Financial planning for the amounts received at retirement – Pre-Retirement Counseling

Financial planning for the amounts received at retirement – Pre-Retirement Counseling

Ministry of Personnel, Public Grievances & Pensions

MoS (Personnel) Dr. Jitendra Singh addresses Pre-Retirement Counselling Workshop “Sankalp’

Retiring employees should carry forward the Government’s flagship programmes – says Dr. Jitendra Singh

The Union Minister of State (Independent Charge) of the Ministry of Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh has said that the services of superannuating and retired employees should be gainfully utilized to carry forward the flagship programmes of the Union Government led by the Prime Minister Shri Narendra Modi.

Addressing the Pre-Retirement Counseling (PRC) Workshop ‘Sankalp’ for the retiring employees of Ministries/Departments, organised by the Department of Pensions & Pensioners’ Welfare (DOP&PW) here today, Dr. Jitendra Singh said that the superannuating employees can be inducted into advisory bodies of their respective offices and also to dispose of grievances. Due to increasing life expectancy, an active life lies ahead of an employee at sixty years of age and the individual is at his prime capacity and energetic. Retirement should rather be viewed as the beginning of a new innings, he said. Such interactive workshops should come out with ideas on how best the services of retired employees can be utilized, he added.

Dr Jitendra Singh said for the first time this Government has cared for Pensioners as much as for the working employees. Minimum pension has been raised to Rs.1,000, Jeevan Pramaan biometrics introduced for submitting digital Life Certificate, more than 1,500 obsolete rules scrapped and the Anubhav platform introduced for the first time for retiring employees to share their experience.

In his address, Shri KV Eapen, Secretary, DOP&PW and Secretary, Department of Administrative Reforms & Public Grievances (DARPG), said the DOP&PW has so far registered more than 2,000 pensioners and conducted Pre-Retirement Counselling for more than 3,300 employees under the Sankalp project. The Department has registered 19 Pensioners’ Associations and 16 NGOs to involve Central Government Pensioners in social activities.

The PRC workshops target retiring personnel two to two-and-a-half years before the retirement date. Topics covered are (i) Formalities to be covered for timely payment of retirement dues (ii) Financial planning for the amounts received at retirement (iii) Preparation of Will (iv) CGHS facilities after retirement and (v) Post-retirement opportunities through Sankalp.

The “Sankalp’ programme has been initiated by the Department towards this end and a web portal of the same name has also been launched. Pensioners, Pensioner Associations and NGOs can register on the website http//www.pensionersportal.gov.in/sankalp.

There are approximately 40,000 fresh retirees every year from the Central Government Civil establishments alone. This number could be close to 1,00,000 including defense, railways, posts and telecom. In addition there is a pool of around 50 lakh existing pensioners.

Anomaly in Pension Fixation as per 7th Pay Commission Recommendations

Anomaly in Pension Fixation as per Recommendations of 7th Pay Commission

One of our regular reader Mr.Visvesvara M K has expressed his views about the calculation of pension for pre-20016 pensioners as per the 7th Pay Commission.

There is an anomaly in pension fixation of pre-2016 pensioners as per 7th CPC recommendations. The 7th CPC has offered two options.

Option I:

Pension calculated by multiplying pension fixed by VI CPC by a multiplying factor of 2.57.

Option II:

Notional pay to be determined by multiplying entry pay under appropriate e Grad Pay and Level taking into consideration number of increments earned in the pay scale from which one retires. 50 % of this notional pay is the pension w.e.f. 1-1-2016.

Whichever pension of Option I and Option II is higher is the pension.

ANOMALY:

If one gets a promotion to higher post in which he serves for less than one year there is no increment earned. 50% of this notional pay as per Pay Matrix of the VII CPC will be pension w.e.f. 1-1-2016 and this pension under Option II is always and always lower than the Pension under OPTION I. Thus, there is no choice for him.

SOLUTION:

It is common to observe that most of the pensioners retired on superannuation after serving in a higher post on promotion will be retiring within a year or so and the increments earned by them in that pay scale is nil or meager compared to the increments earned in the immediate lower pay scale from which he was promoted and this fact seems to have been given a goby. Pensioner who does not earn any increments in the pay scale on promotion which may be only an extension of the lower pay scale should have his increments earned in the lower pay scale counted for calculation of the notional pay which is a part and parcel of the pay scale to which he is promoted.

—————————————————————————————————

Mr.G R Murthy says…

Mr.Visheswara has pointed out that retirees usually serve for least no of years in promotion scale and no of increments earned are few compared to the increments earned in the prev. scale.I presume that the no of increments is calculated as the diff of pay drawn at the time of retirement and the minimum of the pay in that pay scale When a person gets promotion to a higher post his pay in the promoted pay scale is fixed higher at least by two increments so there is no danger of getting less pension than ones juniors. I think the pension varies with the retirement regime of pay commissions for the same number of years of service in the same grade Am I right in thinking so?

BPS writes to DoPT to settle payment of arrears of pension to pre 1.1.2006 retirees

Payment of arrears of Pension to pre 1.1.2006 retirees for the period from 1.1.2006 to 23.09.2012

BHARAT PENSIONERS’ SAMAJ

(All India Federation of Pensioners’ Associations)

No. SG/MOS PP/015/01

Dated 03.04.2015

To
Dr. Jitendra Singh
Honorable MoS (PP)
GOI, Ministry of Personnel, PG & Pensions

Subject: Payment of arrears of Pension to pre 1.1.2006 retirees for the period from 1.1.2006 to 23.09.2012

Reference: BPS representation vide its No SG/MOS PP/014/2 Dated 0707.2014 and SCOVA 26 ATR Item (x) S.No 10

Sir,
SLP No. 36148 to 50 of 2013 referred to in SCOVA ATR Item (X) S.No 10 of ATR have been dismissed on 17 March 2015 by the honorable Supreme Court of India

Pensioners fraternity look to you with expectation that now the orders/judgement of Honorable Principal CAT Delhi dated 01.11.2011 will be made applicable to all pre 2006 Pensioners without pushing each one of the effected person to court law again.

With Warm regards

Yours truly,

S.C. Maheshwari

Secy Genl BPS

Source: www.scm-bps.blogspot.in