Thursday, July 24, 2014

New Pension Scheme and its Impact – M. Krishnan Secretary General of Confederation of Central Government Employees

‘New Pension Scheme and its Impact’ – M. Krishnan Secretary General of Confederation of Central Government Employees

CENTRE HAS NO LIABILITY SINCE FUND CREATED WILL BE ADMINISTERED BY PRIVATE INSURANCE FIRM

The New Pension Scheme (NPS) introduced under the New Pension Fund Development and Regulatory Authority (NPFDRA) Act passed by the United Progressive Alliance-II government with the support of the Bharatiya Janata Party will affect the existing pensioners as well as all those who joined the service prior to January 1, 2004, according to M. Krishnan, secretary-general of the Confederation of Central Government Employees (CCGE). Speaking on ‘New Pension Scheme and its Impact’ on the second day of the two-day First Foundation All India Conference of the All India Postal & RMS Pensioners Association (AIPRPA) here on Sunday, Mr. Krishnan said that the NPS was introduced by the Centre based on the recommendations of the Bhattacharji Committee which stated that the financial position of the Central government employees would be far better at the time of their retirement since they were getting better wages while in service.

On these grounds the committee recommended the introduction of the contributory pension scheme (CPS). The committee also stated that the pensioners need not be paid any compensation for price rise except the increase in pension which they would get whenever there was a pay hike for the serving staff. Based on this, the then National Democratic Alliance government issued the order introducing the NPS and making it applicable only to those who joined service after January 1, 2004.

The UPA-I government did not cancel the order but gave a legal status to the NDA government’s order by bringing an Ordinance, which however could not be made into a law because of the opposition of the Left parties. But the subsequent UPA-II government passed the NPFDRA Act in Parliament with the support of the BJP.

With the passing of the Act, the employees who joined after January 1, 2004 suffered a 10% salary cut since this 10% went towards the New Pension Fund created under the Act. The General Provident Fund too was withdrawn for this category by the government which stated that the employees who were under the CPS would get 60% of their contribution as pension at the time of their retirement. Under the NPFDRA, the Central government had no pension liability since the Pension Fund created under the Act was to be administered by a private insurance company which would invest the fund in the share market, which only went to benefit the corporates.

“This virtually amounted to privatisation of pension,” he said.

Cautioning existing pensioners and those Central government employees appointed prior to January 1, 2004 who were under the wrong impression that the NPS would not affect them, Mr. Krishnan pointed to a clause in the NPFDRA Act which states that the NPS could, by a notification of the Government of India, be extended to those who were appointed prior to January 1, 2004 too.

The Secretary General said that a committee constituted by the Central government to work out the projected liability for it if it were to make an initial contribution towards the Pension Fund to provide pension to those who joined before the cut-off date stated that the Centre would have to contribute Rs. 3,35,628 crores to provide pension for the next 30 years, which the Sixth Pay Commission said the government could not bear.

So the committee suggested that the government could consider segregating the liability into one for those below 40 years, and another for others. But such a fund too would be managed by a private agency which would invest it in the unpredictable share market.

“So, the Damocles’ sword of the NPS hung on the existing pensioners too”, he said, adding that the Central government employees and pensioners should fight a joint struggle against the NPS.

Source: The Hindu

Important message to employees who are retiring within the next six months

Important message to employees who are retiring within the next six months 
Pre-retirement counseling workshop
Department of Pension & Pensioners’ Welfare

The Department of Pension and Pensioners Welfare is organizing a Pre-retirement counseling workshop on 30th July, 2014 from 2.00 PM to 5.00 PM in the Conference Room of Department of Administrative Reforms, 5th Floor, Sardar Patel Bhawan, New Delhi. The retiring employees of Government of India about to retire in the next 6 months are hereby informed that they may attend the workshop. You may send your confirmation with Name, Ministry & Phone No. at the email address mkumar.mol@nic.in

sd/-
US (Sankalp)
Department of Pension & Pensioners’ Welfare

ALL CENTRAL GOVERNMENT EMPLOYEES WILL HAVE TO COMPULSORILY SUBMIT THEIR ASSETS AND LIABILITIES

ALL CENTRAL GOVERNMENT EMPLOYEES WILL HAVE TO COMPULSORILY SUBMIT THEIR ASSETS AND LIABILITIES

All Central Government employees will now have to compulsorily submit a detailed report on their properties and debt owed by them…

Already, each year, the Group-A officials are required to submit information about the immovable properties owned by them. Now All categories of Central Government employees too have been asked to submit these details. The DOPT has issued relevant orders to this effect.

The Government has issued this order in accordance with the Lokpal rules. According to this rule, Central Government employees will now have to submit all details regarding the cash-in-hand, bank investments, share certificates, stocks and bonds, mutual fund investments, insurance policies, P.F. details, loans, motor vehicles, gold and silver ornaments, and precious metals, to the Government.

The employees have to also submit details of movable and immovable properties owned by their spouses and children. Application forms will be given to all the employees, to be filled up and submitted before the 31st of July for each financial year.

There are more than 50 lakh Central Government employees, including IAS, IPS and IFS officers, all over the country. All of them will have to henceforth submit details of their properties. If the total property owned by the employee is less than his/her four months’ basic salary, or if the total amount is less than Rs. 2 lakhs, then he/she could be considered for exemption from submitting the information.

Those who have already submitted the details will have to re-submit the form for the current financial year on or before September 15, 2014. Information also has to be furnished about the properties owned by the spouse and children.

On January 1, President Pranab Mukherjee gave his approval for the Lokpal Act and regulations. Following this, amendments were made to the Lokpal Act to make it compulsory for all Central Government employees to furnish their property details.

Source: CGEN.in

PFRDA – Comments are invited on PFRDA Regulations 2014 from all concerned

PFRDA – Comments are invited on PFRDA Regulations 2014 from all concerned

DRAFT – Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2014

1. The PFRDA Act was passed by Parliament on Sep/19/2013 and notified on Feb/01/2014. In accordance with section 52 of the Act, the Authority may, by notification make regulation consistent with the Act and rules made thereunder for carrying out the provisions of the Act.

2. “Pension fund” is defined under Section (2) (l) of the Act as “intermediary which has been granted a certificate of registration under sub-section (3) of section 27 by the Authority as a pension fund for receiving contributions, accumulating them and making payments to the subscriber in the manner as may be specified by regulations”.

3. The objective of these Regulations is to standardize and to provide regulatory framework for Pension Fund (PFs) that would provide interalia criteria for registration, capital adequacy, code of conduct, obligation and responsibilities etc. Further, the regulation would ensure an effective procedure for inspection and audit to protect the interests of subscribers.

4. Therefore, in order to safeguard the interest of the subscribers, PFs as an intermediary, through this regulation, are required to adopt high level of standard practices that requires compliance with standards for internal control and operational conduct, with the aim of protecting the NPS assets, proper management of risk and generation of optimum returns.

5. Public comments are invited on the draft regulations on Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2014 . All comments from the public will be considered before the regulations are finalized. Comments may be forwarded by email to sumeet.kapoor@pfrda.org.in or may be sent at the under-mentioned address latest by 18th Aug 2014 as per format given below.

Aug 2014 as per format given below.

Name of the Person:
Organisation:
Designation:
Sr. No. Pertains to which regulation /Sub-regulation
(Regulation No. & Clause No.)
Proposed/suggested
changes*
Rationale
1.


2.


3.



Instruction to fill up the format:
1. All letters or emails to clearly specify the name and number of the regulation, sub-regulation and clause. 2. Separate letters/emails to be used for different regulations. 3. Each proposed amendment to be given separately. 4. Each proposed amendment (preferably) not to exceed 200 words*

Your letter(s) can be addressed to:

Ms. Sumeet Kaur Kapoor
General Manager
Pension Fund Regulatory & Development Authority (PFRDA)
1st Floor, ICADR Bldg, Plot No.6
Vasant Kunj Institutional Area, Phase II
New Delhi -110070

Source: www.pfrda.org.in
[http://www.pfrda.org.in/writereaddata/linkimages/Draft%20PF%20Regulations%20Letter1.pdf]

Dopt Minister replied in Parliament about 5 Day Week for Central government offices

Dopt Minister replied in Parliament about 5 Day Week for Central government offices

The Dopt Minister said in a written reply, there is no proposal to change 5-Day Week for Central government offices.

As per media news, Minister of State for Personnel, Public Grievances and Pensions Shri.Jitendra Singh today replied to a question in Lok Sabha, whether the Central Government plans to change the five days per week working for central government employees.

He clarified that Central Government has no such proposal to change five days per week working for central government offices and also no proposal to hike earned leave and casual leave being granted to the Central government employees.

Source: CGEN.in

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