Tuesday, January 5, 2010
PFRDA's low-cost pension plan to take off on April 1
The Pension Fund Regulatory and Development Authority (PFRDA) will launch a low-cost pension scheme on April 1 to provide social security cover to economically weaker sections like rickshaw pullers, barbers and daily-wage labourers.
"We would launch a low-cost pension scheme from April 1, 2010. Individuals could join the scheme as part of a self-help group," a PFRDA official told PTI.
Under the new pension scheme, a subscriber will have to initially pay Rs 105 and after that Rs 70 every year for maintenance of account. For normal scheme, the joining and annual charges are Rs 470 and Rs 350, respectively.
"Besides the initial payment, the account holder under the new scheme will have to pay Rs 35 to obtain Permanent Retirement Account Number (PRAN)," the official added.
There would be no lower limit for contribution to the pension fund, the official said, adding the Self-Help Group (SHG) can play a major role in popularising the scheme and supplementing the efforts of the government to promote financial inclusion and provide social security to a large number of people.
Initially, the government launched the New Pension System for central government employees joining service from January 1, 2004, but from May 1 this year it was extended to all citizens.
The response to the all citizens' pension scheme has, however, been lukewarm in the first few months.
According to information available on the PFRDA website, only 2,818 subscribers have joined the scheme till December 5.
The official further said the investment in the low cost pension scheme should only be made as a group though the subscribers would be allowed to maintain their individual accounts.
"There would be no minimum limit paid by the subscriber for the corpus. So the investment made for the corpus should only be made as a group," the official said.
Under the present structure, a person has to deposit a minimum of Rs 6,000 each year into his account.
The withdrawal of money from the corpus would follow the same rules as the existing structure.
At present, only 20 per cent amount can be withdrawn as lump sum if a subscriber wants to withdraw his pension corpus before the age of 60.
The subscriber has to invest at least 80 per cent to purchase a life annuity from any IRDA-regulated life insurance company.
In case of death, options would be available to the nominee to receive 100 per cent of the NPS pension wealth in lump sum.
There are six fund managers for the citizens' scheme. These include IDFC Mutual Fund, Kotak Mahindra, SBI, UTI Asset Management, ICICI Prudential Life Insurance and Reliance MF.
Source:Busines Standard
Central trade unions to oppose taxing of withdrawals from savings schemes
The central trade unions will press for shelving of a proposal, that wants to tax withdrawals from savings schemes, including provident funds, at the pre-Budget meeting with Finance Minister Pranab Mukherjee on January 14. “(The) Finance Minister has invited trade unions for pre- budget consultations on January 14,” All India Trade Unions Congress Secretary D L Sachdev told media.
Although the central trade unions are meeting here next week to prepare their charter of demands, he said, “we would definitely raise the issue of Exempt, Exempt Tax (EET) mode for savings schemes”.
The draft Direct Taxes Code (DTC), on which the government has invited comments from public, proposed to tax all long-term savings schemes at the time of withdrawal by the subscribers.
Currently, there are no taxes on long-term savings and pension schemes. Besides EET issue, Hind Mazdoor Sabha (HMS) Secretary A D Nagpal said, “We will also demand for higher income tax slabs to provide relief to the working class.”
As part of the budgetary exercise, the minister meets the representative of different interest groups like economists, industrialists, trade unions etc to get their views on the budget. The trade unions, Sachdev said, would also press for the creation of a National Security Fund for urorganised workers in the country.
In view of unionists the funds should have a corpus of a size equal to three per cent of Gross Domestic Product of the country for the welfare of these workers.
The other major issue which could rock the meeting, is imposing service tax on the contributions made to the Employees Provident Fund scheme being run by the country’s largest retirement fund manager Employees’ Provident Fund Organisation (EPFO).
The issue came to light when some months ago, the Central Board of Excise and Customs slapped EPFO with a notice for not paying service tax on the contributions to these scheme. The scheme has around 4.7 crore subscribers across the country.
Strike by Port & Dock workers averted
Labour Unions of the employees / workers of Major Ports had threatened to go on strike from midnight of 4th January, 2010 in protest against non acceptance of some of their demands on wage revision of Class III & IV employees which is due from 1.1.2007. The dead lock on various issues between the management and the Trade Unions was resolved with the intervention of Hon’ble Minister of Shipping. Wage Settlement for a period of 5 years has been reached between the management and the major federations of Port and Dock Employees / Workers. The settlement will benefit about 60,000 Port employees and workers and will be effective from 1st January, 2007. The employees will get a fitment benefit of 23% and the arrear of hike in their pay and allowances will be paid w.e.f. 1st January, 2007. It will add an extra burden of about Rs.450 crores per year on the major Ports.
Major Federations of Port & Dock workers while welcoming the goodwill gesture of the management and Hon’ble Minister of Shipping for conclusion of the wage settlement to the satisfaction of Port Workers promised for better efficiency and productivity to off set the extra burden on the exchequer of Ports.
Monday, January 4, 2010
Branches of Principal Controller of Accounts (Fys), Kolkata - all over India
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There are 39 branch accounts offices under the Principal Controller of Accounts ( Fys ) , Kolkata attached to 39 Ordnance and Ordnance Equipment Factories, divided into nine groups, which are located all over India.
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GSF Cossipore
MSF Ishapore
OF Dumbum
RF Ishapore
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OCF Sajahanpur
OEF Hazaratpur
OPF Kanpur
OF Kanpur
FGF Kanpur
SAF Kanpur
OEF Kanpur
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VF Jabalpur
GCF Jabalpur
OF Khamaria
OF Itarsi
OF Katni
GIF Jabalpur
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OF Dehradun
OLF Dehradun
OF Muradnagar
OCF Chandigarh
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AF Kirkee
HEF Kirkee
OF Dehuroad
OF Ambarnath
MTPF Ambarnath
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HVF Avadi
OCF Avadi
EF Avadi
CFA Aruvankadu
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OF Ambajhari
OF Bhusawal
OF Vrangoan
OF Chanda
OF Bhandara
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T-72 Project
HAPP Trichi
OF Trichi
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PSU companies line up for New Pension Scheme
The government may have shied away from tabling the Pension Fund Regulatory and Development Authority (PFRDA) Bill in the Winter session, but the New Pension Scheme (NPS) would see its membership base expanding significantly in 2010. Public sector general insurers, who lifted a long-standing hiring freeze in 2009, have agreed to bring their new workforce under the NPS, as has Life Insurance Corporation.
Similarly, following the lead of National Aluminum Company (Nalco) Ltd, another public sector unit, NTPC Ltd, is moving its employees’ superannuation pension funds into the NPS.
“It’s always easier for others to join after one PSU takes the lead. Nalco was the test case and once we finalised the modalities to transfer their superannuation pension funds into the NPS, the template was ready. We expect other public sector firms will also evince interest,” a senior PFRDA official told FE. The interim regulator has also written to the department of public enterprises to help other central PSUs bring their workers into the NPS-fold — for pension savings beyond the mandatory contributions at 24% of salary to the Employees’ Provident Fund Organisation.
While PSUs are looking at the NPS, thanks to a pay revision panel recommendation, the finance ministry has been holding discussions with public sector general insurance companies to join the scheme. The five insurers to be approached are New India Assurance, United India Assurance, National Insurance Company, General Insurance Corporation and Oriental Insurance.
“All five have agreed in principle to join the NPS. We are also discussing the option with LIC,” a finance ministry official said. “At present, only about 300 employees would become members of the NPS. But once the general insurance companies begin recruiting on a larger scale, we expect another 20,000 employees to join,” the official said.
The North Block has also been urging public sector banks to transfer their employee superannuation funds into the NPS, and the Indian Banks’ Association has decided ‘in principle’ to move new workers in public sector banks to the NPS. With PSU banks expected to hire at least 1.5 lakh new workers by 2011, the NPS membership base will rise significantly from its current strength of 6.5 lakh members. PSU and insurance firms aside, several of the 21 state governments that agreed to join the NPS are yet to transfer their workers’ contribution records and funds. Currently, only three states have moved into the NPS fold.
While the scheme was opened up to citizens on a voluntary basis in May 2008, around 3,000 workers have signed up so far. Officials attribute the poor response to the intermediaries’ conflict of interests as they earn better commissions selling other financial products. The high record-keeping costs are also seen to be a deterrent.
Though the PFRDA has decided to call for fresh bids for a second central record-keeping agency to break NSDL’s monopoly, reaching the 1 million members milestone is crucial for the PFRDA as it will reduce record-keeping costs by 20%. NSDL has promised to cut annual maintenance charges from the current Rs 350 to Rs 280 and transaction costs from Rs 10 to Rs 6 per transaction.
Source:Financial Express
Child Care Leave - Clarification from PC of A(Fys) Kolkata
NO.AN/XIV/14162/VI CPC/cIRCULAR/VOL-III
Office Of The C.G.D.A, Ulan Batar Road,
Palam, Delhi Cantt - 110010
Dated:17th December,2009.
To,
ALL PCsDA/CsDA
PC of A(Fys) Kolkata
Jt.CDA(AF) Nagpur
Subject:- Issue of Notification to amend the Central Civil Services (Leave) Rules, 1972.
Government of India, Ministry of Personnel, Public Grievances Notification issued vide their No: FNo:11012/1/2009-Estt.(L) dated 01.12.2009 regarding amendment to Central Civil Services (Leave) Rules,1972 has been uploaded on the website of HQrs. Office (www.cgda.nic.in) for information and necessary action please.
(R.K.Bhatt)
For C.G.D.A
In the said rules, in rule 43-B, in sub-rule (1), for the figures and word “135 days”, the figures and word “180 days” shall be substituted:
In the said rules, after rule 43-B, the following rule shall be inserted, namely:-
43-C. Child Care Leave :- (1) A woman Government servant having minor children below the age of eighteen years and who has no earned leave at her credit, may be granted child care leave by an authority competent to grant leave, for a maximum period of two years, i.e.730 days during the entire service for taking care of up to two children whether for rearing or to look after any of their needs like examination, sickness, etc.
(2) During the period of child care leave, she shall be paid leave salary equal to the pay drawn immediately before proceeding on leave.
(3) Child care leave may be combined with leave of any other kind.
(4) Notwithstanding the requirement of production of medical certificate contained in sub-rule (1) of rule 30 or sub-rule (1) of rule 31, leave of the kind due and admissible (including commuted leave not exceeding 60 days and leave not due) up to a maximum of one year, if applied for, be granted in continuation with child care leave granted under sub-rule (1).
(5) Child care leave may be availed of in more than one spell.
(6) Child care leave shall not be debited against the leave account.”
Friday, January 1, 2010
MAJOR PENALTY PROCEEDINGS RECOMMENED AGAINST 113 OFFICERS
CVC disposed of 416 cases in October 2009
MAJOR PENALTY PROCEEDINGS RECOMMENED AGAINST 113 OFFICERS
The Central Vigilance Commission disposed of 416 cases during October 2009 referred to it for advice. The Commission advised initiations of major penalty proceedings against 113 officers. Of these, 32 were from public sector banks, 27 from M/o Railways, 9 from MCD, 6 each from Central Coalfields Ltd. and Hindustan Copper Ltd., 5 from Ministry of Information & Broadcasting, 4 each from Central Board of Excise & Customs and Damodar Valley Corporation and 3 each from NHAI and Govt. of NCT of Delhi. The remaining 14 cases pertained to different departments of the Government of India and PSUs.
The Commission also advised imposition of major penalty against 60 officers including 15 from Public Sector Banks, 13 from DDA, 9 from Ministry of Railways, 4 each from Central Board of Excise and Customs and MCD, 3 from Central Coalfields Ltd., 2 each from Hindustan Insecticides Ltd., United India Assurance Co. Ltd. and Department of Telecommunications. Remaining 6 cases pertained to different departments of the Government of India and PSUs.
The Commission disposed 978 complaints during the month. Of these, 807 complaints were sent for necessary action/ATR whereas 171 complaints were sent for investigation and report.
On the Commission’s recommendations, the competent authorities issued sanctions for prosecution against 14 officers including 7 from Ministry of Personnel, Public Grievances & Pensions, 2 each from Ministry of Defence and Home Affairs and one each from CBDT, CBEC and Corporation Bank.
Recoveries to the tune of Rs. 61.94 crore were affected after Commission conducted technical examination of some departments.
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