FAMILY PENSION IN NPS

FAMILY PENSION IN NPS

Family Pension for NPS Employees – A report states that between April 1994 and April 2004, more than 50 lakh youths joined Government Services. However, the same dropped to around 33 Lakhs after April 2004. Experts blame the Governments’ decision to abolish pension for this, which forced the youths to move towards the corporate sector.

The 33 lakh Central and State Government employees who have joined after 2004, may soon have a reason to rejoice. The Government is seriously considering to offer Family Pension for NPS Employees who have joined after 2004. Reliable sources have said that the 7th Pay Commission has recommended the same. The State Governments’ have been asked to submit their reports by the end of December, and after due approval it is expected that the Pension Scheme will come into effect by 1, January 2016.

We already know that the Employees who joined in Government Services after 2004 come under contributory pension scheme. Under which an employee will be deducted 10 per cent of his basic salary, and the same per cent would be contributed by the Government through out his/her service. After retirement, 70 per cent of the pension would be given in lump sum and the rest of the 30 per cent would be used for component to be paid every month till his/her life time.

However the employees who joined in service before 2004, are eligible for family pension, and they are not deducted any amount from the salary in the name of pension. Such employees afterretirement, become eligible for 50 per cent of the last drawn salary as their pension.

Sources confirm, the 7th Pay Commission may include recommendations for NPS revisions, and it is expected to be converted to family pension. Mr.KKN Kutty, Secretary General, Confederation of CGEs and workers expressed his happiness and said, if the Central Government accepts the proposal, a large number of Government employees would be benefited.

Mr.K.S.Sharma, former Chief Secretary, Madha Pradesh said, “The family pension scheme was abolished from April 2004. It was a bad move by the Government. It is pension, that attracts the youths to join the Government Services, because their future is secured. If the Government accepts the recommendations of the 7th Pay Commission, the youths would be motivated to join the Government Services”.

A report states that between April 1994 and April 2004, more than 50 lakh youths joined Government Services. However, the same dropped to around 33 Lakhs after April 2004. Experts blame the Governments’ decision to abolish pension for this, which forced the youths to move towards the corporate sector.

Mr.Jayanth Malaiya, Finance Minister, Madhya Pradesh assured, “If the recommendations were accepted by the central government, he will definitely consider implementing the same in MP”.

Source: Dainik Bhaskar

Non compliance of instructions for payment of Defence Pension

Non compliance of instructions for payment of Defence Pension

    O/o the Principal Controller of Defence Accounts (Pensions)
    Draupadi Ghat Allahabad-211014

Circular No.180
No. AT/Tech/256-V

    Dt. 14.08.2015

To
The CMD
All Public Sector Bank
(Including three Private Sector Banks viz Axis Bank, ICICI Bank & HDFC Bank)

Sub: Non compliance of instructions for payment of Defence Pension.

Guidelines/instructions for payment of Defence Pension are provided in “Scheme for payment of pension of Defence Pensioners by Public Sector Banks”. This scheme helps the banks in discharging their duties of payment to defence pensioner especially with respect to obtaining necessary certificates from pensioners/ family pensioners before continuing payment after due date as well as maintenance of pension account and submission of paid scrolls along with necessary enclosures/certificates to this office. Besides this, circulars on pensionary matter are also issued by this office from time to time.

2. However, it is observed that Banks are not adhering to above said guidelines/instructions resulting in increase in complaints from pensioners due to incorrect / under payment and also loss to exchequer due to over payment. In this regard, two major irregularities noticed where banks failed to comply with the guidelines/instructions stated in para 1 above are elaborated below:-

(i) In a particular case, after the death of pensioner on 10.12.2001 which was intimated to the pension paying bank by the son of pensioner. However, the bank continuously credited the pension in pensioner’s account till 2007.The account of pensioner was having a balance of Rs 6,17,628 as on 15.04.2015.

3. Thus, in this case the bank failed to adhere to the following guidelines:-
(a) Bank failed to comply with the provisions of para 8.4 of “Scheme for Payment of Pension of Defence Pensioners by Public Sector Banks” which states that where pensioner ceases to draw pension due to death, disqualification, expiry of award, transfer to another Pension Disbursing Agency, the details of such pensioner will be extracted monthly by the bank and forwarded to this office on the format prescribed in Annexure D-I & D-II by 10th of the following month under the Registered Cover Superscribed as “Annexure D-I, & D-II”.

(b) Bank has failed to take action, as per Para 29 of Annexure-H of “Scheme for payment of pension of Defence Pensioners by Public Sector Banks” for stoppage/discontinuance of the payment immediately after receipt of intimation of demise of pensioner.

(c) Bank has further failed to take action for stoppage/discontinuance of pension after 31.10.2002 i.e. in the month of November, as after death of pensioner, life certificate / identification could not be obtained/carried out. Clear instruction for obtaining life certificate and identification is laid down in Para 12 of “Scheme for Payment of Pension of Defence Pensioners by Public Sector Banks” and Para 4 of Annexure-H of “Scheme for Payment of Pension of Defence Pensioners by Public Sector Banks”.

(d) Bank has failed even to follow their own guidelines to close the account if no transaction took place for six months.
(ii) In another case, a pensioner was granted basic pension amounting Rs 8000/- pm. However, bank credited his account @ Rs 80,000/- of basic pension plus dearness relief. Here bank has overlooked the upper ceiling of pension of Rs 45,000/- as stated vide Para 9 of this office circular No. 397 dt-18.l 1.2008.

4. Such incorrect payments have been viewed seriously by Ministry of Defence and directed to establish the mechanism to stop the payment of such nature.

In view of the above, it is requested that all paying branches/CPPC under your jurisdictions dealing with defence pension may be instructed to adhere strictly to the guidelines/instructions specifically with respect to showing the causalities affecting the entitlement or admissibility of pension/family pension in change statement and enclosing the various certificates with Bank Scrolls. A copy of Annexure D-I, & D-II is enclosed for providing the details concerned in digital mode with the e-scrolls, as this office is moving ahead with e-auditing.

In addition, the banks are required to introduce the “Range Check” in all the categories of Pension so as to ensure that the amount of pension does not fall below the minimum range and does not go beyond the maximum range introduced in the system.

    (Vivek Umap)
Addl.CDA

Download Principal Controller of Defence Accounts Circular No. 180 dated 14.08.2015