Friday, 7 December 2018

National Pension Scheme: Good News for central government employees! Government contribution to NPS to rise to 14% of basic salary


National Pension Scheme: Good News for central government employees! 

Government contribution to NPS to rise to 14% of basic salary

In a bonanza for government employees, the Cabinet Thursday raised the government's contribution to National Pension Scheme (NPS) to 14 per cent of basic salary from the current 10 per cent, sources said. Minimum employee contribution will, however, remain at 10 per cent. The Cabinet also approved tax incentives under 80C of the Income Tax Act for employees’ contribution to the extent of 10 per cent, they added. Presently, the government and employees contribute 10 per cent of basic salary each to NPS.

While the minimum employee contribution remains at 10 per cent, the government contribution has been increased from 10 per cent to 14 per cent. The Cabinet, headed by Prime Minister Narendra Modi, also allowed government employees to commute 60 per cent of the fund accumulated at the time of retirement, up from 40 per cent at present. Also, employees will have the option to invest in either fixed income instruments or equities, sources said.

As per the Cabinet decision, if the employee decides not to commute any portion of the accumulated fund in NPS at the time of retirement and transfers 100 per cent to annuity scheme, then his pension would be more than 50 per cent of his last drawn pay, sources said. The government did not announce the decision in view of the ensuing polls in Rajasthan Friday. While the government is yet to decide on the date of notification of the new scheme, sources said such changes usually come into effect from the beginning of a financing year, meaning April 1, 2019. This formula for changes in the NPS was worked out by the Finance Ministry based on the recommendation of a government-appointed committee.

Source: www.centralgovernmentnews.com

Cadre Restructuring of Group 'C' employees in Department of Posts Clarification


Cadre Restructuring of Group 'C' employees in Department of Posts Clarification

No. 25-04/2012-PE-I (Vol.III)
Government of India
Ministry of Communications
Department of Posts
(PE-l Section)
Dak Bhawan, Sansad Marg,
New Delhi - 110001
Dated: 05th December, 2018
To,
All Chief Postmasters General/Postmasters General.

Subject: Cadre Restructuring of Group 'C' employees in Department of Posts Clarification - reg.

Sir/Madam,

Kindly refer to this office letter of even number dated 25-04/2012-PE-I dated 27.05.2016, on the subject mentioned above, wherein it was instructed that "these instructions will be effective from the date of issue of the orders. The actual benefit would, however, be admissible to the eligible officials from the date of actual promotion"

2. However, vide this office letter of even number dated 10.11.2017, in para 4.5, it was clarified that “the promotion will be effective from the date of issue of the original order dated 27.05.2016 as per existing instructions on the subject. It will be applicable to all eligible officials including those who were in service but now retired”.

3. In this regard, this is to clarify further that these LSG, HSG-II, HSG-I and HSG-I (NFG) posts will be deemed to have been upgraded to these grades only w.e.f. the dates they are filled up, i.e. from the date the promoted official assumes the charge. Otherwise, the post will remain in the lower grade.

4. Hence, the instruction issued vide para 4.5 of letter dated 10.11.2017 stands modified accordingly.

5. Further, clarification issued vide this office letter of even number dated 16.03.2018, w.r.t. the issue raised by J & K Circle at para 4(b) and by N E Circle at para 8 stands modified as per para 3 above.

6. This issues with the approval of the Competent Authority.
Yours faithfully,
(Tarun Mittal)
Asstt. Director General (Pen.)/LO-PE-I
Tele: 011-2304 4822

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