NFIR: TA/DA, PF, Pass, Medical and accommodation facilities to the contract Para-Medical Staff working in Railways

NFIR: TA/DA, PF, Pass, Medical and accommodation facilities to the contract Para-Medical Staff working in Railways

No.II/57/Part I

Dated: 08/05/2018

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,
Sub: TA/DA, PF, Pass, Medical and accommodation facilities to the contract Para-Medical Staff working in Railways-reg.

Federation is thankful to the Railway Board for issuing instructions vide letter No. 2017/Trans/01/Policy/Pt. I dated 12/04/2018 to revise the remuneration of Para-Medical Staff on contracts basis working in the Railway Health Units/Hospitals on Indian Railways.

Federation however feels that the Para-Medical Staff, working on contract basis deserve to be granted following facilities which are presently denied to them:-

• No TA/DA is paid to these staff when they are sent on duty to other places,
• No Provident Fund is deducted from their monthly remuneration and credited to respective EPFO,
• These staff are not granted the facility of Pass/PTo, Medical, accommodation etc., though they have been performing duties similar to the regular Para-Medical Railway Staff. They are also not provided periodic rest other than Sunday while they have been performing duties of 12 hours in a day.

Federation also contends that the Para-Medical Staff working on contract basis are entitled for above facilities in terms of the extant provisions of Contract Labour R&A Act, 1970.

NFIR, therefor, requests the Railway Board to kindly consider above points and issue instructions to the GMs of Zonal Railways to grant facilities to the Para-Medical Staff working on contract basis and mitigate their hardships.

A copy of instructions issued may also be endorsed to the Federation.

Yours faithfully,

S/d,

(Dr.M.Raghavaiah)

General Secretary

Source: NFIR

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Conference on Portability from Superannuation and Recognized Provident Funds to National Pension System (NPS); NPS has more than 1.71 crore subscribers with total Asset under Management (AUM) of more than Rs. 2.04 lakh crores

Conference on Portability from Superannuation and Recognized Provident Funds to National Pension System (NPS); NPS has more than 1.71 crore subscribers with total Asset under Management (AUM) of more than Rs. 2.04 lakh crores.

A Conference on Portability from Superannuation and recognized Provident Funds to National Pension System (NPS) was organized by the Pension Fund Regulatory and Development Authority (PFRDA) in coordination with Willis Towers Watson in national capital. The Prime objective of the Conference was to provide a knowledge base platform to the Corporate by providing solutions to address the issues / challenges of portability of superannuation funds to NPS.

160 participants comprising Corporate, Points of Presence (POPs), Pension Funds, Central Record Keeping Agencies (CRAs) participated in the Conference.

Dr. B. S. Bhandari, Whole Time Member (Economics), PFRDA, highlighted the need to expand the coverage of NPS in an efficient and sustainable way. He asserted the fact that there are more employees in the Corporate - Private sector than in the government sector and hence there is a great potential for NPS in the corporate sector. PFRDA has been constantly engaging with its stake holders in the NPS and has been working with industry associations for promotion of NPS in the Corporate - Private sector. To make NPS entry easy and the interface user friendly, various modifications have been carried out in the product.
Shri Rohit Jain, Head, Willis Towers Watson (India), speaking on the occasion, told that the average life expectancy of persons in India has risen and hence there is a greater need for a retirement / pension product for all. Traditional pension products cover only 30% of the population. In this changing scenario there is a latent demand for product like NPS as there is no universal pension product.

Shri Hemant Contractor, Chairman, PFRDA in his key note address, informed that, earlier, people used to retire from the same job not only in the government sector but also in private sector. With opening up of economy people started getting more job opportunities switching jobs suitable to their skills and talents. Job switching has become more frequent and people seek more controls on their finances, when they start moving jobs and place from one to another. The concept of portability came in and people started thinking about having better control on their retirement savings.

Defined Benefit Pension schemes, which were predominant, became unsustainable not only for the government sector but also for the private sector because of various factors. A Defined Contribution scheme was therefore launched in 2004 which was initially only for Central Government employees, but which was later extended to State Government employees and later to the private sector. This scheme is the National Pension System (NPS), which is regulated by PFRDA.

NPS addressed the concerns of subscribers relating to portability and freedom of choice, and gradually started to pick up momentum in the private sector. The other features of NPS, namely, low cost, attractive returns, transparency, flexibility and domain expertise in each area of pension activity were the other factors which appealed to the private sector. Innovations and changes are made from time to time in the NPS product and processes, some recent examples being, introduction of two new life cycle funds, inclusion of alternative assets in investment portfolio, online entry and exit etc.

The entry age to NPS is now proposed to be increased to 65 years from 60 years and there is an option to continue up to age of 70 years.

The Chairman also mentioned that NPS should also be explored, as an additional retirement benefit, for corporates where superannuation funds are not available and employees are covered only under the mandatory EPFO schemes.

He highlighted the growth of 47% in AUM and 26% in number of subscribers in the last financial year (2016-17). He also made a reference to Atal Pension Yojana, the pension platform available for unorganized segment through Government of India / PFRDA and its year on year growth indicating the underlying demand for pension products in India.

During the conference, a panel discussion comprising industry experts such as Willis Towers Watson, HDFC Pension Funds, Siemens Limited, Vedanta Group and NSDL e-Governance Infrastructure Limited eyeing the opportunities, addressing the challenges / issues and preparation of necessary guidelines on superannuation funds and NPS portability was conducted.

In the second half, a Conference for Point of Presence (PoPs), the distribution channel for NPS, was conducted.

Shri Hemant Contractor, Chairman, PFRDA, in his keynote address stressed on the need for robust distribution of the NPS through the current distribution network being managed by POPs which are Banks and other financial institutions. He also laid emphasis on the fact that, the key to last mile connectivity is increased distribution network by the POPs by registration and activation of more branches and through awareness campaigns. He informed that PFRDA has empanelled IL&FS Skill Development Corporation Limited as its training agency to impart training on NPS to POPs and Corporate and urged the POPs to utilise the services of the Training Agency for training of their staff member on NPS.
During this conference, awards were distributed to the POPs, for their performance in FY 2016-17 under various categories.

Currently, NPS has more than 1.71 crore subscribers with total Asset under Management (AUM) of more than Rs. 2.04 lakh crores.

PIB

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Inoperative EPF Accounts

Inoperative EPF Accounts

The Government vide notification no. G.S.R. 1065 (E) dated 11.11.2016 has amended paragraph 72(6) of the Employees’ Provident Funds (EPF) Scheme, 1952 wherein changes have been made in the conditions leading to a Provident Fund (PF) account becoming an Inoperative Account. As per amended definition of Inoperative Account (w.e.f. 11.11.2016), an account becomes inoperative after the age of 58 years, i.e., 36 months after the retirement age of 55 years. The details of inoperative accounts and amounts involved therein, consequent upon implementation of the above notification, have not been ascertained by Employees' Provident Fund Organisation (EPFO) presently as the date of birth in respect of many employees is not available in the EPFO database presently.

As per paragraph 60(6) of EPF Scheme, 1952, interest shall not be credited to the account of a member from the date on which it has become an inoperative account under paragraph 72(6) of EPF Scheme, 1952. However, as per amended definition, an account shall be classified as Inoperative after the member attains the age of 58 years. Hence, interest shall be credited to the account of a member upto the age of 58 years.
This information was given by Shri Bandaru Dattatreya the Minister of State (IC) for Labour and Employment, in a written reply to a question in Lok Sabha, today.

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Withdrawal under paragraph 68-BD of EPF Scheme, 1952 for housing needs of the PF members

Withdrawal under paragraph 68-BD of EPF Scheme, 1952 for housing needs of the PF members

Employees Provident Fund Organisation
(Ministry of Labour & Employment, Govt. of India)
Head Office
Bhavishya Nidhi Bhawan, 14-Bhikaiji Cama Place, New Delhi-110066

No: WSU/39(1)2017/Housing Scheme/4106

Date: 24.05.2017

To
All Addl. CPFC (HQ/ Zone),
Regional P.F. Commissioners-incharge of
Regional Offices.

Sub: Withdrawal under paragraph 68-BD of EPF Scheme, 1952 for housing needs of the PF members.
Ref: HO circular dated of even numbers dated 21.04.2017, 02.05.2017 & 19.05.2017

Sir,
Please refer to the above said subject.

2. There are a number of State Housing Boards or other authorities owned by the Government which construct and sell houses. In certain cases their houses remain unsold. Considering this, it is advised that RPFCs-incharge of ROs should contact all such Housing Board/authorities in their jurisdiction and persuade them for allotment of such unsold houses directly to the PF Workers' Cooperative Societies but EPFO shall not recommend or be associated in the agreement with any particular housing agency/housing society. RPFCs should also discuss the issue with PF Workers' Union and employers of establishments for formation of cooperative societies so that the concerned society may also negotiate with such Housing Board/ authorities.

3. Accordingly, it is advised that provisions of paragraph 68-BD of EPF Scheme, 1952 be given due focus and publicity by all such possible means in the interest of the workers.

Yours faithfully,

S/d,
(K.L. Taneja)
Addl. Central P.F. Commission (Housing)

Source: epfindia.gov.in

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Death Claim settled within 20 days from the date of receipt

Death Claim settled within 20 days from the date of receipt

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO: 3931

ANSWERED ON: 27.03.2017

Death Claims

G. HARI
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:-
(a) whether the Employees Provident Fund Organisation (EPFO) proposes to settle PF money claimed after death of an employee within seven days from 20 days at present;
(b)if so, the details thereof;
(c)whether all the death cases claims will be given top priority and officers in charge at all EPF offices will personally monitor such claims on day-to-day basis; and
(d) if so, the details thereof?

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a) & (b): As per paragraph 72(7) of the Employees’ Provident Funds (EPF) Scheme, 1952, the claim complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within 20 days from the date of its receipt by the Commissioner. The field offices of Employees’ Provident Fund Organisation (EPFO) have been directed to settle claims in cases of deaths within seven days of receipt of such claims.

(c) & (d): Yes, Madam. Public Relation Officer and officials in the Facilitation Centres of EPFO have been instructed to scrutinise the claim forms received in respect of death cases and guide the claimants for submission of all required documents in one go only. An official has been specially earmarked to handle such claims. Regional Provident Fund Commissioners have been directed to personally monitor the death cases on day-to-day basis.

Loksabha Q&A

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Allowing multiple choice to the subscribers/corporates to change Investment Option - PFRDA

Allowing multiple choice to the subscribers/corporates to change Investment Option - PFRDA

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area,
Katwaria Sarai,
New Delhi-110016
Phone : 011-26517503
Fax : 011-26517507
Website : www.pfrda.org.in

01 March 2017

CIRCULAR

PFRDA/2017/8/PD/2
To,
All Stakeholder in the National Pension System
Subject: Allowing multiple choice to the subscribers/corporates to change Investment Option and Asset Allocation Ratio during the Financial Year

1. As per the extant guidelines, subscriber can change his/her existing Pension Fund (PF), the investment option(Active or Auto choice) as well as asset allocation ratio (allocation among asset class-Equity/Corporate Bonds/Government securities/Alternate investment ) once in a financial year. This scheme preference is applicable to the existing pension corpus as well as to the prospective subscriptions. Similarly in the NPS-Corporate Model where the choice of Pension Fund and Investment Options is exercised at Corporate level, the Corporates also have the option to change the pension fund and investment option and also asset allocation ratio once in a financial year.

2. In order to provide more choices in terms of investment option and asset allocation, the following has been decided:

(i) The subscribers/corporates will have the choice for change of the investment option (Active or Auto choice) as well as asset allocation ratio (allocation among asset class-Equity/Corporate Bonds/Government Securities/Alternate Investment) two times in a financial year.
This scheme preference will be applicable to the existing pension corpus as well as to the prospective subscriptions. The option will be available separately for Tier I and Tier II accounts.
(ii) The choice of change of Pension Fund shall remain once in a financial year.

4. The changes will come into effect from 01st April 2017.

Yours faithful

(Akhilesh Kumar)
Deputy General Manager

Signed copy

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TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS on payment of accumulated balance under recognised provident fund and contribution from approved superannuation fund

Ministry of Finance has issued a circular about details of TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS ON PAYMENT OF ACCUMULATED BALANCE UNDER RECOGNISED PROVIDENT FUND AND CONTRIBUTION FROM APPROVED SUPERANNUATION FUND:

    The   trustees of a Recognized Provident Fund, or any person   authorized   by the regulations of the Fund   to  make payment of  accumulated   balances due   to  employees, shall   in   cases where sub-rule(1) of Rule 9 of Part A of the Fourth Schedule   to the Act applies, at the time   when the accumulated   balance due to an employee is paid, make therefrom   the deduction specified in Rule 10 of Part A of the Fourth Schedule to the Act.

The accumulated balance is treated as income chargeable under the head “Salaries”.

Where any contribution   made by an  employer,  including   interest on  such  contributions,  if any, in  an approved Superannuation Fund is paid to the employee,  tax on the  amount so paid shall be deducted by the trustees of the Fund  to the extent provided in Rule 6 of Part B of the Fourth Schedule to the Act. TDS should be at the average rate of tax at which, the employee was liable to be taxed during the preceding three years or during the period, if that period is less than three years, when he was member of the fund.

The deductor shall remain liable to deduct tax on any sum paid on account of returned contributions (including interest, if any)  even if a fund or part of a fund ceases to be an approved Superannuation fund.

As per section 192A of the Act, w. e. f. 01.06.2015 the trustees of the EPF Scheme 1952 framed under section 5 of the EPF & Misc. Provisions Act, 1952 or any person authorized under the scheme to make payment of accumulated balance due to employees, shall, in a case where the accumulated balance due to an employee participating in a recognized provident fund is includible in his total income owing to the provisions of Rule 8  of Part A of Fourth Schedule not being applicable at the time of payment of accumulated balance due to the employee, deduct income tax thereon @ 10% if the amount of such payment or aggregate of such payment exceeds Rs 50,000/-. In case the employee does not provide his/her PAN No., then the deduction will have to be made at maximum marginal rate.

Check the Circular

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State Railway Provident Fund - Rate of interest during the year 2016-17 (October, 2016 - December, 2016)

State Railway Provident Fund - Rate of interest during the year 2016-17 (October, 2016 - December, 2016)

RBE No. 121/2016

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No. F(E)III/2003/PF/1/1

New Delhi, Dated : 13.10.2016

The GMs/FA&CAOs,
All Indian Railways/Production Units,
(As per mailing list)

Subject: State Railway Provident Fund - Rate of interest during the year 2016-17 (October, 2016 - December, 2016).

******

A copy of Government’s Resolution No. 5(1)-B(PD)/2016 dated 3rd October, 2016 issued by the Ministry of Finance (Department of Economic Affairs) prescribing interest at the rate of 8.0% (Eight per cent) w.e.f. 1st October, 2016 to 31st December, 2016 on accumulations at the credit of the subscribers to State Railway Provident Fund, is enclosed, for information and necessary action.

2. Please acknowledge receipt

(Sanjay Prashar)
Deputy Director, Finance (Estt.) III
Railway Board.

(PUBLISHED PART I SECTION 1 of Gazette of India)
F.NO 5(1)-B(PD)/2016
Government of India
Ministry of Finance
Departments of Economic Affairs
(Budget Division)

New Delhi, the 3rd October, 2016

RESOLUTION

It is announced for general information that during the year 2016-2017, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8.0% (Eight per cent) w.e.f.1st October, 2016 to 31st December 2016. This rate will in force w.e.f. 1st October 2016. The Funds concerned are :

1. The General Provident Fund (Central Services)
2. The Contributory Provident Fund (India)
3. The All India Services Provident Fund
4. The State Railway Provident Fund’
5. The General Provident Fund (Defence Services)
6. The Indian Ordnance Department Provident Fund.
7. The India Ordnance Factories Workmen’s Provident Fund
8. The Indian Naval Dockyard Workmen’s Provident Fund
9. The Defence Services Officers Provident Fund.
10.The Armed Forces Personnel Provident Fund

2. Ordered that the Resolution be published in Gazette of India

(Vyasan.R)
Deputy Secretary (Budget)

Source : NFIR

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EPFO disbursed Rs. 47,630 crore as member benefits and Rs. 8,200 crore as monthly pensions in 2015-16

EPFO disbursed Rs. 47,630 crore as member benefits and Rs. 8,200 crore as monthly pensions in 2015-16

In 2015-16, EPFO disbursed approximately Rs. 47,630 crore as member benefits and Rs. 8,200 crore as monthly pensions.

To monitor the status of enrolment of contractual employees especially in municipalities, EPFO has taken steps towards putting in place a system where principal employers including government bodies who enroll workers directly or through contractors can view details of contractors including the amount paid towards PF dues on real time basis. Now, EPFO will be in a position to compare the PF dues reimbursed to contractors and the PF dues actually remitted by contractors. Mismatch in the amounts would indicate possible specific evasion that can be followed up towards seeking compliance. A facility already exists in public domain wherein all principal employers can check the amounts remitted by contactors’ establishments. Any person through this report can also check if her / his name appears in the list of employees submitted by contractor to EPFO on a monthly basis. EPFO is also in the process of digitizing compliance reporting system. It is expected that reporting in Compliance area shall be online and real time by the second quarter of this financial year.

The process of seeding EPS pensioners’ data with Aadhaar is underway in EPFO. While seeding the data, it has been noticed that in certain cases there is data mismatch between EPF data and Aadhaar data in respect of date of birth and name of pensioner. To rectify it, pensioners / members are being advised to correct either their details provided to EPFO offices or to correct the details given in Aadhaar, whichever is correct.
It is also seen that a number of online transfer applications by members are pending with the employers for attestation and verification of member details by the employers Field offices of EPFO have been directed to take up the matter with employers to clear this on priority.

On the occasion of International Labour Day, EPFO launched a special mission consolidation drive “One –Employee-One – EPF Account”. The drive is to consolidate multiple accounts of members so that they are able to access variety of IT enabled services such as e-mail / SMS alerts, access to e-passbook at their leisure. Shri Bandaru Dattatreya, Union Minister of State for Labour & Employment (Independent Charge) while presiding over the function marking International Labour Day stated that this drive would result in EPF members having lifelong one EPF account and multiple conveniences. The Universal Account Number (UAN) that is Aadhaar seeded will consolidate multiple past service accounts, across various spells of employment of an EPF member.

The month of April also saw withdrawal of notification dated 10th February 2016 on amendment in Paragraph 68 NN, 68-O and 69 and insertion of new Para 68 –NNNN in the EPF Scheme, 1952. The interest rate of 8.8% to be credited to members’ accounts for the financial year 2015-16 was also finalized by the Government as recommended by the Central Board of Trustees, EPF.

PIB

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Government puts on hold new Provident Fund withdrawal norms till July 31

Government puts on hold new Provident Fund withdrawal norms till July 31

The Government puts on hold new Provident Fund withdrawal norms till July 31. New PF withdrawal norms proposes to bar withdrawal of employer’s contribution to the provident fund corpus until the employee attains the age of 58 years.

On the issue of new Provident Fund withdrawal norms, the government today decided to keep the implementation of new norms in abeyance for three more months till July 31st.

The announcement comes in the midst of protest by labour unions in several parts of the country against the new norms.

People have also launched online campaign against the decision, which was to be implemented from February 10 but was later put on hold till April 30.

In February, the ministry had issued a notification restricting 100 per cent withdrawal of provident fund by members after unemployment of more than two months.

Source: DDI News

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EPFO may pay 9% interest on PF deposits for 2015-16

EPFO may pay 9% interest on PF deposits for 2015-16

Retirement fund body EPFO may provide 9 per cent interest on PF deposits for this fiscal, which is higher compared to 8.75 per cent provided in previous two fiscals to its over five crore subscribers.

The Employees Provident Fund Organisation’s (EPFO) finance panel has recommended raising the interest rate on statutory savings of over 5 crore subscribers from 8.75% to 8.95% during the current fiscal.

“The income projection of Rs 34,844.42 crore for the current fiscal is expected to be revised upward. Thus the body can provide 9 per cent rate of interest on PF deposits for 2015-16,” an EPFO trustee and Bharatiya Mazdoor Sangh Secretary P J Banasure told PTI.

The Employees Provident Fund Organisation’s (EPFO) Finance Audit and Investment committee (FAIC) recommended 8.95 per cent interest on PF deposits for the current fiscal in its meeting earlier this week.

Banasure, who is also a member of FAIC said:”If the EPFO provides 8.95 per cent interest rate on PF deposits for 2015-16, it will leave a surplus of Rs 91 crore as per income projections worked out in September last year. But the FAIC will meet again later this month to vet the latest income estimate which is likely to be revised upward.”

According to EPFO income projections worked out in September, providing 9 per cent interest on PF will result in a deficit of Rs 100 crore. “We are expecting that there will be a surplus of Rs 100 crore on providing 9 per cent rate of interest on PF deposits when EPFO will work out the latest estimates. FAIC can change its recommendation in the next meeting and suggest 9 per cent interest rate for 2015-16,” he said.

The proposal has to be endorsed by the Central Board of Trustees (CBT) before the Finance Ministry notifies it.

However, there has been indications from the Finance Ministry that it will slash interest rate on small savings like public provident fund in view of the rate cut by Reserve Bank of India.

The EPFO provides rate of interest from the earning on investments of formal sector workers’ funds without any assistance from the government.

Source: EOT

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EPFO to deduct TDS on PF withdrawals in some cases from June

EPFO to deduct TDS on PF withdrawals in some cases from June

New Delhi: Retirement fund body EPFO will deduct tax at source from next month on PF withdrawals where accumulations are over Rs 30,000 and the employee has worked less than five years.

“The Finance Act, 2015 (20 of 2015) has inserted a new section 192A regarding the payment of accumulated provident fund balance due to an employee. The provision shall take effect from June 1, 2015,” an EPFO circular said today.

“Income Tax shall be deducted at source (TDS)… If at the time of payment of the accumulated PF balance is more than or equal to Rs 30,000 with service less than 5 years,” it added.

According to the circular, TDS will be deducted at the rate of 10 percent provided PAN is submitted.
However, in case Form 15G or 15H is submitted by the member, then no TDS shall be deducted. These forms are to declare that their income would not be taxable after receiving payment of their PF accumulations from EPFO.

While Form 15H is submitted by senior citizens (above 60 years of age), Form 15G is submitted by claimants below the age of 60 years.

As per the circular, TDS will be deducted at the maximum marginal rate of 34.608 percent if a member fails to submit PAN or Form 15G or 15H.

However, there are certain exceptions to deduction of TDS by EPFO. TDS shall not be deducted in case of transfer of PF from one account to another PF account.

Besides, it will not attract TDS if the employee is terminated from service due to ill health of member and discontinuation or contraction of business by employer.

EPFO will also not deduct TDS if the employee withdraws PF after a period of five years of continuous service, including service with former employer.

The body will also not deduct TDS where payment is less than Rs 30,000 but the member has rendered service of less than 5 years.

It would also not deduct TDS if the employee withdraws an amount more than or equal to Rs 30,000 with service of less than 5 years but submits Form 15G/15H along with his/her PAN.

The proposal to deduct TDS on PF withdrawals was part of the Finance Bill, 2015.

PTI

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Amendment to Revised Investment Guidelines for NPS schemes

Amendment to Revised Investment Guidelines for NPS schemes.

PF Regulatory and Development Authority has issued Amendment with effect from 01.04.2015 to revised investment guidelines for NPS Schemes Applicable to Government Sector, Corporate CG and NPS lite schemes of NPS

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

1st Floor, ICADR Building, Plot No. 6,
Vasant Kunj Institutional Area,
Phase – II, New Delhi – 110070

Circular

PFRDA/2015/12/PFM/06

Date: 31st March 2015

To,
All Pension Funds,

Subject: Amendment to Revised Investment Guidelines for NPS schemes.

The existing circular no. PFRDA/2014/02/PFM/1 dated 29-Jan-2014 on the subject Revision of Investment Guidelines for NPS Schemes is amended as highlighted under:

Government Sector NPS Schemes (Applicable to Government Sector, Corporate CG and NPS lite schemes of NPS)

(ii) Debt Securities (Up to 40%)/ point (a) : Debt securities having a minimum residual maturity period of three years from the date of investment by the Pension Fund issued by Bodies Corporate including banks and public financial Institutions; Provided that the investment in this category is made in instruments having an minimum “AA” or equivalent investment grade rating from at least one credit rating agency regulated by SEBI, under SEBI (Credit Rating Agency) Regulation 1999. Apart from rating by an agency, PFMs shall undertake their own due diligence for assessment of risks associated with the securities before investments.
 
Private Sector NPS {Applicable to E (Tier I & II), C (Tier-I & II) and G (Tier I & II)}

C/ (ii): Credit rated debt securities with residual maturity of not less than three years from the date of investment, issued by Bodies Corporate including scheduled commercial banks and public financial institutions [as defined in Section 4A of the Companies Act] 1956, Provided that the investment in this category is made in instruments having an minimum “AA” or equivalent investment grade rating from at least one credit rating agency regulated by SEBI, under SEBI ( Credit Rating Agency ) Regulation 1999. PFM has to do his own due diligence too

2. The above stated amendments are applicable to the inflow of the fresh funds w.e.f. 01.04.2015.

3. All other extant investment guidelines to continue.

Sumeet Kaur Kapoor
(General Manager)

Source: PFRDA Circular

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Second Round of Tripartite Consultations on EPF & MP Act Amendments Held

Second Round of Tripartite Consultations on EPF & MP Act Amendments Held

Bandaru Dattatreya Chairs Tripartite Consultations

The Second Round of Tripartite Consultations on Employees Provident Fund and Miscellaneous Provisions Act,1952 (EPF &MP Act) Amendments was held here yesterday. Shri Bandaru Dattatreya, the Minister of State, Labour & Employment (I/C) chaired the second round of tripartite consultations on EPF & MP Act Amendments. The consultations gain greater importance in view of the new amendments proposed in the backdrop of the Union budget proposals impacting the functioning of EPFO.

Inaugurating the consultations, Shri Dattatreya briefly dwelt upon the major changes being mulled in the proposals. They include bringing down the minimum no. of employees required for coverage under the Act from the existing 20 to 10, doing away with the Schedule Head for coverage and bringing in a negative list instead, special provisions for encouraging the functioning of small-scale units, provisions for setting up of multiple Appellate Authorities under the Act, removing ambiguities in the implementation of the Act, ensuring greater clarity in the definitions under the Act, especially with regard to wages which qualify for deduction for the purposes of the Act, introducing greater transparency and accountability in the enforcement of the Act by having an objective inspection scheme, introducing a scheme for unorganized workers and providing a choice to the worker by giving an option to join NPS / EPFO, which is in tune with the proposals mentioned in the Union Budget.

Taking part in the discussions, the representatives of the employers’ associations and federations generally welcomed the various proposals contained in the amendments under consideration. They generally voiced the opinion that the introduction of NPS would mean greater choice for the worker. However, there were also views that NPS cannot match the benefits offered by EPFO and therefore, are not comparable. It was also felt that the amendments would help in sharpening the competitiveness of Indian Industry and would enable India to become a manufacturing hub. However, there was a need to further encourage the concessions granted to the small-scale industries. Increase of coverage also received wide acceptance, both from employers’ and employees’ side.

Opposing certain amendments proposed, representatives of the Trade Unions expressed reservations especially to the move to introduce NPS as a substitute to EPFO. They also expressed reservations regarding the inspection scheme which they argued brought about centralization in the decision making process which is contrary to the prevailing wisdom which favours decentralization.

Summing up the discussions, Shri Shankar Aggarwal, Secretary, MOL&E assured that the concerns of all stakeholders will be addressed when giving final touches to the legislative amendments. Further, the objective behind bringing in the changes is to further strengthen the delivery of social security benefits.

In his concluding remarks, Shri Dattatreya stressed upon the need to focus on the unorganized sector of the workforce which constitutes 93% of the total workforce. He said that the need of the hour is to include more segments of the workforce like Anganwadi works into the ambit of social security legislations. He also informed that the Ministry is contemplating issue of smart cards to the labour workforce so that social security benefits reach each intended beneficiary. He also assured that the Act would be amended taking into account the sensitivities of all concerned.

Shri Sharad Patil, EFI (Employers Federation of India), Shri S.S. Patil, AIMA (All India Manufacturers Association), Shri Bhardwaj, Laghu Udhyog Bharati, Shri Sushant Singh, CII (Confederation of Indian Industries), Shri A.K. Padmanabhan, CITU, Shri A.D. Nagpal, HMS, Shri B.L Sachdeva, AITUC, Shri Ashok Singh, INTUC were some of the notable representatives of employers’ associations and employees’ associations (trade unions) who took part in the deliberations in addition to the representatives of various state governments.

Source: PIB News

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Government employees should know these rules before provident fund withdrawal

Government employees should know these rules before provident fund withdrawal

Government employees should know these rules before provident fund withdrawal, Please read this news paper report:-

Avoid Tax on Provident Fund Withdrawal…

Follow Income Tax Rules before GPF withdrawal…

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7% Dearness Allowance increased to Kerala Government Employees

Indian Government News: Dearness Allowance for Kerala Government Employees – 7% of DA/DR hiked


As per the media information, the State Government of Kerala has increased seven percent of Dearness allowance for its employees from July 2014. This benefit will also applicable for state pensioners and the total DA/DR is now increased to 80%.

The Finance Minister K.M.Mani said, the new Dearness allowance would have retrospective effect from July 2014 and also said that with the increase, the employees and pensioners in the state would get the same benefit as that of the Central Government employees and Pensioners.

The increased DA would be disbursed from March 2015. However, the arrears of employees from July 2014 to March 2015 would be merged with the Provident Fund.

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No plan to launch housing scheme for EPFO members: Government

No plan to launch housing scheme for EPFO members: Government

 New Delhi, Nov 26:

Retirement fund body EPFO has no plans to launch a housing scheme for its over five crore subscribers on additional contribution by its members, Parliament was informed today.

“No Sir,” Labour Minister Bandaru Dattatreya said in a written reply to the Rajya Sabha on a question whether Employees’ Provident Fund Organisation (EPFO) has chalked out a scheme for providing housing to its subscribers on additional contribution.

The idea to provide housing by EPFO on additional contribution 10 per cent of subscribers’ basic wages was mooted earlier this year by Labour Minister Oscar Fernandes during a function of the body in January.


Addressing the gathering, Fernandes who was also heading the EPFO trustee’s board had said, “EPFO can deduct extra 10 per cent of their basic wages over the mandatory contribution of 12 per cent made by them at present. The money can be used to provide them housing facility.”

The Minister had also said, “Most of the workers throughout their working life live in rented accommodation and their entire saving on retirement is spent on purchasing a house.”

At present, all workers covered under the EPFO schemes, pay 12 per cent of their basic wages toward PF contribution every month. The basic wages include basic pay and dearness allowance.

Read more at Hindu Businessline

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Extension of PPF Scheme to private sector banks – Department of Posts

Department of Posts issued a detailed order including the list of private banks to authorize to transfer of Public Provident Fund accounts from Head Posts Offices to Nationalized Banks…

SB ORDER No. 11/2014

F.No.32-01/2014-SB
Government of India
Ministry of Communications & lT
Department of Posts

Dak Bhawan, Sansad Marg,
New Delhi-110001, Dated: 22.09.2014

To
All Heads of Circles/Regions
Addl. Director General, APS, New Delhi.

Subject: – Extension of PPF Scheme to private sector banks.

The undersigned is directed say that this office has received some complaints regarding non transfer of their PPF Account from Post office to Private sector banks and vice versa. The matter was referred to Min. of Finance, Department of Economic Affairs [MOF(DEA)] for clarification. MOF (DEA) has forwarded copies of Gazette notifications to this office wherein MOF (DEA) had authorized some branches of ICICI Bank Ltd., lDBl Bank Ltd., HDFC Bank Ltd. and UTI Bank Ltd. (Axis Bank Ltd.) to operate PPF accounts under PPF Scheme. Copies of MOF (DEA) Gazette notifications .no. F.7/3/2005-NS.ll dated 14.06.2005 and 29.08.2005 are also enclosed.

2. In view of above, now PPF Account can be transferred from Post office to the branches of private banks mentioned in above Gazette notifications and vice versa and procedure prescribed for the transfer of PPF A/c from Head Post Office (HPO) to Nationalized Banks and vice versa will also be applied for transfer to these designated branches of Private Banks. lt is, therefore, requested to circulate these notifications to all
field units for information and necessary action.

3. This issues with the approval of Competent Authority.

Encl.: As above

Yours faithfully,
sd/-

(Kawal Jit Singh)
Assistant Director(SB-II)

Click here to view the detailed list of Private Banks…

Source: www.indiapost.gov.in
[http://www.indiapost.gov.in/DOP/Pdf%5CCirculars%5CPPF_1535_29092014_pub_upload.PDF]

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Gazette Notification regarding minimum pension of Rs.1000/- pm under EPS,1995

Gazette Notification regarding minimum pension of Rs.1000/- pm under EPS,1995

REGD. NO. D. L.-33004/99

The Gazette of India
EXTRAORDINARY
PART II—Section 3—Sub-section (i)
PUBLISHED BY AUTHORITY

No. 429] NEW DELHI, TUESDAY AUGUST 19, 2014/SRAVANA 28, 1936

MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION

New Delhi, the 19th August, 2014.

G.S.R. 593 (E).—In exercise of powers conferred by section 6A, read with Sub-section(1) of Section7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, further to amend the Employees’ Provident Funds Scheme, 1995, namely:-

1.
(1) This Scheme may be called the Employees’ Pension (Second Amendment) Scheme, 2014.
(2) It shall come into force on and from the 1st day of September, 2014.
2. In the Employees’ Pension Scheme, 1995(hereinafter referred to as the principal Scheme), in paragraph 12, after sub-paragraph (7), the following sub-paragraph shall be inserted, namely:-

“(7A) The monthly member’s pension including any relief payable to any existing or future member under this paragraph shall not be less than one thousand rupees for the financial year 2014-15.”.

3. In the principal Scheme in paragraph 15, for the words, brackets and figures “sub-paragraphs (2) to (5) of paragraph 12, as the case may be,”, the word and figures “paragraph 12” shall be substituted.

4. In the principal Scheme, in paragraph 16,-

(a) in sub-paragraph (2), in clause (a), after sub-clause (iv), the following sub-clause shall be inserted, namely:-

“(v) in all the cases, where the monthly widow pension including relief, if any, is less than one thousand rupees per month, the amount of monthly widow pension in such cases shall be enhanced to one thousand rupees per month for the financial year 2014-2015.”;

(b) in sub-paragraph (3), for clause (b), the following clause shall be substituted, namely:-

“(b) Monthly children pension for each child shall be equal to 25 per cent of the amount admissible to the widow of the deceased member as monthly widow pension payable under clause (a) of sub-paragraph (2):

Provided that the minimum monthly children pension including relief, if any, for each child of the deceased member shall not be less than two hundred and fifty rupees per month for the financial year 2014-2015.”;

(c) in sub-paragraph (4), for clause (a), the following clause shall be substituted, namely:-

“(a) if the deceased member is not survived by any widow, but is survived by children falling within the definition of family or if the widow pension is not payable, the children shall be entitled to a monthly orphan pension equal to 75 per cent of the amount of the monthly widow pension as payable under clause (a) of sub-paragraph (2):

Provided that the minimum monthly orphan pension including relief, if any, for each orphan shall not be less than seven hundred and fifty rupees per month for the financial year 2014-15.”.

[F. No. R-15025/3/2007.SS-II/Pt.II]

ARUN KUMAR SINHA,Addl. Secy.

Foot Note.- The Employees’ Pension Scheme, 1995 was published in the Gazette of India vide notification number G.S.R. 748(E), dated the 16th November, 1995 and was lastly amended vide notification number G.S.R. 80(E), dated the 14th February, 2013.

Source: http://www.labour.nic.in/upload/uploadfiles/files/latest_update/what_new/5400645038fa3MinimumPensionofRs.1000.pdf

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Provident fund account to be updated monthly from October

 Provident fund account to be updated monthly from October

From this October, your provident fund account will be updated every month.

Central provident fund commissioner KK Jalan said that Employees' Provident Fund Organisation is all set to unveil a system of monthly updating account on September 6.

This is part of EPFO's online drive to make it customer friendly. It is also going to move to core banking solution for 40 lakh pension accounts which will enable pensioners get payment on the first day of every month.

The organisation is working on to rehaul its cutomer identification system and plans universal number for every member from this fiscal.

"We want to be a employee centric organisation. At present, we are employer-centric body," Jalan said Monday in Kolkata.

The universal number will work like a bank account and whenever an employee shifts job, the new employer will feed in the unique number into the system for seamless continuation of the fund.

"We hope to introduce this system this fiscal," Jalan said

Source : http://economictimes.indiatimes.com/

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