Central Government Pension and Family Pension-Uncommon Areas

These are certain uncommon areas in Central Government Pension and Family Pension Matters.

Child adopted even after retirement is entitled to get family pension

Q A retired employee due to demise of his wife and son legally adopted one of his grand sons after his retirement. He submitted the adoption deed to the Pension Sanctioning Authority with the request to add the name of his legally adopted son in the list of his family members so that he could receive family pension in case of his death. Whether the same is permissible as per law.

Also kindly clarify as to whether the children of post-retiral spouse born to the retired employee are eligible for family pension.

A The stipulation that adoption should be “before retirement” has been deleted vride Notification No.1(66) P & PW/89-E, dated 18-1-1993. Hence as per Rule 54 (14)(b)(ii) of CCS (Pension) Rules, 1972, son/daughter legally adopted after retirement and children of post-retiral spouse are eligible for the grant of family pension vide Rule 54 (14) of CCS(Pension) Rules and GIDs (18) to (20) thereunder in Swamy’s Pension Compilation.

No family pension to the parents, if the deceased employee had left behind a widow or a child.

Q Consequent of demise of one employee family pension to his widow was sanctioned. Later on, the widow of the deceased has got re-married with other person. As the widow of the deceased has no children, family pension was stopped from the date of re-marriage. Whether the mother/father of the deceased is entitled to family pension.

A As per Para 7.2 of the OM, dated 27-10-1997, parents are eligible for Family Pension only if the deceased employee had left behind neither a widow nor a child. Hence, in the case referred to by you, the parents are not entitled to Family Pension.

Pension cannot be stopped, even though pensioner acquires foreign citizenship

Q A retired Central Govt. Employee who is in receipt of pension emigrated to Canada with Non-Resident Indian status. He was getting his pension continuously when he was a NRI. But now he opts to take the citizenship of that country and as such it may be clarified whether he may continue to get his monthly pension as usual or will it be stopped after his acquiring citizenship of a foreign country.

A There is no provision in the Rules, viz., CCS(Pension) Rules, Central Treasury Rules for the stoppage of pension drawn by a Govt. pensioner on his acquiring the citizenship of a foreign country. As such the retireed employee will continue to get his monthly pension as usual even after his getting foreign citizenship.

Fresh application not required for payment of arrears of commutation due to revision of pension.

Q An employee after his reirement got all the retirement benefits including 1/3rd commuted value of pension. Subsequently he expired. After his demise pay commission recommendation was implemented and his pay was retrospectively revised. His wife who is a family pensioner received the arrears of pay, pension, gratuity, etc. But the arrears of the additional commuted value of pension which has become due based on the quantum of 1/3rd revised pension was not paid to her on the grounds that the concerned employee need to apply afresh for such payment. Since the employee had applied for 1/3rd commutation of pension while he was alive whether his origianl application would cover any revision which may become due subsequent to his death

A As per Rule 10 of CCS(Commutation of Pension) Rules, 1981, the said family pensioner is entitled to the difference between the commutation amount received by her husband for the original pension and the commutation amount admissible on the revised increased pension. For this purpose, no fresh application is necessary.

Courtesy: http://www.gconnect.in


Antony Asks States to open up more Avenues for Ex-Servicemen

Defence Minister Shri AK Antony has called for opening up more avenues for Ex-Servicemen. Presiding over the 29th Meeting of the Kendriya Sainik Board, the apex body of the Central Government and States/UTs for Ex-Servicemen Welfare (ESW), here today, Shri Antony said the nation cannot afford to waste this vast reservoir of disciplined workforce bearing skills in a wide range of trades.

“Sometime back I had written to Chief Ministers of all states to provide more avenues of employment for Ex-Servicemen. You must devise ways and means to open up more fields of economic activity where the rich and practical experience of Ex-Servicemen can best be utilized. I also urge all the State Governments to take steps to ensure that the provision for reservation in jobs for Ex-Servicemen provide tangible employment opportunities on the ground for Ex-Servicemen,” Shri Antony said.

Pointing out that about 50 to 60 thousand defence personnel either retire or are released from service every year, the Defence Minister said that most of them are in the productive age group.

“They possess hands-on work experience in about 300 trades and are a young, disciplined workforce that can be of immense benefit for the society and the nation. We cannot afford to waste such a young and vastly trained reservoir of wokforce,” Shri Antony said.

The Defence Minister also expressed concern on jobs earmarked for Ex-Servicemen lying vacant for long in the central and state governments.

“I wish to exhort all the Ministries and Departments under the Central Government to do their best to fill all the existing vacancies earmarked for Ex-Servicemen. Of late I find, instead of filling vacancies, they are rather taking away the (Ex-Servicemen) vacancies on one plea or the other,” Shri Antony said. “This must not be encouraged,” he remarked tersely.

Calling upon the public and private sector to provide maximum opportunities to the Ex-Servicemen, the Defence Minister observed that the benefits of reemployment were not percolating to the lowest ranks.

“The corporate and industrial sector has provided employment to several Ex-Servicemen. However, while most of these reemployed personnel are from the Officer level, it has come to our notice that there are not enough jobs for PBORs (Personnel Below Officer Rank). I am sure that the corporate and the private sector leaders will devote their energies to this aspect too,” Shri Antony said.

The Defence Minister announced that the Central Government has hiked its share of contribution to the functioning of Rajya and Zila Sainik Boards.

“…I strongly appeal to the Chief Ministers to extend their full cooperation by filling up vacant posts in Rajya Sainik Boards and Zila Sainik Boards. On its own part, Central Government has enhanced its contribution for office expenditure and salaries at Rajya and Zila Sainik Boards. The enhancement from the existing ratio of 50:50 to 75:25 in case of special category of states and 60:40 in cases of other states will be operational soon,” Shri Antony said.

Reiterating that the Government is committed to setting up another 199 polyclinics across the country and also in Nepal under the second phase of the Ex-Servicemen Contributory Health Scheme (ECHS), as approved by the Union Cabinet, Shri Antony called upon the states to provide the land for purpose at the earliest.

“Money is not the problem; process of land acquisition and construction needs to be done. I have no doubt that the State Governments will provide all the necessary assistance in removing all obstacles and making these polyclinics functional at the very earliest,” Shri Antony said.

Addressing the gathering, the Minister of State for Defence Shri MM Pallam Raju announced that an IT-enabled Grievance Redressal Mechanism for the Ex-Servicemen is in the process of being set up that would make efforts to resolve their problems right up to the district level.

The Governor of Punjab, Shri Shivraj Patil, Chief Minister of Haryana, Shri Bhupinder Hooda and Chief Minister of Delhi, Smt. Shiela Dikshit, Chief of Air Staff Air Chief Marshal PV Naik and Chief of Army Staff General VK Singh, besides several state ministers and top officials took part in the deliberations.
Source: http://pib.nic.in/newsite/erelease.aspx?relid=72886

Government invites your concerns and opinions on black money

Government invites your concerns and opinions on black money.

Taxability on Commuted Pension

One of GConnect Readers wanted to know about the taxability in respect of Commuted Portion of Pension and Dearness Relief paid on the Commuted Portion of Pension.

Income Tax Act 196 provides the taxability of pension depending on whether the pension received is periodical or lump sum.

Commutation of Pension means payment of lump sum amount in lieu of a portion of pension surrendered voluntarily by the pensioner based on duration of period in relation to the age. This is purely an optional facility provided by the employer to his employee. As per the Act following rules are applicable for the taxability of commuted pension:

Any commuted pension (i.e Lumpsum Pension) received by an employee of the Central Government, State Government, Local Authority or Statutory corporation is wholly exempt from tax.

Un-commuted Pension (Periodical Payment) is fully taxable as salary under section 15 of the Act. This provision is applicable for both Government and other salaried class. Apparently, the dearness relief payable on Commuted portion, which is received by the pensioner on monthly basis along with un-commuted pension is also taxable.

Payment in commutation of pension received by any other employee:

(a) in a case where the employee receives any gratuity, the commuted value of one-third of the pension which he is normally entitled to receive is exempt from tax.

(b) in any other case, the commuted value of one-half of such pension is exempt from tax.

Kothrud may get its own ECHS clinic, third in city – Indian Express

Kothrud may get its own ECHS clinic, third in city – Indian Express.

ECHS Helpline…

A 24-hour helpline to give details regarding Ex-Servicemen Contributory Health Scheme (ECHS) has been opened in Bangalore . The helpline number is 18001038666 where details of the scheme will be available.

Issue of Medicines to ECHS Beneficiaries

1. Representations have been received from ECHS members that tablets of drugs issued to them are often of strengths either larger or lesser than that prescribed. Hence getting the correct dose has to be done after breaking the tablet, on many occasions, into pieces or by taking multiple tablets.

2. It may be appreciated that ensuring correct dosages after fragmenting the tablet, specially by ECHS members who are old and frail, becomes a difficult task. On some occasions, it has resulted in either over dosage or less than the prescribed strength which could have been avoided.

3. In view of the above, you are requested to issue necessary instructions to all concerned so that drugs which are usually prescribed in different strengths, specially for chronic diseases, be provisioned to ECHS beneficiaries in the commonly prescribed strengths.

(G Ghose)
Dir (Med)
For MD

Authority: Central Org ECHS, Army HQ letter No: B/49762/AG/ECHS/Policy dt 20 Feb 2007

Consultation rates at ECHS empannelled hospitals

The rates seemed to have been formalised in a hurry and without applying proper logic. The history of ECHS rates goes as below.

1. In 2002 first set of rates were introduced and implemented.
2.In 2008 new set of rates were introduced and implemented. These rates were lower than that of 2002 and many hospitals refused to get empannelled. The concerned authorities have rescended the above rates and reverted to 2002 rates.
3.In 2011 yet another set of new rates have been introduced and implemented. These rates are much lower than2008 rates.

A smple of rates as per 2011 order:

1. Consultation fee for a doctor in hospital – Non NBAH accredited : Rs.50 against 2002 rate of Rs.75
2.Consultation fee for a doctor in hospital – NBAH accredited : Rs.58
3.Consultation fee for a doctor in hospital – Multi Speciality Hospital : Rs.294
Multi Speciality hospital is defined as hospital with 300 beds and atleast 5 specialities are treated. By this logic super speciality hospitals like Sankara Netralaya, Narayana Hridayala will get Rs.58 as consultation.

What is in it for us:
1. Due to the haphazard definition, many of the super speciality hospitals will be out of reach for all of us, through referrals of ECHS.
2.Treatments under ECHS will become more of a eye wash, as many of the veterans will be referred to only those hospitals, who agree to the lower rates.
3. The purpose of ECHS was to provide quality Healthcare to veterans, where such facilities are not available in Military Hospitals. It would remain a dream and only on paper.

I request all the veterans to ponder over and suggest ways to stop this and reverse the degeneration of ECHS facilities, even if they can not be improved.

I am of the openion that we( Not just IAFveterans but all veterans in any group) should get together and plan for action.
Some of the actions coming to my mind are:
1. Petetion to the appropriate authorities for review of the same
2.Approaching courts for the stay of the impugned order and revision

Source: http://www.faujnet.com/articles/view_article.php?articleid=Mjk3
Please contact below mentioned person for further details:

Rtn S.Varadarajan
Rotary Club of Madras T.Nagar
Dist 3230

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