Gratuity and Pension Rule: Changes have been made in the rules related to pension and gratuity of the employees on behalf of the Modi government. The government had announced DA in March 2023.

Its arrears were given to the employees from January 1. Now the DA hike will be announced again by the government in September or October. But let us tell you that the government has issued a strict warning to the central employees in the past. If the employees ignore this, they may have to be deprived of pension and gratuity after retirement.

Instructions to stop pension and gratuity

It was instructed by the government that if an employee is negligent in work, then after retirement, instructions have been given to stop his pension and gratuity. At present, this order will be applicable to central employees. But in future states can also implement it.

Rule 8 of Rule 2021 changed,

the Central Government had issued a notification under the Central Civil Services (Pension) Rule 2021. The government had changed Rule 8 of the CCS (Pension) Rules 2021, in which new provisions have been added. It was said in this notification that if the central employees are found guilty of any serious crime or negligence during their service, then their gratuity and pension will be stopped after retirement.

Who will take action

such presidents who have been involved in the appointing authority of the retired employee. They have been given the right to withhold gratuity or pension.
Such secretaries who are associated with the concerned ministry or department, under which the retiring employee has been appointed. They have also been given the right to withhold pension and gratuity.
– If an employee has retired from the Audit and Accounts Department, then the CAG has the right to withhold pension and gratuity after the retirement of the guilty employees.

Know how the action will be taken

– According to this rule, if any departmental or judicial action has been taken against these employees during the job, then it will be necessary to give information about it to the concerned authorities.

– If an employee is re-appointed after retirement, then the same rules will apply to him.
– If an employee has taken pension and gratuity payment after retirement. After this, if he is found guilty, the full or partial amount of pension or gratuity can be recovered from him.
If the authority wishes, the pension or gratuity of the employee can be stopped permanently or for some time.

Higher Pension Application Process: Discussions about Higher Pension intensified once again, because May 3 is very close, and this is the last date to apply. In such a situation, people are still confused about higher pension.

Who should choose this scheme for higher pension? Who else should be ignored? Apart from this, the biggest question in the mind of the people is about how to apply. Do you have to contact your employer? Today we will tell you the easy ways to apply, so that you can apply sitting at home. Apart from this, we will try to answer every question related to it.

Actually, there are 2 accounts for every EPFO ​​member, the first is Employees’ Provident Fund (EPF) and the second is Employees’ Pension Scheme (EPS) in which the pension amount is deposited. Every month 12 percent amount is deducted from the basic and DA of the employee and deposited in EPF.

 Pension Plans: If you are planning for retirement and are looking for monthly income, in which you keep getting money every month, then here is information about some pension plans, by investing in which you can get income every month. . Along with this, you can also take advantage of some other things including tax.

Senior Citizen Saving Scheme

People who are 60 years of age or older can take advantage of this scheme. People between 55 and 60 can also take advantage of this scheme. Up to Rs 30 lakh can be invested in this scheme. In this, tax benefit is given under section 80C of income tax. It is operated under the Small Savings Scheme.

National Pension Scheme

You can make regular investments in this scheme. After retirement, the employee can withdraw some money from this scheme and invest the rest of the money in buying corpus, after which you will be given a monthly pension. This is a market linked plan and has got an average annual return of 8 to 10 per cent. After maturity of five years, you can also withdraw money from it.

Pradhan Mantri Vaya Vandana Yojana

Under this scheme, along with pension, the benefit of insurance is also available. Under Senior Citizen LIC, they can invest in this scheme. Up to Rs 15 lakh can be invested in this. Although the last time to invest in this scheme is 31 March 2023. In this, an annual interest of 7.4 percent is given for 10 years.

Atal Pension Yojana

This is not a scheme for taxpayers. The remaining 25 to 40 people can invest. In this, contribution is also made by the government on your deposit amount for five years. After 60 years, you can take advantage of this scheme. Under this scheme, monthly pension of 1 thousand, 2 thousand, 3 thousand and 5000 rupees can be taken.

 Pension For Senior Citizens: The elderly have good news. The nation’s budget will be presented in a matter of days, and this time, the government will be able to cheer up the elderly.

The Central Government is getting ready to offer some aid to all groups, including the underprivileged, women, farmers, and senior citizens. This time, it’s possible that the senior population’s pension program will expand. Additionally, these individuals may benefit from income tax exemption.

Before the general budget, you can expect three sizable gifts. Non-governmental organizations (NGOs) have suggested actions to be taken to improve the country’s older population. These include raising the old age pension, providing additional income tax breaks, and exempting things used often by seniors from the GST.

Agewell Foundation’s requirements

According to the NGO Agewell Foundation, the budget should include favorable provisions due to the widening generational difference and changes in older people’s lifestyles brought on by longer lifespans. According to a statement from the Foundation, it’s important to interact with plenty of retired individuals in order to keep them always engaged.

Pensions ought to be updated

The Foundation has urged the Ministry of Finance and other interested parties to take its advice and proposals into account when deciding on the next budget. According to the statement, the old age pension should be updated to reflect the current rate of inflation.

Increase in pension of Rs. 3000 per month

According to the declaration, the current monthly old age pension contribution from the central government should be enhanced to Rs 3,000 for each senior citizen who qualifies. Additionally, the State Government needs to be encouraged to adjust its portion correspondingly.

Interest in investment strategies has risen

In addition, the Foundation has called for an increase in the interest rate on bank, post office, and other senior citizens’ investment and deposit plans. It has been suggested that income tax assistance should be increased, especially for the elderly.

GST-exempt for these goods

The elderly regularly use services and products, such as diapers, medications, healthcare equipment including wheelchairs and walkers, hospitalization of old patients over 70 years of age, mediclaim plans, and medical advice. An NGO has audited these services and products. Additionally, a request for the charge to be exempt from GST has been made.

New Pension Plan: At present, every person is worried about his future. For this, he keeps thinking about such a plan, so that he can live his retirement life in a safe way, so we have brought such a plan for you.

If you are a senior citizen, then today we have brought such a government scheme for you, from which you will get a hefty pension immediately. In this your principal money remains safe and returns are also available at regular intervals.

The best part is that under this government scheme, both husband and wife together after the age of 60 can avail the guaranteed benefit of pension of Rs 18500 every month. Thek best part is that after 10 years your entire investment will also be returned. Only a few months are left for senior citizens to invest in Pradhan Mantri Vaya Vandana Yojana (PMVVY). SIC operates this scheme.

In the PMVVY scheme, the government provides a subsidized pension scheme for senior citizens aged 60 years and above. Under this scheme, immediate monthly, quarterly, half-yearly or annual pension facility is given to senior citizens. Investors have to pay a lump sum of Rs 15 lakh to take advantage of this scheme.

Deadline is March 31, 2023

Any person who has attained the age of 60 years can invest in this scheme till March 31, 2023. With only a few months left for the PMVVY sale to end, let’s take a look at how much benefits, eligibility and how much pension senior citizens can get by subscribing to this scheme.(ads1)

Eligibility for PMVVY

According to the LIC website, senior citizens of India aged 60 years (completed) and above can invest in the PMVVY scheme. There is no upper age limit to buy this plan.

PMVVY Scheme Term and Pension Payment

The duration of this scheme for senior citizens is 10 years. Pension payment under PMVVY can be made on monthly, quarterly, half yearly or yearly basis depending upon the mode chosen by the buyer. The first installment of pension under PMVVY starts after 1 year, 6 months, 3 months or 1 month from the date of purchase of the scheme. For example, if you have opted for monthly mode of pension payment and if you buy the plan now then your pension will start after 1 month.

PMVVY Pension Purchase Price

The minimum pension allowed under investment in PMVVY is Rs 1000 per month while the maximum pension is Rs 9250 per month. The minimum purchase price available under the scheme is Rs 1,62,162 for monthly pension, Rs 1,61,074 for quarterly pension, Rs 1,59,574 for half yearly pension and Rs 1,56,658 for annual pension. The maximum purchase price available under the scheme is Rs 15 lakh for monthly pension, Rs 14,89,933 for quarterly pension, Rs 14,76,064 for half yearly pension and Rs 14,49,086 for annual pension.

Interest Rate on PMVVY

“For Financial Year 2022-23, the Scheme shall provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March, 2023.”(ads2)

PMVVY Pension Purchase Price

The minimum pension allowed under investment in PMVVY is Rs 1000 per month while the maximum pension is Rs 9250 per month. The minimum purchase price available under the scheme is Rs 1,62,162 for monthly pension, Rs 1,61,074 for quarterly pension, Rs 1,59,574 for half yearly pension and Rs 1,56,658 for annual pension. The maximum purchase price available under the scheme is Rs 15 lakh for monthly pension, Rs 14,89,933 for quarterly pension, Rs 14,76,064 for half yearly pension and Rs 14,49,086 for annual pension.

In this budget, Finance Minister Nirmala Sitharaman has opened a box of savings for senior citizens. Risk free maximum investment limit of many schemes has been increased. This has also cleared the way for more pension for them.
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According to the changes and new schemes announced in the budget, an old couple can get a pension of up to Rs 70,000 every month. The government has increased the investment limit in Post Office Monthly Income Scheme (POMIS) and Senior Citizen Saving Scheme (SCSS). So much so that the Finance Minister has started Mahila Samman Saving Certificate (MSSC) especially for women.

Another savings scheme is already running for senior citizens, namely Pradhan Mantri Vaya Vandana Yojana (PMVVY). By investing Rs 1.1 crore in all these schemes, a senior citizen couple can get a pension of Rs 70,500.

How much investment and return

Earlier, a person could invest a maximum of Rs 15 lakh in this scheme. It has now been increased to 30 lakhs. This means that a couple can invest Rs 60 lakh in it. The government gives a return of 8% on this and its tenure is 5 years. The couple invests Rs 30 lakh in Pradhan Mantri Vaya Vandana Yojana. Its tenure is 10 years and the returns are 7.4 per cent.

Old Pension Scheme: Some states still use the outdated pension system. The Center has received this information directly from the state governments.

Old Pension Plan in the States The country has been in uproar about the old pension and new pension systems (Old and New Pension Scheme). Regarding its execution, the federal government and state governments have frequently clashed. Although it was raised as a significant issue during several states’ assembly elections, some governments have recently adopted the outdated pension plan. The Modi administration has notified the House that the state legislatures have been informed about the execution of the previous pension program in five of the nation’s states. Know the most recent update..(ads1)

Old pension applicable in these states

Bhagwat Karad, the minister of state for finance, said the Lok Sabha on Monday that the governments of five states—Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh—had already adopted the old pension plan. It has informed the federal government of its decision to re-implement. He said that the decision will only temporarily save money on taxes, as stated in the RBI study “State Finances: A Study of Budget of 2022–23.” In the upcoming years, these states might face underfunded pension liabilities.

Information given to Pension Fund Regulatory

The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh have chosen to restore the old pension plan (OPS) for their state government employees, according to Bhagwat Karad’s response to a written question in the Parliament. The Central Government has received information about this. The Pension Fund Regulatory and Development Authority (PFRDA) has also been informed in conjunction with this.

RBI had told the risk

In a previous assessment on the old pension plan, the RBI had stated that individuals who were discussing adopting the old pension system in the state. As a result, the states’ budgetary situation is at significant jeopardy. The paper claims that by deferring present costs to the future, the governments may incur responsibilities in the years to come for which they lack the financial infrastructure. On the other hand, under the previous pension plan, employees received a pension equal to 50% of their final take-home pay. the sum that the government provided.

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Finance Minister Nirmala Sitharaman (FM Nirmala Sitharaman) has presented the budget (Budget 2023). The common man has been taken full care of in this budget.

The Finance Minister has taken care of everything from job professionals to farmers and women in the budget. Along with this, the government has also provided relief to the pensioners. For the first time in the country, family pensioners will get the benefit of Standard Deduction. Family pension is the pension which is received by the dependent of an employee after his death.

Finance Minister Nirmala Sitharaman announced in her budget speech today that pensioners getting family pension will also be able to avail standard deduction of Rs 15,000. Except those getting family pension, first other pensioners and salaried employees are getting the benefit of standard deduction. Under this, they can get a discount of up to Rs 50,000.

How much benefit will the family pensioners get?

In the budget, the Finance Minister for the first time announced the benefit of standard deduction on family pension as well. This means that now the taxable income of the person receiving family pension will also be calculated after deducting Rs 15,000 from the total income.

What is standard deduction?

Standard Deduction is the deduction that is deducted from the income of the income tax payer and after that tax is calculated on the remaining income. Salaried Employees and Pensioners are already getting the facility of getting tax exemption through standard deduction. Suppose the annual income of a person doing a job is Rs 8 lakh. In such a situation, if the benefit of standard deduction up to Rs 50,000 is available in the total package, then their tax will be calculated on Rs 7,50,000 instead of Rs 8 lakh.

In India, before the year 2005, there was a provision of standard deduction for salaried individuals, but it was discontinued in the 2005 budget. In the budget of the year 2018, the standard deduction was again implemented and the exemption available in the form of transport allowance and medical reimbursement was abolished.

Employees Pension Scheme: The Employees Pension Revision Scheme, 2014 was implemented by the Central Government from September 1, 2014 by issuing a notification.

Private sector employees can get relief soon. With a decision, the pension (EPS) of lakhs of employees contributing to the Employees’ Provident Fund (EPF) can increase by 300% in one stroke.
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The Employees’ Provident Fund Organization (EPFO) has fixed the maximum salary of Rs 15,000 (basic pay) for the pension of the employees. Meaning, even if your salary is more than Rs 15,000 per month, but your pension will be calculated only on the maximum salary of Rs 15,000.

One decision and pension can increase manifold- 

Hearing is going on in the Supreme Court to eliminate this salary-limit of EPFO. Employee Pension (Employee Pension Scheme) can also be calculated on the last pay i.e. higher pay bracket. With this decision, the employees will get many times more pension.

Let us tell you, to get the pension, it is necessary to contribute to the Employees’ Provident Fund (EPF) for 10 years. At the same time, on completion of 20 years of service, a weightage of 2 years is given. If the Supreme Court decides to remove the limit, then how much difference will it make, let’s understand…

How to increase your pension 

According to the current system, if an employee is working from June 1, 2015 and wants to take pension after completing 14 years of service, then his pension will be calculated at Rs 15,000, irrespective of the number of years for which he is working. Are. 20 thousand Rs. Be in the basic salary bracket or Rs 30,000.

According to the old formula, on completion of 14 years, the employee will get a pension of about Rs 3000 from June 2, 2030. The formula for calculation of pension is- (Service Historyx15,000/70). But, if the Supreme Court decides in favor of the employees, then the pension of the same employee will increase.

Example number 1

Suppose the salary (Basic Salary + DA) of an employee is 20 thousand rupees. His pension will be Rs.4000 (20,000X14)/70 = Rs.4000 by calculating the pension formula. Similarly, higher the salary, higher will be the benefit of pension. There can be a jump of 300% in the pension of such people.

Example No.-2

Suppose the job of an employee is 33 years. His last basic salary is 50 thousand rupees. Under the current system, pension was calculated on a maximum salary of Rs 15,000. Thus (formula: 33 years + 2 = 35/70×15,000) the pension would have been only Rs 7,500.
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This is the maximum pension in the current system. But, after removing the pension limit, adding the pension according to the last salary, they will get a pension of 25000 thousand rupees. Means (33 years + 2 = 35/70×50,000 = Rs 25000).

Pension can increase up to 333%!

Let us tell you that according to the rules of EPFO, if an employee contributes to the EPF continuously for 20 years or more, then two more years are added to his service. Thus 33 years of service was completed, but pension was calculated for 35 years. In such a situation, the salary of that employee can increase by 333 percent.

What is the whole matter

The Employees’ Pension Revision Scheme, 2014 was implemented by the Central Government from 1st September 2014 by issuing a notification. This was opposed by the private sector employees and in the year 2018 it was heard in the Kerala High Court. All these employees were covered by the facilities of the EPF and Miscellaneous Provisions Act, 1952. Employees protested against EPFO’s rules, saying it ensures them less pension.

Because even if the salary is more than 15 thousand, but the calculation of pension has been fixed at the maximum salary of 15 thousand rupees. However, before the amendment made by the central government on September 1, 2014, the amount was Rs 6,500. Considering the EPFO’s rules to be unfair, the Kerala High Court had ruled while accepting the writ of the employees. On this, the EPFO ​​filed an SLP in the Supreme Court, which was rejected by the Supreme Court.

Decision came in 2019

The Supreme Court decided to hear its decision again. A Division Bench of Justice Surendra Mohan and Justice AM Babu, while hearing the SLP of EPFO ​​on 1st April 2019, observed – Employees, who are contributing on the basis of their actual salary after furnishing joint option with their employers, as deemed fit It is necessary. Huh,

They are deprived of pension scheme benefits without justification. There is no justification for fixing the pension salary at Rs 15,000. The bench said that 15 thousand monthly i.e. 500 rupees per day. It is common knowledge that even a daily wage earner gets more salary than this. So limiting the maximum salary for pension to Rs 15000 thousand will deprive most of the employees of good pension in old age. As far as the impact on pension funds is concerned,

Re-Hearing 

In January 2021, the Supreme Court reconsidered its 2019 decision and decided to hear the matter. A petition was filed against the order of the Kerala High Court on behalf of the Ministry of Labor and EPFO. The EPFO ​​is of the view that with this order the pension may increase up to 50 times (EPS upper limit). On August 25, a bench of Justice UU Lalit and Justice Ajay Rastogi, while hearing the matter, decided to refer the matter to a larger three-member bench. The case is still pending.

 Pension For Senior Citizens: There is great news for the elderly. Only a few days are left for the country’s budget to come and this time the government is going to give great news to the elderly.

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The Central Government prepares to provide some relief to all sections including the poor, women, farmers and the elderly. This time it is expected that there can be an increase in the pension scheme of the elderly population. Along with this, these people can also get the benefit of exemption in income tax.

You can get 3 big gifts before the general budget, some non-governmental organizations (NGOs) have given suggestions to take steps for the betterment of the elderly population of the country. These include increase in old age pension, additional income tax relief and GST exemption on products used repeatedly by older people.

Age well Foundation demands

NGO Agewell Foundation said that in view of the increasing gap between old and young generation, changes in the lifestyle of older people in the light of longer life span, favorable provisions should be made in the budget. The Foundation said in a statement that it is necessary to engage with a large number of retired people to keep them continuously active.

Pension should be revised

The Foundation has appealed to the Ministry of Finance and other stakeholders to consider its recommendations and suggestions while finalizing the next budget. The statement said that the old age pension should be revised according to the current inflation.(ads2)

Pension to be increased by Rs 3000 per month

The statement said that the present share of the central government in the monthly old age pension should be increased to Rs 3,000 per month for each eligible old age person. The State Government should also be advised to revise its share accordingly.

Interest increased on investment schemes

Apart from this, the Foundation has demanded an increase in the interest rate on bank, post office and other deposit and investment schemes for the elderly under financial security measures. It has been said that more relief should be given in income tax, especially for old people.

GST exemption on these products

NGO has audited services and products frequently used by the elderly such as audit diapers, medicines, healthcare equipment like wheelchairs and walkers, hospitalization of elderly patients above 70 years, Mediclaim policies and medical consultation There has also been a demand for GST exemption on the fee.