Honorable Secretary General of Confederation of Central Government  Employees and Workers published a circular in his blog on 30-10-2010.CGEN reproduce the same for your views.


Circular No 20/2010                                                                            Dated: 30th Oct. 2010

Dear Comrade,

            The National Secretariat of the Confederation met today as per the notice issued.  The following agenda items were discussed.  The decisions taken on each item are as under

Item No.1. Review of participation of CGE in 7th September, Strike.  Detailed reports on the participation of employees in the strike action were presented to the house by the representatives of various affiliates and State Committees of the Confederation.  Reports received at the CHQ were also gone through.  It was apparent from the reports that the participation in the strike action could have been much better had certain steps been taken at the appropriate time by the affiliates and the State Committees.  It was also noted that wherever the State Committees of the Confederation were in existence and had taken initiative to mobilise the employees, the strike had been very successful.  It was also evident from the discussion that wherever the affiliates had taken serious steps ,the strike participation had been very good.  The best performance was reported by the Income tax Employees Federation, All India RMS and MMS employees Union and the All India Groundwater Board Employees Association.  It was therefore decided that the State Committees must convene a meeting in which the leaders of all affiliates unions of that State (up to the Branch/Unit level)  and the strike participation discussed in the presence of the National leadership.  The Sectt.(CHQ) will indicate the schedule for such meetings.

Item No.2 Finalisation of the dharna programme at different  State Capitals to protest
against the victimisations of employees of the IA & AD. Wherever it was not implemented.
At the instance of the Secretary General All India Audit and Accounts Association, it was decided to defer the implementation of this programme for some time.

Item No.3. Finalisation of charter of demands (common to CGEs) and progamme of actions thereon.
Various issues were discussed which have arisen from the very retrograde recommendations and objectionable implementation of them by the Government.  Though the issues have been taken up in the National Anomaly committee and at the National Counil, the meeting felt that no positive outcome should be expected thereof.  The house also felt that the large number of anomalies created by the 6th CPC can only be rectified by a total wage revision. Taking this view into account, it was proposed that we should demand a fresh revision of wage structure with effect from 1.1.2011 for the 6th CPC tenure would complete the 5 year period on that date.  Since the Government has conceded to effect wage revision in the case of PSU employees after every five years, the meeting felt that this demand is appropriate.  The meeting also noted that by 1.1.2011, the D.A component in the wages would exceed 50% .  The meeting therefore decided that a comprehensive  charter should be adopted at the next meeting of the National Council of the Confederation.

Item No. 4 and 5 were deferred for discussion at the National Council.(Subscription from  affiliates and adhoc bonus)

6. Affiliation application:  In the case of Bureau of Mines Safety, Dhanbad, the meeting asked the Sectt. to depute a representative to go to Dharnbad and hold discussions with all concerned and submit a report to the Sectt. for taking further decision in the matter  In respect of Survey of India, Com. President informed the house that he along  with  the Secretary General had been to Dehradun sometime back and it was decided that all organisations in the Survey of India including the newly formed Topographical employees association will form a Co-ordination Committee and the same will seek affiliation with the confederation. The meeting decided to request all organisations in the Survey of India to constitute the Co-ordination Committee.  The meeting decided to grant affiliation to the Association of Lakshadweep employees.   The meeting also decided to depute one of the Sectt. members to go over to A&N Islands with a view to revive the functioning of the State Committee of the Confederation.

Item No. 7. Venue and date of next Council meeting. It was decided to hold the National Council at Mumbai on Ist December, 2010 for which a separate notice is being issued.

Item No.8. Any other matter with the permission of the Chair. At the request of Com. P.V. Ramachandran, the house decided that the Confederation should demand that those cadres which were included in the JCM scheme at the inception (Since they were Group C employees then)should continue to be  the categories eligible to participate in the JCM irrespective of the new classification ordered by the Department of Personnel from time to time.
The house also decided to take up the matter of inclusion of all Audit employees including Railway Audit employees to be covered by the CGHS scheme as before.

Source:CCGEW

With greetings,

Yours fraternally,

K.K.N. Kutty

Secretary General.

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Filed Under: CCGEW

Timely confirmation in various Central Civil Services- issue of guidelines - DOPT Order

No.1801/1/12010-Estt. (C) 

Government of India 

Ministry of Personnel. Public Grievances & Pensions 

(Department of Personnel & Training) 

*************

New Delhi 110001 

Dated: August 30,2010

OFFICE MEMORANDUM

SUBJECT: Timely confirmation in various Central Civil Services- issue of guidelines.

The undersigned is directed to say that the Supreme Court in its judgement on 8.7.2010 in civil appeal No.596 of 2007 (appeal of Khazia Mohameed Muzammil v/s State of Karnataka & Anr.) examined the contention of automatic/deemed confirmation after the expiry of the probation period. After examining the various judgements, the Apex Court were of the considered opinion as to what view has to be taken would depend upon the facts of a given case and the relevant ruler in force.

2. In para 22 of the judgement, the Apex Court observed as follows:-

"Before we part with this file, it is required of this Court to notice and declare that the concerned authorities have failed to act expeditiously and in accordance with the spirit of the relevant rules. Rule 5(2)of 1977 Rules has used the expression 'as soon as possible' which clearly shows the intent of the rule framers explicitly implying urgency and in any case applicability of the concept of reasonable time which would help in minimizing the litigation arising from such similar cases. May be, strictly speaking, this may not be true in the case of the appellant but generally every step should be taken which would avoid bias or arbitrariness in administrative matters. no matter, which is the authority concerned including the High Court itself. Long back in the case of Shiv Kumar Sharma v/s Haryana State Electricity Board(1988) Supp. SCC 669] this Court had the occasion to notice that due to delay in recording satisfactory completion of probation period where juniors were promoted, the action of the authority was arbitrary and it resulted in infliction of even double punishment. The Court held as under:

'While there is some necessity for appointing a person in government service on probation for a particular period, there may not be any need for confirmation of that officer after the completion of the probation period. If during the period a government servant is found to be unsuitable, his services may be terminated. On the other hand. if he is found to be suitable, he would be allowed to continue in service. The archaic rule of confirmation, still in force, gives a scope to the executive authorities to act arbitrarily or malafide giving rise to unnecessary litigations. It is high time that the Government and other authorities should think over the matter and relieve the government servants of becoming victims of arbitrary actions.'

We reiterate this principle with respect and approval and hope that all the authorities concerned should take care that timely actions are taken in comity to the Rules governing the service and every attempt is made to avoid prejudicial results against the employee/probationer. It is expected of the Courts to pass orders which would help in minimizing the litigation arising from such similar cases. Timely action by the authority concerned would ensure implementation of rule of fair play on the one hand and serve greater ends of justice on the other. It would also boost the element of greater understanding and improving the employer employee relationship in all branches of the States and its instrumentalities."

3. In this Ministry's O.M.No.I8011/186-Estt(D) dated 28.3.1988 (copy enclosed), instructions have already been issued to the effect that confirmation will be made only once in service in the entry grade, but for some exceptions specified therein. Instructions on timely action to confirm or extend the probation have also been issued vide O.M. No.18011/2/98-Estt.(C) dated 28.8.1998. Seniority has also been delinked from confirmation in the O.M.No.20011/5/90-Estt.(D) dated 4.11.92.

4. The above directions of the Apex Court are brought to the notice of all Ministries/Departments for ensuring compliance of the above instructions.

s/d

(Mamta Kundra)

Joint Secretary to the Govt. of India

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Timely confirmation in various Central Civil Services- issue of guidelines - DOPT Order

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Filed Under: dopt

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of September, 2010

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of  September, 2010 increased by 1 point and stood at 179 (one hundred and seventynine).
        
            During September, 2010, the index recorded an increase of 6 points each in Darjeeling, Durgapur and Jalpaiguri centres, 5 points each in Siliguri and Delhi centres, 4 points each in Angul Talcher, Rajkot and Belgaum centres, 3 points in 12 centres, 2 points in 13 centres  and 1 point in 24 centres. The index decreased by 3 points in Bhopal centre, 2 points in 4 centres and 1 point in 4 centres, while in the remaining 12 centres the index remained stationary.
        
            The maximum increase of 6 points in Darjeeling, Durgapur and Jalpaiguri centres is mainly on account of increase in the prices of Rice, Wheat Atta, Vegetable items, Electricity Charges, etc. The increase of 5 points in Siliguri and Delhi centres is due to increase in the prices of Rice, Wheat, Wheat Atta, Onion, Vegetable items, etc. The increase of 4 points in Angul Talcher, Rajkot and Belgaum centres is due to increase in the prices of Rice, Wheat, Goat Meat, Onion, Vegetable items, Tea (Readymade), etc. However, the decrease of 3 points in Bhopal centre is due to decrease in the prices of Rice, Wheat, Goat Meat, Arhar Dal, Vegetable items, etc.
        
            The indices in respect of the six major centres are as follows:
1. Ahmedabad       176                    
2. Bangalore          185                      
3. Chennai             162                    
4. Delhi                 169
5. Kolkata             176
6. Mumbai             178        
The point to point rate of inflation for the month of September, 2010 is 9.82% as compared to 9.88% in August, 2010.
    
Source:pib

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of September, 2010

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Filed Under: AICPIN

Two-thirds of States yet to remit pension scheme contributions-PFRDA

Finance Ministry calls meet on November 1 to address issue.
Arun S.
New Delhi, Oct. 27

Two-thirds of the State Governments and a couple of Union Territories have not remitted the pension contributions of their new employees to Bank of India, which is the trustee bank for the accumulated monies under the New Pension Scheme (NPS), sources in the Finance Ministry and the Pension Fund Regulatory and Development Authority told Business Line.

This is despite all these Governments signing up for the NPS as early as 2003. The NPS covers all Government employees. Their pension entitlement is based on their own ‘defined contributions' with a matching amount from the Government concerned.

The employees will, therefore, not be able to get pension benefits that their fund would have entitled them to earn, had the contributions been invested in the instruments which they had asked for.

Lackadaisical approach

Due to the lackadaisical approach of these Governments, the trustee bank is unable to accumulate the contributions and transfer these to Pension Fund Managers such as SBI, UTI and LIC, who, in turn, would invest the money in equity or debt instruments.

The investment portfolio depends on the choice exercised by the States/UTs. (This could include investment pattern notified by the Finance Ministry and the subscriber's risk appetite.)

However, the employees will certainly have a claim to demand returns on the contributions to their pension account retrospectively (from the date of signing up) till their date of retirement/superannuation and that too, at the average rate (currently 12-14 per cent) earned by NPS funds, the sources claimed.

Liability strain

They added that the liability on this account would have to be borne by the State Governments themselves.

“This increasing liability can put a strain on the finances of these Governments. In fact, the difficulty in paying up a huge amount is one of the reasons why these Governments are delaying the completion of formalities,” an official said.

In other words, on the date when an employee demands the returns on his/her pension amount as per the NPS rate of return on a compounded basis, the State Government concerned will have to either pay up or face litigation, the sources pointed out.

A worried Finance Ministry has taken serious note of the failure of these states/UTs and its fiscal implications. The Ministry has called a meeting with the States on November 1 to address the issue, the sources said.

However, five States — Chhattisgarh, Jharkhand, Madhya Pradesh, Bihar and Haryana (interestingly, all but Haryana, being run by non-Congress Governments) — have completed all the formalities after joining the NPS including uploading of the contributions.

Among the big States that have not completed the formalities, including making remittances, are Tamil Nadu, Rajasthan, Uttar Pradesh and Maharashtra. They have not signed the contract with the NPS Trust and the Central Recordkeeping Agency. They have neither set up a Nodal Office nor registered its subscribers. They have also not uploaded and remitted the contributions.

Andhra Pradesh has registered 58,195 subscribers, but has uploaded the contributions and made remittances of just six of them. Karnataka has registered 73,898 subscribers, and has completed most of the formalities, but it has uploaded and remitted their contributions only from January 19.


But Karnataka had joined the NPS from as early as April 1, 2006 and has not uploaded the contributions from that date till January 19, 2010.

The total registered NPS subscribers from the 26 States and UTs is 4,03,819. States such as Kerala, West Bengal, Tripura and Sikkim are yet to join NPS.

arun.s@thehindu.co.in

Source:hindu businessline

Two-thirds of States yet to remit pension scheme contributions-PFRDA

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Filed Under: NPS

J&K govt to pay arrears to employees

 The Jammu and Kashmir Government has approved the payment of arrears to its employees on account of implementation of the recommendations of the Sixth Pay Commission.


The Cabinet, which met under the chairmanship of Chief Minister Omar Abdullah last evening, approved the roadmap for settlement of the arrears, an official spokesman said.

According to the decision, the state government will mobilise its own resources to pay 50 per cent of the arrears while the Centre will be pursued to fund the balance amount, the spokesman said.

The arrears will be paid in varying number of installments and through the General Provident Fund for different categories of employees and which will have different lock-in periods, he said.

Class IV employees shall be paid in four equal annual installments of 25 per cent each starting from 2011-12, with a lock-in period of three years for each installment.

Source:pti

J&K govt to pay arrears to employees

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Filed Under: EMPLOYEES

INTUC against disinvestment of public sector units

Opposing disinvestment of profit-making public sector units, Congress-affiliated trade union INTUC today questioned why Coal India was disinvested.

"We are against disinvestment of profit-making public sector units. If the government wants to disinvest PSUs making loss there is no problem, but profit-making companies should be kept away," INTUC national president G Sanjeeva Reddy told a press conference here.

Stating that coal is a profit-making sector, he asked why disinvestment was made there. "I have spoken to the Prime Minister on this and he has agreed in principle that disinvestment should not be made in profit-making public sector units."

Regarding Coal India, the Prime Minister told him that government had sold only out 10 per cent share and it would not be increased further, Reddy said
Source:www.ptinews.com

INTUC against disinvestment of public sector units

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Filed Under: INTUC

Grant of Dearness Relief to Central Government pensioners

F. No. 42/18/2010-P&PW(G)

Government of India

Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,

Khan Market, New Delhi – 110003

Date: 27th October, 2010

OFFICE MEMORANDUM

Subject : Grant of Dearness Relief to Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC w.e.f. 1.7.2010.

In continuation to this Department’s OM No. 42/18/2010-P&PW(G) dated 29th June, 2010 sanctioning the Dearness Relief to those Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scales of 5th CPC, the President is pleased to grant the Dearness Relief to these Central Government pensioners as under :

(i) Those who are in receipt of provisional pension or pension in the pre revised scales of 5th CPC are entitled to Dearness Relief @ 103% w.e.f 1.7.2010.
(ii) The surviving CPF beneficiaries who have retired from service between the period 18.11.1960 to 31.12.1985 and are in receipt of ex-gratia @ Rs. 600/ p.m. w.e.f. 1.11.1997 under this Department’s OM No. 45/52/97-P&PW(E) dated 16.12.1997 are entitled to Dearness Relief @ 103% w.e.f. 1.7.2010.
2. The following categories of CPF beneficiaries who are in receipt of ex¬gratia payment in terms of this Department’s OM No. 45/52/97-P&PW(E) dated 16.12.1997 are entitled to DR @ 95% w.e.f. 1.7.2010.
(i) The widows and dependent children of the deceased CPF beneficiary who had retired from service prior to 1.1.1986 or who had died while in service prior to 1.1.1986 and are in receipt of Ex¬gratia payment of Rs. 605/- p.m.
(ii) Central Government employees who had retired on CPF benefits before 8.11.1960 and are in receipt of Ex-gratia payment of Rs. 654/-, Rs. 659/-, Rs. 703/- and Rs. 965/-.
3. Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee. In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue in consultation with the C&AG.
4. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their UO No. 1(4)/EV/2004 dated 12.10.2010.

(V.K.Wadhwa)

Under Secretary to the Government of India

order copy

Grant of Dearness Relief to Central Government pensioners

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Payment of Commutation Value of additional amount of pension in respect of employees who retired on/after 1.1.2006 but before 2.9.2008

F. No. 38/79/08-P&PW(G)

Government of India

Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,

Khan Market, New Delhi – 110003

Date: 27th October, 2010

OFFICE MEMORANDUM

Sub.:       Payment of Commutation Value of additional amount of pension in respect of employees who retired on/after 1.1.2006 but before 2.9.2008 and expired before exercising option for commutation of additional amount of pension – Regarding.

          As per the provisions contained in para 9.3 of this Department’s OM No. 38/37/08-P&PW(A) dated 2nd September, 2008, the revised table of commutation value for pension will be used for all commutations of pension which become absolute after the date of issue of this OM. In the case of those pensioners, in whose case commutation of pension became absolute on or after 1.1.2006 but before the issue of this OM, the pre-revised Table of Commutation value for pension will be used for payment of commutation of pension based on pre revised pay/pension. Such pensioners shall have an option to commute the amount of pension that has become additionally commutable on account of retrospective revision of pay/pension on implementation of the recommendations of the Sixth Central Pay Commission. On exercising such an option by the pensioner, the revised Table of Commutation Value for pension will be used for the commutation of the additional amount of pension that has become commutable on account of retrospective revision of pay/pension. In all cases where the date of retirement/commutation of pension is on or after 2.9.2008, the revised Table of Commutation Value for pension will be used for commutation of entire pension.

2.        References have been received from various Departments seeking clarification from this Department whether the commutation value of additional pension in respect of such employees who had retired during the period between 1.1.2006 and 2.9.2008 and died before exercising option is payable to the eligible member of family or not. The issue has been examined in consultation with Ministry of Finance, Department of Expenditure who has observed that the Pay Commissions’ intention was that the pensioner should exercise a conscious choice in view of the fact that the commutation table has changed w.e.f. 1.1.2006. As such, in these cases, the Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications. The intention was not to deny the higher capitalized value on account of revision of pension.

3.       This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their UO No. 456/EV/2010 dated 18.10.2010.

(V.K.Wadhwa)

Under Secretary to the Government of India

OFFICE MEMORANDUM

Payment of Commutation Value of additional amount of pension in respect of employees who retired on/after 1.1.2006 but before 2.9.2008

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Filed Under: dopt

Grant of Pay Structure of Grade Pay of Rs.4600 in PB-2 to the post that exists in the pre-revised scale of Rs.6500-10500 as on 01.01.2006

EMPLOYEES' PROVIDENT FUND ORGANISATION

(MINISTRY OF LABOUR & EMPLOYMENT, GOVT.OF INDIA)

Head Office

Bhavishya Nidhi Bhawan

14-BHIKAJI CAMA PLACE, NEW DELHI - 110066

www.efpindia.gov.in : www.epfindia.nic.in

No. HRD/2(3)82/EO-AO/Pt-III/43140

Dated: 19 Oct 2010

To
All Additional Central P.F. Commissioners,
All Regional P.F. Commissioner (I) In-Charge of the Regions,
All Regional P.F. Commissioner (II) In-Charge of the SROs.


Subject: Grant of Pay Structure of Grade Pay of Rs.4600 in PB-2 to the post that exists in the pre-revised scale of Rs.6500-10500 as on 01.01.2006 which were granted the Normal replacement Pay Structure of Grade Pay of Rs.4200 in the PB-2.

Sir,
Please refer to this office letter No. HRD/1(2) 2008/Implementation of 6th CPC/16306 dated 17.03.2010 on the subject mentioned above wherein Grade Pay of Rs.4600/- in place of Rs.4200/- was allowed to the cadre of EO/AO.

In this circular, it was further clarified that as per the H.O. letter NO. HRD/1(a)2003/Pay scales/Pt.II/60951-6500-10500 notionally w.e.f. 1/04/2004 with actual financial effect from 1/9/2007, therefore the financial benefits in accordance with the DoPT circular in the cadre of EO/AO shall be effected w.e.f. 1/09/2007 onwards.

In this regard, it is to state that it has come to the notice of the Head Office that while implementing the above mentioned order of granting Grade Pay of Rs.4600/- to EO/AO, the benefit of pay fixation has also been extended by some regions, either by giving increment or by fixing the basic pay corresponding to pre-revised pay scale of Rs.7450-11500/- by using fitment table. This is totally erroneous and against the spirit of the order.

It is once again clarified that the aforesaid letter permits the grant of only Grade pay of Rs.4600 in place of Rs.4200 and no benefits of pay fixation i.e. grant of any increment of fixation of pay using fitment table corresponding to pre-revised scale of Rs.7450-11500/- are to be given in this regard. If such benefits have been given, then the recovery of the excess amount should immediately be effected and an action taken report be sent to this office by 29th October 2010 positively.

s/d

Yours faithfully

(R.K.Kukreja)

Regional P.F. Commissioner (HRM)

ORIGINAL COPY

Grant of Pay Structure of Grade Pay of Rs.4600 in PB-2 to the post that exists in the pre-revised scale of Rs.6500-10500 as on 01.01.2006

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Filed Under: EPF

Haryana to give festival advance to class 4 employees

Haryana Chief Minister Bhupinder Singh Hooda has approved the proposal of Finance Department to grant an interest-free advance of Rs. 2000 to all its class-IV employees for Diwali festival.

Finance Minister Ajay Singh Yadav said the recovery of this festival advance would be recovered during the current financial year. He made it clear that the festival advance would not be given to the work charge and daily wages employees.

He said the festival advance facility would not be available to employees of corporations and those working in local bodies on deputation.

Yadav said that during the current financial year a sum of Rs three crore had been earmarked to provide festival advance to Haryana government class four employees and 60,500 class four employees are working in the state.


Source:pti

Haryana to give festival advance to class 4 employees

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Filed Under: EMPLOYEES

CAT for admission to IIMs tomorrow

The Common Admission Test (CAT) for admission to prestigious Indian Institute of Management (IIMs) begins tomorrow when over two lakh candidates are expected to appear.

The test will be conducted online in about 78 centres across 33 cities in a staggered format beginning tomorrow and ending on November 24.

Convener CAT-2010 and IIM, Lucknow, professor Himanshu Rai expressed confidence that unlike last year -- when technical glitches had marred the tests -- the exam this year would be free of any such problems.

"We are absolutely confident of holding the tests smoothly this year," he said.

A total of 204,267 candidates have registered for CAT 2010, with the highest number of registration in Maharashtra where 30,296 candidates have registered for the test.

The state is followed by Uttar Pradesh where 26,810 candidates have registered and Delhi comes next with 19,931, Rai said.

Source:pti

CAT for admission to IIMs tomorrow

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Filed Under: cat

School teachers get 20% hike in Gujarat

School teachers get 20% hike
School teachers of Gujarat have a reason to rejoice. Following a high court order, the state education department has extended a Diwali gift to teachers — a 20 per cent salary hike.

Recently, Gujarat high court had ruled in favour of school teachers working on fixed salary and had directed state education department to implement Sixth Pay Commission`s recommendations. The state government had quickly formalised government resolutions (GR) for most departments but that for school teachers was pending. On Monday, the state government issued a GR which will translate into a financial gain of Rs 18,000 to Rs 24,000 for fixed-pay teachers. More than 20,000 school teachers, administrative staff and grade IV employees are likely to gain from this move.

Ramesh Patel, Gujarat State Secondary Teachers' Federation, general secretary said, "This has been a long-pending demand." Apart from this, primary teachers with fixed pay of Rs 2,500 will get Rs 4,500. More than 15,000 primary teachers will benefit from this.

Source:Times of India

School teachers get 20% hike in Gujarat

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Filed Under: NEW PAY SCALE

AGENDA ITEMS FOR THE 19TH MEETING OF STANDING COMMITTEE OF VOLUNTARY AGENCIES (SECOVA) ON 20.9.2010.

Sl. No.	Agenda items for Central pension Accounting Office (CPAO)
1.	Issue of Corrigendum PPO for Pre-2006 retirees. While the need for issuance of corrigendum PPO was accepted and implemented for Post-Jan 2006 retirees, the Pre-Jan 2006 cases were left out for issue of corrigendum PPO due to vast number of retirees. A large number of complaints and difficulties faced by few Air Warriors reflect non payment of rightful dues by various banks due to lack of requisite information, especially state bank of india despite directive by PCDA, Allahabad vide Circular No.397 & 403 dated 18 Nov 09 & 02 Feb o9. The problem is genuine and needs suitable directions for issuance of Corrigendum PPO for all Pre-2006 retiree also. Incorporating required details viz date of birth of Pensioner, name & date of birth of the family Pensioners/nominee details; date of retirement is essential for fixation of pension/ Additional Pension or Family Pension to beneficiaries especially past retirees prior to 1986, beside those above 80 years of age. Due to non-availability of authenticated details, Banks are unable to give rightful dues to the Pensioner/Family Pensioners especially to those who are residing in rural areas and are not aware of their actual entitlement on Pay Commission revison The subject of issuance of corrigendum PPO needs priority directions for outsourcing the task if not feasible within CDA capacity.
2.	To communicate the amount of pension as well as Family Pension to be revised consequent to the 6th Pay Commission to individuals pensioners of Pre – 2006. A Period of more than one year is over. But most of the existing pensioners who have been retired before 01-01-2006 have not been communicated the revised amount of Pension as well as Family Pension admissible to the spouse on his / her death. As a result the Family Pensioner is put to hardships on death of his / her pensioner spouse. Necessary instructionsmay be issued to communicate the revised amount of pension / family pension in PPO or individual pensioners by the Pension Disbursing Authorities.
3.	Expediting cases of sanctioning of secondary family pension with monitoring mechanism at various levels. All cases of undue and unjustified delays to be viewed seriously and concerned authorities made accountable.
	Agenda items for Ministry of Finance, Department Of Expenditure
4.	Same fitment benefit to Pre-2006 pensioners as recommended and implemented in respect of serving employees by the VI CPC. The VI CPC discriminated against Pre-2006 pensioners in the matter of fitment benefit. While Grade Pay was recommended to employees in addition to merger of 86% D.A. as on 1-1-2006, pensioners were recommended only 40% if basic pension which works out to much less than 50% of grade pay. Grade Pay was worked out at 40% on the maximum of the highest pay scale in the group of pay scales coming under each grade pay while past pensioners retired at various stages in their respective pre-revised pay scales. Thus an imbalance is created between pre and post 2006 pensioners which will be rectified only if the same fitment benefit is granted to Pre-2006 pensioners also i.e., basic pension as on 1.1.1996 + 86% D.R. and 50% of relevant grade pay. Unless the above imbalance is rectified, the pre-2006 pensioners and family pensioners will forever lag behind post-2006 pensioners and family pensioners retiring in comparable posts with equal number of years of service. Implementation of VI CPC recommendation in the above regard widened the gap between pre and post 2006 pensioners rather than bridging it. Though the CPC had observed in para 5.1.47 of their report that” In order to maintain the existing modified parity between the present and future retirees it will be necessary to allow the same fitment benefit as is being recommended for the existing Government employees” however, in their recommendations, the commission did not carry the above. The commission had not realized that they were recommending a different fitment benefit to pre-2006 pensioners putting them at a serious disadvantage vis-à-vis future pensioners. The same fitment benefit needs to be extended to Pre-2006 pensioners and family pensioners to do equal justice to them. The IV CPC desired that factors governing pay determination should also apply for pension determination (Para 2.26 of IV CPC report, Part II – Pension).
5.	Parity between Past and Future Pensioners. There has been constant effort on the part of the earlier pay commissions to bridge the gap between pensions of past and future pensioners retiring in comparable posts. More improvements have come about in the pension structure after independence as the country progressed economically and in other respects. In line with this trend, the V CPC had enunciated parity principle in para 137.14 of their report. The V CPC enunciated this principle with the laudable objective of bringing the pensions of past pensioners close to those of future pensioners. They recommended full parity to those who retired prior to 1.1.86 i.e, the date of implementation of IV CPC scales of pay and modified parity w.e.f. 1.1.96. They desired that the same formula be followed in respect of Pre-1996 pensioners and family pensioners at the time of implementation of VI CPC recommendations w.e.f. 1.1.2006 vide para 13 7 .21 of their report. The V CPC did not straight away recommend full parity upto 1-1-96 though they felt it was desirable only having regard to the financial implications of implementation of such a measure at that point of time. They observed in para 137.13 of their report as follows: “The process of bridging the gap in the pension of pensioners has already been set in motion by the fourth CPC when past pensioners were granted additional relief in addition to consolidated of their pension. This process of attainment of reasonable parity needs to be continued so as to achieve complete parity over a period of time.” The Govt. of India accepted parity principle enunciated by the V CPC and implemented the same w.e.f. 1.1.1996 in respect of Pre-1986 pensioners and family pensioners. It is, therefore, incumbent on the part of the Govt. to carry forward this principle to Pre 1.1.1996 pensioners w.e.f. 1.1.2006. It is not correct for the Government to abdicate this responsibility. The VI CPC was erroneous in linking parity with cent percent neutralization of price rise for the following reasons. 1. Cent percent neutralization of price rise was there upto certain levels even prior to 1.1.1996 and 2. It was the V CPC which recommended taking forward parity principle as well as extension of cent percent neutralization of price rise to all levels. Hence there was no link whatsoever between carrying forward the principle of parity and 100% neutralization of price rise. The commission’s observation had created a wrong and misleading impression in the above regard. The Central Government will, therefore, do well to discharge their moral responsibility towards their past employees by carrying forward the parity principle. Pre-1.1.1996 pensioners and family pensioners may, therefore, be first brought on par with post 1.1.1996 pensioners and family pensioners as recommended by V CPC while revising their pensions as per V CPC formula.
6.	Stepping up of Pension and Family Pension to 50% and 30% respectively. The stepping up of pension and family pension to 50% and 30% respectively of the sum of the minimum of the pay in the pay band and grade pay thereon corresponding to the pre revised pay scale from which the pensioner ha retired (Para 5.1 of VI CPC report). The manner in which this recommendation has been implemented has done grave injustice to pre 1.1.2006 pensioners. Instead of taking the pay in the pay band corresponding to the minimum pay of the pre revised pay scale, minimum pay in the pay band has been taken for this purpose and thus those who retired in higher pre revised pay scales have been equated with those who retired in lower scales. Thus equal treatment has been denied to those who retired in various pre revised pay scales in the matter of ‘stepping up’. While those who were given separate pay scales were protected in this regard, those whose pre revised pay scales had come into pay bands have been adversely affected. This is a gross discrimination denying equal treatment as enshrined in Article 14 of the Constitution of India As such the ‘Stepping up’ may be implemented so as to protect all those who retired in various pre revised pay scales replaced by four pay bands. Introduction of pay bands with grade pay should not be allowed to act to the serious detriment of any section of past pensioners.
7.	Extension of new benefits granted to the past pensioners. The Hon’ble Supreme Court of India had categorically ruled in their historic Judgment in Nakara case that dividing the homogeneous class of pensioners into those retiring before and after a certain date in the matter of extending new pensionary benefits granted is unconstitutional and violative of Article 14 of the Constitution of India. Yet, the Government of India limited the new benefits such as (a) taking last pay drawn or average of last 10 months of pay whichever is beneficial to the retiring employee for computation of pension and (b) full pension for 20 years qualifying service/10 years of qualifying service in superannuation case to those retiring after 1-1-2006 in the case of (a) of the above and 2-9-2008 in the case of (b). The representations made against the above violation are disposed of by the Dept. of P&PW, New Delhi vide their letter No.F.No. 38/37/0 p&pw (A) dt. 11-2-2009 on untenable grounds. Hence a presidential reference needs to be made to the Supreme Court to clarify whether or not the above orders of the Government violated the letter and spirit of their judgment in Nakra Case instead of driving the retired employees to approach courts of law in their advanced ages. The Government should be fair enough to its retired employees and their families as this is an issue with far reaching consequences to them.
8.	Additional pension for service beyond 20 years of service. In this connection, the reasoning given by the VI CPC in recommending additional pension for service above 33 years of qualifying service may kindly be seen and service above 20 years suitably rewarded.
9.	A suitable alternative to merger of DR after it reaches 50% in view of VI CPC recommendation against 50% DA/DR merger benefit to ensure revision at reasonable intervals.
10.	Appointment of 7th Central Pay Commission, HRA & Transport Allowance, Children’s educational allowance & Hostel Subsidy and Festival Advance.
	Agenda Items for Department of Pension & Pensioners’ Welfare (DOP&PW)
11.	Restoration of commuted pension after 12 years. The V CPC recommended restoration after 12 years taking all relevant factors into consideration. There are no subsequent developments to justify reversing of this recommendation by the VI CPC. The Government would so well to issue orders restoring commuted pension after 12 years as grave injustice is being done to pensioners in not accepting and implementing recommendation of the V CPC in the above regard.
12.	Revision of Ex-gratia rates in respect of pre. 1986 CPF/SRPF retirees and their families. a) Revision of these rates effected w.e.f. 1.11.2006 gave them only marginal benefit. Even in this, those who retired from groups B,C & D are badly hit as the increases in their cases are very negligible. Ex-gratia rates applicable to families of deceased beneficiaries remain the same. These ex-gratia beneficiaries and their families have to be done justice by revising their ex-fratia rates in the same manner as was done in the case of pensioners. b) Further they are given 8% less DR which again is highly discriminatory. Further, the present discrimination against families of the beneficiaries getting ex-gratia in the matter of DR should end. c) They should also be made eligible for grant of FMA on par with pensioners.
13.	Ex-gratia amount to be raised for CPF/SRF retirees. a) The Ex-gratia amount sanctioned to CPF/SRPF retirees is very low. It should be raised to 50% of the minimum of the corresponding pay scale fixed by the VI th CPC for groups A, B, and C and D. The total number of such CPF/SRF retirees alive today are negligible. Government has restored and revised 1/3rd pension of PSU Absorbees who had commuted 100% pension based on the court order. Therefore, it is not justified to deny revision of Ex-gratia to these small groups of people. They also should be given reasonable amount of Ex-gratia to maintain their day to day needs. b) Ex-gratia to widows of CPF/SRPF retirees is to be raised and paid uniform rate of D.R. c) Sanction Ex-gratia to CPF / SRPF voluntary retirees with 20 years of service, since the denial of the benefit is unjustified.
14.	Ex-gratia should not be less than minimum pension and the same should be effective from 01/01/06.
15.	Extension of secondary family pension to dependant widowed daughter-in-law.
16.	Extension of benefit of enhanced family pension for 10 years even in cases of death after retirement.
17.	Fixed Medical Allowance to be enhanced to Rs. 1,000.00 p.m w.e.f. 01/01/06.
18.	Implementation of Web Based Pensioners Portal-Online Grievance redressal system: Live status as well as final status does not get reflected. The system of ,monitoring by DOP need to be strengthened and DOP need to have teeth to ensure compliance from different Departments.  b) Grant in aid to pensioners Associations to cover ‘Rent’ for office accommodation: Most of the Pensioners Associations, due to inadequate finances, find it hard to hire adequate office accommodation. To facilitate smooth & effective working provision for office accommodation ‘Rent may’ be made in the Grant- in-aid to pensioners Associations.
19.	The implementation of orders dated 01.09.2008 read with the orders dated 14.10.08 is not correct. For instance, consider the example given at Sl. No. 3 of the Annexure-II dealing with Pre-revised scale of pay Rs5,000-8,000 in PB-2 of Rs 9300-34800 with Grade Pay of Rs.4200/-. The RCP arrived as per the recommendations was at Rs. 5,650/- and the same is asked to be stepped up to Rs.6,750/- vide OM ibid. Since Fitment Scale for this scale starts at Rs.9300/- Pay Band it is correct. But it the next scale Rs.5500-175-d9000 is taken ito consideration with the same Grade Pay it should not be limited to 6750/- since the Fitment Scale is Rs.10,230-17,720 for this scale. It should be compared with the minimum admissible pension of Rs.7225/- (Rs.5115 + Rs.2100) being 50% of the Minimum of the Pay Band + Grade Pay of Rs.4200/- related to the post.The Grade Pay is also varies for the same post carrying the same scale of pay when Implemented in the different departments. As such, the Pension Calculator should not be relied upon but case to case examine of pensioner’s case has to be ensured vide Annexure-III to the OM ibid.
	Agenda Items for Minsitry of Health & Family Welfare
20.	Health Care of Pensioners / Family Pensioners residing in the Non-CGHS areas is badly neglected. The Orders of Health Ministry reiterating that all the pensioners are at liberty to enroll themselves with any of the nearest CGHS hospital/dispensary may be widely circulated. The Implementation of the orders enforced. Already pending bills with the Heads of Departments concerned for which claims made under the existing CS (MA) Rules, 1964 should be settled on the strength of decisions given by various Hon’ble CATs in the country. (a) Merger of Postal Dispensaries with the CGHS should be expedited. In the meanwhile, the pensioners of Departments of Posts and Telecom may be allowed as in the case of other Officials on deputation to Public Sector Undertakings to join the CGHS on a life time measure on a regular basis to avail the CGHS facility. (b) The rates of contribution raised w.e.f. 1-6-2009 are to be reduced and also the renewal of issue of regular CGHS cards should be allowed for those beneficiaries who were already registered with the CGHS on a temporary basis renewing their Cards periodically without insisting upon the rates increased w.e.f. 1.6.2009.
21.	Withdrawal of arbitrary orders dated 01/08/1996 and 01/09/1996 issued by Ministry of Health and Director of CGHS. The orders should be withdrawn and the benefit of CGHS facilities be allowed to the pensioners of Department of Post and Department of Telecom as specially provided in the order of the Department of Personnel and Pension.
	Agenda Items for DOP&T
22.	Early commencement of meeting of National Anomaly Committee to settle all anomalies arising out of 6th central pay commission recommendations. Agenda Items for Department of Telecom & Posts
23.	Grant of concessional telephone facilities to retired P&T Employees. The impact of the decision of Hon. High Courts of Delhi and Cuttack has been given effect in the case of individual petitioners only. However similarly placed pensioners are ignored and indirectly are forced to knock the doors of Courts. It is requested to apprise the DOT to make a General Rule and all similarly placed pensioners are considered for Service Telephones.
24.	The existing Pensioners of Department of Posts and Telecom covered by P&T Dispensaries are neither consider for treatment of hospitalization facilities nor for Fixed Medical Allowance. This item was included in previous SCOVA meeting held on 25-03-2008, but it is still undecided. This may be settled and decided now.
	Pensioners falling within the limit of P&T Dispensaries / CGHS Hospitals may be allowed to opt for P&T Dispensaries or drawl of Fixed Medical Allowance. The existing pensioners may be allowed either to opt for Fixed Medical Allowance or the facilities of P&T Dispensaries / CGHS.
	Agenda Items for Ministry of Defence
25.	Extension of Benefits of Modified Parity to Pre-Jan 06 Retiree Officers. Govt. has provided necessary relief to Lt Gen (Retd) and equivalent in providing benefit of modified parity. Similar parity in pension to Pre-Jan 2006 retiree officers in respective of rank, needs consideration for extension of benefit. The matter has already been projected at Chiefs of Staff Committee level in Aug 09. The parity amount as suggested below would eliminate grievance of major retirees of Pre-2006 period.

Rank	Revised as per VI CPC (Past Retiree)	Parity with 31 Jan 06 Retiree (Recommended)	Approx No of Affected Officers
Lt	13,500	15,050
Capt	13,850	17,025	575
Maj	14,100	22,135	4659
Lt Col	25,700	28,695	56942
Col	26,050	30,375	9256
Brig	26,150	31,925	4311
Maj Gen	26,700	33,925	1508
Lt Gen	36,500@	39,500	349

	@ Minimum pension guaranteed as result of placing all Lt Gens in HAG scale vide amendment to SAI 2/S/2008 dated 16 Jul 2009.
26.	Disability Pension: Extension of benefit to Pre-Jan 2006 disability Pensioners. Disability pension for Pre-Jan 2006 retiree is based on fixed amount as per Govt. of India, MoD letter. No. 16(6)/2008()/D (Pension/Policy) dated 04 May 2009. This has resulted in large disparity in disability elements related benefit, when compared to post Jan-2006 retirees (who are entitled forv30% of last enhanced pay drawn amount on retirement as per letter of even reference dated 05 May 09). The issue needs a review for providing benefit of disability pension to earlier retiree, on the same yardstick, as applicable now for Post-Jan 06 retiree.
	Agenda Items for Ministry of Railways
27.	Companion facility in the same class to all complimentary pass holders of Railways. Cut off age limit for this purpose should be the same as for concessions extended in railway fares.
28.	Inclusion of Representatives of A.I.R.R.F and SCOVA in Railway Hospital Advisory Committees.

Source :persmin.gov.in

AGENDA ITEMS FOR THE 19TH MEETING OF STANDING COMMITTEE OF VOLUNTARY AGENCIES (SECOVA) ON 20.9.2010.

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Filed Under: dopt-pension

Exempted PF trusts may get to dip into reserves for payout

In A move expected to benefit a large chunk of the 2,700-odd exempted trusts, the Employees’ Provident Fund Organisation (EPFO) will soon free these trusts to utilise and tap their Provident Fund Trust reserves to meet the statutory payout rate, according to Central Provident Fund Commissioner (CPFO) Samirendra Chatterjee.


The decision is significant since many exempted funds were running a deficit after EPFO increased the PF rate to 9.5% this year from 8.5% in the previous year. Since the funds could not use their reserves to meet any shortfall, they had a tough time meeting the deficit.

The EPFO managed to fund the additional 1% interest cost after it changed its accounting policy from cash based to accrual based, which resulted in a surplus of around over . 1,731 crore.

In May this year, EPFO had issued an internal circular addressed to all Regional Provident Fund Commissioners (RPFCs), with one of the conditions being , that in the event of any loss to the trust as a result of defalcation, wrong investment decision or any deficiency in the interest rate compared to statutory rate, the employer shall be liable to make good the loss or interest.

The circular added, “You are, therefore , directed to ensure that wherever losses to the trust have been reported, the same is made good by the employer or establishment and is not adjusted against previous years’ surplus or reserves of the trust.” The new circular will delete the line, “or any deficiency in the interest rate compared to statutory rate” in paragraph 7. Mr Chatterjee was speaking at a seminar on the challenges facing retirement funds, organised by AK Capital. Speaking to ET on the sidelines of the seminar, he said exempted funds will be free to utilise and dip into their PF Trust reserves to meet the statutory payout rate.

“The formal notification in this regard would be posted on the EPF website soon,” he said. Accumulated reserves and surplus formed from excess income over expenditure can be utilised to meet the shortfall to declare higher rate of interest, or to match the rate of interest as may be declared by EPFO, in any case. These trusts are required to either match or better the interest rate declared by CBT, EPF and have to follow the investment pattern notified by the Ministry of Labour.

He said a decision has been taken that PF money will not be invested in equities. When asked about next year’s rate of return for EPFO subscribers, he replied, “The 9.5% return is not sustainable. Next year’s rate of return will be decided later and it is difficult to comment on this right now.”

He added that accountholders would get the benefit of improved rate of return on deposits from the next fiscal from the income on frozen inoperative accounts.

Source:Economic Times

Exempted PF trusts may get to dip into reserves for payout

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Filed Under: EPF

EPFO seeks govt guarantee for investing 15 per cent funds in stocks

Terming equity investments "unsafe", retirement fund manager EPFO has asked for a government guarantee to go ahead with the finance ministry's demand of investing up to 15 per cent of its funds in stocks.

"Our Board of Trustees felt investments in the capital market are unsafe and do not serve well for someone like us who want very stable returns," Central Provident Fund commissioner, Samirendra Chatterjee, told reporters on the sidelines of a function organised by AK Capital Services in Mumbai.

"If they want us to invest, please give us a guarantee for the same, we will invest," he added.

Citing revised regulations, the ministry of finance has been asserting that it has a right to prescribe the investment patterns for retirement funds and has been repeatedly asking for up to 15 per cent of the corpus to be invested in equities.

However, Chatterjee said the Employees Provident Fund Organisation (EPFO) goes by the rules drafted in 2003 and not the revised ones made in 2008.

EPFO's funds under management has swelled by Rs 25,000-crore in the first half of the current fiscal to Rs 3,25,000-crore, he said.

The EPFO and the company-run PF trusts are currently allowed to invest only in more secure investments like bonds and Government securities which deliver a stable return.

"I work for the common man...a fall in stocks is not infrequent and how can I explain to a person that his investment corpus has fallen? Such things work well for mutual funds who run on net asset values, not for us," Chatterjee said.

On the zero interest to inoperative accounts policy to be implemented from May 2011, he said the Trust expects withdrawals of up to Rs 10,000-crore by "savvy" investors who have locked-in huge chunks for guaranteed, tax-free returns.

"We have Rs 15,000-crore in inoperative accounts and I expect withdrawals of up to Rs 10,000-crore by savvy investors. Some of these accounts have contributions up to Rs 25-lakh," the Commissioner added.

According to a new policy which will come into effect from May 2011, accounts which are inoperative for more than three-years will not be paid any interest.

On concerns if private fund trusts would be able to pay an additional one per cent interest on contributions, Chatterjee said they should dig into their reserves for meeting the requirement if they are not able to fund it through yields on investments alone.

Source:Economic Times

EPFO seeks govt guarantee for investing 15 per cent funds in stocks

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Filed Under: EPF

HRA TO RAILWAY EMPLOYEES -CLARIFICATION

Government of India,Ministry of Railways,Railway Board published  a order regarding grant of  house rent allowance to railway employees to posted to a new zone.
In this letter, allowing the house rent allowance to railway employees posted to new zones/divisions at the rates admissible at their last period from 2-9-2002 to 31-8-2009
 click below link to view full details.
house rent allowance

HRA TO RAILWAY EMPLOYEES -CLARIFICATION

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Filed Under: RAILWAYS

CHILDREN EDUCATION ALLOWANCE --A REVIEW

 Children Education Allowance:

In 6 CPC's opinion, there was no justification of reimbursement of tuition fees in some departments and Education allowance in others. Hence, the Commission rightly recommended merger of Children Education Allowance and Reimbursement of Tuition Fee and raised the reimbursement up to the maximum of Rs.1000 per child per month subject to a maximum of 2 children.
Since the cost of education has increased substantially, hostel subsidy reimbursement was allowed up to the maximum limit of Rs.3000 per month per child. The limits would be automatically raised by 25% every time the Dearness Allowance on the revised pay bands goes up by 50%.
Six CPC recommendations were accepted by the Government with following conditions:

Children education allowance will be admissible to school going children only i.e. from class nursery to twelfth. It is clarifed that 'classes nursery to twelfth' will include classes I to XII + 2 classes prior to class I irrespective of the nomenclature.
now onwards, education allowance will not be stopped even if child fails in the examination
both education allowance and hostel subsidy can not be availed concurrently
Reimbursement will include expenditure incurred on one set of books and notebooks, one pair of shoes, two sets of uniform, and school fees etc.
In respect of schools/institutions at nursery, primary and middle level not

affiliated to any Board of education, the reimbursement under the Scheme may be allowed for the children studying in a recognized school/institution. Recognized school/institution in this regard means a Govt. school or any educational institution whether in receipt of Govt. aid or not, recognized by the Central or State Govt. or Union Tenitory Administration or by University or a recognized educational authority having jurisdiction over the area where the Institution is situated.
Clarifications:

Hostel subsidies means expanses incurred by an employee if he has to keep children in the hostel of a residential school away from the station at which he is posted or residing. It will include expenses toward boarding, lodging and other expenses. (Important: As per the old reimbursement forms for subsidy, the employee is assumed to certify that standard education is not available at the place of residence. Hence, he/she is compelled to keep his/her children in a residential school away from the station. In case of some documents available on net, transfer liability is attached with the forms of subsidy for army personnels and other central government employees. However, one forum related to railway employees says that transfer liability has recently removed for railway employees in consultation with railway officials and concerned ministry officials. If its true then it will be uniformly applicable to all central government departments and all employees whose children are studying in residential schools away from the place of duty may avail hostel subsidy). It should be noted by all concerned that amount of hostel subsidy reimbursed is taxable.

Children education allowance is admissible for diploma courses in polytechnic provided minimum qualification is X and student joins the course after passing X class.
Children education allowances can be reimbursed for more than two children if second child birth results in births of twins or multiple births
Children education allowance is admissible for disabled children (5-22 yrs) studying in vocational or non-formal training institutions approved by government.

The following items qualify for the reimbursement:

Tuition Fee,

admission fee,

laboratory fee,

special fee charged for agriculture, electronics, music or any other subject,

Fee charged for practical work under the Programme of work experience,

fee paid for the use of any aid or appliance by the child,

library fee,

games/sports fee and

fee for extra-curricular activities.

purchase of one set of text books and notebooks,

two sets of uniforms and

one set of school shoes can be claimed for a child, in a year.
Vidyalaya Vikas Nidhi charged by Kendriya Vidyalayas can be claimed for reimbursement under the scheme of Children Education Allowance subject to the annual ceiling of Rs. 12000 per child.

The annual ceiling fixed for reimbursement of Children Education Allowance:
Hostel subsidy will be reimbursed up to the maximum limit of Rs.3000 per month per child subject to a maximum of 2 children.
Under this scheme, reimbursement can be claimed once every quarter. The amount that can be claimed in a quarter could be more than Rs.3000, and in another quarter less than Rs.3000, subject to the annual ceiling of Rs.12000 per child being maintained. If total fees are paid in advance, reimbursements can be claimed using photocopies of original receipt (original submitted in the 1st quarter) in other quarters.

If both the spouses are Government servants, only one of them can avail reimbursement.

original receipts (on the basis of self-certification) are to be submitted by the Government servant for reimbursement

FAQ IN CHILDREN EDUCATION ALLOWANCE

CHILDREN EDUCATION ALLOWANCE --A REVIEW

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Filed Under: CEA

Tamil Nadu teachers urged the government to rectify the anomalies in pay

The Joint Action Committee (JAC) of the Tamil Nadu Higher Secondary School Headmasters and Postgraduate (PG) Teachers Associations has urged the Tamil Nadu government to rectify the anomalies

in the revised pay scales for school teachers notified by the State government on the basis of the report of the one-man commission set up to fix the pay scales based on the Sixth Pay Commission recommendations.

   A resolution to this effect was passed at the relay agitation preparatory conference conducted by the JAC here on Saturday under the presidentship of S. Ponnurangam, headmaster, Government Boys Higher Secondary School (GBHSS), Sholinghur and district organiser of the JAC. The conference felt that the one-man commission's report totally ignored the category of headmasters and PG teachers of higher secondary schools.

   Among others, the conference demanded the creation of a separate Directorate of Higher Secondary Education, facilitating the upgradation of the higher secondary sections in higher secondary schools into Junior Colleges.

   The JAC, which was formed at the State level on October 6, has decided that the headmasters and PG teachers of government and aided higher secondary schools in the State would go on a mass casual leave and conduct a one-day protest agitation on November 10 in support of their demands. If their demands were not met even after that agitation, the headmasters and PG teachers would picket the Directorate of School Education in Chennai for five days from November 22 to 26, pressing for their demands.

Source : The Hindu

Tamil Nadu teachers urged the government to rectify the anomalies in pay

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Filed Under: EMPLOYEES

40% of salary of Central government employees based on performance, Dr. Trivedi

Central Government has introduced accountability across the board with setting up performance targets and top level officers agreeing that upto 40 per cent of their salaries will be placed with in two months, dependent upon level of performance for which self-evaluation process has been evolved, Dr. Prajapati Trivedi, Secretary, Performance Management Division, Cabinet Secretariat revealed here today.

Stating that the system change in the central government would enable measurable response to public grievance by government officials, Dr. Trivedi declared.

Inaugurating ASSOCHAM organized 2nd CFOs Roundtable Conference 2010 here today, Dr Trivedi also indicated that all 62 government ministries and departments on board have signed the tool called Results Framework Document (RFD) which will set targets for each ministry and will finally be the basis for yearly evaluation. “Results will be our bottom-line just like profits are the bottom-line of the private sector” he pointed out.

The formula of assessing the government employees as proposed by performance management division under the cabinet secretariat, has ruled out “not me syndrome and passing the buck”. The Secretaries in turn will have to set performance levels for the officers below them and evaluation would be from bottom to top. “once we fix the performance deficit, other things will follow” Dr. Trivedi said elaborating on the causes of performance deficit. He told the audience that had leading private sector CFOs that “private sector will look up to us”.

The Cabinet Secretariat also said that the first round of assessment, initially for three months from January to March 2010, there is a strong possibility that a large number of government employees would receive an extra pay once the new formula is adopted.

He also mentioned that the government is extending the performance monitoring and evaluation system to 62 departments from the current fiscal. According to our system, a department sets a target, fixes the weightages of each target, and if it succeeds meeting all its targets, gets a score of 100.

He also highlighted that many countries such as Canada, New Zealand, Australia, Netherlands, Denmark, UK, US and Finland have moved away from the traditional government administrative model to a management model under which officers act like corporate managers as they get greater operational freedom, but are held accountable for results. In fact, New Zealand is considered to be the leader of the pack where performance of government agencies are weighed in by setting targets and adopting regular evaluations. “In New Zealand the Governor of the central bank has his salary linked to inflation level being low and as a result for the last 18 years that country had a low inflation level,” he disclosed.

The various ministries and departments are preparing their Result Framework Documents (RFD) which is to be submitted to this division and the performance of the ministries will be monitored based on these documents only. First, the ministries are themselves setting their targets and secondly they have huge manpower ranging from senior bureaucrats to employees under central secretariat scheme (CSS).

The government has already established a performance management division within the cabinet secretariat headed by a professional.

So, the performance of central ministries is under close watch. By introducing performance-linked payouts, the Indian government is finally going the corporate way which may force central government employees to deliver their best.

Speaking on the occasion, Mr. Y M Deosthalee, CFO, Larsen & Turbo ltd. said that to improve the competition by reducing the cost, competitive analysis in a qualitative manner and by communication.

Mr. S C Agarwal, CMD, SMC also said that compliance with all the stakeholders in the Indian capital markets have to meet the highest standards of corporate governance, not only in letter of law but in the spirit of the law as well.

He further said that the multiple modes of fund raising present in the Market today present another set of challenge s to the CFO of today’s corporations. The importance of having continuous updates about the latest trends in the various instruments of primary market such as IPO’s, FPOs, QIPs, ADRs, GDRs, FCCBs etc cannot be ignored. Many of the company’s that choose to ignore thses instruments of fund raising will only be giving up their chances of entering the next orbit of growth.

Among others who spoke on the occasion comprised Mr. Subbu Subramaniam N, Chairman, VCAI, Ms. Kalpana Jain, Co-Chairperson VCAI and Mr. Sandeep Dhupia, Excutive Director, KPMG

Source: ASSOCHAM

40% of salary of Central government employees based on performance, Dr. Trivedi

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Filed Under: EMPLOYEES

Campus hirings pick up, TCS to recruit 30,000

 As growth returns to the software industry, campus hiring is set to pick up after the lag experienced during the slowdown. The country’s top software exporter, Tata Consultancy Services , intends to step up the number of offers made to students on campus to 30,000 this year from about 20,000 last year as demand for IT and back office services bounces back, said Ajoy Mukherjee, global head (HR), TCS.


“Talent acquisition is going to be strong because the demand still seems to be good, and that has to be captured,” Mr Mukherjee told ET. The company has also increased its overall hiring from 30,000 to 50,000 to cater to the double-digit revenue growth it is witnessing and make up for the higher employee turnover. Employee attrition for the company went up by 1% on a trailing 12-month basis to 14.1% in the second quarter.

Most companies hired minimally from campuses last year because their major markets were in recession and clients were cutting down on tech spends. TCS, for instance, had to increase its intake of freshers through off-campus drives in the second quarter to fulfil the higher demand. “Off-campus drives are for freshers, primarily for students who have already passed out. So, yes, it is a bit of a challenge to get in touch with them. Campus recruitment is the best possible way to hire because it gives you maximum throughput,” said Mr Mukherjee.

While TCS visited 370 institutes for campus hiring last year, this year it will visit more campuses and also hire more.

The company is yet to decide on whether to offer higher salaries for those recruited from campuses. “It is very difficult to say. I perceive that for the industry there may be a slight change — maybe a marginal upward revision, but I am still collecting data and our talent-acquisition team is looking at it,” said Mr Mukherjee.

Since many freshers joined the firm in the third and fourth quarters of last year, when demand started showing an uptick, TCS has decided to tweak the appraisal cycle, making freshers eligible for promotion much earlier. Normally, promotions at the junior level are annual and are based on performance and experience. This time, they will become eligible for promotion during the quarter itself if they have the requisite experience, instead of having to wait till the year end, Mr Mukherjee said. The change will take effect from this quarter.

Source:Economic Times

Campus hirings pick up, TCS to recruit 30,000

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Filed Under: EMPLOYMENT

AI further advances date of payment of allowances

Changing its decision twice in as many days, Air India today announced further advancement of the date of payment of allowances to its 29,000 employees, saying these incentives would be disbursed along with the salaries on November one itself.

The national carrier had earlier notified the deferment of payment of flying allowances and productivity- linked incentives (PLI) by a fortnight.

Following protests by unions, it last night withdrew its decision and said while the salaries would be paid on November one, the allowances and PLI would be disbursed on November four.

Changing its decision on the payment of allowances again today, an airline spokesperson said the salaries, PLI and allowances would be paid together on November one.

"The salaries and other productivity-link incentives' flying allowances of the NACIL employees will now be paid on November one," an Air India spokesperson said here.

Source:pti

AI further advances date of payment of allowances

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Filed Under: AIR INDIA

UP govt employees get bonus

In a pre-Diwali bonanza, Uttar Pradesh Chief Minister Mayawati today announced a bonus of 30 days' pay for state employees for the financial year 09-10, official sources said.

A government order to this effect has already been issued by the state finance department, an official release issued here said.

Permanent non-gazetted state employees, teachers of aided schools and technical institutes, local bodies and zila panchayats fulfilling certain conditions would benefit from this order, the release said.

Source:pti

UP govt employees get bonus

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Filed Under: BONUS

More FAQ on New Pension Scheme

1) Who shall be responsible for protecting my interests as a NPS subscriber?

A) The Pension Fund Regulatory and Development Authority, the regulator, will protect your interest.

2) What is the process for enrolling in NPS?

A) Eligibility: 18-55 years of age. Upon registration, you will receive a permanent retirement account

number. Minimum annual contribution is Rs.6,000. The minimum number of instalments per year is

four. There is no upper limit on the contribution per instalment or on the number of instalments.

3) Would my personal information be confidential?

A) Yes.

4) Under what circumstances can my account be closed before attaining retirement age?

A) The account would be closed under following circumstances: death, account value reduces to zero and

change in citizenship status.

5) Can I exit before attaining the age of 60 years?

A) Yes, provided you annuitise at least 80 percent of your pension corpus.

6) What if I do not exit the system at or before 70 years?

A) In that case, on attaining 70 years, your account would be closed with the benefits transferred to you.

7) Can someone else make contributions on my behalf?

A) Yes.

8) What would be the penalty in case I am unable to contribute the minimum annual

contribution?

A) You would have to bear a default penalty of Rs.100 per year of default and the account would become

dormant. In order to re-activate the account, pay the minimum contributions, along with penalty due. A

dormant account will be closed when the account value falls to zero.

9) Are there any investment returns guarantees?

A) No. NPS is a defined contribution scheme and the benefits would depend upon the amounts

contributed and the investment growth up to the point of exit from NPS.

10) Will I be permitted to select more than one pension fund to manage my savings?

A) You have to select only one fund. However, the regulator may allow the subscribers to choose more

than one fund in future.

11) What if I do not select any investment option?

A) All your contributions would be channeled into a life-cycle fund.

12) What are the risks of investing in NPS?

A) As with every investment, there is a degree of risk under NPS also. The value of your investment in NPS

may rise or fall.

13) I am 30 years old and would like to retire at 60. I want a pension of Rs.2,000 per month at

today's prices when I retire. How much do I need to contribute?

A) You would need a pension wealth of Rs.319,000 (at today's prices) at the age of 60 to get a pension of

Rs.2,000 per month. To realise this, you would need to contribute approximately Rs.16,600 every year.

14)What will happen to my savings after I retire at 60?

A) You will have to compulsorily invest a minimum of 40 percent of your pension wealth to purchase a life

annuity from an IRDA-regulated life insurer. The remaining pension can be withdrawn in lump sum or in

a phased manner.

15) What will happen to my savings if I decide to exit NPS before the age of 60?

A) You would be required to invest at least 80 percent of your pension wealth to purchase a life annuity

from any IRDA-regulated life insurer. The remaining 20 percent may be withdrawn as a lump sum.

16) Will the annuity also provide for a family (survivor) pension?

A) Yes, you will have an option of selecting an annuity which will pay a survivor pension to your spouse.

On my death, can my nominee continue to operate the account in my name?A) No, the balance standing to the subscriber's account may be transferred to the nominee's account after

following regulator KYC procedure.

17) Can I opt not to exit in case of disability?

A) Yes.

18) Is the scheme tax free?

Long term savings have three stages: contribution, accumulation and withdrawal. The NPS was devised

when the government was planning to move all long term savings to a tax regime called exempt-exempt-

taxed (EET), standing for exempt at the time of contribution, exempt during the period when the

investment accumulates and taxed at the time of withdrawal. So, NPS comes under the tax regime EET.

However, the government could not muster the political courage to change the taxation regime of EET on

several saving schemes. So, the pension fund regulator has taken up with the finance ministry the need to

remove the asymmetry in tax treatment between the NPS and other schemes such as the PPF. In any case,

the amount spent on buying an annuity would be exempt from tax.

Source:postalqueries

More FAQ on New Pension Scheme

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Filed Under: NPS