Monday, March 14, 2016
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
New Delhi: 29th February, 2016
Subject: Participation by Central Government servants in sporting events and tournament of National or International importance.
The undersigned is directed to refer to this Department’s OM No.6/1/85-Estt(PaY-1) dated 16th July, 1985 wherein special casual leave is granted to Central Government employees for a period not exceeding 30 days in any one calendar year for participating in the sporting events as mentioned under para 1 of the OM ibid. it has been decided to extend the provision of special casual leave to Central Government employees who participate in programme of adventure sports/ similar activities conducted by Central Civil Services Cultural & Sports Board (CCSCSB).
7th Pay Commission expressed its regret about transition from Old Pension Scheme to New Pension Scheme in its report.
2004-2011 Entrants : Government employees who have joined service between 2004 and 2011 have suffered due to delay in finalizing the structure of the NPS and the issue of detailed instructions. Although they have made regular contributions, in many cases, this money and/or counterpart contributions were not deployed in the market. In the case of AIS officers, some states are yet to release counterpart contributions or pay interest on delayed contributions. This has led to a situation where the accumulated corpus even after 11 years of service could be meagre. It is necessary that this situation which arose during the transition from OPS to NPS be addressed.
The Commission therefore recommends that Central Governments and State Governments should, in a time bound manner, ensure that all the due contribution along with compounded interest, where contributions have been delayed, be deposited in the accounts of the beneficiaries. Advisories should be issued to the State Governments to deposit amounts, if not already done, in respect of NPS beneficiaries belonging to All India Services.
Many Association have pointed out that unlike the facility under GPF, it is not possible to make withdrawals under NPS, even to meet obligatory social expenditure. This forces employees towards increased indebtedness as they have to borrow from elsewhere.The Commission notes that under the NPS Tier-I account, a subscriber is permitted to make partial withdrawal of twenty five percent of the contributions made to his/her individual pension account for certain specified purposes. Such withdrawals are permitted a maximum of three times during the entire tenure of subscription and a period of at least five years should have elapsed between two such withdrawals.
The Commission further notes that there exists a voluntary Tier-II account. Under this account, a subscriber can, at any time, withdraw the accumulated wealth either in full or part and there is no limit on such withdrawals provided the account has sufficient balance of accumulated pension wealth to cover the amount being withdrawn. However, the Tier-II account is yet to be made operational. The Commission therefore recommends that PFRDA should take steps to make the Tier-II accounts operational as early as possible to enable the NPS subscribers the facility of withdrawals from their accounts in case of requirement.Transparency under NPS : Many associations and individuals have complained that the information relating to the NPS is inadequate, resulting in high degree of uncertainty in the minds of contributors about post-retirement benefits. The Commission noted that PFRDA sends a communication to every participant each month with the current pension wealth and the latest contribution that has been credited. The Commission recommends that focused efforts be made to capture email addresses and mobile numbers of subscribers so that seamless communication is ensured for all subscribers. The Commission recommends that consultation with stakeholders should also be held periodically in different parts of the country.
The Commission notes that no department of Government of India is taking ownership of the NPS. The Commission recommends that a Committee consisting of Secretary, Department of Financial Services, Secretary, Department of Pensions and Pensioners Welfare and Secretary, Department of Administrative Reforms and Public Grievances may be constituted to review the progress of implementation of NPS. The Commission also recommends that steps should be taken for establishment of an Ombudsman for redressing individual grievances relating to NPS.
Tax Treatment under the NPS : NPS is under the Exempt–Exempt – Tax (EET) regime while the General Provident Fund under the OPS is under Exempt–Exempt–Exempt (EEE) dispensation. Under the NPS, while the contributions and the accumulations are tax-exempt, withdrawals are taxable. As such, this is an inferior tax treatment when compared to other pension programmes such as General Provident Fund, Contributory Provident Fund, Employees Provident Fund and Public Provident Fund wherein contributions, accumulations and withdrawals are tax-exempt.The Commission feels that tax neutrality should be ensured across various avenues for long term savings for post retirement incomes so that the employees covered by NPS are not at a disadvantage. The Commission therefore recommends that withdrawals under the NPS should be tax-exempt to place NPS at par with other pension schemes. The Commission also recommends that the service tax levied at the time of annuity purchase by NPS subscribers should be exempted.
National Pension System(NPS): Clarifications on Settlement of Claims Relating To Exits, Involving Purchase of Annuities
PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area,
Katwaria Sarai, New Delhi – 110 016
Phone: 011 – 26517503
Fax: 011 – 26517507
Circular No. PFRDA/2016/5/Exits/01 dated 03.03.2016
Subject: Clarifications on Settlement of Claims Relating To Exits, Involving Purchase of Annuities
1. Whereas the authority has notified the PFRDA (Exits and Withdrawals from National Pension System) Regulations, 2015 on 11th May, 2015 and is in force.
2. Number of claims have been received post the notification of the regulations covering pre-mature exits and also pertaining to claims arising out of the death of the subscriber under NPS. It has been brought to the notice of the Authority that as default annuity schemes mentioned under Regulation 3 of the PFRDA (Exits and withdrawals from National Pension System) Regulations, 2015 have not been made available by the Annuity Service Providers yet, these claims could not be settled and thus there exists a difficulty in settling claims in accordance with the aforesaid Regulations.
3. The Authority having considered and upon being satisfied that the claims of the subscribers are not being able to be processed and settled in accordance with Regulation 3 of the PFRDA (Exits and Withdrawals from National Pension System) Regulations, 2015 and to ensure that the interest of the subscribers are protected in this regard, has decided that till the time the default annuity schemes as mentioned under aforementioned Regulation 3, are made available to the subscribers, the claims both present and future shall be settled in the following manner;
Removal of difficulty
Regulation 3 (b) applicable in case of pre-mature exit (to extract proviso from regulations)
In place of default annuity scheme
Any annuity scheme provided by the Annuity Service Provider such that scheme shall mandatorily cover the spouse of the subscriber.
Regulation 3 (C) applicable in case of death (to extract proviso from regulations)
The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension
4. The above provisions for removal of difficulty shall be in force till the default annuity schemes are devised by the Annuity Service Providers and made available to the subscribers, and shall cease on a date notified by the Authority, whereafter settlement of claims shall be in accordance with the applicable provisions of the regulations. All other provisions of settlement including settlement of lump sum pension wealth shall be continued to be governed by the applicable provisions of the regulations.
5. This clarification for removal of difficulty is issued by the Authority in exercise of its powers under Section 14 of the Pension Fund Regulatory and Development Authority Act, 2013 read with Regulation 39 of the PFRDA (Exits and Withdrawals from National Pension System) Regulations, 2015.
Chief General Manager
There is no need to take action on anonymous or pseudonymous complaints of corruption against government employees, the Central Vigilance Commission (CVC) has said.
In its directive to all ministries and public sector undertakings, the Commission said that such complaints only needed to be filed.
The directive to all ministries and public sector undertakings comes after CVC received references from departments and organisations seeking clarification on the action to be taken on anonymous or pseudonymous complaints, which were acted upon."No action should be taken on anonymous or pseudonymous complaints in line with Commission's present instructions dated November 25, 2014 and such complaints should be filed," it said.
The anti-corruption watchdog has been clarifying on the issue since 1999. In its guidelines issued yesterday, the CVC said the action pursued on anonymous or pseudonymous complaints prior to the issue of 1999 circular can be "pursued further to its logical end".Material or evidence gathered during the investigation or verification of anonymous complaints when the action was prohibited on such complaints, or when such enquiry was initiated without the approval of the CVC, can be utilised for further initiation of disciplinary proceedings on misconducts noticed in such verification or enquiry, it said.
The Commission usually gets a number of complaints against a government employee when he or she is being considered for a senior level post or for some important assignment, a senior CVC official said."The intention behind filing such a complaint is intended to delay the process of granting vigilance clearance to an employee. People have been asked to give verifiable details of corruption charges along with their details so that prompt action can be taken against guilty and to ensure that honest officers are not harassed," he said.
The CVC gives vigilance clearance to senior government officials being considered for foreign postings, central deputation or other appointments.All Chief Vigilance Officers--who act as distant arm of the CVC--have been asked to follow these latest guidelines while processing anonymous and pseudonymous corruption complaints, the official said.
No. CHQ/AIAIPASP/CRC/2012 Dated : 10/3/2016
Shri S. V. Rao,
Department of Posts,
Dak Bhavan, Sansad Marg,
New Delhi 110 001.
Subject : Issue of revised Recruitment Rules of PS Gr. B Cadre and to reduce share of General Line officials from 6% to 3%…regarding
Ref. : Dte No. A.34012/01/2015-DE dated 15th January 2015
Your kind attention is invited to this Association’s letters of even number dated 15/7/2013, 19/11/2013, 6/1/2014, 17/4/2014, 16/5/2014, 21/6/2014, 29/8/2014, 9/3/2015 and 7/11/2015 on the above captioned subject.
In this regard it is to intimate that this Association has been perusing through above cited letters to conduct LDCE for PS Gr. ‘B’ for the year 2013, 2014 and 2015 separately only after revision of Recruitment Rules of PS Gr. B cadre and also reducing share of General Line officials from 6% to 3% in the examination quota.
As per clause 3.1.5 of DoPT OM No. AB-14017/48/2010-Estt (RR) dated 31st December 2010 revision in the Recruitment Rules once in 5 years with a view to effecting such changes as are necessary to bring them in conformity with the changed position, including additions to or reduction in the strength of the lower and higher level posts”. It is learnt that approval from Nodal Ministry/UPSC is awaited for issue of revised recruitment rules of PS Gr. B cadre.
Sir, this vital issue is pending for more than 2 years, and therefore it is requested to bestow your personal attention and conduct the above said pending LDCEs at the earliest and that too separately after reduction of share of General Line officials from 6% to 3% in the examination quota and to avoid further litigation's etc.
Ms Kavery Banerjee Secretary (Posts) and Ms Arundhaty Ghosh CPMG WB Circle