortgage lenders, who were funding as much as the full value of the property in some cases, tightened lending standards after the collapse of Lehman Brothers last year this month because of the liquidity crisis and a rise in defaults due to job losses. But the scene has improved since with the Reserve Bank of India cutting lending rates to record lows and pumping in unprecedented amount of money into the system.







Lenders such as ING Vysya Bank, and Punjab & Sind Bank have reduced the margin money requirement to 15-20% from 25-30% towards the cost of the house on their home loans — as they try to tap the potential home buyers. This leads to a borrower paying investing lesser capital than before. So on a home loan of Rs 25 lakh, a customer would need to pay only Rs 3.75 lakh now against Rs 6.25 lakh demanded earlier, where the margin norm is relaxed to 15% from 25%.







State Bank of India, which has cut the margin requirement to 20% from 25%, may reduce it a further 5%.



SOURCE;CENTRAL STAFF NEWS

EASY HOME LOANS?

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Filed Under: HOME LOAN

NEW PENSION SCHEME-SOME CLARIFICATIONS

Monday, September 14, 2009





NEW PENSION SCHEME

8:57 AM

NPS

0 comments



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.











3. Whether any minimum age or minimum service is required to quit from Tier-I?



Exit from Tier-I can only take place when an individual leaves Government service.











4. Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I?



As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.











5. Whether contribution towards Tier-I from arrears of DA is to be deducted?



Yes. Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements











6. Who will calculate the interest PAO or CPAO?



The PAO should calculate the interest.











7. What happens if an employee gets transferred during the month? Which office will make deduction of Contribution?



As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month (both individual and government) will be made by the office who will draw salary for the maximum period.











8. Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS?



Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practising Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.











9. Whether a government servant who was already in service prior to 1.1.2004, if appointed in a different post under the Government of India, will be governed by the CCS (Pension) Rules or NPS?



In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.



SOURCE;PENSION PORTAL

NEW PENSION SCHEME-SOME CLARIFICATIONS

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Filed Under: NEW PENSION SCHEME

NEW PENSION SCHEME-FAQ

NEW PENSION SCHEME --FAQ

NEW PENSION SCHEME-FAQ 1. What is the New Pension System (NPS)?The NPS is a new contributory pension scheme introduced by the Central Government for its own new employees. Under the new pension system, each new central government employee will open a personal retirement account on joining service. Every month, and till the employee retires or leaves government service, a part of the employee's salary will be transferred into this account. When the person retires, he will be able to use these savings to take care of the needs and expenses of his family during old age.2. Who is covered by the NPS? You are covered by the NPS if a.You joined central government service on or after 01 January 2004, andb.You are an employee of a Central (Civil) Ministry or Departments, orc.You are an employee of a non-civil Ministry or Department including Railways, Posts, Telecommunication or Armed Forces (Civil), ord.You are an employee of an Autonomous Body, Grant-in-Aid Institution, Union Territory or any other undertaking whose employees are eligible to a pension from the Consolidated Fund of India.3. If I joined Central Government service on or after 01 January 2004 do I have an option of not being covered by the NPS?No. The NPS is mandatory for you.4. I am covered by the NPS. Do the old Pension Rules apply to me?No. The Central Civil Service Pension Rules (1972) do not apply to you. You are covered only by the New Pension System Rules framed for the NPS.5. I am covered by the NPS. Can I contribute to the GPF?No. The General Provident Fund (Central Service) Rules, 1960 also do not apply to you. You will not be permitted to contribute towards GPF.6. Am covered by the NPS. Am I eligible to Gratuity?No. You will not be eligible to Gratuity.7. How does the NPS work?When you join Government service, you will be allotted a unique Personal Pension Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account and this unique PPAN from any location and also if you change your job. The PPAN will provide you with two personal accounts:1. A mandatory Tier-I pension account, and2. A voluntary Tier-II savings account.8. What is the difference between Tier-I and Tier-II accounts?1. Tier-I account: You will have to contribute 10% of your basic+DA+DP into your Tier-I (pension) account on a mandatory basis every month. You will not be allowed to withdraw your savings from this account till you retire at age 60. Your monthly contributions and your savings in this account, subject to a ceiling to be decided by the government, will be exempt from income tax. These savings will only be taxed when you withdraw them at retirement.2. Tier-II account: This is simply a voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.9. How will I contribute to my Tier-I (pension) account?Every month, the government will deduct 10% of your salary (basic+DA+DP) and automatically transfer this amount to your Tier-I account in your name.10. Will the Government contribute anything to my Tier-I (pension) account?Yes. As your employer, the Government will match your contribution (10% of basic+DA+DP) and transfer this amount also to your Tier-I account in your name. 11. Can I contribute more than 10 into my Tier-I account?Yes. You will be permitted to contribute more than the mandated 10% of Basic+DA+DP into your Tier-I account – subject to any ceiling that may be decided by the Government.12. Will the Government also contribute more than 10 into my Tier-I account?No. The contribution of the Government will be limited to 10% of your basic+DA+DP. 13. What will happen if I am transferred to another city or country?The PPAN number will stay the same and you will be able to use the same accounts from anywhere in the world.14. If I leave Government service before I retire will the Government continue to contribute to my Tier-I account?No. The 10% contribution by the Government will stop when you leave Government service. However, your savings in your Tier-I and Tier-II accounts will stay in your name and you will be able to continue using these accounts to save for your retirement.15. What if I die or become permanently disabled during my service? Pl.refer Office Memorandum: Additional Relief on death/disability of Government servants covered by the NPS(New Pension Scheme) recruited on or after 1.1.2004 No.38/41/06/P&PW(A) Dated 5th May, 2009 16. Where will my savings be invested?Each PFM will offer you a limited number of simple, standard schemes. You will be free to choose any of the following schemes for investing your savings: Scheme A This scheme will invest mainly in Government bondsScheme B This scheme will invest mainly in corporate bonds and partly in equity and government bonds Scheme C This scheme will invest mainly in equity and partly in government bonds and corporate bonds.17. I am covered by the NPS. Do the old Pension Rules apply to me?No. The Central Civil Service Pension Rules (1972) do not apply to you. You are covered only by the New Pension System Rules framed for the NPS.18. I am covered by the NPS. Can I contribute to the GPF?No. The General Provident Fund (Central Service) Rules, 1960 also do not apply to you. You will not be permitted to contribute towards GPF.19. Who will be responsible for the NPS and for protecting my interests?The Government is setting up a new dedicated regulatory authority. This will be named the Pension Fund Regulatory and Development Authority (PFRDA). The PFRDA will be responsible for the NPS and for protecting your interests in the NPS.20. When will my contributions start?Your contributions (and the matching contribution by the Government) towards your Tier-I pension account will begin only from the month following the month in which you join Government service. During the first month of your service, you will be allotted the PPAN.(PRAN)21. Who in the Government will issue me a PPAN open my accounts and be responsible for the deductions?When you join service, your Drawing and Disbursement Officer (DDO) will instruct you to fill out a NPS form. You will be required to provide your full professional and personal details including details of your nominee in this form. The DDO will issue you the PPAN number(PRAN) and will also be responsible for all administrative matters related to your NPS accounts including deduction of your contributions, transferring your contributions and the matching contribution of the Government to your Tier-I pension account.22. What will happen to my contributions to my Tier-I account?Your monthly contributions, and the matching contributions by the Government into your Tier-I account, will be transferred by the Government in your name to a Pension Fund Manager (PFM). The PFM will invest your contributions on your behalf. In this way, your savings will earn an interest and grow over time.23. Which agency will serve as a PFM?The PFRDA will appoint a limited number of leading professional firms to act as PFMs. One of these PFMs will be a public sector agency.24. Who will decide which PFM manages my contributions and savings?You will select a PFM to manage your contributions and savings.25. Will I be permitted to select more than one PFM to manage my savings?Yes. If you wish, you will be able to spread your savings across multiple PFMs – where a part of your savings are managed by 2 or more PFMs.26. Will I be permitted to change my PFM preference?Yes. If you wish, you will be free to change the PFM and move all your savings to another PFM of your choice.27. Where will my savings be invested?Each PFM will offer you a limited number of simple, standard schemes. You will be free to choose any of the following schemes for investing your savings: Scheme A This scheme will invest mainly in Government bondsScheme B This scheme will invest mainly in corporate bonds and partly in equity and government bonds Scheme C This scheme will invest mainly in equity and partly in government bonds and corporate bonds28. Will I be able to select more than one scheme?Yes. You will be free to spread your savings across these three schemes. Whenever you decide, you will also be free to switch your savings from one scheme to another.29. How will my contributions be transferred to the PFM and scheme selected by me?You will specify the PFM and scheme to your DDO. The DDO will arrange for transfer of your contributions to the PFM(s) and scheme(s) that you have selected.30. What rate of return will my contributions earn?Your contributions will not earn any specified rate of return. The PFM will invest your savings in a scheme of your choice.The returns earned by the PFM on the scheme selected by you will be credited to your account. 31. Will I have to pay any fees or charges under NPS?You will have to pay a fee to the Central Recordkeeping Agency (CRA) which will maintain your accounts and also to the PFM(s) which manage your savings. These charges will be deducted from your savings on a periodic basis. The fees and charges by the CRA and PFMs will be regulated by the PFRDA.32. Can I contribute more than the 10 of basic+DA+DP into my TierI account at the moment?No. You will be allowed to do so only when the PFRDA, CRA and PFMs are appointed. 33. What will happen to my contributions and earnings in my Tier-I account when the PFRDA CRA and PFMs etc. are appointed? Your full contributions, matching contributions by the Government, and the interest earned on the same will be transferred in your name to the PFM and scheme selected by you.34. Will I have the option of continuing with the current 8 percent rate of return?No. Once your savings are transferred to the PFM, your savings will enjoy only the rate of return earned by the PFM on scheme you have selected.35. When will I be permitted to withdraw from my Tier-I account?You will be able to withdraw your savings in your Tier-I account at age 60.36. What will happen to my savings in the Tier-I account when I retire?You will be able to withdraw 60% of your savings as a lumpsum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.37. Can I use more than 40 of my savings to purchase the annuity?Yes.38. What will happen to my savings if I decide to retire before age 60?You will be required to use 80% of your savings in your Tier-I account to purchase the annuity. You will be able to withdraw the balance 20% of your savings as a lumpsum.39. Will the annuity also provide a family (survivor) pension?Yes. You will have an option of selecting an annuity which will pay a survivor pension to your spouse.40. What will happen to my savings if I decide to retire before age 60?You will be required to use 80% of your savings in your Tier-I account to purchase the annuity. You will be able to withdraw the balance 20% of your savings as a lumpsum.41. What will happen to my savings in the Tier-I account when I retire?You will be able to withdraw 60% of your savings as a lumpsum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.42. What if I die or become permanently disabled during my service?The Government is yet to issue any guidelines on this.43. Will I have to pay any fees or charges under NPS?You will have to pay a fee to the Central Recordkeeping Agency (CRA) which will maintain your accounts and also to the PFM(s) which manage your savings. These charges will be deducted from your savings on a periodic basis. The fees and charges by the CRA and PFMs will be regulated by the PFRDA.44. What will happen to my contributions to my Tier-I account?Your monthly contributions, and the matching contributions by the Government into your Tier-I account, will be transferred by the Government in your name to a Pension Fund Manager (PFM). The PFM will invest your contributions on your behalf. In this way, your savings will earn an interest and grow over time.SOURCE;CS NEWS

NEW PENSION SCHEME-FAQ

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NEW PENSION SCHEME -FAQ

Sunday, September 6, 2009

NEW PENSION SCHEME-FAQ-2
AMMAN 6:12 PM NPS
What is "Annuity Scheme Provider"...? What is the New Pension Scheme?The New Pension Scheme is an investment option which will help an individual, plan for his or her retirement. The key difference between the old government pension scheme and the New Pension Scheme is that the old pension scheme was based on a defined benefit principle and the new pension scheme is based on a defined contribution principle.In a defined contribution scheme, an individual invests a defined amount in the scheme until he or she retires. On retirement, the individual has the option to withdraw the money or buy an annuity from an insurance company.2. 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.3 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.4. Whether any minimum age or minimum service is required to quit from Tier-I? Exit from Tier-I can only take place when an individual leaves Government service. 5. Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I? As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.6. Whether contribution towards Tier-I from arrears of DA is to be deducted? Yes. Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements7. Who will calculate the interest PAO or CPAO?The PAO should calculate the interest. 8. What happens if an employee gets transferred during the month? Which office will make deduction of Contribution? As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month (both individual and government) will be made by the office who will draw salary for the maximum period.9. Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS? Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practising Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.10. Whether a government servant who was already in service prior to 1.1.2004, if appointed in a different post under the Government of India, will be governed by the CCS (Pension) Rules or NPS? In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.11. What are the minimum and maximum contributions that can be made to this scheme? The minimum amount to be invested per contribution is Rs. 500 and a minimum of Rs. 6000 needs to be contributed per year. Also, a minimum of four contributions need to be made per year. Therefore, if you are making a monthly contribution of Rs. 500,you will need to make twelve contributions.There is no upper limit to the amount of contributions or the number of times the contribution is made.12. How will the money contributed to NPS be invested?The NPS currently offers three investment funds to choose from:Asset Class E - stocks, fixed income instruments Assent Class G - debt securities issued by the central as well as the state governments Asset Class C - debt securities issued by entities other than the state and central government, liquid funds of mutual funds, fixed deposits of banks etc. In case if the individual is unsure about the investment mix, the default option - auto choice lifecycle fund - will see the investment mix change according to the age of the investor. If the individual’s age is 18 years, auto choice invests 50% in Asset Class E, 30% in Asset Class C and 20% in Asset Class G. This remains unchanged till the individual turns 36, when the ratio of investment in Asset Class E and Asset Class C will decrease annually, while the proportion of G rises till the age of 55, when Asset Class G will account for 80% of the corpus, while the share of Asset Class E and Asset Class C will fall to 10 per cent each.13. Who handles the investment of the money contributed to an NPS?The money invested in an NPS is managed by professional fund managers. Currently, the fund managers involved in handling contributions in NPS are:ICICI Prudential Pension Management IDFC Pension Fund Management Kotak Mahindra Pension Fund Reliance Capital Pension Fund SBI Pension Funds UTI Retirement Solutions While filling out the forms for account opening, you would need to specify one of these fund managers for the form to be accepted. In case you are not satisfied with the chosen fund manager, you have the option to switch managers.14. Are there any tax benefits for investing in NPS?At present the, NPS investments are covered under section 80CCD. However, tax is levied if you make a withdrawal.Response to the New Pension Scheme has been lukewarm because of the tax incentives currently being offered. However, experts believe that with some time, the scheme will gain popularity and what with the Pension Fund Regulatory & Development Authority (PFRDA) asking the government to treat the NPS at par with EPF, PPF etc. so that there are better tax incentives, the NPS is a good investment option to plan your retirement.15. What and How are the returns scheduled for this scheme?Contributions will not earn any specified rate of return. The PFM will invest your savings in a scheme of your choice. The returns earned by the PFM on the scheme selected by you will be credited to your account.16. What is Annuity Service Provider (ASP)?ASPs would be responsible for delivering a regular monthly pension to the subscriber for the rest of his/her life. On receipt of personal and banking information details of subscriber from CRA and of specified sum from the trustee bank the ASP would use its access codes to confirm receipt. ASP would then begin payments of annuities to the subscriber. 17. What is "Immediate Annuity Scheme"? Let watch this brochure of ICICI Prudential Life Insurance co. SOURSE;CENTRAL STAFF NEWS

NEW PENSION SCHEME -FAQ

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NEW PENSION SCHEME

NEW PENSION SYSTEM
AMMAN 9:41 AM NPS
TODAYS FAVOURITE TOPIC AMONG NEW RECRUITERS IS NEW PENSION SYSTEM AND 60%ARREARS.RECENTLY GOVT GAVE ONE NOTIFICATION REGARDING 60% ARREARS TO NEW RECRUITERS.IN THAT THEY WILL GET ARREARS ONLY AFTER SIGN IN A OPTION FORM.THE REASON FOR GETTING SIGNATURE IS CORRECT BUT THE WAY IS NOT GOOD.THEESE THINGS MAY RISE THEIR DOUGHT REGARDING NPS.MOSTLY SHARE MARKET IS NOT A SAFE INVESTING SPOT.EVERYBODY LIKES THEIR MONEY IN A SAFE HAND.IN 2008 JANUARY SENSEX SHOWS 21000 POINTS.AFTER FEW MONTHS LATER IT SHOWS 8000 POINTS.NOW IN 16000 POINTS.MOST OF THE EMPLOYEES DOES NOT LIKE VOLATILE MARKET INVESTMENT.ANY HOW OUR ECONOMY IS GROWING FASTAND FUNDAMENTALLY STRONG.GOVT SHOULD GIVE WIDE PUBLICITY ABOUT NPS AND INVESTING PORTALS IN THEIR REGIONAL LANGUAGE.ALL UNION REPRESENTATIVES SHOULD GIVE THEIR OPENION AND GUIDE AFTER 2004 RECRUITERS TO TRAVEL IN A SAFE WAY.

NEW PENSION SCHEME

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1%SUBSIDY TO HOUSING LOAN

1%SUBSIDY TO HOUSING LOAN
AMMAN 8:02 AM LOAN 0 comments
1% interest subvention on housing loans upto Rs.10 lakh The Cabinet today approved the Scheme of 1% interest subvention on housing loans up to Rs.10 lakh and the allocation of a sum of Rs.1000 crore for the Scheme. Point-wide Details• Interest subvention of 1 percent will be made available on individual housing loans upto Rs.10 lakh for construction / purchase of a new house or extension of an existing house provided the cost of the construction/price of the new house/extension does not exceed Rs. 20 lakh. • The Scheme will be implemented through Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) registered with the National Housing Bank (NHB). • The first twelve instalments of all such loans sanctioned and disbursed during the period of twelve months from the date of publication of the scheme will be eligible for interest subvention. • Subsidy of one percent will be computed for 12 months on disbursed amount and adjusted upfront in the principal outstanding irrespective of whether the loan is on fixed or floating rate basis.• Reserve Bank of India (RBI) will be designated the nodal agency for SCBs and National Housing Bank (NHB) will be designated the nodal agency for HFCs. BackgroundThere has been a notable deceleration in the sectoral flow of credit to the housing sector which is attributable to increase in the price of houses, slackening of income growth and a rise in interest rates for housing loans. The Finance Minister in his reply to the debate on the Finance Bill in the Lok Sabha on 27th July, 2009 made the announcement that housing, particularly lower and middle income housing, deserved to be supported. In order to stimulate this segment of house owners, he proposed to provide support to borrowers by way of interest subvention of 1% on all housing loans up to Rs.10 lakh to individuals, provided the cost of the house does not exceed Rs.20 lakh. Implementation Strategy and targets All Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) will submit a monthly consolidated return to the Reserve Bank of India (RBI) and National Housing Bank (NHB) respectively, specifying interest subvention given. The nodal agencies will put up a demand to the Government of India for release of subsidy amount and the Government of India in turn will sanction and release the subsidy amount based on demand received. The number of beneficiaries covered under the scheme will depend, interalia, upon the size of the loan amount and the number of beneficiaries approaching the nodal agency for interest subvention. Being a demand driven scheme no specific targets for coverage of beneficiaries have been fixed. Major Impact: It is expected that cut in interest rates should reduce Equated Monthly Instalments (EMIs) of borrowers and create additional demand for housing. This in turn should stimulate demand in construction industry as well as industries such as steel & cement having employment potential and income multiplier effect. Expenditure involved: An amount of Rs.1000 crore will be allocated in the Budget for the year 2009-10 for implementation of the Scheme. No. of beneficiaries: On a housing loan of Rs.10 lakh, the 1% interest relief available wil amount to Rs.10,000/- per account. As such, the Scheme of a size of Rs.1000 crore is expected to cover 10 lakh beneficiaries in one year period. States/Districts covered: The scheme will cover all States & Union Territories of the country, including rural & urban areas

1%SUBSIDY TO HOUSING LOAN

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EASY WAYS TO LOWER TAX

The government is considering a proposal to raise the tax exemption limit on monthly transport allowance, a move that could enrich taxpayers by as much as Rs 9,000 a year, but at the same time put further pressure on its already-strained finances. The proposal to increase the tax exemption limit for transport allowance to Rs 3,200 a month from Rs 800 follows a similar hike for government servants under the Sixth Pay Commission award. It is likely to find adoption in the private sector too, triggering greater spending across the economy and boosting the bottom lines of companies in a wide swath of sectors. A decision on the proposal, following representations from some quarters in the government, is expected soon, a finance ministry official told ET, on condition of anonymity. The government, which is facing the worst economic growth prospects since 2003 due to credit crisis and drought, is leaving no stone unturned to boost consumer demand and revive economic growth to the record 9% seen before the 2008 crisis. It has cut taxes, raised spending on social and infrastructure projects and enabled lower interest rates for companies and individuals. Private final consumption expenditure nearly halved to 27% of gross domestic product (GDP) in the last fiscal year from 53.8% a year earlier as consumers restricted spending fearing job losses amid slowing sales growth and reduced profits. The consumption fall was partly offset as government final consumption to GDP rose four-fold to 32.5% from 8%, according to Reserve Bank of India data. The move is expected to lead to an yearly additional exemption of Rs 28,800, which would yield a tax saving of Rs 8,899 a year, including the cess, to those in the highest tax bracket. While this may boost demand, the government, which is already running a record deficit of 6.8% of GDP, could lose significant tax revenues and many assesses would also fall out of the tax net. Collections of both direct and indirect taxes are under pressure following tax rate cuts and economic slowdown. Direct tax collections grew by a modest 4% in April-August period to Rs 87,888 crore. The Central Board of Direct Taxes, which has the power to formulate and change rules, is exploring the possibility of hiking the exemption through a notification. Allowances such as transport are governed by the rule 2BB of the Section 10(14) of the Income Tax Act. The board is only required to place the new rule before Parliament whenever it has its next session. SOURCE;CENTRAL STAFF NEWS

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LTC-REGULATION OF JOURNEY

REGULATION OF JOURNEY -LTC

Wednesday, September 9, 2009clarification reg. - Air Travel while availing LTC No.3101112/2006-Estt.(A) GOVERNMENT OF INDIA Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training Norht Block,New Delhi, the 9th September, 2009 OFFICE MEMORANDUM Subject:- Regulation of Journey by air while availing Leave Travel Concession - clarification regarding. The undersigned is directed to refer to this Department's O.M. of even No. dated 27.7.2009 on the above subject and to say that consequent to issue of Ministry of Finance, Department of Expenditure O.M.No. 7(1) E.Coord/2009 dated 7/9/2009 on expenditure management the reimbursement of the expenses on air travel while availing of the Leave Travel Concession by Government servants will be restricted to the cost of travel by the economy class, irrespective of entitlement, with immediate effect. source;fm

LTC-REGULATION OF JOURNEY

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MCM DEFENCE=MCM RAILWAY

Wednesday, September 9, 2009Railway MCM = Defence(Ordnance) MCM MINISTRY OF DEFENCE ISSUED ORDERS FOR REDESIGNATION OF HIGHLY SKILLED GRADE INTO HS-I AND HS-II.,AND GRADE PAY RS .4200 FOR MCM GRADE This is really a happy news for workshop staff .Actually its a decade long demand of defence civilian workshop staff for Rs.5000-8000 for MCM Grade at par with Railway. But unfortunatly the Sixth CPC turned down this demand and recommended Rs.4500-7000 to Railway employees too.After the strong protest of all federations this issue was placed before Fast Track Committee and finally this decision was arrived. Source: CENTRAL STAFF NEWS

MCM DEFENCE=MCM RAILWAY

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NEW PENSION SCHEME

NEW PENSION SCHEME +ALL INDIA SERVICE
AMMAN 5:29 PM NPS
New Pension Scheme for Members of the All India Service... No. 25014/14/2001-AIS (II) GOVERNMENT OF INDIA Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training Norht Block,New Delhi, the 8th September, 2009 To The Chief Secretaries, All the State Governments/UTs Subject:-Introduction of New Pension Scheme for Members of the All India Service joining the All India Service on or after 1/1/2004. Sir/Madam, The undersigned is directed to say that the pension of the members of the All India Services appointed on or after 1.1.2004 is regulated by the new Defined Contribution Pension Scheme (known as the New Pension Scheme) notified by the Ministry of Finance (Department of Economic Affairs) vide their O.M. No. 5/7/2003- ECB 2 PR dated 22.12.2003. On introduction of the New Pension Scheme, the All India Service (Death Cum retirement Benefit) Rules, 1958 and the All India Service (Provident Fund) Rules, 1955 were amended on 7.02.2004 & 17th May 2004 respectively. Under the amended Rules, benefits of the old Defined Benefit Pension Scheme and of GPF are not available to the members of the service appointed on or after 1.1.2004.2. The New Pension Scheme will work on a defined contribution basis and will have two tiers – Tier I and II. Contribution to Tier I will be mandatory for all members of All India Services joining the All India Service on or after 1/1/2004, whereas Tier II will be optional and at the discretion of members of All India Service. 3. In Tier I, members of All India Service will make a contribution of 10% of his/her basic pay plus DA, which will be deducted from his/her salary bill every month by the DTO/TO concerned. The Government will also make an equal matching contribution.. 4. Tier I contributions (and the investment returns) will be kept in a non-withdrawable pension Tier I account. Tier II contributions will be kept in a separate account that will be available for withdrawal at the option of the member of the Service. Government will not make any contribution to Tier II account. 5. A member of the service 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/her to invest 40 percent of pension wealth to purchase an annuity (from an IRDA regulated Life Insurance Company), which will provide for pension for the lifetime of the employee and his dependent parents/spouse. In the case of members of the All India Service who leave the Scheme before attaining the age of 60, the mandatory annuitisation would be 80% of the pension wealth. 6. Recoveries towards Tier I contribution will start from the salary of the month following the month in which the member of the service has joined service. No recovery will be made for the month of joining. 7. As the existing provisions of Defined Benefit Pension and GPF would not be available to new members of All India Service joining All India Service on or after 1/1/2004, in case any GPF deduction has been made then it would have to be refunded to the concerned All India Service Officers. 8. Deduction towards Group Insurance will, however, continue to be made from the salary of new members of the All India Service joining the service on or after 1/1/2004. 9. The State Service officers appointed to the IAS/IPS/IFS by way of promotion/selection, who are already covered under the old pension scheme will continue to be governed by the old pension scheme. 10. The pension funds of members of the All India Service would be managed by pension fund managers nominated by the Pension Fund Regulatory Development Authority (PFRDA) and the records would be maintained by a Central Record Keeping Agency, the National Security Depository Limited (NSDL). 11. All State governments would be required to designate a State Nodal Officer (SNO) at the State capital for all NPS related activities. District Treasury Officer (DTO)/Treasury Officer (TO) would be entrusted the responsibility of deducting the amount of employee's subscription from the salary of the AIS subscriber and would forward the same to the State Nodal Officer. 12. The amount and contribution details from each of the TO would be consolidated for all subscribers by the designated State Nodal Officer at the State capital. The SNO would also compile and consolidate Employers contribution. 13. The designated officer in the State Nodal Office would prepare and upload the Subscriber Contribution file (SCF) on CRA system; transfer funds to the Trustee Bank and send information to Department of Personnel & Training for control purposes. 14. Immediately on joining the All India Service, each member of the service will be required to provide particulars such as his/her name, designation, scale of pay, date of birth, nominees (s) for the fund, relationship with the nominee etc. in the prescribed form (Annexure-I). The same procedure should be followed for all AIS officers appointed on or after 1.1.2004. Accordingly all AIS officers recruited on or after 1.1.2004 are advised to fill up the registration form at Annexure-I immediately. 15. The DTO would be responsible for getting the physical registration form filled by all AIS officers and would also fill up their own registration form (DDO registration form) and send it to the State Nodal Officer (SNO). The State Nodal Officer would act as the PAO in the NPSCAN. He would collate the physical registration forms and also fill up the registration form for the PAO and send all these filled forms to NDSL preferably within a month of issuance of these orders. NDSL would process the details and send all the kits to the SNO by the end of October 2009. 16. On receipt of the Permanent Registration Allotment Number (PRAN), the SNO would start the regular uploads and funds transfers. After this is done the legacy data would be send in one or maximum two tranche. 17. For the legacy data, the DDOs would then prepare the arrears-SCF for month wise contribution details and send the same to SNO who will upload the same to NPSCAN and transfer the funds.Accounting procedure for the above would be devised by the State Government in consultation with Accountant General. 18. Payment to Trustee bank: The salary bills and the bills for Government contribution will be passed by TOs after exercising the checks prescribed under financial rules and Treasury Manual. The amount of NPS subscriptions (member contribution) recovered from the salary bills will be shown under the “Recoveries” column of the salary bill and will be classified under the Head “8342-Other Deposits-00-117-Defined Contribution Pension Scheme” in the State Section of Accounts by opening suitable separate sub-heads thereunder for “01-Government Servants Contributions under Tier-1” and “02-Government‟s Contribution under Tier-II”. The amount of Government‟s Contribution shall be debited to “2071-Pension Scheme -01-Civil-117-Contribution for Defined Contribution Pension Scheme-01 –Government Contribution– 00.04-Pensionary Charges” in the Consolidated Fund of the State Government. 19. After the bills are passed, the SNOs will upload the data relating to contributions (both of members of service‟s and Government‟s contributions) into NPSCAN of NDSL and also tally the figures uploaded with that booked. Further, all the accumulated balances under the DCPS would be transferred to the Trustee bank i.e. the Bank of India. 20. After uploading is completed, SNO will get Transaction ID and draw the total amount by minus crediting the head mentioned above either by cheque in favour of the Trustee Bank or remit the amount through RTGS/NEFT. SNO will also ensure the amount of contributions booked is duly tallied with the Subscriber's Contribution File (SCF) being uploaded in the NPSCAN and the same amount is drawn in the Cheque and passed on to the Trustee Bank. 21. The SNO/TO would have to maintain the Alphabetical Index Register in Annexure V wherein they would have to indicate the PRAN numbers allotted to each of the subscriber; the particulars of remittances of contributions to the Trustee bank in the Proforma prescribed vide Annexure VI; and the individual-wise account indicating the amounts of contributions paid to the Trustee Bank and the details of remittance.(vide Annexure VII). 22. In order to enable NSDL to carry out reconciliation and credit the amounts against the individuals‟ accounts, Treasury Officers/ SNOs will have to ensure that their TO Registration numbers / SNO Registration numbers respectively and the month to which the contributions pertain /Transaction ID in NPSCAN are mentioned in the NEFT / RTGS application form (in the 'Remarks' column) to be submitted to their banker. Where payments are made through cheques in favour of the Trustee Bank, these particulars would have to be furnished on the reverse of the cheque as well as in the forwarding letter. The time schedule prescribed will have to be strictly adhered to by SNOs, TOs and DDOs. 23. The SNO along with the State Government would have to ensure that arrears of contributions both of Government and Subscribers, are recovered and transferred to the trustee bank within a definite time span. If the contributions have been recovered but kept elsewhere, then also they must be transferred immediately to the Trustee Bank. 24. If the State Governments decide to recover the contributions in instalments, it may be ensured that the instalments of Government contributions drawn and transferred to the fund do not exceed the individual's contributions. 25. In the case of post 01.01.2004 entrants into the service, whose contributions to NPS are yet to be deducted, the State Government may consider deducting their contribution (arrears from 01.01.2004 or from their date of entry into service) from the second instalment of arrears of revision of pay due on account of the 6th Pay Commission recommendations. Further the pay arrears may be released only after individual application forms for registration to the New Pension Scheme have been obtained by the DDO/SNO from the concerned member of the service. 26. Whenever any member of the service is transferred from one office to another or goes on Central deputation etc, the TO will indicate in the Last Pay Certificate of the member of the service, the PRAN in respect of that individual and the month up to which his contributions have been recovered/ drawn. 27.Accountant Generals/Finance Departments of all State Governments are requested to bring these instructions to the notice of their TOs\DDOs\ SNOs for strictcompliance

NEW PENSION SCHEME

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Filed Under: NEW PENSION SCHEME

DEARNESS ALLOWANCE HIKE 5%

DEARNESS ALLOWANCE HIKE 5 %

Cabinet has approved to issue 5% additional Dearness Allowance from 1.7.2009 Release of additional instalment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2009 The Cabinet has decided to release an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2009 representing an increase of 5% over the existing rate of 22% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs4355.35 crore in a full year and Rs.2903.55 crore in the financial year 2009-2010 (for a period of 8 months from July, 2009 to February, 2010).

DEARNESS ALLOWANCE HIKE 5%

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Filed Under: DA