No proposal to increase the Retirement Age from 60 to 62

No proposal to increase the Retirement Age of Central Government Servants...




The Central Government clarified that there is no proposal to extend the retirement age of Central Government Employees.


In Rajya Sabha, the Minister of State for Finance Namo Narain Meena told that the total number of Central Government Employees as on March, 2010 was 32.24 Lakh and “at present we have no idea to increase the retirement age of Central Government Employees from 60 to 62”.

Retirement age across the world - ILC Report

Policy Reforms in Ageing Health and Innovation in OECD Countries
NON-HEALTH RELATED
Pension Reform 
One very common policy response to increased longevity is pension reform to ensure the future sustainability of pension systems while ensuring that older people receive adequate retirement income (OECD, 2009). The most common measures taken are raising the state pension age, scrapping or limiting the possibility of early retirement and encouraging personal (individual/employer) pension provision (OECD, 2009; OECD, 2006).
Almost all OECD countries have made changes to state pension age; those with a state pension age below 65 are in the process of raising it such as Japan, Korea and the Czech Republic, whereas countries such as the UK, Germany, Denmark and the Netherlands that already have a state pension age of 65 are increasing it (OECD, 2009; Guardian, 2010). However, it is important to note that most while the state pension age guides retirement, many people retire before reaching it, while others choose to continue working (Berry, 2010).
 

Expected da from July 2011

We feel features, expectations and calculations are on the forefront for most of the central government employees regarding the additional Dearness Allowance from July, 2011 to be announced soon.

There will be no change in the 7% DA unless a huge change takes place in the month of June AICPIN (i.e.if the AICPIN falls below 180 points or increase above 195, a change of DA can take place, but chances are very remote.) AICPIN now stands at 187.

Surprisingly, some employees are eager to know if the DA crosses 100%, it will merge with the basic pay or not.
There is no such recommendations said in the 6th CPC.The allowances only will be increased by another 25%, every time the DA crosses 50%.

As of now, the important increase in the allowance is Children Education Allowance and Hostel Subsidy. It was increased from Rs.12000 to Rs.15000 from 1.1.2011. This will be increase upto Rs.18750 after the Da crosses 100% and some other allowances also will be enhanced by 25% from the existing rates.

Assumption are that the DA will touch 100% in the next three years. Before the 7th CPC, which will be from 2016, the DA surely crosses 100%.

The DA was merged with the basic pay as happened in the year 2004, the 5th CPC had recommended that DA should be converted into Dearness pay each time the CPI increase by 50% over the base index used by the Pay Commission.

Govt officials may be allowed to use Facebook

The government is planning to put in place a framework for officials that would allow them to leverage the power of the social media, a top official of the Department of Information and Technology (DIT) said here today.

“We are creating a framework that would help Central departments and officials to use social media like Facebook, Twitter effectively,” said Additional Secretary DIT, Shankar Aggarwal.

“We expect to give a final shape to it (framework) over the next two or three months and notify it,” he said.

“The idea is that they can enter into a dialogue with the public more freely, take suggestions, feedbacks and provide updates. It shall be more of a two-way rather than a one-way communication,” Aggarwal stated.

“Social media is being used extensively by civil society, but unfortunately, we do not have any framework for the Central government and state government,” he said.

“The government officials are scared of using the social media because they are not sure whether they are allowed to use it or not,” he added.

Meanwhile, the government is planning to introduce the Right to Public Services Act soon that would make it mandatory for the government entities to deliver public services in an electronic form too.

“We have already created a framework and for this (Act) and the framework is to be converted into a law. We think we will be able to introduce it in the next session of the Parliament and this will become a law,” he said.

“Under this, we shall be trying to ask the government entities to deliver all the public services in an electronic form also. It has to be achieved over the next five years,” he informed.

Aggarwal said they had been planning to develop a payment gateway for the entire country so that the people could pay electronically for various services. — PTI

Source: Tribune India

Enhancement of Income Tax exemption limit for Transport Allowance

National Federation of Indian Railwaymen(NFIR) General Secretary Mr.M.Raghavaiah requested the Finance Minster to enhance the Income Tax limit for Transport allowance in the case of salaried Central Government employees. He said in his letter that the Transport allowance was introduced for the first time in the year 1997 and the maximum rate of the same was kept at Rs.800 per month. The exemption limit from income tax for this allowance in the case of salaried Central Government employees was also fixed at Rs.800 per month in the same year through a notification by CBDT.

He also noted that the exemption limit prescribed in 1997 has been continuing at the same level till date. Over this long period of 14 years, the cost of transport has increased manifold and recognizing this fact the Central Government has itself enhanced the allowance upto Rs.3200 to its employees.

He suggested that the exemption limit may be raised to the level of transport allowance admissible to Central Government employees as was done in the year 1997 as a policy.

SB ORDER NO. 16/2011 : Admissibility of Commission to SAS agents- Clarifications

Modification in PPF Scheme

Ministry of Finance

Modification in PPF Scheme : Deposit Limit Raised from Rs. 70,000 to Rs. One Lac while Rate of Interest on Advances Against Deposits in PPF Scheme Raised from 1% to 2 Percentage Points

The Committee on Comprehensive Review of National Small Savings Fund (NSSF) headed by Deputy Governor, RBI has recommended revision of certain provisions of PPF Scheme, 1968 and benchmarking of interest rates on various small savings schemes with the secondary market yields on Central Government securities of comparable maturities with suitable spread.

The Committee has recommended increasing the deposit limit under PPF Scheme from existing Rs. 70,000 to Rs. 1 lakh per annum and fixing of rate of interest on advances against deposits in PPF scheme at 2 percentage points as against the prevailing interest rate on such advances at 1%.

The Committee has further recommended benchmarking interest rate on small saving schemes to interest rate on Government securities of similar maturities with a positive spread of 25 basis points on all schemes except for 50 basis points for 10 year NSC and 100 basis point for Senior citizens Savings Scheme. Recommendations of the Committee have been referred to State Governments and concerned Ministries/ Departments of Central Government for their comments.

This information was given by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question raised in Rajya Sabha today. 

Source: PIB