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Voluntary Retirement by CRPF Personnel

September 8, 2011 Leave a comment


The details of Central Reserve Police Force (CRPF) Personnel who took voluntary retirement during 2009-2010 are as under:- 
  
Number of Personnel took voluntary retirement 
2009 
3587 
2010 
2812 
  
Generally, the CAPF personnel have cited personal/domestic problems as reasons for seeking voluntary retirement. 
  
            Following steps have been taken by the Government to deal with the situation:- 
  
i.Implementing a transparent leave policy; 
ii. Regular interaction, both formal and informal, among commanders, officers and troops; 
iii. Revamping of grievances redressal machinery; 
iv.  Provision of basic amenities/facilities for troops and their families; 
v. Better medical facilities for troops and their families; 
vi.   Increased Risk, Hardship and other allowances; 
vii.  Provision of STD telephone facilities to the troops to facilitate being in touch with their family members and to reduce tension in the remote locations; 
viii.Yoga Classes for better stress management; 
ix.   Recreational and sports facilities etc.; 
x.   Central Police Centeen facilities to the troops and their families ; etc. 
  
   This was stated by the Minister of State in the Ministry of Home Affairs, Shri Jitendra Singh,  in written reply to a question in the Rajya  Sabha today.

Categories: CRPF, RETIREMENT AGE, VRS

No hike in retirement age for Govt employees.

August 11, 2011 Leave a comment

 “At present there is no proposal to increase the age of retirement of
Government servants,” Minister of State for Finance Namo Narain Meena said
in a written reply to the Rajya Sabha.

   He said this in reply to a query on whether the government was
considering increasing the retirement age of all central government
employees by two years to 62 years, from the current 60. The government
raised the retirement age of central government employees in 1998, when the
age of superannuation was extended from 58 to 60 years.


   Meena said the total number of Central Government employees as on
March 1, 2010, was 32.24 lakh. The total expenditure incurred by the
government after the implementation of the recommendation of the 6th Pay
Commission amounts to Rs 94,270.50 crore in the fiscal 2010-11. This was
higher than Rs 78,111.20 crore incurred in 2009-10, Meena added.


   The total expenditure incurred by the government on salaries and
allowances of central government employees before the implementation of the
6th Pay Commission for the fiscal 2008-09 was Rs 61,362 crore, he said.


Categories: RETIREMENT AGE

10 Things To Do Before You Retire

July 18, 2011 Leave a comment

Don’t put off today what you can’t afford to do tomorrow. In spite of the world wide pension crisis and a growing acceptance that we must plan and save for our retirement, the harsh reality is we are actually not saving enough. Research reports reveal that only 15% of the individuals are saving sufficiently for their retired life. Here are a few tips on things to do before you retire so that your retired life is more comfortable and enjoyable.
Get Rid of All Your Debts
 
If you are taking a housing loan, personal loan, car loan or any other loan make sure that you will be repaying them on or before your retirement. You need to choose the term of the loan in accordance with your retirement age. You can enjoy your retired life when you have 100% financial freedom, not when you have to repay your loans.
 
Protect Your Emergency fund
 
Emergency expenses can happen any time. But the possibility goes up during the old age. So we need to enhance the emergency reserve year on year based on the inflation and change in your expense levels. Emergency fund will give you a sense of security and also you need not touch your other investments during emergency where you need to pay pre-closure penalty. Also don’t forget to refill the emergency fund once you met an expense out of emergency fund.
 
Establish a Retirement Budget
 
You need to visualize your retired life well in advance and need to create a budget for your retirement. That is you will not be going to office. So the expenses on transport and clothes may come down. Also you will have more time to spend. You may need to spend more on leisure travel and health care.
 
Examine Your Cash Flow
 
Take a close look at your cash inflow as well as outflow. Is there going to be any income after retirement? Like rent, royalty…. Would there be any unwanted outflow during retired life? Like paying life insurance, or SIP. At times during your beginning of the career , you could have taken a policy where you need to pay premium up to the age of 60. But now you may plan to retire at 55 itself. So you need to realign your existing policy and other investments in sync with your retirement age.
 
Grow Your Retirement Corpus
Find out how much corpus you need to have when you retire so that you will be having complete financial freedom. A professional financial planner will of great assistance to you in this regard.
 
Develop a withdrawal strategy
 
How are you planning to withdraw your cash outflow during retirement from the retirement corpus? Monthly, quarterly, half yearly or annually? Through Sytematic Withdrawal plan in mutual funds or by way of dividend or interest. All these will have a great impact on the corpus you need to accumulate. So you need to decide in advance.
 
Minimize taxes
 
Your retirement corpus and retirement income need to be tax efficient. You need to pay taxes as and when the fixed deposits matures irrespective of that you withdraw interest or reinvest under a cumulative option. But you need to pay interest only when you withdraw from the mutual funds. Careful selection of investment vehicle can reduce your tax during the retired life.
 
Get Sufficient Mediclaim coverage
 
The moment you retire, your employer will stop covering you under the group mediclaim. So you need to plan for your individual medical cover well in advance. At old age the medical expenses are inevitable. If you have not planned it properly the all your retirement plan will become a mess.
Consider Inflation adjusted annuities
The monthly income you need when you retire is not going to be the same even after 5 years of your retirement. Inflation will increase your retirement expenses year after year. So year after year your retirement income needs to go up.
Oversee estate planning
How your fixed assets and financial assets need to be distributed to your legal heirs? Create a WILL. You can avoid creating relationship problems to your next generation because of your left out wealth.
 
The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Founder and Director of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in.

Safety Related Retirement Scheme covering safety categories with Grade Pay of Rs.1900/

June 30, 2011 Leave a comment
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

RBE No.99/2011


No.E(P&A)I-2010-2

New Delhi, dated 28.06.2011


The General Managers
All Indian Railways.


Sub: Safety Related Retirement Scheme covering safety categories with Grade Pay of Rs.1900/-.

*********



1. Please refer to Board,s letters of even number dated 11.O9.2010 and 24.09.2010 vide which the benefit of Safety Related Retirement Scheme (SRRS) was extended to other safety categories of staff with a grade pay of Rs.1800/- p.m. The nomenclature of the Scheme was also modified also Liberalized Active Retirement Scheme for Guaranteed Employment for Safety Staff (LARSGES5) with Grade Pay of 1800/-.


2. Considering the demand of the Employees Federations it has now been decided to expand the scope of LARSGESS by enhancing the existing criteria of grade pay of Rs.1800/- to Rs.1900/-. However, the employment under the Scheme would be guaranteed only to those found eligible/suitable and finally selected as per the laid down procedure. The list of Safety categories covered under the Scheme in Grade Pay Rs.1800/- has already been circulated vide Board’s letter dated 11.09.2011. Same categories in Grade Pay Rs.1900/- will now be eligible for the scheme.


3. For determining the eligibility for seeking retirement under the Scheme, Grade Pay. corresponding to the post against which the employee is working on regular basis, will be taken into account. In other words, the staff working on the post with Grade Pay of Rs.1900/- will continue to be eligible for seeking retirement under the Scheme even after getting financial up gradation in Pay higher han Rs.1900/- under MACPS.


4 The eligibility conditions for the safety staff with grade pay of Rs.1900/- seeking retirement under the scheme would be the same as those for Drivers viz. 33 years of qualifying service and age between 55-57 years. Recruitment of the wards of such employees being in respective category (i.e. in grade pay of Rs.1900/-) their suitability would be adjudged by an Assessment Committee of 3 SAG officers at Headquarter level as in the case of the wards of Drivers.


5. The eligibility conditions in respect of qualifying service and age group in case of Gang-men and other safety categories in grade pay of Rs.1800/- would remain 20 years and 50-57 years respectively, and the suitability of their wards would be adjudged by an Assessment Committee of 3 JA Grade officers at Divisional level.


6. It is once again reiterated that the retirement of the employee be considered only if the ward is found suitable in all respects. Retirement of the employee and appointment of the ward should take place simultaneously.


7. The other terms and conditions of the Scheme will remain unchanged.


8. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.


9.Hindi version will follow.


10. Kindly acknowledge receipt.

sd/-
(Salim Md. Ahmed)
Deputy Director Estt.(P&A)III,
Railway Board
Source:AIRF

Government lowers age limit for old age pension for poor from 65 to 60 years.

June 14, 2011 Leave a comment

   The Cabinet today approved lowering the age limit for the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) from 65 years to 60 years and increasing the rate of pension from Rs.200 to Rs.500 to persons of 80 years and above. The revised norms would be applicable with effect from 1st April, 2011.
   It is estimated that lowering of the age limit would benefit about an additional 72.32 lakh persons in the age group of 60-64 years and living below the poverty line. It is estimated that 26.49 lakh persons above the age of 80 years and living below the poverty line, would become eligible to receive enhanced central assistance @ Rs.500 per month. At present 169 lakh persons above the age of 65 years and living below poverty line are receiving central assistance under IGNOAPS.

  The additional funds required will be Rs.1,736 crore for providing old age pension @ Rs.200 per month per beneficiary in the age group of 60-64 years and Rs.953 crore for providing enhanced pension @ Rs.500 per month per beneficiary of age 80 years and above. Thus the total additional requirement will be Rs.2,770 crore including 3% administrative expenses.

   As a result of change in the eligibility criteria for receiving old age pension, eligibility criteria for widow pension under IGNWPS and disability pension under IGNDPS will get revised from 40-64 years to 40-59 years and from 18-64 years to 18-59 years respectively.

Categories: RETIREMENT AGE

Govt trashes proposal to increase babus’ retirement age

May 23, 2011 Leave a comment
A government committee has rejected a proposal to increase the retirement age of government servants from 60 to 62. The decision is likely to impact over one lakh central government employees and 50,000 defence personnel on the verge of retirement. The proposal — which could have meant saving Rs4,000crore in this fiscal — was rejected as the government wants a younger bureaucracy.
The fraud complaint
The HRD ministry and sections of the academic community were temporarily preoccupied with a complaint the government received from a body claiming to represent SC/ST employees at the University Grants Commission (UGC) , alleging discrimination by Commission chairman Ved Prakash. But the complaint, it has now been discovered, was fake. The body that sent it doesn’t exist, the UGC’s SC/ST employees’ association has certified. The sender also refused to divulge his identity to the government. A case of attempted malice against the Chairman?
Academics compete with netas for that ‘one more chance’
Politicians, it appears, aren’t alone in keeping their ambitions intact with age. IIT Directors, too, love second terms — even though some believe that a proper reading of the IIT Act — that governs the Institutes — does not allow repeats. After MS Ananth (second term at IIT Madras), Sanjay Dhande (second term at IIT Kanpur) and Gautam Barua (second term at IIT Guwahati), it is the turn of IIT Delhi Director Surendra Prasad to pitch for a second term. The qualification requirements for the post state that applicants should preferably be aged below 60. Prasad — caretaker director at present — is over 60. But that has not stopped him from applying for a second term.
The case of the missing file 
After a file on the Cabinet decision of 1991 — regarding government accounts — went missing, neither the Cabinet Secretariat nor the Finance Ministry — which mooted the proposal — had any clue. Eventually, the Central Information Commission had to intervene and ask the government to locate the file and provide the requisite information to the RTI applicant.
Categories: RETIREMENT AGE

Central Government Employees Retirement Age is extended to 62.

   New Delhi: The government is planning to extend the retirement age of all central government employees by two years — from the current 60 to 62 years. Sources said that an in-principle decision has been taken in this regard and the department of personnel and training (DoPT) has begun the work to implement the same. A formal announcement to this effect is expected this year itself.

   The last time the government extended the retirement age of central government employees was in 1998. It was also a two-year extension from 58. This was preceded by the implementation of the 5th Pay Commission, which had put severe strain on government’s finances. Subsequently, all state governments followed the Centre’s policy by extending the retirement age by two years. Public sector undertakings followed suit too.

   The decision to extend the retirement age is well-timed both politically and economically.
The UPA government reckons the move would be a masterstroke. At a time when it is buffeted by several corruption cases, it is felt that the extension of the retirement age will go down well with the middle classes. Economically also, the move makes sense because by deferring payment of lump sum retirement benefits for a large number of employees by two years, the government would be able to manage its finances better.
“An in-principle decision has been taken to increase the retirement age by two years within this year itself.

   This would reduce the burden on the fisc from one-time payment of retirement benefits for employees including defence and railways personnel,” an official involved in the discussion said. With the fiscal consolidation high on the government’s agenda, this deferment would come handy.

   There’s some flip side too if the retirement age is extended by two years. Those officials empanelled as secretaries and joint secretaries would have to wait longer to actually get the posts. And of course, there is the issue of average age profile of the civil servants being turning north.
It is also felt that any extension is not being fair with a bulk of people who still look for jobs in the government.

    However, officials point out that at least it prevents an influential section of the bureaucracy to hanker for post-retirement jobs with the government like chairmanship of regulatory bodies or tribunals.
“As it is, a sizeable section of senior civil servants work for three to five years after the retirement in some capacity or the other in the government,” said a senior government official. The retirement age of college teachers and judges are also beyond 60.

   As per a study, the future pension outgo for the existing Central and State government employees is estimated at a staggering R1,735,527 crore or 55.88% of GDP at market prices of 2004-05.

Categories: RETIREMENT AGE

The 10 Financial Doctrines of Wise Retirement Planning

April 20, 2011 Leave a comment

Let’s begin on planning finance for retirement:

   It is usual for many of us to aspire for a financially secure and happy retired life. However being financially prepared to meet the demands of retired life by saving and investing requires considering and following the 10 doctrines of wise retirement planning.

A look at the 10 doctrines to wise retirement planning:

1. Provide for contingencies
Most of us tend to underestimate our retirement needs. Provision for medical emergencies with inadequacy of medical insurance in old age requires financial provision. Lack of government social security schemes and retirement benefits to self-employed and private sector employees creates requirement for more provision for contingencies after retirement.
2. Think that you will live long:
This is true with increased life expectancy. Now you will have more years of life after retirement. Thanks to medical advancements. So it is better to plan for the additional years and avoid living frugally in old age.

3. Plan that you will retire early:

It is wise to provide for contingencies arising that require you to retire early. You could suffer ill health, lose your job, or need to care for a sick or elderly member of the family. Women may have to opt voluntarily to look after the family needs.  All this requires more savings for retirement needs.

4) Beat the inflation before it beats you:

Inflation affects the personal finance needs of the working class, but pay rises could help them resolve it to a certain extent. However the retired have to save more to reduce the impact of inflation. Investing in modes that give you extra returns could help greatly.
Investors come to me and say “I would like to accumulate 2 crores and retire”. But when we really work out the inflation adjusted retirement corpus, the 2 crores would not be sufficient for him to have comfortable retirement. 2 crores may feed you enough in the first year after your retirement. The returns from the same 2 crores will not be sufficient for you take care of all your needs on the 10th year after your retirement because of the skyrocketing inflation figures.
5. Provision for increased medical expenses after retirement:
Most of us underestimate medical expenses after retirement, with these expenses being inevitable in old age. Hence more provision for medical insurance helps. A consideration of your family’s general health, family history of certain genetic disorders, and the class of hospital you get treated would help in proper estimation for medical insurance.

6. Provide for your spouse and dependents who may outlive you:

It is inevitable that this need should not be overlooked. Your spouse and dependents need to live a secure financial life after your lifetime. Taking up insurance policies during your working life and well thought out retirement planning will take care of your dependents and spouse financially.
7.  Realize you need to be vigilant about sources of retirement income:
Sometimes we may be ignorant of benefits on retirement like provident fund, gratuity and other benefits. In India the lack of social security schemes after retirement makes it necessary to invest more in good income generating sources for steady flow of retirement income. The advice of investment consultants, along with financial education and information contributes to good financial standing after retirement.
8. Educate yourself about retirement savings plan management:
When the majority is relying on the pension schemes in the form of ulips offered by various public and private insurance companies, as a smart investor you need to understand the hidden charges of these pension policies. These policies are all heavily front loaded.
So you need to evaluate various investment options available for retirement. You need to accumulate sufficient knowledge in this regard. In addition learning to keep track of them with professional help makes these saving plans work for you.
9. Plan for an income for life:
Your retirement plans need to be financial plans to make income last you a lifetime. Pensions or annuities providing best income need to be safeguarded, as withdrawing large sums from them could end you in financial insufficiency in the final years of your life.

10. Take professional investment advice that works:

Many do realize the importance of financial advice from professional financial advisors, but in practice seek it from family, friends and colleagues. A right financial advisor could give you good investment advice to have financially secured retirement ife.


 A final note:


   I am sure you want to emerge financially secure for your retired life and will follow these 10 financial tenets to wise retirement planning.

   The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Founder and Director of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in.

Retirement age for central Govt., Employees.

March 10, 2011 Leave a comment

  The top two officials in the state administration, chief secretary, Mr S.V. Prasad, and the director-general of police, Mr K. Aravinda Rao, will benefit from the Centre’s decision to set the retirement age for civil servants at 62 years from the present 60 years. Mr Aravinda Rao was due to retire in June and the chief secretary in September.

  Sources told this newspaper that the Cabinet subcommittee of the Union government gave its nod for enhancing the retirement age, and orders amending the service rules are expected much before the retirement of the two officials. The Prime Minister, Dr Manmohan Singh, was keen to enhance the retirement age of bureaucrats.

   Sources said that though the proposal is ready for implementation, there will be a few months’ delay because the government wants to make Mr Pulok Chatterjee the new Cabinet secretary at the Centre and prefers to wait for bureaucrats senior to him to retire before it makes the announcement.

   Mr Chatterjee had earlier worked with the UPA chairperson, Mrs Sonia Gandhi, and is considered a natural choice to take over from the incumbent Mr K.M. Chandrasekhar. “There are a few bureaucrats senior to Mr Chatterjee and the Centre will wait for their retirement in April,” explained a senior official.

   Back here in the state, the government will be keen to retain the services of Mr Prasad and Mr Aravinda Rao who have proved to be assets when the state is passing through turbulent times. The former chief minister, Mr K. Rosaiah, appointed the two officials to the top posts and his successor Mr N. Kiran Kumar Reddy did not make any changes. Another senior bureaucrat, Ms Janaki Kondapi, will also benefit from the change in the new retirement age as she is due for retirement in the next few months.

 
(Source)

Categories: PENSIONERS, RETIREMENT AGE