Pre-2006 pensioners who retired from the 5th CPC scale of Rs. 6500-10500/-

Pre-2006 pensioners who retired from the 5th CPC scale of Rs. 6500-10500/-

No.38/33/12-P&PW (A)

Government of India

Ministry of Personnel, PG & Pensions

Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan

Khan Market, New Delhi-110 003

Dated the 4th January, 2019

OFFICE MEMORANDUM

Sub: Revision of pension w.e.f 1.1.2006 of Pre-2006 pensioners who retired from the 5th CPC scale of Rs. 6500-10500/-.

The undersigned is directed to say that as per Para 4.2 of this Department’s OM of even number dated 01.09.2008 relating to revision of pension of pre-2006 pensioners w.e.f. 1.1.2006, the revised pension w.e.f. 1.1.2006, in no case, shall be lower than 50% of the sum of the minimum of pay in the pay band and the grade pay thereon corresponding to the pre-revised pay scale from which the pensioner had retired.

2. Instructions were issued vide this Department’s OM of even number dated 28.1.2013 for stepping up of pension of pre-2006 pensioners w.e.f. 24.9.2012 to 50% of the sum of the minimum of pay in the pay band and the grade pay thereon corresponding to the pre-revised pay scale from which the pensioner had retired, as arrived at with reference to the fitment tables annexed to Ministry of Finance, Department of Expenditure’s OM No. 1/1/2008-IC dated 30th August, 2008. A concordance table indicating the revised pension/family pension of pre-2006 pensioners in terms of instructions contained in para 4.2 of OM dated 1.9.2008 read with the OM dated 28.1.2013 was also annexed to the OM dated 28.1.2013. Subsequently, orders were issued vide this Department’s OM of even number dated 30.7.2015 that the pension/family pension of all pre-2006 pensioners/family pensioners may be revised in accordance with this Department’s OM No. 38/37/08-P&PW(A) dated 28.1.2013 with effect from 1.1.2006 instead of 24.9.2012.

3. In the aforesaid OM dated 28.1.2013 of Department of Pension & Pensioners’ Welfare, the grade pay corresponding to the pre-revised pay scale of Rs. 6500-10500 was shown as Rs. 4200/- and the minimum pension in terms of para 4.2 of the OM dated 1.9.2008 was shown as Rs. 8145/- (50% of minimum pay of Rs. 16,290/- as per fitment table for the pre-revised scale of pay of Rs. 6500-10500, annexed to Ministry of Finance, Department of Expenditure’s OM No. 1/1/2008-IC dated 30th August, 2008).

4. Order were issued vide Ministry of Finance, Department of Expenditure’s OM No.1.2008-IC dated 13.11.2009 that the posts which were in the pre-revised scale of Rs. 6500-­10500 as on 1.1.2006 and which were granted the normal replacement pay structure of grade pay of Rs. 4200/- in the pay band P13-2, will be granted grade pay of Rs. 4600/- in the pay band PI3-2 corresponding to the pre-revised scale of Rs. 7450-11,500 w.e.f 1.1.2006.

5. Representations have been received in this Department for extending the benefit of grade pay of Rs. 46001- for revision of pension/family pension, w.e.f. 1.1.2006, in respect of Pre-2006 pensioners who retired/died in the 5th CPC scale of Rs. 6500-10500/- or equivalent pay scale in the earlier Pay Commission periods. The matter regarding the amount of minimum pension/family pension in terms of para 4.2 of the O.M. dated 1.9.2008 in their case has been re-examined in the light of the orders issued by Ministry of Finance (Department of Expenditure) vide their OM No. 1/1/08-IC dated 13.11.2009 and decisions of courts in certain cases. It has been observed that pay of all serving employees in the pre-revised pay scale of Rs. 6500-10500/- has been fixed w.e.f. 1.2006 in the grade pay of Rs. 4600/-. Therefore, the grade pay of Rs. 4600/- can be considered as the grade pay corresponding to the pre-revised pay scale of Rs. 6500-10500/,

6. Accordingly, it has been decided that, for the purpose of revision of pension/family pension e.f. 1.1.2006 under para 4.2 of the 0.M. dated 1.9.2008, the Grade Pay of Rs. 4600/- may be considered as the corresponding Grade pay in the case of pre-2006 pensioners who retired/died in the 5th CPC scale of Rs. 6500-105001- or equivalent pay scale in the earlier Pay Commission periods,

7. In accordance with the provisions of Rule 7 of the CCS (Revised Pay) Rules, 2008, the pay corresponding to the pay of Rs. 6500/- in the pre-revised pay scale of Rs. 6500-10500/- would be 12090/- in the PB-2. After adding the grade pay of Rs. 4600/- , the pay in the Pay Band I Grade Pay corresponding to the pay of Rs. 6500/- in the pre-revised pay scale of Rs. 6500-10500 would he Rs. 16690/- (12090+4600). Accordingly, the revised pension w.e.f. 1.1.2006 in terms of para 4.2 of OM dated 1.9.2008, for the pre-2006 pensioners who retired from the pay scale of Rs. 6500-10500/- in the 5th CPC or equivalent pay scales in the earlier Pay Commissions would be Rs. 8345/, Accordingly the entries at serial number 13 in the annexure of this Department’s OM No. 38/37/08-P&PW(A) dated 28.1.2013 may be substituted by the entries shown in the statement annexed to this O.M.

8. As provided in this Department’s OM dated 28.1.2013, in case the consolidated pension/family pension calculated as per para 4.1 of this Department’s OM No. 38/37/08- P&PW(A) dated 1.9.2008 is higher than the pension/family pension calculated in the manner indicated above, the same (higher consolidated pension/family pension) will continue to be treated as basic pension/family pension.

9. In their application to the persons belonging to the India Audit and Accounts Department, these orders are issued in consultation with the controller and Auditor General of India. All the Ministries/Departments are requested to bring the contents of these orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and subordinate Offices under them. They are also requested to revise the pension of the affected pre-2006 pensioners in accordance with the instructions contained in this O.M. on a top priority basis.

10. Hindi version will follow.

(Harjit Singh)

Director

Payment of Dearness Allowance to State Government Employees and Dearness Relief to State Service Pensioners/Family Pensioners — Revised rates effective from 01/07/2017— Orders Issued.

GOVERNMENT OF KERALA Abstract

Payment of Dearness Allowance to State Government Employees and Dearness Relief to State Service Pensioners/Family Pensioners — Revised rates effective from 01/07/2017— Orders Issued.

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FINANCE (PAY RESEARCH UNIT) DEPARTMENT G.O.(P) No 84/2018/Fin. Dated, Thiruvananthapuram, 07/06/2018

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FINANCE (PAY RESEARCH UNIT) DEPARTMENT
G.O.(P) No 84/2018/Fin.
Dated, Thiruvananthapuram, 07/06/2018

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Read: –

1. G.O. (P) No. 7/2016/Fin, dated 20.01.2016
2. G.O. (P) No. 9/2016/Fin, dated 20.01.2016
3. G.M. No. 01/09/2017 – F.-II (B) dated 20/09/2017 of the Department of Expenditure, Ministry of Finance, Government of India. 4. G.M. No. F—No.42/15/2016 P&PW (G) dated 28.09.2017 of the Department of Pension and Pensioners Welfare, Ministry of Personnel, Public Grievances and Pensions, Government of India.
5. G.M. No. 1/3/2008-E.II(B) dated 26/09/2017 of the Department of Expenditure, Ministry of Finance, Government of India.
6. G.0 (P) No. 629/2013/Fin dated 23/12/2013.
7. G.0 (P) No. 61/2016/Fin dated 05.05.2016.
8. G.0 (P) No. 6/2017/Fin dated 19/01/2017.
9. GO (P) No. 55/2017/Fin dated 26/04/2017.
10. GO (P) No. 74/2017/Fin dated 27/05/2017.

ORDER

In the Office Memoranda cited above, Government of India sanctioned revised rate of Dearness Allowance/Dearness Relief to Central Government employees, Pensioners and Family Pensioners with effect from 01/07/2017. On the basis of the above, the following orders are issued:

2.(i) The rate of Dearness Allowance payable in respect of State Government Employees, Teachers, Staff of Aided Schools, Private Colleges and Polytechnics, Full Time Employees borne on the contingent and work charged establishments and employees of Local Bodies \NM be enhanced from the existing rate of 14% to 15% w.e.f 01.07. 2017.

(ii) The Dearness Allowance payable in respect of those employees continuing in the pre-revised scale of G.0 (P) No.85/2011/Fin dated 26.02.2011 will be enhanced from the existing rate of 109% to 112 % w.e.f. 01.07.2017.

(iii) The Dearness Allowance payable in respect of those employees continuing in the pre-revised scale of G.O.(P) No.145/2006/Fin dated 25.03.2006 will be enhanced from the existing rate of 255% to 259% w.e.f. 01.07.2017

(iv) The Dearness Allowance payable in respect of teachers coming under UGC/AICTE/Medical Education Schemes (in whose case DA up to 50% has been converted as Dearness Pay) will be enhanced form the existing rate of 264% to 268% w.e.f. 01.07.2017.

(v) The Dearness Allowance payable in respect of the teaching staff coming under UGC/AICTE/Medical Education Schemes who have changed over to revised UGC/AICTE scale from 01.01.2006 or thereafter and judicial officers will be enhance from the existing rate of 136% to 139% w.e.f 01.07.2017.

(vi) The Dearness Allowance payable to those employees who are continuing in the 1997 pay scales even after 01.07.2017 will be enhanced from the existing rate of 314% to 318% w.e.f 01.07.2017 (up to the date of effect of option under Pay Revision 2014).

(vii) The Dearness Allowance payable to those employees in public Sector undertakings who were getting pay and allowances based on the scales of pay admissible under 1992 pay Revision will be enhanced as follows with effect from 01.07.2017.
  

Date of effect	Pay Range	Rate of Da per month
01.07.2017	Basic pay up to Rs 3,500 p.m	932% of Pay
	Basic pay above Rs3,500 up to Rs6000 p.m	835% of pay subject to a minimum of Rs 32,620
	Basic pay above Rs6,000	796% of pay subject to a minimum of Rs 50,100

(viii) The Dearness Allowance at the enhanced rate will be paid in cash along with arrears for the period from 01-07-2017 to 31-05-2018 with the salary for the month of June 2018. It is applicable to those employees continuing in the pre-revised scale even after 2014 pay revision, and even after 1996 UGC/AICTE/Medical Education Scheme.

(ix) The enhanced rate of Dearness Allowance will also be applicable to part-time and part-time contingent employees on the basis of pay drawn by them.

(x) The Dearness Relief payable to state service pensioners, Family pensioners, Ex-gratia Pensioners/Ex-gratia Family Pensioners 9whose pension/family pensin has been revised as per G.O.(P) No.09/2016/Fin, dated 20.01.2016) will be enhanced from the existing rate of 14% to 15% with effect from 01.07.2017.

(xi) Re-employed pensioners whose pay has been revised as per G.O.(P) No.2/17/Fin dated 04/01/2017 are eligible for payment of DA at the enhanced rate of 15% w.e.f. 01-07-2017 as admissible to state Government Employees and they are eligible for this enhanced rate of DA Based on a general letter of authority issued by the Accountant General.

(xii) The Dearness Relief payable to state Service Pensioners and Family Pensioners (whose pension/family pension has not undergone revision as per G.O.(P) No.09/2016/fin, dated 20.01.2016) will be enhanced from the existing rate of 109% to 112% with effect from 01.07.2017.

(Xiii) the Dearness Relief payable to state service pensioners and Family Pensioners whose pension/Family pension has not undergone revision as per G.O.(P)No.87/2011/fin dated 28.02.2011, and also to the Pensioners/Family Pensioners coming under UGC/AICTE/Medical Education Schemes (who retired prior to 01-07-2004 and whose family pension has been revised as per G.O.(P) No.81/2007/Fin. dated 28.02.2007 and whose pension has not undergone revision as per G.O.(P)No.211/2011/Fin dated 07-05-2011), will be enhanced from the existing rate of 255% to 259% with effect from 01.07.2017.

(xiv) The Dearness relief payable to retired state judicial officers (who are drawing Dearness Relief at central rates and whose pension or family pension has not been revised as per G.O (Ms) No.236/10/Home dated 02.11.2010) and the pensioners/Family pensioners, coming under the category UGC/AICTE/Medical Education schemes (who retired after 01.07.2004 and whose pension/family pension has been revised as per G.O.(P) No.84/2007/Fin dated 01.03.2007 and has not undergone revision as per GO (P) No.211/2011/Fin dated 7/5/2011) will be enhanced from the existing rate of 264% to 268% w.e.f. 01-07-2017.

(xv) The Dearness Relief payable in respect of Ex-Chairman and Members of kerala public service Commission, will be enhanced as follows w.e.f 01.07.2017

Category	Date of termination of service	Rate of DR
Chairman and Members who were appointed from outside Government service and whose pension structure was modified as per G.O.(P) No.23/2017/GAD dated 21-08-2017	Prior to or after 01.01.2006	139%
Chairman and Members who were appointed from outside Government service and whose pension structure was modified as per G.O.(P) No.23/2017/GAD dated 21-08-2017	Prior to or after 01.01.2006	112%
Chairman and Members having prior service in Government and opted benefits of combined service	Prior to or on or after 01.01.2006	112%

  (xvi) (a) the Dearness Relief payable in respect of Ex-Chairmen/other Members of Kerala Public Service Commission, whose pension has not undergone revision as per G.O.(Ms.) No.339/2013/GAD dated 30.11.2013, will be enhanced as follows with effect from 01.07.2017.

Category	Date of termination of service	Rate of DR
Chairman and Members who were appointed from outside Government service	Prior to or after 01.01.2006	259%
Chairman and Members having prior service in Government and opted benefits of combined service	Prior to 01.07.2004	259%
Chairman and Members having prior service in Government and opted benefits of combined service	On or after 01.07.2004	268%

(xvii) The rate of Dearness Relief payable to the teaching staff coming under UGC/AICTE/Medical Education Streams who have changed over to revised UGC/AICTE scale from 1.1.2006 and those who retired after 1.1.2006 and that to the state judicial officers whose pension has been revised as per G.O.(Ms)No.236/2010/Home dated 02.11.2010, will be enhanced from the existing rate of 136% to 139% w.e.f 01.07.2017. This rate will be adopted only after the formal sanctioning of revision of their pension in terms of G.O.(P) No.211/2011/Fin dated 07.05.2011. The teaching staff coming under the UGC/AICTE/Medical Education streams who have retired prior to 01.01.2006 and whose pension has been revised in terms of G.O.(P)No.211/2011/Fin dated 07.05.2011 will also be eligible for Dearness Relief at the above rate.

(xviii) The Dearness Relief payable in respect of the State Service Pensioners/Family Pensioners whose pension has not undergone revision as per G.O.(P)No.180/2006/Fin, dated 18.04.2006 and who are drawing pension/family pension as per pension revision 1997, and in respect of pensioners/Family Penisoners coming under UGC/AICTE/Medical Education Schemes whose pension has not undergone revision as per G.O.(P)No.81/2007/Fin. dated 28.2.2007 or G.O.(P) No.84/2007/Fin dated 1.3.2007 will be enhanced from the existing rate of 314% to 3185 w.e.f. 01.07.2017. This will be applicable only till such date of effect of option for pension Revision 2004, after which the Dearness Relief payable will be as indicated in para 2(xiii) above and after the date of effect of option for pension Revision 2009, Dearness Relief will be payable as indicated in para 2 (xii) above.

3. The enhanced rate of Deanress Relief due from 01.07.2017 will be paid along with the pension for July 2018 and arrears from July 2017 to June 2018 will be released in cash along with the pension for July 2018.
4. The conditions laid down in the G.O.read as 5th above shall be applicable while regulating Dearness Allowance/Dearness Relief undr these orders.

By Order of the Governor

S/d,
MANOJ JOSHI
Principal Secretary to Government (Finance).

Signed Copy

Time limit fixed for filing Appeal for grant of Family Pension

Time limit fixed for filing Appeal for grant of Family Pension

Time limit fixed for filing Appeal for grant of Ordinary Family Pension, Special Family Pension, Liberalized Family Pension and disability/ war injury pension/ element etc.

Department of Ex-Servicemen welfare has extended  the time limit for filing Appeal for grant of Ordinary Family Pension, Special Family Pension, Liberalized Family Pension and disability/ war injury pension/ element etc.

No.1(3)/2008/D(Pen/Pol)

Ministry of Defence

Department of Ex-Servicemen welfare

New Delhi

Dated: 17th May 2016

To
The Chief of the Army Staff
The Chief of the Air Staff
The Chief of the Naval Staff

Subject: Prescription of time limit for filing Appeal for grant of Ordinary Family Pension, Special Family Pension, Liberalized Family Pension and disability/ war injury pension/ element etc.

It has been observed that Service Hqrs are processing the appeal case files-(First Appeal/ 2nd Appeal) for grant of Ordinary Family Pension, Special Family Pension, Liberalized Family Pension and disability/War injury pension/ element etc after elapse of considerable time from the date of rejection of claim/ date of discharge or invalidment of the personnel from Service.

2. The matter has been under consideration of this Ministry for quite some time and President of India is pleased to decide that, a time limit of five years is prescribed for filing an appeal for consideration of the case for grant of Ordinary Family Pension, Special Family Pension, Liberalized Family Pension, disability/war injury pension/ element etc from the date of discharge/ invalidment from service or from the date of rejection of claim. The time limit of five years prescribed in this order is applicable in the case of belated appeal only and the period of six months prescribed in the Pension Regulation and Entitlement Rules etc for filling appeals in respect of disability/ war injury element, special Family Pension etc would continue to be governed under the existing provisions.

    3. The time limit of five years prescribed now will not be applicable in the case of delayed manifestation of disease and all such cases would continue to be governed under the existing previsions provided under regulation 86 of Pension Regulation for Army Part. I [2008].

    4. Para 1(a)(vi) of Ministry of Defence Order No.4684/DIR(PEN)/2001 dated 14th August 2001 and Para 2(c) of Ministry of Defence letter No. 4684/Dir(Pen)/2001 dated 7th November 2001 maybe modified as “Time bar sanction for filing appeals for all type of Family Pension and disability/War injury pension/ element etc in respect of officers and PBORS beyond twelve months to five years”.

    5. A period of one year from the date of issue of this order is granted for submission of the appeal in respect of past cases. This one time relaxation may be allowed judiciously in deserving cases.

    6. This issue with the concurrence of Finance Division of this Ministry Vide their ID No PC-2 to 26(7)/2013/Fin/Pen dated 13/14 April 2016.

    Hindi version will follow.

    Yours faithfully,

    (R K Arora)

    Under Secretary to the Government of India

Download DESW circular No.1(3)/2008/D(Pen/Pol) dated 17.05.2016

Pre-2006 retiree IAS, IPS officers to get pension hike

Pre-2006 retiree IAS, IPS officers to get pension hike

IAS and IPS officers, who have retired before 2006, will get a hike in pension, in addition to the arrears, as the Centre has done away with a provision of 33-years of service for earning full pension.
The move comes after the Department of Pensions and Pensioners Welfare decided that the revised consolidated pension of pre-2006 pensioners shall not be lower than 50 per cent of the minimum of the pay in the pay band and the grade pay even if they had served for less than 33 years at the time of retirement.

Necessary orders directing concerned authorities to calculate the revised pensions in respect of central government pensioners, excluding retiree officers of three all India services — Indian Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFoS) — have already been issued.

It has been now decided that the same provisions “shall be applicable mutatis-mutandis (as mentioned in earlier order issued in this regard) to all India service pensioners of pre-2006″, said a communique sent to all chief secretaries of state governments and union territories administration by the Personnel Ministry.

As per rules, a central government servant is entitled to receiving superannuation pension on completion of at least 10 years of service. With effect from January 1, 2006, pension is calculated with reference to average emoluments — the average of the basic pay drawn during the last 10 months of service or last basic pay drawn whichever is higher.

Before 2006, for service of less than 33 years, amount of pension was proportionate to the actual service broken into completed half-year periods.

PTI

Tamilnadu Government increased the Dearness Allowance to Pensioners and Family Pensioners from 1st January 2016

Tamilnadu Government increased the Dearness Allowance to Pensioners  and  Family  Pensioners from 1st January 2016 

  FINANCE [Pension] DEPARTMENT

    G.O.No.118, Dated 20th April 2016.

    (Thunmugi, Chithirai-07, Thiruvalluvar Aandu-2047)

    ABSTRACT

    PENSION  –  Dearness  Allowance  to  the  Pensioners  and  Family  Pensioners  – Revised rate admissible from 1st  January, 2016 – Orders – Issued.

    Read :

    1. G.O.Ms.No.264, Finance (Pension) Department, dated: 16-10-2015.

    2. G.O.Ms.No.117, Finance (Allowances) Department, dated:20-04-2016.

    3. Government  of  India,  Ministry  of  Personnel,  Public  Grievances  & Pensions,   Department   of   Pension   &   Pensioners’   Welfare,   New Delhi’s   Office   Memorandum    F.No.42/06/2016-P&PW(G),    dated: 11-04-2016.

    ORDER :

    In   the   Government   Order   first   read   above,   orders   were   issued sanctioning the revised rate of Dearness Allowance to the State Government Pensioners / Family Pensioners as detailed below:-
    Date from  which payable     Revised  rate  of  Dearness
    Allowance    (per  month )
    1st  July, 2015.     119 %  of  Pension  /  Family  Pension

    2. The  Government  of  India,  in  its  Office  Memorandum  third  read above  has  enhanced  the  Dearness  Allowance  payable  to  its  Pensioners  / Family Pensioners from the existing rate of 119% to125% with effect from 1st January, 2016.

    3. Following   the   orders   issued   by   the   Government   of   India,   the Government  has  now  decided  to  sanction  one  additional  instalment  of Dearness Allowance at the rate of 6% to the Pensioners / Family Pensioners of   the   State   with  effect  from  1-1-2016.     Accordingly,   the   Government sanction the revised rate of Dearness Allowance to the State Government Pensioners / Family Pensioners as indicated below:-

    Date from  which payable     Revised  rate  of  Dearness
    Allowance    (per  month )
    1 s t   J a n u a r y ,  2 0 1 6     125% of Pension / Family Pension

    4. The   Government   also   direct   that   the   increase   in   Dearness Allowance  shall be paid in cash to the Pensioners  / Family Pensioners with effect from 1-1-2016.

    5. While  arriving  at  the  revised  Dearness  Allowance,  fraction  of  a rupee  shall  be  rounded  off  to  the  next  higher  rupee  if  such fraction  is  50 paise and above and shall be ignored if it is less than 50 paise.  It will be the responsibility  of  the  Pension  Disbursing Authority  including  Public  Sector Banks to calculate the quantum of Dearness Allowance payable in each individual case.

    6. Pending formal authorisation  by the Principal  Accountant  General, the  revised  Dearness  Allowance  shall  be  paid  straightaway  by the Pension Pay   Officer,   Chennai-6,   Treasury   Officers   and   Public   Sector   Banks concerned.

    7. This order will apply to the following categories of pensioners:-

    (i) Government  Pensioners,  Teacher  Pensioners  of aided  and  local body  educational  institutions  and  other  pensioners  of  local bodies.

    (ii) The  State  Government  employees  who  had  drawn  lumpsum payment on absorption in Public Sector Undertaking / Autonomous Body / Local Body / Co-operative institution and have become entitled to restoration of 1/3rd commuted portion of pension as well as revision of the restored amount.

    (iii) Present  and  future  family  pensioners;  In the  case  of divisible family pensioners, Dearness Allowance shall be divided proportionately.

    (iv) Former   Travancore-Cochin   State   pensioners   drawing   their pension  on  1st   November,  1956  in  the  Treasuries  situated  in the areas transferred to Tamil Nadu State on that date, i.e. Kanniyakumari District and Shencottah taluk of Tirunelveli District.

    (v) Pensioners who are in receipt of special pensions under Extra- ordinary Pension Rules, Tamil Nadu and Compassionate Allowance.

    8. The expenditure  on Dearness  Allowance  payable  to the Pensioners and Family  Pensioners shall  be  debited to the  following Heads of Account respectively:

    “2071.   Pension   and   Other   Retirement   Benefits   –   01.   Civil   –  101. Superannuation  and Retirement  Allowances  – I. Non-Plan  – AC. Dearness Allowance to Pensioners – 03. Dearness Allowance (D.P.Code 2071 01 101 AC 0306)”

    “2071.   Pension   and   Other   Retirement   Benefits   –   01.   Civil   –  105. Family Pensions – I. Non-plan – AC. Dearness Allowance to Family Pensioners of Tamil Nadu Government – 03. Dearness Allowance (D.P. Code 2071 01 105 AC 0308) “.

    9. Orders regarding sanction of Dearness Allowance to the widows and children of the deceased Contributory Provident Fund / Non Pensionable Establishment  beneficiaries  of  State  Government  and the  former  District Board who are drawing ex-gratia will be issued separately.

    10. The   increased   expenditure   due   to   the   sanction   of   Dearness Allowance in this order is allocable among the successor States as per the provisions laid down under the State Reorganization Act, 1956.

    (BY ORDER OF THE GOVERNOR)

    T.UDHAYACHANDRAN

    SECRETARY TO GOVERNMENT  [EXPENDITURE]

Download TN Govt G.O.No.118 dated 20.04.2016.

New Pension Scheme: Corpus up to Rs 2 lakh can be fully withdrawn at retirement

New Pension Scheme: Corpus up to Rs 2 lakh can be fully withdrawn at retirement
New Pension Scheme (NPS) holders can withdraw the entire fund on retirement if the total amount is Rs 2 lakh or less. The Finance Ministry has notified the change.

“When, on superannuation, a request is received from a subscriber, other than the subscriber under NPS-Lite Swavalamban Scheme, having pension wealth of two lakh rupees or less, he/she may opt for withdrawal of total pension wealth,” according to a Finance Ministry gazette notification . At present, over 4,400 accounts have accumulated amounts of Rs 2 lakh or lower. Out of these, nearly 680 have made a request for withdrawal.

Normally, an individual can exit either at or after the age of 60. However, from March 2013, subscribers were allowed to stay invested till the age of 70, but with some conditions such as no-contribution or part-withdrawal between the ages of 60 and 70.

ANNUITY PROBLEM

At the time of exit, 60 per cent of the total amount is given as lump sum, while 40 per cent is used to purchase an annuity, which provides lifetime pension to an employee and his dependent parents/spouse at the time of retirement. The problem was that the accumulated amount was inadequate for pension payouts. The thinking is that accumulated funds of less than Rs 2 lakh are not enough to purchase an annuity or annuity providing for a decent monthly income.

Now, subscribers, with pension wealth of Rs 2 lakh or less, will have to make a request for an ‘opt-out’ option. Those who have not made a request for withdrawal as lump sum may like to continue, which is why a specific ‘opt out’ option is being proposed, rather than a default option.

NPS is a contributory scheme that was made mandatory for Union Government employees (except those joining the Armed Forces) joining on or after January 1, 2004. Under the scheme, an employee contributes 10 per cent of his/her salary and dearness allowance and an equal contribution is made by the Union Government.

Source: The Hindu Business Line