Over 2.70 lakhs Gramin Dak Sevaks (GDSs) may rest assured for their post retirement financial security with absolutely no expenditure or investment on their part. The Department of Posts, Government of India will deposit Rs. 200 per GDS per month involving an annual expenditure of about Rs. 70 crores to provide for the financial security of the GDSs and their spouses after retirement from the service at the age of 65.
The issue of securing the retired life of GDSs had been engaging the attention of the Government of India for quite some time. This finally came to fruition today with the launch of Service Discharge Benefit Scheme (SDBS) by Shri Sachin Pilot, the Union Minister of State for Communications & IT at Gurgaon.
The new social security scheme has been designed to benefit the GDSs working mainly in rural, remote and far-flung areas across the country. This Scheme will be operationalised utilizing the platform of the NPS-Lite of the New Pension Scheme of Pension Fund Regulatory and Development Authority (PFRDA). Some modifications in the NPS-Lite Scheme have been made under the SDBS to suit the needs of GDSs.
The contributions deposited on a monthly basis by the Government on behalf of each GDS will constantly grow through investments in different schemes/securities by the Pension Fund Managers (PFM) appointed by PFRDA. 40 per cent of the accumulations at the time of normal exit at 65 years of age of GDS will be invested to purchase an Annuity which will ensure that the Ex. GDS or his/her spouse gets an monthly Annuity throughout their life. The GDS as a beneficiary will receive the balance 60 per cent of the accumulations in lump sum to meet his or her financial requirements as per their choice.
The GDSs are backbone of the Postal Department and are responsible for running the rural network of post offices. The Department of Posts has been committed to the welfare of such important constituent of postal human resources. The Service Discharge Benefit Scheme launched in Gurgaon today will go a long way in providing financial and social security to GDSs after retirement. Shri Sachin Pilot said this while launching the scheme by giving away the PRAN (Permanent Retirement Account Number) cards to selected GDSs. Shri Pilot said that the post offices are extremely important for providing communication in remote and far-flung areas. But most importantly post offices have adapted themselves to the changing needs of the time and have emerged as a hub for financial and retailing services in rural and remote areas. Being a Government network, the post offices command trust of the local communities and as such their vast network capital is now being increasingly leveraged to provide a large number of social security and other G2C services, said Shri Pilot on the occasion.
Smt. Radhika Doraiswamy, Secretary, Department of Posts said that it has been an increasing concern to put in place the new Scheme which had come in lieu of the existing Severance Amount Scheme. The new Scheme is a result of recommendations of Narayana Murthy Committee. The existing GDSs have the option to join the new Scheme or continue under the Severance Amount Scheme as per their choice. The new Scheme is, however, mandatory for the GDS engaged on or after January 01, 2011, said Secretary (Posts). Of 2.73 lakhs GDSs, 1.53 lakhs have already opted for the SDBS and 1.35 lakhs have already received their PRAN Cards. Smt. Doraiswamy observed that it is expected that most of 2.73 GDSs will soon opt for the new Scheme which is more comprehensive than the existing one. She highlighted that the most important aspect of the Scheme is that it does not involve any expenditure on the part of GDS and provides for their financial security after retirement.
Other salient features of the Scheme are:
(a) All regularly engaged GDSs are eligible to join except those who are left with three years or less than 3 years of service as on 1.1.2011.
(b) Only Government shall contribute @ Rs.200 per month for each GDS enrolled under the Scheme. GDS is not required to make matching contribution.
(c) The Severance Amount Scheme @ Rs. 1500 for each completed year of service, shall continue to exist for those GDSs, not opting to join SDBS.
(d) Enrollment under SDBS shall be done by Central Record Keeping Agency (CRA): National Securities Depository Limited (NSDL).
(e) Pension Fund Regulatory and Development Authority (PFRDA) is the Nodal Agency for SDBS.
(i) On permanent absorption in regular departmental posts, the accumulations under SDBS shall be transferred to the GDS beneficiary’s Permanent Retirement Account under New Pension System.
(f) (i) The GDS can exit at any point of time after attaining the age of 58 years. He can withdraw 20 per cent of the accumulation and has to invest 80 per cent of the accumulation for purchase of life annuity.
(ii) At the time of the discharge from the service, at the age of 65 Years, the GDS would be required to invest a minimum of 40 per cent of the accumulation to purchase a Life Annuity and the remaining 60 per cent of accumulation can be withdrawn in lump sum for meeting his/her financial requirements as per his/her own discretion.
(iii) However, there shall be no restriction on purchase of life annuity exceeding 40 per cent of the accumulation.
(g) The Cost of management shall be borne by the Government.
PIB
