7TH PAY COMMISSION LATEST NEWS

7th pay commission allowance committee report will be submitted within a week-NC JCM

Shiva Gopal Mishra Secretary National Council(Staff Side) Joint Consultative Machinery for Central Government Employees 13-C, Fer...

Saturday, October 30, 2010

CBSE new publication on Engineering Graphics

Central Board of Secondary Education
(An autonomous Organisation under the Union Ministry of Human Resource Development, Govt. of
India)
‘Shiksha Sadan’, 17-Rouse Avenue, New Delhi – 110 002
CBSE/ACADEMIC/CIRCULAR/2010/ 26.10.2010
Circular No.70
All Heads of Institutions
Affiliated to the Board

Subject : CBSE new publication on Engineering Graphics – reg.

Dear Principal,
In our continuous endeavour in improving the quality of education and connecting
to the latest trends, CBSE has recently revised the syllabus of Engineering Drawing and
changed its name to Engineering Graphics with the introduction of Computer Aided
Designing (CAD) in the syllabus.
CBSE is also in the process of preparation of text books of Engineering Graphics
for Classes XI and XII. Class XI text book is ready and will be available in CBSE
publication stores from the 1st week of October, 2010. Class XII text book is in the
process of development. Sincerest efforts are being made to make the Class XII text
book available to the students by November, 2010.

You are requested to disseminate the information to all concerned.
Yours faithfully,
(Dr. Srijata Das)
Education Officer

Source:CBSE
Filed Under:

DISTANCE&E LEARNING PROGRAMME(DELPGE) FOR CENTRAL GOVT STAFF--IGNOU

A new course for government employees in the country was launched Thursday by the Indira Gandhi National Open University ( IGNOU) and the training division of department of personnel and training (DoPT), an official said.
The new programme is called ‘Distance and E-Learning Programme for Government Employees’ (DELPGE) for which a Memorandum of Understanding (MoU) was signed between IGNOU and the Ministry of Personnel, Public Grievances and Pensions and the DoPT.

‘The main objective of DELPGE is to increase the availability and flexibility of options open to employees for enhancing their knowledge and skills in order to improve the functioning of government organisations and the delivery of services to the public,’ said an official of the IGNOU.

The programme includes a masters programme in distance and e-learning, post-graduate advanced diploma, post-graduate diploma and diploma programmes in the subject, among others.

Open to central government employees working in ministries, departments, attached offices and the faculty members of state apex training institutions, the number of seats for each programme is 50.

IGNOU is one of the world’s largest open universities which provides education to 1.5 million students.

Source : sify.com
Filed Under:

SPECIAL FESTIVAL OFFER TO GOVT EMPLOYEES FOR SALE OF GOLD COINS THROUGH POST OFFICES

India Post has ventured into the scheme for Sale of branded Gold Coins of 99.99% purity. The scheme was launched in October 2008 in about 100 Post Offices spread across Delhi, Maharashtra, Tamilnadu and Gujarat Postal circles. India Post sells the 24 carat coins produced by Valcambi, Switzerland in association with World Gold council, and its business Partner. Presently this scheme is available in 700 Post Offices across India. India Post is overwhelmed by the response received from the public. More than 518 kg of gold has been sold from the Post Offices. Post Offices sell gold coins of 0.5 gm, 1.0 gm, 5 gms, 8 gms and 20 gms denominations.

Special Festive Season Offer can be availed from 12th October 2010 till 31st December 2010.The schemes are-

10 Pe Aadha – Ummeed Se Zyada Buy 10 gms gold get ½ gm free and, or A Special offer for Government Employees – 6% discount on purchase of gold coins of any denomination in any quantity by Government Employees/Retired Government Employees (Central or State Government Employees) on the day’s gold price. If the 6% discount is given to any Govt Employee, then the 0.5gm FREE offer does NOT apply even if the Government employee has purchased 10gms of gold.

Government employees need to show their government Photo Identity card as proof to avail 6% discount offer. Without the proof of the photo Identity card government employee will not be able to avail the 6% discount.

In Delhi, following 26 Post Offices are selling Gold Coins. Customers can walk into the nearest Post Office to avail the facility & festive offer.

1. New Delhi Head Post Office;
2. Delhi GPO;
3. Lodi Road HPO;
4. Kalkaji HPO
5. Lajpat Nagar Post Office;
6. Sansad Marg HPO
7. Sarojini Nagar HPO;
8. Ashok Vihar HPO;
9. Ramesh Nagar HPO;
10.Jankpuri B Block PO;
11.Indraprastha HPO;
12.Karol Bagh PO;
13.Naraina I. E. HPO;
14.Connaught Place P O;
15.Haus Khas P O;
16.Jhilmil Head PO.
17.Rohini Sector VII P O;
18.Krishna Nagar HPO.
19.Civil Lines PO.
20.New Subzi Mandi PO
21.Greater Kailash PO
22.Malviya Nagar PO
23.Tilak Nagar PO
24.Rajinder Nagar PO
25.Patel Nagar PO.
26.Paschim Vihar PO

Source : PIB
Filed Under:

Friday, October 29, 2010

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of September, 2010

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of  September, 2010 increased by 1 point and stood at 179 (one hundred and seventynine).
          
            During September, 2010, the index recorded an increase of 6 points each in Darjeeling, Durgapur and Jalpaiguri centres, 5 points each in Siliguri and Delhi centres, 4 points each in Angul Talcher, Rajkot and Belgaum centres, 3 points in 12 centres, 2 points in 13 centres  and 1 point in 24 centres. The index decreased by 3 points in Bhopal centre, 2 points in 4 centres and 1 point in 4 centres, while in the remaining 12 centres the index remained stationary.
          
            The maximum increase of 6 points in Darjeeling, Durgapur and Jalpaiguri centres is mainly on account of increase in the prices of Rice, Wheat Atta, Vegetable items, Electricity Charges, etc. The increase of 5 points in Siliguri and Delhi centres is due to increase in the prices of Rice, Wheat, Wheat Atta, Onion, Vegetable items, etc. The increase of 4 points in Angul Talcher, Rajkot and Belgaum centres is due to increase in the prices of Rice, Wheat, Goat Meat, Onion, Vegetable items, Tea (Readymade), etc. However, the decrease of 3 points in Bhopal centre is due to decrease in the prices of Rice, Wheat, Goat Meat, Arhar Dal, Vegetable items, etc.
          
            The indices in respect of the six major centres are as follows:
1. Ahmedabad       176                      
2. Bangalore          185                      
3. Chennai             162                      
4. Delhi                 169
5. Kolkata             176
6. Mumbai             178         
The point to point rate of inflation for the month of September, 2010 is 9.82% as compared to 9.88% in August, 2010.
      
Source:pib              
Filed Under:

Thursday, October 28, 2010

NPS--Two-thirds of States yet to remit pension scheme contributions--PFRDA

Finance Ministry calls meet on November 1 to address issue.

Arun S.

New Delhi, Oct. 27

Two-thirds of the State Governments and a couple of Union Territories have not remitted the pension contributions of their new employees to Bank of India, which is the trustee bank for the accumulated monies under the New Pension Scheme (NPS), sources in the Finance Ministry and the Pension Fund Regulatory and Development Authority told Business Line.

This is despite all these Governments signing up for the NPS as early as 2003. The NPS covers all Government employees. Their pension entitlement is based on their own ‘defined contributions' with a matching amount from the Government concerned.

The employees will, therefore, not be able to get pension benefits that their fund would have entitled them to earn, had the contributions been invested in the instruments which they had asked for.

Lackadaisical approach

Due to the lackadaisical approach of these Governments, the trustee bank is unable to accumulate the contributions and transfer these to Pension Fund Managers such as SBI, UTI and LIC, who, in turn, would invest the money in equity or debt instruments.

The investment portfolio depends on the choice exercised by the States/UTs. (This could include investment pattern notified by the Finance Ministry and the subscriber's risk appetite.)

However, the employees will certainly have a claim to demand returns on the contributions to their pension account retrospectively (from the date of signing up) till their date of retirement/superannuation and that too, at the average rate (currently 12-14 per cent) earned by NPS funds, the sources claimed.

Liability strain

They added that the liability on this account would have to be borne by the State Governments themselves.

“This increasing liability can put a strain on the finances of these Governments. In fact, the difficulty in paying up a huge amount is one of the reasons why these Governments are delaying the completion of formalities,” an official said.

In other words, on the date when an employee demands the returns on his/her pension amount as per the NPS rate of return on a compounded basis, the State Government concerned will have to either pay up or face litigation, the sources pointed out.

A worried Finance Ministry has taken serious note of the failure of these states/UTs and its fiscal implications. The Ministry has called a meeting with the States on November 1 to address the issue, the sources said.

However, five States — Chhattisgarh, Jharkhand, Madhya Pradesh, Bihar and Haryana (interestingly, all but Haryana, being run by non-Congress Governments) — have completed all the formalities after joining the NPS including uploading of the contributions.

Among the big States that have not completed the formalities, including making remittances, are Tamil Nadu, Rajasthan, Uttar Pradesh and Maharashtra. They have not signed the contract with the NPS Trust and the Central Recordkeeping Agency. They have neither set up a Nodal Office nor registered its subscribers. They have also not uploaded and remitted the contributions.

Andhra Pradesh has registered 58,195 subscribers, but has uploaded the contributions and made remittances of just six of them. Karnataka has registered 73,898 subscribers, and has completed most of the formalities, but it has uploaded and remitted their contributions only from January 19.


But Karnataka had joined the NPS from as early as April 1, 2006 and has not uploaded the contributions from that date till January 19, 2010.

The total registered NPS subscribers from the 26 States and UTs is 4,03,819. States such as Kerala, West Bengal, Tripura and Sikkim are yet to join NPS.

arun.s@thehindu.co.in

Source:the hindu businessline
Filed Under:

CVC Disposed of 1079 Cases in September 2010

Major Penalty Proceedings Recommened against 86 Officers

The Central Vigilance Commission disposed of 1079 cases during September 2010 referred to it for advice. Of these, 755 complaints were sent for necessary action/ATR whereas 60 complaints were sent for investigation and report. No action was required on 154 complaints.

The Commission advised imposition of major penalty against 86 officers including 27 from Ministry of Railways, 13 from Canara Bank, 11 from Department of Telecommunications, 8 from Central Board of Excise & Customs, 6 from State Bank of Bikaner & Jaipur, 4 from Delhi Development Authority and 3 from Employees Provident Fund Organization. Remaining 14 cases pertained to different departments of the Government of India and PSUs.

On the Commission’s recommendations, the competent authorities issued sanctions for prosecution against 56 officers.

Recoveries to the tune of Rs.15.22 crore were effected after Commission conducted technical examination of some departments.

Source:pbi
Filed Under:

INTUC against disinvestment of public sector units

Opposing disinvestment of profit-making public sector units, Congress-affiliated trade union INTUC today questioned why Coal India was disinvested.

"We are against disinvestment of profit-making public sector units. If the government wants to disinvest PSUs making loss there is no problem, but profit-making companies should be kept away," INTUC national president G Sanjeeva Reddy told a press conference here.

Stating that coal is a profit-making sector, he asked why disinvestment was made there. "I have spoken to the Prime Minister on this and he has agreed in principle that disinvestment should not be made in profit-making public sector units."

Regarding Coal India, the Prime Minister told him that government had sold only out 10 per cent share and it would not be increased further, Reddy said

Source:pti

Filed Under:

Wednesday, October 27, 2010

-GRANT OF DEARNESS RELIEF TO CENTRAL GOVT PENSIONERS w.e.f 1-7-2010 -

F. No. 42/18/2010-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date: 27th October, 2010
OFFICE MEMORANDUM

Subject : Grant of Dearness Relief to Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC w.e.f. 1.7.2010.

In continuation to this Department’s OM No. 42/18/2010-P&PW(G) dated 29th June, 2010 sanctioning the Dearness Relief to those Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scales of 5th CPC, the President is pleased to grant the Dearness Relief to these Central Government pensioners as under :

(i) Those who are in receipt of provisional pension or pension in the pre revised scales of 5th CPC are entitled to Dearness Relief @ 103% w.e.f 1.7.2010.

(ii) The surviving CPF beneficiaries who have retired from service between the period 18.11.1960 to 31.12.1985 and are in receipt of ex-gratia @ Rs. 600/ p.m. w.e.f. 1.11.1997 under this Department’s OM No. 45/52/97-P&PW(E) dated 16.12.1997 are entitled to Dearness Relief @ 103% w.e.f. 1.7.2010.

2. The following categories of CPF beneficiaries who are in receipt of ex¬gratia payment in terms of this Department’s OM No. 45/52/97-P&PW(E) dated 16.12.1997 are entitled to DR @ 95% w.e.f. 1.7.2010.
(i) The widows and dependent children of the deceased CPF beneficiary who had retired from service prior to 1.1.1986 or who had died while in service prior to 1.1.1986 and are in receipt of Ex¬gratia payment of Rs. 605/- p.m.

(ii) Central Government employees who had retired on CPF benefits before 8.11.1960 and are in receipt of Ex-gratia payment of Rs. 654/-, Rs. 659/-, Rs. 703/- and Rs. 965/-.

3. Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee. In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue in consultation with the C&AG.

4. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their UO No. 1(4)/EV/2004 dated 12.10.2010.

OFFICE MEMORANDUM
(V.K.Wadhwa)
Under Secretary to the Government of India
VI
Filed Under:

Payment of Commutation Value of additional amount of pension in respect of employees who retired on/after 1.1.2006 but before 2.9.2008

F. No. 38/79/08-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date: 27th October, 2010

OFFICE MEMORANDUM


Sub.:       Payment of Commutation Value of additional amount of pension in respect of employees who retired on/after 1.1.2006 but before 2.9.2008 and expired before exercising option for commutation of additional amount of pension – Regarding.

          As per the provisions contained in para 9.3 of this Department’s OM No. 38/37/08-P&PW(A) dated 2nd September, 2008, the revised table of commutation value for pension will be used for all commutations of pension which become absolute after the date of issue of this OM. In the case of those pensioners, in whose case commutation of pension became absolute on or after 1.1.2006 but before the issue of this OM, the pre-revised Table of Commutation value for pension will be used for payment of commutation of pension based on pre revised pay/pension. Such pensioners shall have an option to commute the amount of pension that has become additionally commutable on account of retrospective revision of pay/pension on implementation of the recommendations of the Sixth Central Pay Commission. On exercising such an option by the pensioner, the revised Table of Commutation Value for pension will be used for the commutation of the additional amount of pension that has become commutable on account of retrospective revision of pay/pension. In all cases where the date of retirement/commutation of pension is on or after 2.9.2008, the revised Table of Commutation Value for pension will be used for commutation of entire pension.

2.        References have been received from various Departments seeking clarification from this Department whether the commutation value of additional pension in respect of such employees who had retired during the period between 1.1.2006 and 2.9.2008 and died before exercising option is payable to the eligible member of family or not. The issue has been examined in consultation with Ministry of Finance, Department of Expenditure who has observed that the Pay Commissions’ intention was that the pensioner should exercise a conscious choice in view of the fact that the commutation table has changed w.e.f. 1.1.2006. As such, in these cases, the Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications. The intention was not to deny the higher capitalized value on account of revision of pension.

3.       This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their UO No. 456/EV/2010 dated 18.10.2010.


(V.K.Wadhwa)
Under Secretary to the Government of India

OFFICE MEMORANDUM

Filed Under:

Grant of Grade Pay of Rs.4600 in PB-2 to the post that exists in the pre-revised scale of Rs.6500-10500 as on 01.01.2006


EMPLOYEES' PROVIDENT FUND ORGANISATION

(MINISTRY OF LABOUR & EMPLOYMENT, GOVT.OF INDIA)
Head Office
Bhavishya Nidhi Bhawan
14-BHIKAJI CAMA PLACE, NEW DELHI - 110066
www.efpindia.gov.in : www.epfindia.nic.in


No. HRD/2(3)82/EO-AO/Pt-III/43140
Dated: 19 Oct 2010

To
All Additional Central P.F. Commissioners,
All Regional P.F. Commissioner (I) In-Charge of the Regions,
All Regional P.F. Commissioner (II) In-Charge of the SROs.



Subject: Grant of Pay Structure of Grade Pay of Rs.4600 in PB-2 to the post that exists in the pre-revised scale of Rs.6500-10500 as on 01.01.2006 which were granted the Normal replacement Pay Structure of Grade Pay of Rs.4200 in the PB-2.


Sir,
Please refer to this office letter No. HRD/1(2) 2008/Implementation of 6th CPC/16306 dated 17.03.2010 on the subject mentioned above wherein Grade Pay of Rs.4600/- in place of Rs.4200/- was allowed to the cadre of EO/AO. 

In this circular, it was further clarified that as per the H.O. letter NO. HRD/1(a)2003/Pay scales/Pt.II/60951-6500-10500 notionally w.e.f. 1/04/2004 with actual financial effect from 1/9/2007, therefore the financial benefits in accordance with the DoPT circular in the cadre of EO/AO shall be effected w.e.f. 1/09/2007 onwards. 

In this regard, it is to state that it has come to the notice of the Head Office that while implementing the above mentioned order of granting Grade Pay of Rs.4600/- to EO/AO, the benefit of pay fixation has also been extended by some regions, either by giving increment or by fixing the basic pay corresponding to pre-revised pay scale of Rs.7450-11500/- by using fitment table. This is totally erroneous and against the spirit of the order. 

It is once again clarified that the aforesaid letter permits the grant of only Grade pay of Rs.4600 in place of Rs.4200 and no benefits of pay fixation i.e. grant of any increment of fixation of pay using fitment table corresponding to pre-revised scale of Rs.7450-11500/- are to be given in this regard. If such benefits have been given, then the recovery of the excess amount should immediately be effected and an action taken report be sent to this office by 29th October 2010 positively.



s/d
Yours faithfully

(R.K.Kukreja)
Regional P.F. Commissioner (HRM)

Filed Under:

Tuesday, October 26, 2010

School teachers get 20% hike in Gujarat

School teachers of Gujarat have a reason to rejoice. Following a high court order, the state education department has extended a Diwali gift to teachers — a 20 per cent salary hike.

Recently, Gujarat high court had ruled in favour of school teachers working on fixed salary and had directed state education department to implement Sixth Pay Commission`s recommendations. The state government had quickly formalised government resolutions (GR) for most departments but that for school teachers was pending. On Monday, the state government issued a GR which will translate into a financial gain of Rs 18,000 to Rs 24,000 for fixed-pay teachers. More than 20,000 school teachers, administrative staff and grade IV employees are likely to gain from this move.

Ramesh Patel, Gujarat State Secondary Teachers' Federation, general secretary said, "This has been a long-pending demand." Apart from this, primary teachers with fixed pay of Rs 2,500 will get Rs 4,500. More than 15,000 primary teachers will benefit from this.

Source:Times of India

Filed Under:

POINTS FOR THE 19 th MEETING OF STANDING COMMITTEE OF VOLUNTARY AGENCIES

AGENDA ITEMS FOR THE 19TH MEETING OF STANDING
COMMITTEE OF VOLUNTARY AGENCIES (SECOVA) ON 20.9.2010.


Sl. No.Agenda items for Central pension Accounting Office (CPAO)
1.Issue of Corrigendum PPO for Pre-2006 retirees. 

While the need for issuance of corrigendum PPO was accepted and implemented for Post-Jan 2006 retirees, the pre-Jan 2006 cases were left out for issue of corrigendum PPO due to vast number of retirees. A large number of complaints and difficulties faced by few Air Warriors reflect non payment of rightful dues by various Banks due to lack of requisite information, especially State Bank of India, despite directive by PCDA, Allahabad vide Circular No.397 & 403 dated 18 Nov 09 & 02 Feb o9. The problem is genuine and needs suotable directions for issuance of Corrigendum PPO for all Pre-2006 retiree also. Incorporating required details viz date of birth of Pensioner, name & date of birth of the family Pensioners/nominee details; date of retirement is essential for fixation of pension/ Additional Pension or Family Pension to beneficiaries especially past retirees prior to 1986, beside those above 80 years of age.

Due to non-availability of authenticated details, Banks are unable to give rightful dues to the Pensioner/Family Pensioners especially to those who are residing in rural areas and are not aware of their actual entitlement on Pay Commission revision. The subject of issuance of corrigendum PPO needs priority directions for outsourcing the task if not feasible within CDA capcity.
2.To communicate the amount of pension as well as Family Pension to be revised consequent to the 6th Pay Commission to individuals pensioners of Pre – 2006. 

A Period of more than one year is over. But most of the existing pensioners who have been retired before 01-01-2006 have not been communicated the revised amount of Pension as well as Family Pension admissible to the spouse on his / her death. As a result the Family Pensioner is put to hardships on death of his / her pensioner spouse. Necessary instructions may be issued to communicate the revised amount of pension / family pension in PPO or individual pensioners by the Pension Disbursing Authorities.
3.Expediting cases of sanctioning of secondary family pension with monitoring mechanism at various levels. All cases of undue and unjustified delays to be viewed seriously and concerned authorities made accountable.
Agenda items for Ministry of Finance, Department Of Expenditure
4.Same fitment benefit to Pre-2006 pensioners as recommended and implemented in respect of serving employees by the VI CPC.

The VI CPC discriminated against Pre-2006 pensioners in the matter of fitment benefit. While Grade Pay was recommended to employees in addition to merger of 86% D.A. as on 1-1-2006, pensioners were recommended only 40% if basic pension which works out to much less than 50% of grade pay. Grade Pay was worked out at 40% on the maximum of the highest pay scale in the group of pay scales coming under each grade pay while past pensioners retired at various stages in their respective pre-revised pay scales. Thus an imbalance is created between pre and post 2006 pensioners which will be rectified only if the same fitment benefit is granted to Pre-2006 pensioners also i.e., basic pension as on 1.1.1996 + 86% D.R. and 50% of relevant grade pay. Unless the above imbalance is rectified, the pre-2006 pensioners and family pensioners will forever lag behind post-2006 pensioners and family pensioners retiring in comparable posts with equal number of years of service. Implementation of VI CPC recommendation in the above regard widened the gap between pre and post 2006 pensioners rather than bridging it. Though the CPC had observed in para 5.1.47 of their report that” In order to maintain the existing modified parity between the present and future retirees it will be necessary to allow the same fitment benefit as is being recommended for the existing Government employees” however, in their recommendations, the commission did not carry the above. The commission had not realized that they were recommending a different fitment benefit to pre-2006 pensioners putting them at a serious disadvantage vis-à-vis future pensioners. The same fitment benefit needs to be extended to Pre-2006 pensioners and family pensioners to do equal justice to them. The IV CPC desired that factors governing pay determination should also apply for pension determination (Para 2.26 of IV CPC report, Part II – Pension).
5.Parity between Past and Future Pensioners.

There has been constant effort on the part of the earlier pay commissions to bridge the gap between pensions of past and future pensioners retiring in comparable posts. More improvements have come about in the pension structure after independence as the country progressed economically and in other respects. In line with this trend, the V CPC had enunciated parity principle in para 137.14 of their report. The V CPC enunciated this principle with the laudable objective of bringing the pensions of past pensioners close to those of future pensioners. They recommended full parity to those who retired prior to 1.1.86 i.e, the date of implementation of IV CPC scales of pay and modified parity w.e.f. 1.1.96. They desired that the same formula be followed in respect of Pre-1996 pensioners and family pensioners at the time of implementation of VI CPC recommendations w.e.f. 1.1.2006 vide para 13 7 .21 of their report. The V CPC did not straight away recommend full parity upto 1-1-96 though they felt it was desirable only having regard to the financial implications of implementation of such a measure at that point of time. They observed in para 137.13 of their report as follows:

“The process of bridging the gap in the pension of pensioners has already been set in motion by the fourth CPC when past pensioners were granted additional relief in addition to consolidated of their pension. This process of attainment of reasonable parity needs to be continued so as to achieve complete parity over a period of time.”

The Govt. of India accepted parity principle enunciated by the V CPC and implemented the same w.e.f. 1.1.1996 in respect of Pre-1986 pensioners and family pensioners. It is, therefore, incumbent on the part of the Govt. to carry forward this principle to Pre 1.1.1996 pensioners w.e.f. 1.1.2006. It is not correct for the Government to abdicate this responsibility. The VI CPC was erroneous in linking parity with cent percent neutralization of price rise for the following reasons.

1. Cent percent neutralization of price rise was there upto certain levels even prior to 1.1.1996 and

2. It was the V CPC which recommended taking forward parity principle as well as extension of cent percent neutralization of price rise to all levels.

Hence there was no link whatsoever between carrying forward the principle of parity and 100% neutralization of price rise. The commission’s observation had created a wrong and misleading impression in the above regard. The Central Government will, therefore, do well to discharge their moral responsibility towards their past employees by carrying forward the parity principle. Pre-1.1.1996 pensioners and family pensioners may, therefore, be first brought on par with post 1.1.1996 pensioners and family pensioners as recommended by V CPC while revising their pensions as per V CPC formula.
6.Stepping up of Pension and Family Pension to 50% and 30% respectively.

The stepping up of pension and family pension to 50% and 30% respectively of the sum of the minimum of the pay in the pay band and grade pay thereon corresponding to the pre revised pay scale from which the pensioner ha retired (Para 5.1 of VI CPC report). The manner in which this recommendation has been implemented has done grave injustice to pre 1.1.2006 pensioners. Instead of taking the pay in the pay band corresponding to the minimum pay ofthe pre revised pay scale, minimum pay in the pay band has been taken for this purpose and thus those who retired in higher pre revised pay scales have been equated with those who retired in lower scales. Thus equal treatment has been denied to those who retired in various pre revised pay scales in the matter of ‘stepping up’. While those who were given separate pay scales were protected in this regard, those whose pre revised pay scales had come into pay bands have been adversely affected. This is a gross discrimination denying equal treatment as enshrined in Article 14 of the Constitution of India As such the ‘Stepping up’ may be implemented so as to protect all those who retired in various pre revised pay scales replaced by four pay bands. Introduction of pay bands with grade pay should not be allowed to act to the serious detriment of any section of past pensioners.
7.Extension of new benefits granted to the past pensioners. The Hon’ble Supreme Court of India had categorically ruled in their historic Judgment in Nakara case that dividing the homogeneous class of pensioners into those retiring before and after a certain date in the matter of extending new pensionary benefits granted is unconstitutional and violative of Article 14 of the Constitution of India. Yet, the Government of India limited the new benefits such as (a) taking last pay drawn or average of last 10 months of pay whichever is beneficial to the retiring employee for computation of pension and (b) full pension for 20 years qualifying service/10 years of qualifying service in superannuation case to those retiring after 1-1-2006 in the case of (a) of the above and 2-9-2008 in the case of (b). The representations made against the above violation are disposed of by the Dept. of P&PW, New Delhi vide their letter No.F.No. 38/37/0 p&pw (A) dt. 11-2-2009 on untenable grounds. Hence a presidential reference needs to be made to the Supreme Court to clarify whether or not the above orders of the Government violated the letter and spirit of their judgment in Nakra Case instead of driving the retired employees to approach courts of law in their advanced ages. The Government should be fair enough to its retired employees and their families as this is an issue with far reaching consequences to them.
8.Additional pension for service beyond 20 years of service.

In this connection, the reasoning given by the VI CPC in recommending additional pension for service above 33 years of qualifying service may kindly be seen and service above 20 years suitably rewarded.
9.A suitable alternative to merger of DR after it reaches 50% in view of VI CPC recommendation against 50% DA/DR merger benefit to ensure revision at reasonable intervals.
10.Appointment of 7th Central Pay Commission, HRA & Transport Allowance, Children’s educational allowance & Hostel Subsidy and Festival Advance.
Agenda Items for Department of Pension & Pensioners’ Welfare (DOP&PW)
11.Restoration of commuted pension after 12 years. The V CPC recommended restoration after 12 years taking all relevant factors into consideration. There are no subsequent developments to justify reversing of this recommendation by the VI CPC. The Government would so well to issue orders restoring commuted pension after 12 years as grave injustice is being done to pensioners in not accepting and implementing recommendation of the V CPC in the above regard.
12.Revision of Ex-gratia rates in respect of pre. 1986 CPF/SRPF retirees and their families. 

a) Revision of these rates effected w.e.f. 1.11.2006 gave them only marginal benefit. Even in this, those who retired from groups B,C & D are badly hit as the increases in their cases are very negligible. Ex-gratia rates applicable to families of deceased beneficiaries remain the same. These ex-gratia beneficiaries and their families have to be done justice by revising their ex-fratia rates in the same manner as was done in the case of pensioners.

b) Further they are given 8% less DR which again is highly discriminatory. Further, the present discrimination against families of the beneficiaries getting ex-gratia in the matter of DR should end.

c) They should also be made eligible for grant of FMA on par with pensioners.
13.Ex-gratia amount to be raised for CPF/SRF retirees. 

a) The Ex-gratia amount sanctioned to CPF/SRPF retirees is very low. It should be raised to 50% of the minimum of the corresponding pay scale fixed by the VIth CPC for groups A, B, and C and D. The total number of such CPF/SRF retirees alive today are negligible. Government has restored and revised 1/3rd pension of PSU Absorbees who had commuted 100% pension based on the court order. Therefore, it is not justified to deny revision of Ex-gratia to these small groups of people. They also should be given reasonable amount of Ex-gratia to maintain their day to day needs.

b) Ex-gratia to widows of CPF/SRPF retirees is to be raised and paid uniform rate of D.R.

c) Sanction Ex-gratia to CPF / SRPF voluntary retirees with 20 years of service, since the denial of the benefit is unjustified.
14.Ex-gratia should not be less than minimum pension and the same should be effective from 01/01/06.
15.Extension of secondary family pension to dependant widowed daughter-in-law.
16.Extension of benefit of enhanced family pension for 10 years even in cases of death after retirement.
17.Fixed Medical Allowance to be enhanced to Rs. 1,000.00 p.m w.e.f. 01/01/06.
18.Implementaion of Web Based Pensioners Portal-

Online Grievance redressal system:


Live status as well as final status does not get reflected. The system of ,monitoring by DOP need to be strengthened and DOP need to have teeth to ensure compliance from different Departments. 

b) Grant in aid to pensioners Associations to cover ‘Rent’ for office accommodation:


Most of the Pensioners Associations, due to inadequate finances, find it hard to hire adequate office accommodation. To facilitate smooth & effective working provision for office accommodation ‘Rent may’ be made in the Grant- in-aid to pensioners Associations.
19.The implementation of orders dated 01.09.2008 read with the orders dated 14.10.08 is not correct. For instance, consider the example given at Sl. No. 3 of the Annexure-II dealing with Pre-revised scale of pay Rs5,000-8,000 in PB-2 of Rs 9300-34800 with Grade Pay of Rs.4200/-. The RCP arrived as per the recommendations was at Rs. 5,650/- and the same is asked to be stepped up to Rs.6,750/- vide OM ibid. Since Fitment Scale for this scale starts at Rs.9300/- Pay Band it is correct. But it the next scale Rs.5500-175-9000 is taken ito consideration with the same Grade Pay it should not be limited to 6750/- since the Fitment Scale is Rs.10,230-17,720 for this scale. It should be compared with the minimum admissible pension of Rs.7225/- (Rs.5115 + Rs.2100) being 50% of the Minimum of the Pay Band + Grade Pay of Rs.4200/- related to the post.The Grade Pay is also varies for the same post carrying the same scale of pay when Implemented in the different departments. As such, the Pension Calculator should not be relied upon but case to case examine of pensioner’s case has to be ensured vide Annexure-III to the OM ibid.
Agenda Items for Ministry of Health & Family Welfare
20.Health Care of Pensioners / Family Pensioners residing in the Non-CGHS areas is badly neglected. The Orders of Health Ministry reiterating that all the pensioners are at liberty to enroll themselves with any of the nearest CGHS hospital/dispensary may be widely circulated. The Implementation of the orders enforced. Already pending bills with the Heads of Departments concerned for which claims made under the existing CS (MA) Rules, 1964 should be settled on the strength of decisions given by various Hon’ble CATs in the country.

(a) Merger of Postal Dispensaries with the CGHS should be expedited. In the meanwhile, the pensioners of Departments of Posts and Telecom may be allowed as in the case of other Officials on deputation to Public Sector Undertakings to join the CGHS on a life time measure on a regular basis to avail the CGHS facility.

(b) The rates of contribution raised w.e.f. 1-6-2009 are to be reduced and also the renewal of issue of regular CGHS cards should be allowed for those beneficiaries who were already registered with the CGHS on a temporary basis renewing their Cards periodically without insisting upon the rates increased w.e.f. 1.6.2009.
21.Withdrawal of arbitrary orders dated 01/08/1996 and 01/09/1996 issued by Ministry of Health and Director of CGHS. The orders should be withdrawn and the benefit of CGHS facilities be allowed to the pensioners of Department of Post and Department of Telecom as specially provided in the order of the Department of Personnel and Pension.
Agenda Items for DOP&T
22.Early commencement of meeting of National Anomaly Committee to settle all anomaies arising out of 6th central pay commission recommendations.

Agenda Items for Department of Telecom & Posts
23.Grant of concessional telephone facilities to retired P&T Employees.

The impact of the decision of Hon. High Courts of Delhi and Cuttack has been given effect in the case of individual petitioners only. However similarly placed pensioners are ignored and indirectly are forced to knock the doors of Courts. It is requested to apprise the DOT to make a General Rule and all similarly placed pensioners are considered for Service Telephones.
24.The existing Pensioners of Department of Posts and Telecom covered by P&T Dispensaries are neither consider for treatment of hospitalization facilities nor for Fixed Medical Allowance. 

This item was included in previous SCOVA meeting held on 25-03-2008, but it is still undecided. This may be settled and decided now.
Pensioners falling within the limit of P&T Dispensaries / CGHS Hospitals may be allowed to opt for P&T Dispensaries or drawl of Fixed Medical Allowance.

The existing pensioners may be allowed either to opt for Fixed Medical Allowance or the facilities of P&T Dispensaries / CGHS.
Agenda Items for Ministry of Defence
25.Extension of Benefits of Modified Parity to Pre-Jan 06 Retiree Officers.

Govt. has provided necessary relief to Lt Gen (Retd) and equivalent in providing benefit of modified parity. Similar parity in pension to Pre-Jan 2006 retiree officers in respective of rank, needs consideration for extension of benefit. The matter has already been projected at Chiefs of Staff Committee level in Aug 09. The parity amount as suggested below would eliminate grievance of major retirees of Pre-2006 period.
Rank

Revised as per


VI CPC


(Past Retiree)

Parity with 
31 Jan


06 Retiree


(Recommended)

Approx No 
of


Affected
 Officers

Lt

13,500

15,050



Capt

13,850

17,025

575

Maj

14,100

22,135

4659

Lt Col

25,700

28,695

56942

Col

26,050

30,375

9256

Brig

26,150

31,925

4311

Maj Gen

26,700

33,925

1508

Lt Gen

36,500@

39,500

349



@ Minimum pension guaranteed as result of placing all Lt Gens in HAG scale vide amendment to SAI 2/S/2008 dated 16 Jul 2009.
26.Disability Pension: Extension of benefit to Pre-Jan 2006 disability Pensioners.

Disability pension for Pre-Jan 2006 retiree is based on fixed amount as per Govt. of India, MoD letter. No. 16(6)/2008()/D (Pebsion/Policy) dated 04 May 2009. This has resulted in large disparity in disability elements related benefit, when compared to post Jan-2006 retirees (who are entitled forv30% of last enhanced pay drawn amount on retirement as per letter of even reference dated 05 May 09). The issue needs a review for providing benefit of disability pension to earlier retiree, on the same yardstick, as applicable now for Post-Jan 06 retiree.
Agenda Items for Ministry of Railways
27.Companion facility in the same class to all complimentary pass holders of Railways. Cut off age limit for this purpose should be the same as for concessions extended in railway fares.
28.Inclusion of Representatives of A.I.R.R.F and SCOVA in Railway Hospital Advisory Committees.


Source : persmin.gov.in
Filed Under:

Monday, October 25, 2010

EPF RETURN 9.5% IS NOT SUSTAINABLE--CPFO

Exempted PF trusts may get to dip into reserves for payout

 In A move expected to benefit a large chunk of the 2,700-odd exempted trusts, the Employees’ Provident Fund Organisation (EPFO) will soon free these trusts to utilise and tap their Provident Fund Trust reserves to meet the statutory payout rate, according to Central Provident Fund Commissioner (CPFO) Samirendra Chatterjee.

The decision is significant since many exempted funds were running a deficit after EPFO increased the PF rate to 9.5% this year from 8.5% in the previous year. Since the funds could not use their reserves to meet any shortfall, they had a tough time meeting the deficit.

The EPFO managed to fund the additional 1% interest cost after it changed its accounting policy from cash based to accrual based, which resulted in a surplus of around over . 1,731 crore.

In May this year, EPFO had issued an internal circular addressed to all Regional Provident Fund Commissioners (RPFCs), with one of the conditions being , that in the event of any loss to the trust as a result of defalcation, wrong investment decision or any deficiency in the interest rate compared to statutory rate, the employer shall be liable to make good the loss or interest.

The circular added, “You are, therefore , directed to ensure that wherever losses to the trust have been reported, the same is made good by the employer or establishment and is not adjusted against previous years’ surplus or reserves of the trust.” The new circular will delete the line, “or any deficiency in the interest rate compared to statutory rate” in paragraph 7. Mr Chatterjee was speaking at a seminar on the challenges facing retirement funds, organised by AK Capital. Speaking to ET on the sidelines of the seminar, he said exempted funds will be free to utilise and dip into their PF Trust reserves to meet the statutory payout rate.

“The formal notification in this regard would be posted on the EPF website soon,” he said. Accumulated reserves and surplus formed from excess income over expenditure can be utilised to meet the shortfall to declare higher rate of interest, or to match the rate of interest as may be declared by EPFO, in any case. These trusts are required to either match or better the interest rate declared by CBT, EPF and have to follow the investment pattern notified by the Ministry of Labour.

He said a decision has been taken that PF money will not be invested in equities. When asked about next year’s rate of return for EPFO subscribers, he replied, “The 9.5% return is not sustainable. Next year’s rate of return will be decided later and it is difficult to comment on this right now.”

He added that accountholders would get the benefit of improved rate of return on deposits from the next fiscal from the income on frozen inoperative accounts.
Source:Economic Times

Filed Under:

GRANT OF HOUSE RENT ALLOWANCE TO RAILWAY EMPLOYEES-CLARIFICATION REGARDING

House Rent Allowance
 
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBE.No. 155/2010
New Delhi dated 04.10.2010.

No.E(P&A)II-98/HRA-6

The General Managers/CAOs,
All Indian Railways/Production Units etc.
(As per mailing list No.1&2).

Subject : Grant of House Rent Allowance to Railway employees posted to new Zones/new Divisions – Regarding.

Attention is invited to the instructions contained in Board’s letter of even number dated 9.3.2004 allowing the House Rent Allowance to the railway employees posted to New Zones/Divisions at the rates admissible at their last place of posting during the period from 2.9.2002 to 31.8.2009.
 
2. The issue regarding admissibility of benefit of House Rent Allowance at the rate prevalent at the previous place of posting to those railway employees who on their transfer to New Zones/Division keep their families at the previous station of posting in hired accommodation after vacating the Company/Railway leased/Government accommodation which they were occupying and had to vacate subsequent to transfer to New Zones/Division has been under consideration. The matter has been considered and in partial modification to Board’s letter of even number dated 9.3.2004, it has been decided that such railway employees would also be entitled to the benefit of House Rent Allowance at the rates applicable to the previous station of posting as per the Scheme subject to fulfillment of other conditions mentioned in Board’s letter of even number dated 9.3.2004.
 
3. The issues with the concurrence of the Finance Directorate of the Ministry of Railways.

s/d
(Salim Md. Ahmed)
Deputy, Director, Estt.(P&A)III,
Railway Board


Source:AIRF
Filed Under:

Sunday, October 24, 2010

New Pension Scheme: Choose plan to suit risk profile

Under the New Pension Scheme (NPS), investors save money which is put into the capital market. The sum which you will get after retirement will be dependent on the performance of the capital market. You can make monthly or weekly contributions to the NPS. But for every contribution, your transaction cost will increase.

Prior to NPS, there was the Defined Benefit Plan -one would get certain pension fixed for life. The postretirement proceeds were fixed and if there is a shortfall in this corpus, the government would make good.

NPS is a Defined Contribution Plan where the returns will not be fixed. You will only get what you have contributed and returns that the fund manager generates on it. All new entrants to the central government services (other than armed forces) after January 1, 2004, will compulsorily join this scheme. All citizens, including NRIs, aged 18 to 60 can voluntary join the scheme. The exit age is 60 years.

A minimum contribution of Rs 6,000 is compulsory per year. The minimum amount per contribution is Rs 500 and a minimum of four contributions in a year for each subscriber account is required.

Under the NPS, each subscriber is allotted a unique 16-digit Permanent Retirement Account Number (PRAN). This number is portable. The records of transactions are maintained by the Central Record Keeping Agency (CRKA). The subscriber has the option to invest with seven pension fund managers (PFMs). He also has the option to choose any one or more PFMs to manage his contribution. These PFMs will have three kind of funds categorised as 'E' for equity funds, 'G' for funds investing in government securities and 'C' for fixed income securities other than government securities.

There are two types of accounts:

Tier I account where you cannot withdraw

The Tier I account is the basic NPS account that is non-withdrawable till retirement or death of the subscriber. In this account, the total corpus at retirement age is split, where a minimum of 40 percent of the final corpus has to be compulsorily used to buy an annuity while the subscriber is free to withdraw the remaining 60 percent as a lump sum or in instalments.

Tier II account where you can withdraw

The Tier II account is available to only to those who are existing subscribers of the Tier I account. The money contributed into this account can be freely withdrawn as and when the subscriber wishes to except for a minimum balance that needs to be maintained at the end of each financial year.

Charges

The NPS levies an investment charge of .00009 percent of the assets under management. Initial charges of account opening is around Rs 470. From the second year onward the charges are Rs 350 per annum. Also, a charge of Rs 10 is applicable for each transaction. One can make monthly or weekly contributions. But for every contribution, your transaction cost will increase.

Fund managers

These are managed by fund managers. Currently, seven fund houses appointed by the government are available under the NPS.

These are:

LIC Pension Fund Limited
SBI Pension Funds Pvt Limited
UTI Retirement Solutions Limited
IDFC Pension Fund Management Company Limited
ICICI Prudential Pension Funds Management Company Limited
Kotak Mahindra Pension Fund Limited
Reliance Capital Pension Fund Limited

Schemes

There are three schemes available under the NPS.

Fund C

In case you invest in this fund, all the money will be invested in fixed income instruments such as corporate bonds and government securities. One should consider investing in this fund if the risk appetite is medium as corporate bonds are not that risky.
Fund E

In case one invests in this fund, a portion of not more than 50 percent of the invested money will be put in equity. You should choose this retirement plan only if your risk appetite is high, as up to 50 percent of your money will be linked to the performance of equity.

Fund G

In this case, all your money will be invested in government securities. Hence, this is suited for risk-averse investors. One can choose to invest in any of these funds. You may also invest in a mix of these funds. If you do not choose between these funds, your contributions will be invested in a fund with 15 percent in equity, 45 percent in corporate bonds and 40 percent in government bonds. With increase in age, after 35 years, the government bond exposure will increase with a maximum limit of 80 percent and 10 percent each in equity and corporate bonds.

Fixed income pension plan

The government has proposed to extend the 'fixed income pension plan' to workers in the unorganised sector. The monthly contributions one makes will be invested as per NPS guidelines. The State funds for the savings scheme will be added to this. If any gap exists between the sum guaranteed and sum generated from the two steps, the central government will provide the required funds.

The new plan will be started off initially in Haryana, Karnataka and Andhra Pradesh. This amendment is meant only for workers in the unorganised sector. Central and State government employees will continue to get pension through NPS.

Tax benefit

Presently, NPS does not offer any tax exemptions unlike other retirement plans. It falls under the category of exempt-exempt-tax (EET) system which means that maturity benefits you receive after retirement will be taxable. However, with the Direct Tax Code coming in NPS will be tax exempted on withdrawal too.

Source;Economic Times
Filed Under:

EPFO seeks govt guarantee for investing 15 per cent funds in stocks

Terming equity investments "unsafe", retirement fund manager EPFO has asked for a government guarantee to go ahead with the finance ministry's demand of investing up to 15 per cent of its funds in stocks.

"Our Board of Trustees felt investments in the capital market are unsafe and do not serve well for someone like us who want very stable returns," Central Provident Fund commissioner, Samirendra Chatterjee, told reporters on the sidelines of a function organised by AK Capital Services in Mumbai.

"If they want us to invest, please give us a guarantee for the same, we will invest," he added.

Citing revised regulations, the ministry of finance has been asserting that it has a right to prescribe the investment patterns for retirement funds and has been repeatedly asking for up to 15 per cent of the corpus to be invested in equities.

However, Chatterjee said the Employees Provident Fund Organisation (EPFO) goes by the rules drafted in 2003 and not the revised ones made in 2008.

EPFO's funds under management has swelled by Rs 25,000-crore in the first half of the current fiscal to Rs 3,25,000-crore, he said.

The EPFO and the company-run PF trusts are currently allowed to invest only in more secure investments like bonds and Government securities which deliver a stable return.

"I work for the common man...a fall in stocks is not infrequent and how can I explain to a person that his investment corpus has fallen? Such things work well for mutual funds who run on net asset values, not for us," Chatterjee said.

On the zero interest to inoperative accounts policy to be implemented from May 2011, he said the Trust expects withdrawals of up to Rs 10,000-crore by "savvy" investors who have locked-in huge chunks for guaranteed, tax-free returns.

"We have Rs 15,000-crore in inoperative accounts and I expect withdrawals of up to Rs 10,000-crore by savvy investors. Some of these accounts have contributions up to Rs 25-lakh," the Commissioner added.

According to a new policy which will come into effect from May 2011, accounts which are inoperative for more than three-years will not be paid any interest.

On concerns if private fund trusts would be able to pay an additional one per cent interest on contributions, Chatterjee said they should dig into their reserves for meeting the requirement if they are not able to fund it through yields on investments alone.

Source:Economic Times

Filed Under:

40% of salary of Central government employees based on performance, Dr. Trivedi

Central Government has introduced accountability across the board with setting up performance targets and top level officers agreeing that upto 40 per cent of their salaries will be placed with in two months, dependent upon level of performance for which self-evaluation process has been evolved, Dr. Prajapati Trivedi, Secretary, Performance Management Division, Cabinet Secretariat revealed here today.

Stating that the system change in the central government would enable measurable response to public grievance by government officials, Dr. Trivedi declared.

Inaugurating ASSOCHAM organized 2nd CFOs Roundtable Conference 2010 here today, Dr Trivedi also indicated that all 62 government ministries and departments on board have signed the tool called Results Framework Document (RFD) which will set targets for each ministry and will finally be the basis for yearly evaluation. “Results will be our bottom-line just like profits are the bottom-line of the private sector” he pointed out.

The formula of assessing the government employees as proposed by performance management division under the cabinet secretariat, has ruled out “not me syndrome and passing the buck”. The Secretaries in turn will have to set performance levels for the officers below them and evaluation would be from bottom to top. “once we fix the performance deficit, other things will follow” Dr. Trivedi said elaborating on the causes of performance deficit. He told the audience that had leading private sector CFOs that “private sector will look up to us”.

The Cabinet Secretariat also said that the first round of assessment, initially for three months from January to March 2010, there is a strong possibility that a large number of government employees would receive an extra pay once the new formula is adopted.

He also mentioned that the government is extending the performance monitoring and evaluation system to 62 departments from the current fiscal. According to our system, a department sets a target, fixes the weightages of each target, and if it succeeds meeting all its targets, gets a score of 100.

He also highlighted that many countries such as Canada, New Zealand, Australia, Netherlands, Denmark, UK, US and Finland have moved away from the traditional government administrative model to a management model under which officers act like corporate managers as they get greater operational freedom, but are held accountable for results. In fact, New Zealand is considered to be the leader of the pack where performance of government agencies are weighed in by setting targets and adopting regular evaluations. “In New Zealand the Governor of the central bank has his salary linked to inflation level being low and as a result for the last 18 years that country had a low inflation level,” he disclosed.

The various ministries and departments are preparing their Result Framework Documents (RFD) which is to be submitted to this division and the performance of the ministries will be monitored based on these documents only. First, the ministries are themselves setting their targets and secondly they have huge manpower ranging from senior bureaucrats to employees under central secretariat scheme (CSS).

The government has already established a performance management division within the cabinet secretariat headed by a professional.

So, the performance of central ministries is under close watch. By introducing performance-linked payouts, the Indian government is finally going the corporate way which may force central government employees to deliver their best.

Speaking on the occasion, Mr. Y M Deosthalee, CFO, Larsen & Turbo ltd. said that to improve the competition by reducing the cost, competitive analysis in a qualitative manner and by communication.

Mr. S C Agarwal, CMD, SMC also said that compliance with all the stakeholders in the Indian capital markets have to meet the highest standards of corporate governance, not only in letter of law but in the spirit of the law as well.

He further said that the multiple modes of fund raising present in the Market today present another set of challenge s to the CFO of today’s corporations. The importance of having continuous updates about the latest trends in the various instruments of primary market such as IPO’s, FPOs, QIPs, ADRs, GDRs, FCCBs etc cannot be ignored. Many of the company’s that choose to ignore thses instruments of fund raising will only be giving up their chances of entering the next orbit of growth.

Among others who spoke on the occasion comprised Mr. Subbu Subramaniam N, Chairman, VCAI, Ms. Kalpana Jain, Co-Chairperson VCAI and Mr. Sandeep Dhupia, Excutive Director, KPMG

Source: ASSOCHAM

Filed Under:

Popular Posts