A complete reference blog for Indian Government Employees

Saturday, 13 August 2016

7th Pay Commission Pay hike needed more money: FM


7th Pay Commission Pay hike needed more money: FM



New Delhi: Finance Minister Arun Jaitley told lawmakers on Friday that he would need more money in the current fiscal year to cover the cost of 7th Pay Commission Pay hike for 10 million central government employees and pensioners.

The government will require “some enhancement” for spending on salaries and pensions in 2016-17 to absorb the off-cycle pay hikes announced in June on the recommendation of the 7th Pay Commission.

The government faces a challenge to achieve its fiscal deficit target of 3.5 percent of GDP in the current fiscal year, but is “quite optimistic” of fully achieving the target of 3 percent in 2017/18, the finance ministry said in the Medium-Term Expenditure report tabled in parliament’s lower house.

Rating agencies such as Moody’s have said that the increase in wages would boost consumer demand, leading to inflationary pressures and making it difficult for the next governor of the Reserve Bank of India to achieve its inflation target.

Prime Minister Narendra Modi’s government has just confirmed a central inflation target of 4 percent, plus or minus 2 percentage points, that was agreed with departing governor Raghuram Rajan for the next five years.

Total federal spending on salaries and pensions is estimated to rise about 10 percent in the next fiscal year to 2.58 trillion rupees ($38.6 billion) compared with budget estimates for the current fiscal year.

Reuters
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Panel to submit report on one regulator for pension products

Panel to submit report on one regulator for pension products

Mumbai: A panel formed by the government to look into the issue of bringing all pension products under one regulator is likely to submit its report shortly, a top official of pension watchdog PFRDA said today.

At present, pension products are being regulated by multiple financial regulators like PFRDA, Sebi, Irdai and EPFO.

However, Pension Fund Regulatory and Development Authority (PFRDA) has urged the government to bring all such products under it.

“A proposal has been already put to the government to have a single regulator for all kinds of pension products in the country.

“The government has set up a committee to discuss the issue. The committee is likely to give its recommendation shortly,” PFRDA Chairman Hemant Contractor told reporters on the sidelines of a CII event here.

Apart from PFRDA, the panel has members from other regulators like Sebi, Irdai and EPFO.

PFRDA has also asked the Centre to allow private sector fund managers to manage the pension funds for government employees and it is hopeful of getting the government’s nod in a month’s time.

At present, only the three state-owned fund managers are managing such funds, he said.

Moreover, the board of PFRDA has already approved increasing equity exposure in the National Pension System (NPS) to 75 per cent from existing below 50 per cent, Contractor said.

Regarding Atal Pension Yojana (APY), he said rural populace is coming forward and opting for the government-sponsored plan.

“At present, 52 per cent of subscribers under APY comprise rural folks, which was not the case a year ago when the scheme was launched.

“This has become possible only when the regional rural banks and post offices joined the distribution channel for the scheme,” he said.

Total accumulation of funds under APY currently stands at Rs 900 crore, he said.

Except for West Bengal and Tripura, all states have agreed to implement the APY scheme for their employees, Contractor said, adding that PFRDA is in talks with these two states for the same.

PTI
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Method of Calculation of disability where two types of IDs are involved


Method of Calculation of disability where two types of IDs are involved

No. 16(02)/2015-D(Pen/Pol)
Government of India Ministry of Defence
Department of Ex-Servicemen Welfare

New Delhi, Dated 8th August 2016
To,
The Chief of the Army Staff,
The Chief of the Naval Staff,
The Chief of the Air Staff,

Subject- Method of Calculation of disability where two types of IDs are involved.

Sir,
It has been observed during perusal of RMB/IMB proceedings that some Armed Forces Personnel have sustained some disability under category ‘B’ & ‘C’ as well as battle casualty under category ‘D’ & ‘E’ of Govt of India, Ministry of Defence letter No. 1(2)/97/D(Pen- C) dated 31st January, 2001 and composite assessment is made for all the disabilities by the Medical Board.

 2. The composite assessment of disabilities may be equal to or less than the mathematical sum of percentage of disabilities. Since the calculation method of normal disability and war injury is different and assessment of disabilities including both i.e. normal disability and war injury are assessed as composite, therefore, in absence of clear directions/ guidelines, calculation of pension value for disabilities including both types of disabilities is not possible. It is also mentioned that rounding off benefit is presently given only in Invalidment cases attributable to or aggravated by military service and not in discharge cases.

3. Now, the issue has been analyzed in totality and the undersigned is directed to state that the methodology of calculation of pension values in cases where War Injury Element and Disability Element both exist may be carried out as follows. Firstly, the composite assessment for all accepted disabilities shall be derived. The higher element, i.e. War Injury Element (WIE) shall be deducted from the composite assessment and paid in full, irrespective of the percentage of assessment. The remainder shall be calculated as the normal Disability Element (DE). The minimum assessment criterion shall not be ‘applicable in such cases as the net assessment reckonable for WIE and DE together is more than 20%.
(a) Discharge Cases- Cases where Armed Forces Personnel are discharged from service on completion of prescribed terms of engagement, the higher element, i.e. the War Injury Element (WIE) Shall be deducted from the composite assessment and paid in full, irrespective of the percentage of assessment. The remainder shall be calculated as normal Disability Element (DE).

(b) Invalidment Cases- Cases where Armed Forces Personnel are invalided out on medical ground which is attributable to or aggravated by military service, the composite assessment and war injury element will be rounded off in terms of para 7.2 of GOL MOD letter No.1 (2)/97/D(Pen-C) dated 31.01.2001. Further, rounded percentage of War Injury Element (WIE) shall be deducted from the rounded percentage of composite assessment. The remainder shall be calculated as normal Disability Element (DE). The provisions of this letter shall take effect from the date of issue,
5. This issues with the concurrence of Finance Division of this Ministry vide their ID No 10(07)/2016/Fin/Pen dated 01/07/2016

6. Hindi version will follow,
Yours faithfully
sd/-
( Manoj Sinha)
Under Secretary to the Government of India
Source : http://www.desw.gov.in/
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Ordnance Factory Board


Ordnance Factory Board

Majority of the requirement of items like Ammunition, Armoured Vehicles, Troop Comfort items etc for Indian Army are met through the Ordnance Factory Board (OFB). The contribution of OFB in meeting the requirement of the Army has increased over the years. In value terms, the supplies by OFB to Army has increased by over 25% in the year 2015-16 compared to 2014-15.

Further, for communicating long term requirement of Army, the system of Five Year Roll On Indent for Ammunition items has been introduced since 2010. In order to ensure time bound delivery to Army, a system of Letter of Intent (LoI) has been introduced to indicate the tentative quantities to OFB in the beginning of the year to enable OFB to initiate procurement.

This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Arvind Sawant in Lok Sabha today.

PIB
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Exercise option within Three Months of the Date of Notification


Exercise option within Three Months of the Date of Notification

To Exercise option under the provisos to rule 5 with in three months of the Notification of Revised Pay Rule 2016 is issued.

shall be exercised in writing in the form appended to these rules so as to reach the authority mentioned in sub-rule (2) within three months of the date of notification of Revised Pay Rule 2016.

Exercise of option :-

(1) The option under the provisos to rule 5 shall be exercised in writing in the form appended to these rules so as to reach the authority mentioned in sub-rule (2) within three months of the date of notification of these rules or where any revision in the existing pay structure is made by any order subsequent to the date of notification of these rules, within three months of the date of such order:

Provided that :-
(i) in the case of a Government servant who is, on the date of such notification or, as the case may be, date of such order, out of India on leave or deputation or foreign service or active service, the said option shall be exercised in writing so as to reach the said authority within three months of the date of his taking charge of his post in India; and
(ii) where a Government servant is under suspension on the 1st day of January, 2016, the option may be exercised within three months of the date of his return to his duty if that date is later than the date prescribed in this sub-rule.

(2) The option shall be intimated by the Government servant to the Head of his Office along with an undertaking, in the form appended to these rules.

(3) If the intimation regarding option is not received by the authority within the time specified in subrule (1), the Government servant shall be deemed to have elected to be governed by the revised pay structure with effect from the 1st day of January, 2016.

(4) The option once exercised shall be final.

Note 1: Persons whose services were terminated on or after 1st January, 2016 and who could not exercise the option within the prescribed time limit, on account of discharge on the expiry of the sanctioned posts, resignation, dismissal or discharge on disciplinary grounds, shall be entitled to exercise option under sub-rule (1).

Note 2: Persons who have died on or after the 1st day of January, 2016 and could not exercise the option within prescribed time limit are deemed to have opted for the revised pay structure on and from the 1st day of January, 2016 or such later date as is most beneficial to their dependents if the revised pay structure is more favorable and in such cases, necessary action for payment of arrears shall be taken by the Head of Office.

Note 3: Persons who were on earned leave or any other leave on 1st day of January, 2016 which entitled them to leave salary shall be entitled to exercise option under sub-rule (1).

Source : Finmin.nic.in
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7th Pay Commission: Central government employees can expect revised allowances by November


7th Pay Commission: Central government employees can expect revised allowances by November
Central government employees can expect to get the enhanced allowances by November this year when the special committee to examine the proposals submits its report.

The BJP-led NDA government is likely to take a decision about the hike in allowances for Central government employees by November this year when the panel appointed to examine it submits its report.
The committee headed by finance secretary has secretaries from home affairs, defence, health and family welfare as its members; the first meeting of the committee that was constituted on July 22 was held on August 4.

The information was given by finance minister Arun Jaitley to the Rajya Sabha on Tuesday in response to a question pertaining to the pay commission.

The hike in the salary component as recommended by the 7th Central Pay Commission (CPC) was accepted with retrospective effect from January 1, 2016. The arrears have been paid to the 47 lakh employees while 52 lakh pensioners are expected to get their arrears in due course.

A study by Tata Strategic Management Group had estimated the quantum of allowances at Rs. 34,000 crore. This could change if the committee differs from the hike proposed by the 7th CPC.

The committee has been asked to submit its report within four months. Therefore, a decision on increased allowances for about 1 crore employees and pensioners can be expected by November.

While approving the recommendations of the 7th CPC, the government has said in an official statement on June 29 that the committee to examine the allowances will submit its report in a time-bound manner.

The pay commission had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances.

"Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates," the statement said.

The Union Cabinet also decided to appoint two separate committees to examine implementation of pension under the National Pension Systems (NPS) and discrepancies/anomalies that could stem from implementing the 7th CPC.

The recommendations of the 7th CPC cover 47 lakh Central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

Source: ibtimes
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Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019   ...

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