Pension

The Union Cabinet today approved the implementation of the Swavalamban Scheme to cover workers in the unorganised sector and to provide old age security to all sections of society, particularly the vulnerable sections. The proposal approved by the Cabinet includes:-

Indira Gandhi National Old Age Pension Scheme (IGNOAPS) – Central assistance is given towards pension @ Rs. 200/- per month per beneficiary to persons above 65 years belonging to a household below poverty line which is meant to be supplemented by at least an equal contribution by the States so that each beneficiary gets at least Rs.400/- per month as pension.

Implementation of Swavalamban Schemes in New Pension Scheme In pursuance to the announcement of Swavalamban Scheme in the Union Budget 2010-11, a roadmap has been drawn for implementation of the Scheme to achieve the intended objectives PFRDA had finalized draft Operational Guidelines in this regard. These Operational Guidelines have been approved by the Government. A copy of the approved guidelines is enclosed

Issue of revised PPOs for pre-2006 pensioners. A meeting with representatives of bank under the Chairmanship of Secretary (Pension, AR & PG) was held on 15th June. 2010 at 3rd Floor, Department of Pension & Pensioners Welfare, Lok Nayak Bhawan, regarding issuance of revised PPOs for pre-2006 pensioners.

A copy of Department of Pension and Pensioners' Welfare (DOP&PW)'s O.M. No. 38/37/08-P&PW(A) dated 25th June, 2010 on the above subject is enclosed for information and strict compliance. Accounts Department of the Railways to whom the copies of documents relating to proof of age /date of birth have been forwarded by the pension disbursing banks for formal authorization of additional pension, and the Personnel Department of the Railways to whom such documents may have been forwarded by Accounts Departments for having the additional pension/family pension sanctioned from Head of Office/Head of Department, should take immediate action thereon so that the final authorization of additional pension/family pension could be issued at the earliest.

Grant of full pension to Government servants who retired on or after 01.01.2006 - recovery of excess payment of Retirement Gratuity from the employees who retired voluntarily after getting the benefit of adding years of service The Department of Pension & Pensioners' Welfare (DOP&PW) vide their O.M. No.38/37/08-P&PW(A) dated 10.12:2009, circulated vide this Ministry's letter of even number dated 15.12.2009, have dispensed with the provision relating to linkage of full pension with 33 years of qualifying service, with effect from 01.01.2006 instead of 02.09.2008. These instructions, inter-alia, provide that the benefit of adding years of qualifying service for the purpose of computation of pension and gratuity shall stand withdrawn w.e.f. 01.01.2006. Simultaneously, para 4 of the said O.M. also provides that the overall calculation, may take into account revised gratuity and revised pension, including arrears up to the date of revision based on these instructions and that no recoveries would be made in the cases already settled.

Pension Fund Regulatory and Development Authority (PFRDA), the apex body established by Government of India to regulate and develop the pension sector, has introduced NPS-Lite which specifically targets the economically disadvantages sections of society and promotes small savings during their productive life. It aims at building up a corpus sufficient enough to buy an annuity for their old age. Earlier PFRDA had extended New Pension System (NPS) to all citizens of India with effect from 1st May, 2009.

LIC Pension Fund Ltd has emerged the number one from among the three entities managing Central Government New Pension Scheme (NPS) trust funds following the allocation of 35 per cent of the funds in 2010-11. "The allocation is done on the performance of the past year and ours was the highest due to which we have received the maximum allocation from the NPS trust," LIC Pension Fund's Chief Executive Officer, H Sadhak, said here today.

No.45/7/2008-P&PW (F) Government of India Ministry of Personnel Public Grievances and Pensions Department of Pension and Pensioners Welfare ******* 3rd Floor, Lok Nayak Bhawan, Khan Market, New Delhi-110 003 Dated 12th July, 2010 OFFICE MEMORANDUM Subject:- Implementation of the Government's decision on the recommendation of the Sixth CPC - Revision of provisions regulating special benefits in the cases of Death and Disability in service - payment of ex-gratia lump sum compensation to families of central Govt.employees - modification - regarding - The undersigned is directed to say that in this Department's Office Memorandum of even number dated 16th March, 2009, it was provided that ex-gratia lump sum compensation to the families of deceased Government servants including from sundry Government sources, such as the Prime Minister's Relief Fund, Chief Minister's Relief Fund, etc. should not exceed the aggregate of Rs. 20 lakhs in each individual case. Para 12 of Annexe to this Department's OM 45/55/97-P&PW(C) dated 11th September,1998 was modified to that extent.

Subject: - Revision of pension of pre-2006 pensioners/family pensioners etc. for faculty and other staff of Centrally Funded Technical Institutions (CFTIs). Sir, 1 am directed to refer to the Government's decision regarding pension/family pension of all the pre-2006 pensioner/family pensioners issued vide Department of Pension and Pensioner's Welfare O.M. No. 38/37/08-P&PW(A) dated 1.9.2008. In terms of para 4.2 of the aforesaid OM, the fixation of pension will be subject to the provision that the revised pension, in no case, shall be lower than 50% of the minimum of the pay in the pay band plus the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired.