Wednesday, September 16, 2009
95th DEFENCE PENSION ADALAT at TIRUCHY(TN) in the First/Second week of November, 2009
Defence Pension Adalat
As per the Annual Action Plan of Controller General of Defence Accounts, New Delhi in consultation with the Ministry of Defence, the Principal Controller of Defence Accounts(Pensions) Allahabad will be organising the 95th DEFENCE PENSION ADALAT at TIRUCHIRAPALLI(TN) in the First/Second week of November, 2009 for redressal of grievances of Defence Pensioners / Defence Family Pensioners / Defence Civilian Pensioners drawing pension through PUBLIC SECTOR BANKS, DPDOs and Treasuries in the State of Tamil Nadu.
Objective
Any Defence Pensioners / Defence Family Pensioners / Defence Civilian and their families having any specific grievances relating to sanction or disbursement of defence pension are requested to submit their representation, in writing, in duplicate , to :
Sri P S Davakare,
Pension Adalat Officer
O/o Principal CDA (Pensions),
Draupadi Ghat,
Allahabad-211014,
A format of the representation is given on this website. Applicants are advised to apply as per the format, for easy processing of their applications.
Kindly Note
1.Applications can either be sent by post or by E-Mail
2.Two copies of the applications should be sent
3.Xerox copies of Pension payment order, Corr PPO, discharge certificate (wherever required) and other documents must be enclosed
4.Each application will be allotted a unique Adalat Registration Number. The same should be quoted in all future correspondence.
5.Individual call letters notifying the date and venue of the Adalat will be sent in due course
6.Incomplete and unsigned representations will be rejected.
The venue and date of Adalat will be notified in electronic and print media shortly.
TA/DA will not be reimbursed to pensioners/individuals attending the Adalat for redressal of their pension related problems.
Tuesday, September 15, 2009
Air Force Association Day celebrated today
Air Force Association Day celebrated today
The Annual Day of Air Force Association (AFA) was celebrated today at New Delhi. The function began with a Wreath Laying Ceremony at Amar Jawan Jyoti.
The former Air Chief, and presently President, AFA, Air Chief Marshal FH Major laid a wreath at the war memorial on the occasion. At the Annual General Body meeting that followed at Air Force Auditorium, Subroto Park, several Air Force octogenarians were honoured and were presented mementos by the Association.
The Chief of the Air Staff, Air Chief Marshal PV Naik was the Chief Guest at the occasion. Various retired Chiefs of the Air Staff, large number of Officers and PBORs attended the Annual General Meeting.
Monday, September 14, 2009
BHEL Tiruchi unit employees go on strike over wage issue
Employees of state-run Bharat Heavy Electricals' facility here on Monday went on one-day strike protesting "delay" in wage revision due since 2007 Company sources said only 1,100 workers and employees reported for work for the 8 am to 4.30 pm first / general shift against the normal attendance of 6,000 plus.
Union sources said employees affiliated to all trade unions participated in the strike to protest the "prolonged delay" in announcement of the wage revision pending since January 2007.
Source: The Economics Times
Sunday, September 13, 2009
Govt's new health insurance scheme for BPL families
Government has introduced a new health insurance scheme for Below Poverty Line (BPL) card holders, which would allow their families to get treatment free of cost at all government hospitals, Union Labour Minister Mallikarjuna Kharge said today.
Under the scheme, five members of a BPL family could avail treatment at any government and ESI hospitals free of cost, up to a limit of Rs 30,000 annually, Kharge told reporters here.
The scheme would be available in unorganised sectors like beedi industry, construction among others.
The centre was giving 87.5 per cent grant to states while the states would have to bear the remaining 12.5 per cent to run ESI hospitals, he said.
Kharge also said a skill development programme aimed at training 50 crore youth by 2020 had also been introduced by the Centre.
Source: PTI
40 DAYS BONUS(PLB) FOR CIVILIANS EMPLOYEES
MINISTRY OF DEFENCE ISSUED ORDER REGARDING THE PAYMENT OF PRODUCTIVITY LINKED BONUS FOR THE CIVILIANS OF THE ARMY ORDNANCE CORPS(AOC) FOR THE YEAR 2008-2009
Saturday, September 12, 2009
PFRDA given a clarification for an article published in Indian Express
Reference to NPS in article on retirement planning published in
Express Money section of Indian Express on 31.08.2009
The Indian Express has published an article on Retirement Planning in their
Express Money section written by Shri Sanjay Kr Singh. The article has
drawn certain references to the New Pension System which do not give the
full picture and, therefore, it has been considered necessary to issue some
clarifications as follows:
1. Regarding tax status of NPS
As per the Finance Act 2009 the amount accumulated in the NPS
account utilized to purchase an annuity is exempt from income tax.
The article does not provide the full picture that NPS corpus will not be
taxed if an individual buys an annuity.
2. Regarding waiting till 2010-11 to see what the new tax code
holds for NPS
It has been stated that investors should wait till 2010-11 to see what
the new tax code holds for NPS. This statement is misleading as under
the Finance Act 2009, NPS accumulation utilized to purchase annuity is
exempt from income tax.
3. Regarding availability of historical data for decision making
It has been stated that it is difficult to decide which fund manager one
should invest with, as no historical data is available. Although NPS for common citizen was rolled out on 1st May, 2009, the NPS for Central
Government employees has already been operational.
The weighted average return on the pension funds for the first year of operation as
on 31st May, 2009, was 14.82% according to the unaudited figures submitted by three Fund Managers viz., LIC Pension Fund, SBI Pension Fund and UTI Retirement Solutions. Moreover, historical data regarding the performance of the sponsor companies is available which is a reasonably good indicator.
Extract from the article published in The Indian Express(Express Money Section) on 31.08.2008
Title: “SAVE NOW SO YOU CAN PLAY GOLF AFTER 60”
Author: Shri Sanjay Kr Singh
Should you use the NPS?
First, let us dwell on its positives. If you invest the equity component of your
retirement savings in the New Pension Scheme (NPS), it would get managed at
a low cost. Its cost is lower even than that of an index fund. For young
investors, especially, the low cost would make a substantial difference to the
final corpus. Its second advantage is that since it offers limited liquidity, the
money remains available till retirement and doesn’t get used up for other
purposes.
However, at present there are a couple of issues with the NPS. The most
important is its tax status, which is EET. The NPS corpus gets taxed at
withdrawal (while PPF and equity funds are not). Says Dhawan: “With the new
tax code coming in, all instruments will be treated in a similar manner. Sooner
rather than later, NPS will receive equal treatment. The reason why the NPS
has been given EET status and not EEE status is probably that the government
wants most products to move to EET status. Investors should wait till 2010-11
to see what the new tax code holds for NPS.”
Another issue with the NPS is that at present it is difficult to decide which
manager you should invest with as no historical data is available. On the equity
side, the NPS at present works like an index product with no active
management. If, for reasons mentioned earlier, you believe that actively
managed funds should be a part of your portfolio, then this is not the product
for you.
Source article: indianexpress
New Pension Scheme : Some clarifications..!
ADMINISTRATIVE STRUCTURE
The administrative setup of NPS subscription is planned as:
Employee>Paying officer>DDO>PAO>PrAO>PFRDA/CRA/NSDL>Trustee Bank>Pension Fund managers
IS THE NEW PENSION SCHEME GOOD?
If calculated,we can see that the new pension scheme employees are actually getting 10 % less pay than the old pension scheme staff.There is a wide spread rumour that the new pension scheme offers amount in Lumpsum amount and therefore it is better than the old pension scheme.How much truth is there in it?Let's see...
Please note:The below calculations are based on pay of a Group C cadre of scale 5200-20300(2500 Grade Pay) and if the government puts the whole investment in fixed instruments of 8% annual interest.The percentage of investments in equity which is speculated cannot be calculated.It purely depends on how efficient the appointed fund manager is.The principal amount of contribution without interest otherwise is:
Based on 10 years-210000(employee contribution)+210000(Govt contribution)=Rs420000
Based on 20 years-540000(employee contribution)+540000(Govt contribution)=Rs1080000
Therefore the amount of pension you get is purely based on the scheme you chose.As per now,there is no scheme which allows to put 100% in fixed instruments and the figures are just to compare.
Old and New Pension scheme comparison after completing 10 years(before 60 years)
CPF Calculation
If equal government contribution also provides interest, Total tier-1 amount is 316746x2=Rs633492
80% in pension fund=506794
Amt you get at the time of retiring=Rs126698+Rs 3378 monthly pension (8% interest of Rs506794 in a pension fund)+no gratuity
For old pension scheme after 10 years
GPF =316746
Gratuity=110000[1/4*(last bp+da)*(10*2)]
Total amount= Rs426746+Monthly pension Rs 3500+da (minimum pension )
Thus Comparison of old and new pension scheme gives over Rupees 3 lakh less benefits in lump sum amount and lesser monthly pension for new employees after ten years of service for below 60 years retirement.
Old and New Pension scheme comparison after completing 10 years(reaching 60 years age)
If equal government contribution also provides interest, Total tier-1 amount is 316746x2=Rs633492
40% in pension fund=253396
Amt you get at the time of retiring=Rs380096+Rs 1689 monthly pension (8% interest of Rs253396 in a pension fund)+no gratuity
For old pension scheme after 10 years
GPF =316746
Gratuity=110000[1/4*(last bp+da)*(10*2)]
Total amount=Rs426746+Monthly pension Rs 3500+da (minimum pension )
Thus Comparison of old and new pension scheme gives over Rupees 50000 less benefits in lump sum amount and Rs 1800 lesser monthly pension for new employees after ten years of service for age 60 retirement.
Old and New Pension scheme comparison after completing 20 years(before 60 years)
CPF Calculation
If equal government contribution also provides interest, Total Tier-1 amount is 1188320x2=Rs2376640
80% in an annuity pension fund scheme=1901312
Amt you get at the time of retiring=Rs475328+Rs 12675 monthly pension (8% interest of Rs506794 in a pension fund)+no gratuity
For old pension scheme after 20 years
GPF =1188320
Gratuity= 320000 i.e. [1/4*(last bp+da)*(no of every completed six month of service)]
Total amount= Rs1508320+Monthly pension approax Rs 16000+da (half of last bp+da )
Thus Comparison of old and new pension scheme gives over Rupees 10 lakh less benefits in lump sum amount and Rs 4000 lesser monthly pension for new employees after twenty years of service for below age 60 retirement.
Old and New Pension scheme comparison after completing 20 years(reaching 60 years age)
If equal government contribution also provides interest, Total Tier-1 amount is 1188320x2=Rs2376640
40% in an annuity pension fund scheme=950656
Amt you get at the time of retiring=Rs1425984+Rs 6300 fixed monthly pension (8% interest of Rs950656 in a pension fund)+no gratuity
For old pension scheme after 20 years
GPF =1188320
Gratuity= 320000 i.e. [1/4*(last bp+da)*(no of every completed six month of service)]
Total amount=Rs1508320+Monthly pension approax Rs 16000+da (half of last bp+da )
Thus Comparison of old and new pension scheme gives over Rupees 1 lakh less benefits in lump sum amount and Rs 9700 lesser monthly pension for new employees after twenty years of service for age 60 retirement.
And some final questions:
1.The Government notifications only explains about giving a fixed pension with this amount through a annuity and not about giving this huge amount of money back to the employee at anytime.So what happens to the huge principal amount(19 lakh in the case of a VRS) when the pension ceases after the pensioner and his dependent's death?
2.Why doesn't the government give the whole money of contribution as on EPF for the employee at the time of retirement to invest in bank atleast and enjoy interest or his choice of investment?Why is the government putting restrictions of 40% and 80% to be only invested in annuity pension scheme without giving any other choice to employee's hard earned money?
3.Isn't it a violation of Payment of Gratuity Act-1972 when the employer,who is the Government of India,has decided to give no gratuity to new employees without passing the new bill?
4.While EPF provides loan upto 36 months of wage,there is no scope for any loan in CPF,the money is blocked until the employee retires.What should a new employee do in case of an urgent requirement for building a house or marriage of children?
Source: newpension
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