The proposal for the introduction of Annuity scheme in lieu of pension for the GDS employees

The proposal for the introduction of Annuity scheme in lieu of pension for the GDS employees has been cleared by the Ministry of Finance on 15.7.2010. The Postal Board has also approved the same. The next process for the implementation of the scheme is to get approval from PFRDA. Thereafter the scheme should be notified. Option will be called for among the existing GDS comrades whether he is willing to switch over to the new Annuity scheme or to continue in the present severance amount scheme.
The modalities and the real benefits of the proposed annuity scheme are not made known to us. We should also study the scheme and see the advantages before severing the severance amount scheme. As per the present position, the normal process for the implementation of the scheme will take another three to four months minimum.

The government is considering to deregulate interest rates on small savings

The government is considering to deregulate interest rates on small savings schemes like public provident fund (PPF) and post office deposits, linking them to the prevailing interest rates in the markets.

The move will reduce returns on such schemes. At present, the interest rates on small savings schemes are fixed by the government, which are normally higher than the prevailing interest rates in the market. For example, the interest rate on PPF is 8%, which is tax-free, while that on the other similar instruments like bank deposits are lower.

The post-tax return on bank deposits is around 5.5% for those who fall in the highest tax bracket of 30%.

Towards this end, the government has set up a committee under the Reserve Bank of India deputy governor Shyamla Gopinath — to suggest the ways and means — for deregulating interest rates on small savings schemes. Small savings schemes mobilise huge amount of funds as they offer higher interest rates.

According to the Budget estimate, in 2010-11, these schemes may fetch Rs 50,300 crore, taking the total mobilisation to Rs 7,57,000 crore.

Funds mobilised under small savings schemes are disbursed to the central and state governments as debt. As the cost of the small savings funds are high, state governments pay higher interest rates (9.5%-10%) on the loans taken from these schemes compared to other sources in the market.

The 13th Finance Commission headed by former finance secretary Vijay Kelkar had suggested to bring down the interest rates on outstanding loans to 9% by the end of 2009-10.

But for this, the interest rates on small savings should also be brought down.

At the same time, according to the Fiscal Responsibility and Budget Management (FRBM) Act, states cannot borrow from open market beyond 4% of their fiscal deficits. Therefore, states are not able to benefit from prevailing lower interest rates in the market and take higher-interest loans from small savings.

The committee will also examine the new investment opportunities for the funds mobilized under small savings schemes. At present, the funds could be invested only in the central and state governments special securities. Committee will also review the administrative arrangement including the cost of operation.

Global money transfer and banking operations of the country's postal department are being scanned by the Enforcement Directorate

NEW DELHI: Global money transfer and banking operations of the country's postal department are being scanned by the Enforcement Directorate and other agencies for suspected terror-financing and Hawala-like transactions. At present, there are no other official channels, besides the pure banking route, to transfer or receive money from abroad. The Department of Posts had started this service in association with US-based Western Union Financial Services in April 2001 and customers can send or receive money from 205 countries. According to top Finance Ministry sources, the ED and the Financial Intelligence Unit (FIU) -- an agency to monitor suspect financing in Indian financial channels -- have initiated steps to check the remittances and transactions on the wires on a "real time basis". In 2008-09, the 'India Post' had delivered remittances to the tune of more than Rs 7,649 crore. While the ED has asked 'India Post' to keep a check on all "kinds of transactions" and inform it of suspect transactions, the FIU has asked the service provider to strictly comply with the reporting norms. Under the provisions of the Prevention of Money Laundering Act (PMLA), all banking entities or financial intermediaries who facilitate telegraphic or wire transfers or electronic remittances have to report the nature and value of the transactions to the FIU. "Also, the banking operations conducted by the India Post have been largely unregulated. There are many small accounts with a lot of money. The enforcement agencies are now tracking the remittances and withdrawals," a source said. The international money transfer service is currently available from 8,511 post offices. Enforcement agencies believe that this step to monitor India Post network would help them track down suspect financial transactions and further share it with internatioanl agencies to combat money laundering and financing of terror.

postal delivery vehicle ‘Soleckshaw’

Shri Sachin Pilot, Minister of State for Communications & Information Technology launched an environment-friendly postal delivery vehicle ‘Soleckshaw’ here today. Speaking on the occasion, the Minister said that it is the endeavour of the Ministry to use green technology for delivering services in efficient and eco-friendly manner. He said that this effort is a step forward towards the Government’s efforts to modernise and digitise the India Post Services under Project Arrow. Availability of this vehicle will add to the efficiency of postal agents and will also give them a sense of pride.
As a Pilot Project, Soleckshaw will be introduced soon in the Project Arrow post offices in a city of Rajasthan. Shri Pilot mentioned that the Ministry would evaluate the performance of the vehicle within few months and will explore the possibility of its expansion on larger scale.
Soleckshaw is a solar-power assisted, pedal-operated cycle rickshaw developed by CSIR. It reduces the rickshaw puller’s effort by providing battery assistance. It is still a zero carbon emission vehicle. The batteries are charged by solar power at charging stations. Technology has been transferred to multiple entrepreneurs and Soleckshaws are currently plying at Delhi (Chandni Chowk), Chandigarh, Jaipur, Durgapur, Ranchi, Kolkata and Ahmadabad.
Recently, M/s Kinetic Motors in association with CMERI (CSIR) has re-designed and developed a modified version of Soleckshaw specifically suitable as a light delivery vehicle, particularly useful for delivery of post, parcels and other postal services both in urban and rural areas.
Some of the features of the vehicle are as follows: Soleckshaw has potential for use as a light delivery vehicle for distribution of dak etc, Emergence of electronic means of communication is changing the profile of post offices and postmen.
A Postman is likely to carry more parcels for delivery than ordinary mails. A survey in Pune found that each postman covers an area of around 40-45 kms and carries an average weight of 10-15 kgs per day.
The Soleckshaw is the ideal vehicle to enable transportation of such parcels with a minimum of effort.
This is expected to improve speed and efficiency of postal delivery, increase ability to carry more load; distribute other value-added products in rural areas and provide charging facilities for mobile phones in remote areas etc.

Proposed indefinite strike from 13.07.2010 deferred

Proposed indefinite strike from 13.07.2010 deferred

The Secretary, Posts had taken a meeting with staff side on 12.07.2010 to discuss the charter of demands at 11 am and the following are the outcome on the charter of demands.

1. There will be no closure of single handed post offices.

2. The demand of the staff side that the annual increments to the erstwhile GDS SPMs should be continued will be considered positively.

3. There is no policy decision of the department to outsource any of the postal services.

4. A separate meeting will be held on 15.07.2010 to discuss about the Mckinsey and the object of restructuring the services.

5. Another separate meeting with the staff side will be held about the technology proposals shortly to discuss the future expansion of technology.

6. There will be no violation of earlier agreement on status quo of RMS & MMS with 10000 mails. Any violation if brought to the Directorate’s notice it will be set aside.

7. The Departmental council & periodical meetings will be held regularly hereafter. Next meeting will be held in next month August 2010.

8. The demand of higher pay to TBOP &BCR for the earlier period will be considered along with the cadre review proposals.

9. There will be no harassment in Project Arrow offices. Furnishing wrong data’s and showing as delivered or redirected will not be allowed hereafter.

10. The demand of the staff side to assess the vacancies as per establishment strength and actual strength in all cadres will be considered and all Chief PMGs will be addressed and appraised to fill up all the vacant posts forthwith during video conferences personally by the Secretary (P).

11. A committee consisting four staff side representatives with DDG(P) & DDG (Est) will be constituted and the process of the proposals of cadre review for all cadres will be completed before the end of 2010.

12. Separate discussions will be made on the proposal of creation of Postmasters cadre also.

13. The welfare schemes to GDS like grant of pension, medical, the proposals were already cleared by the Postal Board and submitted to nodal ministries for approval. It will be expedited.

14. It was assured to reconsider the norms for cash handling to BPMs and also fix fresh norms to RPLI and NREGIS scheme shortly.

15. The proposal for higher pay to Driver with Grade pay of 2400 has been sent to the Ministry of Finance.

16. The revision of O.S.A rates will be made within one month.

17. Technology training to workshop staff will be provided.

18. The proposals for the grant of minimum pay as per the Sixth CPC to casual labourers have been submitted to Ministry of Finance for approval. It will be expedited. The demand of the staff side to grant revised GDS pay to GDS substitutes will be considered.

19. The issues related to postmen norms, delivery, beat etc will be discussed shortly and final decision will be taken before the end of October 2010. One committee will be constituted to sort out the issues.

20. The plea of the staff side to ignore benchmark for MACP has been accepted and the Secretary told the DDG to cause orders today itself. Another request to ignore the earlier declining of LSG promotions prior to the receipt of MACP orders will also be considered.

21. The proposal of the staff side to create System assistant instead of System administrator will be considered along with the cadre review proposals. The orders relating to road mileage allowance will be released shortly. The distribution of work & responsibility etc will be looked into along with the cadre review proposals.

22. The Recruitment Rules for Multi tasked staff will be finalized shortly. Our request to finalise the rules with no educational qualifications as if available to erstwhile Group D has been accepted.

23 The issues relating to Postal accounts like filling up of posts, amalgamation of Group C etc will be discussed further with DDG (PAF).

24. The suggestions of the Admin union about centralization of PLI claim at RO & CO will be considered. Further a separate meeting will be organized with their union to discuss about their issues.

25. Clarificatory orders will be issued soon providing officiating pay to the officials holding higher posts like HSG II & HSG I.

26. The issues of the postal Civil wing will be discussed separately.

After the meeting, the JCA met and decided to defer the proposed strike duly considering the positive approach of the Secretary in settlement of our genuine demands.

Prepare for the massive strike from 13th July 2010 – Our tasks

Prepare for the massive strike from 13^th July 2010 – Our tasks

1. Contact each and every worker in your office and convince him about the inevitability of the struggle.

2. Hold gate meetings, lunch hour meetings, meetings of active workers, General body meetings, joint meetings to explain in detail about the charter of demands and that every possible attempt was made to parley to reach an amicable settlement but resulted in vain.

3. Filling up of the vacant posts, shortage of staff, consideration of cadre review proposals, full fledged staff to project arrow offices revival of negotiations forums are the basic demands in which no compromise could be arrived. There will be no compromise on policy issues to save postal and RMS.

4. Maximum mobilization and massive action alone can compel the Govt to concede our basic demands.

DON’T THINK THAT THERE WILL BE NEGOTIATIONS AND STRIKE MAY NOT TAKE PLACE .THE SITUATION IS TOTALLY DIFFERENT. THERE IS NO POSITIVE EFFORTS TO SORT OUT THE ISSUES IN THE ACTION TAKEN STATEMENT SENT BY THE DEPARTMENT.

THIRTEENTH JULY 2010 WILL DAWN WITH THICKNESS IN THE AIRAND WARMTH IN THE EARTH.THE SPIRIT OF DEFIANCE, DETERMINATION AND THE DEPTH OF THE FEELINGS OF THE WORKERS WILL UNLEASH ITSELF WITH FORCE AND FIRMNESS AND IN FULL STRENGTH.

LET ALL REFUSE OUR LABOUR TO THE EMPLOYER TILL OUR GENUINE DEMANDS ARE MITIGATED

BE PREPARED. MOBILSE ONE AND ALL. MAKE THE GOVT TO COME DOWN AND SETTLE OUR DEMANDS.

The remuneration of Gramin Dak Sewaks engaged as substitutes in short term departmental vacancies of Postman, Mail Guards & Group D(future multi-skilled employees) is to be calculated on the basis of minimum of the pay in the respective revised pay band of the post plus grade pay concerned excluding HRA and Transport Allowance from 01.01.2006.

(Auth: Department of Posts letter No. 1-20/2008-PCC dated 27.03.2009)

All non-matriculate Group D will be granted the revised pay structure in the following manner:-(i) Placement of all such employees initially in the corresponding -1S pay scale of Rs. 4440-7440 with appropriate grade pay Rs. 1300, Rs. 1400, Rs. 1600 and Rs. 1650 w.e.f. 01.01.2006. (ii) Fixation of those employees, who already possess the revised minimum qualification of Matriculation or its equivalent, in PB-1 with grade pay of Rs. 1800 with effect from 01.01.2006. (iii) Those employees who do not possess the prescribed minimum qualification would also be given the PB-1 with grade pay of Rs. 1800 after being given computer training to enhance their skill for which training division in Directorate would develop a module in basic data entry and circulate to Circles. Divisional Superintendents/Controlling authorities are required to ensure imparting of training and issue of certificate about completion of prescribed training and getting recorded the same in the service book of the officials. All multi-skilled employees in pre-revised Group D Scales (PO &RMS Test Category, Administrative Offices Test Category, Unskilled, Semi-skilled & all non test category staff) in various pre-revised pay scales will be allowed Pay Band of Rs. 5200-20200 with grade pay of Rs. 1800 with effect from 01.01.2006. Group D employees have been given additions to their duties as specified in the order apart from their existing duties laid down in Rules 144 to 152 of Postal Manual Volume VI Part III.

(Auth: Department of Posts letter No. 1-20/2008-PCC dated 27.03.2009 read with Note 1 below Rule 7(1)(D) of CCS (RP) Rules, 2008)

The All India Consumer Price Index number

The All India Consumer Price Index number for (Industrial Workers) (Base 2001=100) for the month of April 2010 is 170 as announced by Statistics Department, Labour, Government of India.

Based on this index, DA calculation is as under. Present DA rate from 1.1.2010 is 35%. So far there is an increase of 7%. If the index remains 170 there will be an increase of 9%.

Month	All India Index	% of increase
Nov 2008	148	21.44
Dec 2008	147	22.38
Jan 2009	148	23.39
Feb 2009	148	24.32
Mar 2009	148	25.12
Apr 2009	150	25.98
May 2009	151	26.84
Jun 2009	153	27.78
Jul 2009	160	29.00
Aug 2009	162	30.23
Sep 2009	163	31.45
Oct 2009	165	32.67
Nov 2009	168	34.11
Dec 2009	169	35.70
Jan 2010	172	37.43
Feb 2010	170	39.01
Mar 2010	170	40.59
Apr 2010	170	42.03

NEW TEAM OF OFFICE BEARERS OF NFPE

NEW TEAM OF OFFICE BEARERS LED BY THE SECRETARY GENERAL COMRADE M.KRISHNAN ALONG WITH ALL GENERAL SECRETARIES OF AFFILIATED UNIONS AND THE OUTGOING SECRETARY GENERAL COMRADE K.RAGAVENDRAN MET THE HIGHER OFFICERS OF POSTAL BOARD ON 24.06.2010

Dear Comrades - On successful completion of the 8th Federal Council Session of NFPE the team of new Office Bearers visited the Postal Directorate and submitted the list of newly elected office bearers to the Administration. Comrade K.Ragavendran introduced the new team to the Postal Board Members.

The team was led by the newly elected Secretary General Comrade M.Krishnan and accompanied by Comrades K.V.Sridhran General Secretary P3; Ishwar Singh Dabas General Secretary P4; Giriraj Singh General Secretary R3; P.Suresh General Secretary R4; P.Rajanayagam General Secretary Postal Accounts; and R.N.Parashar Assistant Secretary General.

Since the Secretary Posts was abroad, the NFPE team met the other Postal Services Board Members. Member [Technology] Shri.S.Samant assured consideration of the existing System Administrators whilt the project of technology wing is taken up in the coming months. Member [T] greted the new team for all success.

Member [P] Ms.Indira Krishnakumar assured to hold a special half a day meeting during second half of July on issues pertaining to Member [P] control. MACP; RR Rules for MSE; Shortage of staff; casual labourers wages from 1.1.2006 etc were highlighted during the discussion. Member [P] assured to look into our contention that the vacancies which are manned even for one day by a LR or OTA etc should not be deemed as abolished. Member [P] agreed to consider our view point. Member [P] greeted the success of the new team of NFPE office bearers.

Member [HRD] Major General V.Sadasivam greeted for the success of our new team.

Due date for filling of return of Income Tax

Due date for filling of return of Income Tax

F.No.225/72/2010-ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 31st May, 2010.

Order under Section 119(1) of the Income Tax Act, 1961

The due date for filling of return of income within the meaning of Explanation 2(c) to Section 139(1) of the Income Tax Act, 1961 is 31st July, 2010. The income tax authorities are hereby directed to make arrangements for accepting the returns of income on 31st July, 2010 (being Saturday). This direction is issued for administrative convenience by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income Tax Act, 1961.

Special arrangements may also be made by way of opening additional receipt counters, wherever required, from 28th July to 31st July, 2010 to facilitate the taxpayers to file their returns.


(Ajay Goyal)
Director (ITA-II)

Consolidated instructions on Regularization of Unauthorized Absence.

No.13026 /3/2010-Estt. ( Leave)
Government of India
Ministry of Personnel, P.G. and Pensions
(Department of Personnel & Training)

New Delhi, the 22^nd June, 2010

Office Memorandum

Sub: Consolidated instructions on Regularization of Unauthorized Absence.

The undersigned is directed to say that this Department has been receiving various references from Ministries/ Departments regarding regularization of unauthorized absence for long periods. The references are made basically because the Ministries/Departments do not follow the prescribed procedure for dealing with such unauthorized absence.

Guidelines/instructions exist for handling such situations.

2. As per Rule 25 of the CCS (Leave) Rules 1972.

(1).Unless the authority competent to grant leave extends the leave, a Government servant who remains absent after the end of leave is entitled to no leave salary for the period of such absence and that period shall be debited against his leave account as though it were half pay leave. to the extent such leave i s due, the period in excess of such leave due being treated as extraordinary leave.

(2) Willful absence from duty after the expiry of leave renders a Government servant liable to disciplinary action. Government of India decisions also exist; than a Government Servant who remains absent without any authority should be proceeded against immediately and this should not be put off till the absence exceeds the limit prescribed in Rule 32(2) (a) of the CCS (Leave) Rules, 1972.

3. It is once again stressed that a Govt. servant who remains absent without any authority shout d be proceeded against immediately. All Ministries/Departments are requested to ensure that in all cases of unauthorized absence by a Government Servant, he should be informed of the consequences of such absence and be directed to rejoin duty immediately / within a specified date, say within three days, failing which he would be liable for disciplinary action under CCS(CCA) Rules 1965. If the Government Servant does not join duty by the stipulated date the Disciplinary Authority should initiate disciplinary action against him and the disciplinary case should be conducted and concluded as quickly as possible,

4. It is only due to apathy of the Disciplinary Authorities that the situation arises where long pending unauthorized absence leads to delay in other service matters of Government Servants, including promotions. To avoid such situations all Ministries / Departments should advise Disciplinary Authorities to ensure that prompt action is taken against Government Servants who absent themselves with out permission and that Charge-Sheets are issued without delay.

5. The consequences and procedure to be followed in respect of an officer who is absent from duty without any authority has been brought out under FR 17(1) and 17-A. As per FR 17-A(iii) without prejudice to the provisions of Rule 27 of the Central Civil Services (Pension) Rules. 1972, remaining absent without any authority or deserting the post, shall be deemed to cause an interruption or break in the service of the employee, unless otherwise decided by the competent authority for the purpose of leave travel concession, quasi-permanency and eligibility for appearing in departmentexaminations, for which a minimum period of continuous service is required.

6. Comptroller and Auditor General have issued orders that the period of absence not covered by grant of leave shall have to be treated as “dies non” for all purpose,;, viz., increment, leave and pension. Such absence without leave when it stands singly and not in continuation of any authorized leave of absence will constitute an interruption of service for the purpose of pension and unless the pension sanctioning authority exercises its powers under Article 421, Civil Service Regulations [now Rule 27 of the CCS (pension) Rules] to treat the period as leave without allowance, the entire past service will stand forfeited.

7. It may be noted that regularization of unauthorized absence for pension purpose is to be considered under the CCS (Pension) Rules. Only in cases where the disciplinary authority is satisfied that the grounds adduced for unauthorized absence are justified, the leave of the kind applied for and due and admissible may be granted to him under the CCS (Leave) Rules. lidated instructions on Regularization of Unauthorized Absence

Directorate has issued letter No F.No.76-01/2010-SB dtd 25.5.10 and as per the letter, Sanchay Post software will not be purchased and CBS software will be installed. The letter is reproduced below for information.

The undersigned is directed to say that on the recommendations of a committee constituted to review utility and capabillity of Sanchay post software in the light of proposed CBS, Accrual Base Accounting and compliance of prevention of Money Laundering (PML)/combating of Financing Terrorism (CFT) norms, the competent authority has taken the following decisions:-

1.There will be no further expansion of Sanchay post software. The post offices for which legal copies of the sanchay post CDs have not yet been purchased will continue to work on manual system.

2.No further CD of Sanchaya Post system will be purchased from Datanet System.

3.Software Development Centre Chennai operating from O/O CPMG, T.N.circle will maintain the software at its present level and no further modifications or enhancements will be carried out in the software.

4.SDC, Chennai will help the probable system integrator in data migration to proposed CBS software.

5.After implementaion of CBS in 4000 major post offies, the remaining departmental offices will be shifted to a lower version of CBS with centralized database system.

This issues with the approval of DDG (FS)

. What is the New Pension System (NPS)?

The NPS is a new contributory pension scheme introduced by the Central Government for employees joined in Government Service on or after 1.1.2004. During the year 2009, the NPS was kept open for public.

2. Who is covered by the NPS?

a. Employees who have joined central government service on or after 01 January 2004 including Railways, Posts, Telecommunication or Armed Forces (Civil), Autonomous Body, Grant-in-Aid Institution, Union Territory or any other undertaking whose employees were eligible to a pension from the Consolidated Fund of India., earlier.

b. This contribution pension scheme is also open to any Indian citizen between the age of 18 and 55.

3. I am covered by the NPS. Can I contribute to the GPF?

No. The General Provident Fund ( Central Service) Rules, 1960 is not applicable for employees covered by NPS.

4. I Am covered by the NPS. Am I eligible to Gratuity?

No. You will not be eligible to Gratuity.

5. How does the NPS work ?

When you join Government service, you will be allotted a unique Personal Pension Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account from any location and also if you change your job. The PPAN will provide you with two personal accounts:

1. A mandatory Tier-I pension account, and

2. A voluntary Tier-II savings account.

6. What is the difference between Tier-I and Tier-II accounts?

1. Tier-I account: You will have to contribute 10% of your pay in pay band + grade pay + DA into your Tier-I (pension) account on a mandatory basis every month. You will not be allowed to withdraw your savings from this account till you retire at age 60. Your monthly contributions and your savings in this account, subject to a ceiling to be decided by the government, will be exempt from income tax. These savings will only be taxed when you withdraw them at retirement.

2. Tier-II account: This is simply a voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.

7. How will I contribute to my Tier-I (pension) account?

Every month, the government will deduct 10% of your salary (10% of pay in pay band + grade pay + DA) and automatically transfer this amount to your Tier-I account in your name.

8. Will the Government contribute anything to my Tier-I (pension) account?

Yes. As your employer, the Government will match your contribution (10% of pay in pay band + grade pay + DA) and transfer this amount also to your Tier-I account in your name.

9. Can I contribute more than 10% into my Tier-I account?

Yes. You will be permitted to contribute more than the mandated 10% of pay in pay band + grade pay + DA into your Tier-I account – subject to any ceiling that may be decided by the Government.

10. Will the Government also contribute more than 10% into my Tier-I account?

No. The contribution of the Government will be limited to 10% of your pay in pay band + grade pay + DA.

11. What will happen if I am transferred to another city?

The PPAN number will stay the same and you will be able to use the same account.

12. If I leave Government service before I retire will the Government continue to contribute to my Tier-I account?

No. The 10% contribution by the Government will stop when you leave Government service. However, your savings in your Tier-I and Tier-II accounts will stay in your name and you will be able to continue using these accounts to save for your retirement.

13. What if I die or become permanently disabled during my service?

Additional Relief on death/disability of Government servants covered by the NPS(NewPension Scheme) recruited on or after 1.1.2004 has been discussed in this Office Memorandum No.38/41/06/P&PW(A) Dated 5th May, 2009

14. How will the money be invested?

The money you invest in NPS will be managed by professional fund managers. Currently, you have the choice of picking up one of the following six fund managers: ICICI Prudential Pension Management, IDFC Pension Fund Management, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Funds, and UTI Retirement Solutions. In addition to this there are three schemes for which you have to opt.

Scheme A This scheme will invest mainly in Government bonds

Scheme B This scheme will invest mainly in corporate bonds and partly in equity and government bonds

Scheme C This scheme will invest mainly in equity and partly in government bonds and corporate bonds.

15. Can I switch fund managers if I am not happy with my current fund manager?

Yes, you can switch fund managers. PFRDA, the pension fund regulator, will declare the value of your investment every year in April. At that point of time, if you are not satisfied with the performance of your fund manager, you can switch to another fund manager between May 1 and May 15.

16. What are the charges?

This is where NPS wins hands down against all other modes of creating a corpus to generate income after retirement. The fund management charge of NPS is 0.0009% of the value of theinvestment, every year. In comparison, pension plans of insurance companies charge 0.75-1.75% as fund management charge, which is 800-2000 times higher. The other expenses charged are also very reasonable.

17. I am covered by the NPS. Do the old Pension Rules apply to me?

No. The Central Civil Service Pension Rules (1972) will not be applicable to you.

18. Who will be responsible for the NPS and for protecting my interests?

The Government has set up a new dedicated regulatory authority known as Pension Fund Regulatory and Development Authority (PFRDA). The PFRDA will be responsible for the NPS and for protecting your interests in the NPS in consultation with Ministry of Finance.

19. Who in the Government will issue me a PPAN account and be responsible for the deductions?

When you join Government service, your Drawing and Disbursement Officer (DDO) will instruct you to fill out a NPS form. You will be required to provide your full professional and personal details including details of your nominee in this form. The DDO will issue you the PPAN number(PRAN) and will also be responsible for all administrative matters related to your NPS accounts including deduction of your contributions, transferring your contributions and the matching contribution of the Government to your Tier-I pension account.

20. What will happen to my contributions to my Tier-I account?

Your monthly contributions, and the matching contributions by the Government into your Tier-I account, will be transferred by the Government in your name to a Pension Fund Manager (PFM). The PFM will invest your contributions on your behalf. In this way, your savings will appreciate and grow over time.

21. Will I be permitted to select more than one Pension Fund Manager to manage my savings?

Yes. If you wish, you will be able to spread your savings across multiple PFMs – where a part of your savings are managed by 2 or more PFMs.

22. Am I guaranteed a certain rate of return?

No return is guaranteed as it is in case of EPF and PPF. The amount of money you make is dependant on how well the fund managers chosen by you perform. But, the extremely low charges in NPS sure give it an edge over the the pension plans of insurance companies.

23. 11. Can I contribute more than 10 into my Tier-I account?

Yes. You will be permitted to contribute more than the mandated 10% of Basic+DA+DP into your Tier-I account – subject to any ceiling that may be decided by the Government.

24. Can I withdraw money from the account?

The NPS offers two accounts: tier I and tier II. Currently only tier I account is available. This is a non-withdrawable account and investments in this keep accumulating till you turn 60. Withdrawal is allowed only in case of death, critical illness or if you are building or buying your first house. In case of death the nominee can get 100% of NPS wealth in a lump sum. He can however continue with the NPS in case he wishes to.

25. What will happen to my savings in the Tier-I account when I retire?

You will be able to withdraw 60% of your savings as a lump sum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.

26. Can I use more than 40% of my savings to purchase the annuity?

Yes. You can use more than 40% of your savings to purchase annuity.

27. What will happen to my savings if I decide to retire before age 60?

You will be required to use 80% of your savings in your Tier-I account to purchase the annuity. You will be able to withdraw the balance 20% of your savings as a lumpsum. The other option is , you can continue to invest in NPS on monthly basis and then purchase annuity using 40% of your savings at the age of 60.

28. Will the annuity also provide a family (survivor) pension?

Yes. You will have an option of selecting an annuity which will pay a survivor pension to your spouse.

29. What will happen to my savings in the Tier-I account when I retire?

You will be able to withdraw 60% of your savings as a lumpsum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.

30. What happens at retirement?

NPS by default sets the retirement age at 60. Once you attain that age, you can use themoney that has accumulated to generate a regular pension for yourself. In order to do this, you have to compulsorily buy immediate annuity from a life insurance company with 40% of the money that has accumulated. As explained at the beginning, buying an immediate annuity will assure a regular payment for you. Since a minimum of 40% needs to be used to buy an immediate annuity, a maximum of 60% of the money accumulated can be withdrawn. However, unlike other tax-saving instruments like Public Provident Fund (PPF) and Employees’ Provident Fund (EPF), wherein the amount at maturity is tax-free, in case of NPS this amount is taxable.

31. Whether a retiring Government servant is entitled for leave encashment after retirement under the NPS?

The benefit of encashment of leave salary is not a part of the retirement benefits admissible under Central Civil Services (Pension) Rules, 1972. It is payable in terms of CCS (Leave) Rules which will continue to be applicable to the government servants who join the government service on after 1-1-2004. Therefore, the benefit of encashment of leave salary payable to the governments/to their families on account of retirement/death will be admissible.

32. Why is it mandatory to use 40% of pension wealth to purchase the annuity at the time of the exit (i.e. after the age of 60 years) from NPS?

This provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.

33. Whether any minimum age or minimum service is required to quit from Tier-I?

Exit from Tier-I can only take place when an individual leaves Government service.

34. Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I?

As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.

35. Whether contribution towards Tier-I from arrears of DA is to be deducted?

Yes. Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements.

36. Who will calculate the interest PAO or CPAO?

The PAO should calculate the interest.

37. What happens if an employee gets transferred during the month? Which office will make deduction of Contribution?

As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month (both individual and government) will be made by the office who will draw salary for the maximum period.

38. Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS?

Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practicing Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.

39. Whether a government servant who was already in service prior to 1.1.2004, if appointed in a different post under the Government of India, will be governed by the CCS (Pension) Rules or NPS?

In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.

40. Will I get a tax deduction for the investment?

Yes, under Section 80CCD of the Income Tax Act investments of up to Rs 1 lakh in the NPS can be claimed as tax deductions. Readers should remember that this Rs 1 lakh limit is not over and above the Rs 1 lakh limit available under Section 80C. In fact, the combined limit of investments made under Section 80C, 80CCD and section 80CCC (for investments made into pension plans of insurance companies) is Rs 1 lakh.

Government has revised the transportation of personal effects in the event of transfer

Grade pay	By Train/Steamer	X & Y Class cities	Z Class Cities
Officers drawing grade pay of 7600 and above and those in pay scale HAG+ and above	6000 kgs by goods Train/4 wheeler wagon/ 1 double container	30.00 (Rs.0.005 per kg per Km)	18.00 (Rs.0.003 per kg per Km)
Officers drawing grade pay of Rs.4200, Rs.4800, Rs.5400 and Rs.6600	6000 kgs by goods Train/4 wheeler wagon/ 1 double container	30.00 (Rs.0.005 per kg per Km)	18.00 (Rs.0.003 per kg per Km)
Officers drawing grade pay of Rs.2800	3000 kgs	15.00 (Rs.0.005 per kg per Km)	9.00 (Rs.0.003 per kg per Km)
Officers drawing grade pay below Rs.2800	1500 kgs	7.50 (Rs.0.005 per kg per Km)	4.60 (Rs.0.0031 per kg per Km)

IT exemption on Retirement Gratuity

IT exemption on Retirement Gratuity
Income Tax exemption limit for gratuity enhanced to Rs.10 lakh - Central Board of Direct Taxes approved.
The government enhanced the income tax exemption limit for gratuity from Rs.3.5 lakh to Rs.10 lakh w.e.f. May 24, 2010.
The Central Board of Direct Taxes has approved notification of ten lakh rupees as the maximum amount of gratuity entitled to exemption under sub-clause (iii) of clause (10) of section 10 of the Income Tax Act 1961.
The notification will be applicable to employees who retire, or become incapacitated before retirement, or expire, or whose services are terminated, on or after the 24th May 2010.

Payment of Second installment of 60 %

Order No 6-1/2009 – PE
Government of India
Ministry of Communication & IT
Department of Posts


Dak Bhavan Sansad Marg
‘ Newdelhi -110016
Dated June 2010

Subject: Payment of Second installment of 60 % Arrears Shri R S on account of implementation of Shri Nataraja Murti Committee recommendations on revision of wage structure of GDS

Sir/Madam ,

1. I am directed to refer this office memorandum of even no dated 09.10.2009 wherein approval was communicated for implementation of recommendations of one man committee on revision of time related community and other allowance. In para 11 of said office memorandum it was stated that, 2nd installment of 60 % of arrears will be paid only after issue of specific instructions in this regard by the Directorate.
2. It has now been decided to pay the second installment of 60 % arrears of revision of Time related continuity allowance to the eligible Gramin Dak Sevaks .

3. The circle Postal account offices were required to carry out cent percent verification of TRCA consequent of revision of TRCA. The entire process of verification was to be completed by 31.March 2010. A report on the cent percent verification of TRCA should be sent to the Directorate immediately for record

4 The excess payment pointed out by the circle verification squad of DAP should be adjusted while effecting the payment of second installment arrears.
5 Before releasing the second installment of 60 percent arrears it may be ensured that requisite funds are available under the relevant head of accounts.
6 An undertaking of prescribed format should be obtained from each Gramin Dak Sevak to the effect that, he will refund any excess payments that may be found to have been made or decided subsequently and kept on record before the disbursement of second instalment. The process of payment of second installment may be completed by 15.07 2010.

TEXT OF POST CARD CAMPAIGN

To

Shri.A.Raja

Honourable MOC & IT

Government of India

Electronic Nikethan

CGO Complex

Lodi Road,

New Delhi – 110001



Respected Sir,

POSTAL EMPLOYEES REQUEST YOUR KIND INTERVENTION TO DIRECT THE POSTAL BOARD TO DISCUSS THE CHARTER OF DEMANDS OF POSTAL JOINT COUNCIL OF ACTION FOR REACHING SETTLEMENT OF OUR JUSTIFIED ISSUES.

THANKING YOU SIR,

YOURS FAITHFULLY,

--------------------------

Name:

Designation:

Office:

Date:

COPY OF INDEFINITE STRIKE NOTICE SERVED ON DEPARTMENT ON 4.6.2010


Charter of Demands is now with 18 Points - The demand for Enhancement of OTA [Over Time Allowance] and OSA [Out Station Allowance] has been included before serving Strike Notice as the 18th Point.




Comrades - Sink all differences and commence all preparations for a successful Programme of Action - Form Active Joint Council of Action platform at all levels - Observe the Programme of Action with all seriousness.



No Periodical Meeting by Department for years!

No holding of Departmental Council Meeting!

No Revival of GDS Committee Meeting!

All action of Department is unilateral!

No action for restructuring of cadres comprehensively even after one year but arbitrary piece meal cadre restructuring of Postmasters Cadre by Postal Board!

Arbitrary decision to close down all urban based 'C' Class Offices!

Retrograde decisions to downgrade ED SOs!

Inhuman torture in the name of 100% Delivery under Project Arrow! No Working Hours!

Outsourcing of Speed Post Processing - Mail Conveyances - Opening up of more Franchisees - Outsourcing of Data Entry Work - How long this outsourcing is going to be tolerated?

Staff shortage is still haunting us despite abolition of Screening Committee - Calculation of PA/SA vacancies not done properly in Circles.



The Indefinite Strike by Postal JCA is only to end this suffocation and suffereings. Get United - Get into Action!