Central Government Employees News,SEVENTH PAY COMMISSION,DEARNESS ALLOWANCE,7TH PAY COMMISSION,HBA, HRA,LTC, CCL, DoPT Orders

Different forms and learning materials related to New Pension scheme can be downloaded from the links given below. It contains useful guides for understanding the New Pension Scheme which are mandatory for central Government employees who joined the Department on or after 01/01/2004. Now as per GOI rules, any citizen of India can join the New Pension Scheme.

Employees who joined before 01-01-2004 can also open a New Pension Scheme Account.

The market-linked pension scheme would have 10 per cent contributory fund by Government and 10 per cent by the employees. In this, Government knows the money is being used, but the employee does not have any information regarding the use of its funds, said AIRF General Secretary, Shivagopal Mishra

The Government of India, in its different departments, has recruited over 5 lakh employees since 2004, including one lakh employees in the Indian Railways. The new officials and employees, recruited under the new pension scheme are not finding the new scheme workable.

The market-linked pension scheme would have 10 per cent contributory fund by Government and 10 per cent by the employees. In this, Government knows the money is being used, but the employee does not have any information regarding the use of its funds, said AIRF General Secretary, Shivagopal Mishra while addressing the press conference on Tuesday at the West Central Railway Employees’ Union (WCREU) office. He is in city to attend the Youth Zonal Conference of WCREU.

He added that the new pension scheme has various lapses. First, it is market-linked and has limited provisions for withdrawal. Its provision is against employee’s benefits
that is benefits provisions would end if the service is not complete. On this issue, when the AIRF gave a notice of strike to the Government, the present Government constituted a committee to review the demands of AIRF. “We are demanding guarantee pension scheme for the employees that is 50 per cent of last salary. On death or permanent disability of the employee, the compensation should be given as per old scheme. On this, the Government has shown some positive response, while also, the committee constituted has given recommendations in this direction, asking the Government to accept this demand,” he said.

He further said that, every year, around 400 to 500 employees die on duty. In these incidents, a number of linemen and trackmen lose their lives. We are demanding that like the Indian Army has been exempted from the new scheme, the Indian Railways employees and officials should be exempted from the new pension scheme provisions.

Commenting on the outsourcing trending in Railways, Mishra strongly criticized the ongoing outsourcing and said that outsourcing of important works in Railways would not be tolerated. We are demand the Government to fill all 1.25 lakh vacancies in safety and security departments, as without manpower of Railways, proper instrumentation and equipment, the security of Railways is not possible, he added.

After recent incidents, the Government has ordered to fill all vacancies in Railways and now, following pressure, now again the decision is being reviewed. He lastly added that if Railways does not have any option for privatisation of every work, the AIRF would have no other option left, but to go on strike. He said, Railways is the lifeline of country’s economy. If we go on strike, it would add fuel to the ongoing impact of recession in the country.

source: the hitavada com

Employee’s own Contribution- Eligible for tax deduction under sec 80 CCD (1) of Income Tax Act up to 10% of salary (Basic + DA) within the overall ceiling of Rs. 1.50 Lacs under Sec. 80 C of the Income Tax Act.

 

From F.Y. 2015-16, subscriber will be allowed tax deduction in addition to the deduction allowed under Sec. 80CCD(1) for contribution in his NPS account subject to maximum of Rs. 50,000/- under sec. 80CCD ) .

Employer’s contribution: Up to 10% of Basic & DA (no upper monetary ceiling) under 80CCD(2). This rebate is over and above 80 C. (This tax benefit is only available for NPS subscribers).

II) Partial Withdrawal– Tax free

III) Lump sum Withdrawal– In case of superannuation, 40% of lump sum withdrawal is tax free.

IV) Annuity– Amount utilized for purchase of annuity is not taxable in the hands of the subscriber.

source: FNPO.ORG

PFRDA – Fund Collection in the Name of National Pension System….

Pension Fund Regulatory and Development Authority
First Floor, ICADR Building, Plot No 6, Institutional Area Phase II,
Vasant Kunj, New Delhi-110070 Tel. 011-26897948

PUBLIC NOTICE

It has come to notice of the Authority recently that some organizations, NGOs, societies, individuals, etc. are resorting to offer employment to students/ members of general public under and/or in the name of National Pension System. It has also been reported that some of these entities are also collecting funds from the students in the name of security money for offer of jobs or using the National Emblem and PFRDA logo on their website and other documents. It is hereby informed that PFRDA has not authorized any entity to engage in any such activity, which is illegal and fraudulent. Any entity/ or person found to be engaged in such fraudulent activities, is liable to be prosecuted in law.

The Authority is the regulatory body for National Pension System and other pension schemes under the provisions of the PFRDA Act, 2013, and detailed information pertaining to its functions are available on its website being www.pfrda.org.in.

Members of general public are hereby advised not to pay heed to or act on such false and misleading propaganda issued by such organizations/ individuals. Authority shall not be liable for any loss suffered by any person on account of any dealings with such unauthorized entities/individuals which shall be at his/ her own risk. Members of the general public are also requested to report such unauthorized activities to local authorities/ police department with a copy addressed to grc@pfrda.org.in;

This public notice is issued in interest of members of the general public.

Date: 20.08.2015

Ashish Kumar
General Manager

          A defined contribution pension scheme under the New Pension Scheme (NPS) for Central government employees, who have joined service after April 1, 2004, is compulsory. It went operational in 2008-09. The NPS structure implemented in India is very investor friendly. The investment options offer adequate flexibility. A subscriber can invest into government security (up to 100 per cent) or corporate bonds (up to 100 per cent) and equity up to 50 per cent (only Nifty or Sensex). The Pension Fund Regulatory and Development Authority ( PFRDA) regularly monitors the performance to prevent risky investments. The process for withdrawal on retirement at 60 years of age is ‘market-proof’ as it gives the option to withdraw in lump sum or on deferred basis over 10 years. The total cost of administration of the pension account from the subscriber’s perspective is among the cheapest in the world. But these virtues are largely unknown to the public.

Since 2009, over three million pension accounts have been opened with total accumulated pension wealth of around Rs 21,000 crore. Out of this, the pension wealth accumulated under the voluntary scheme is less than Rs 150 crore (about 60,000 accounts) vis-a-vis pension wealth of government employees of Rs 20,850 crore. Clearly, policy initiatives are required for encouraging voluntary subscription.

PFRDA appointed the Committee to Review Implementation of Informal Sector Pension ( CRIISP) to review the implementation of NPS. The committee identified that under the unbundled structure, no intermediary owns up the responsibility for marketing. While the committee examined the role of all intermediaries in the structure, it did not examine the role of government as a stake holder. As the pension wealth accumulation grows, government can seek funds from pension funds for infrastructure development and social sector planned expenditure. The success of NPS will partially relieve the government’s social security burden.

There is also a need to raise the awareness about the tax benefits of the scheme for employers, HR professionals and employees to motivate them to participate in it.

PFRDA introduced the ‘NPS for corporates’ scheme under which the corporate is the nodal point to offer NPS facility and will be responsible for collection of subscriptions as part of salary administration. The Income Tax Act allows 100 per cent of employer’s contribution to employees’ pension fund under NPS subject to a maximum of 10 per cent of salary of employees. A mere reallocation from the ‘cost to the company’ towards contribution to the pension scheme helps employees get substantial tax benefits plus systematic retirement savings.

The pension wealth accumulated under NPS will be available for withdrawal only at the age of 60 years, unlike other types of long-term savings. The government may create tax incentives around this USP of assured accumulation of pension wealth and attract them towards systematic pension savings. There is a need for offering exclusive additional deduction besides the current 80 CC options to encourage wage earners to participate in the NPS.

An awareness campaign on old-age financial security and NPS needs to be taken up, as today’s demographic dividend will become a demographic burden 20 years later

 

Source: business-standard.com

writer: V R Narasimhan