Cabinet okays PFRDA Bill; may go to Parliament soon

New Delhi, Mar 17 (PTI) The Union Cabinet today approved a long-pending bill, which is aimed at giving statutory power to the pension regulator PFRDA, paving way for introduction of the same in the current session of Parliament.

The draft legislation is aimed at upgrading the status of the Pension Fund Regulatory and Development Authority (PFRDA), which has been functioning for the past eight years without Parliamentary approval.

"It has been approved and is likely to be introduced in the current session," a minister said after the Cabinet meeting presided over by Prime Minister Manmohan Singh.

In the absence of statutory status, PFRDA was performing the role of the interim regulator.

Finance Minister Pranab Mukherjee had sought support of the Opposition, mainly the BJP, for passage of the key pending reform bills.

PTI

Govt approves 9.5% interest on PF deposits for 2010-11

 

The finance ministry on Thursday approved higher interest rate of 9.5 per cent to over 4.7 crore depositors with the Employees Provident Fund Organisation (EPFO) for 2010-11.

The EPFO had been paying 8.5 per cent interest on PF deposits since 2005-06.

In September last year, it had recommended an increase in interest rate to 9.5 per cent for 2010-11 after discovering Rs 1,731 crore surplus in their books of accounts.

"The finance ministry has ratified 9.5 per cent rate of return on PF deposits for 2010-11. We have received a notification in this regard," Central Provident Fund Commissioner Samirendra Chatterjee told the news agency.

Chatterjee further added that "our calculations regarding Rs 1,731 crore surplus in the interest suspense account were found correct by the finance ministry and so they approved this higher rate of return".

The finance ministry's approval is subject to the condition that any shortfall on account of payment of 9.5 per cent rate of return would be met by making adjustments in the interest rate in 2011-12.

Chatterjee, however, said that there would be no need for making any adjustment in the next fiscal as "EPFO calculations are correct regarding the discovery of a surplus of Rs 1,731 crore in the interest suspense account."

The finance ministry has also asked the EPFO to update its subscriber accounts within the next six months.

EPFO's apex decision making body-the Central Board of Trustees (CBT)- in September last year had decided to provide 9.5 rate of return on retirement savings in 2010-11 after it found a surplus of Rs 1,731 crore.

Refusing to ratify the said rate of return, the finance ministry had earlier argued that the surplus shown by the ministry was not real after CAG report has called the EPFOs so called surplus unverifiable.

According to sources, the finance ministry approved 9.5 per cent interest after the intervention by Finance Minister Pranab Mukherjee.

SOURCE -DDNEWS

MACP sub committee meeting minutes

 

 The Record note on the meeting of Joint Committee on MACP held on 15.03.2011.

The third meeting of joint committee on MACP was held today i.e 15.03.2011. This meeting was held at the specific request by the Secretary Staff Side, National Council JCM to review the decision taken in the earlier meetings in which all items had been discussed.

Item Nos. 1,3,8,9 and 29:  Grant of financial up-gradation in the promotional hierarchy instead of grade pay hierarchy under MACP Scheme

The Staff Side pressed this demand on the ground that the ACP 1999 had become a service condition in respect of all those who were in service as on 31st August 2008. The MACP Scheme being less advantageous could not be imposed upon them. They stated that to resolve this anomaly, the first 2 ACPs may be continued in the promotional hierarchy to be granted after 12 and 24 years of service from the date of induction, the third ACP on completion of 30 years service may be in the grade pay hierarchy. The official Side did not agree with this proposal. The Staff Side then pointed out that the introduction of MACP Scheme in grade pay hierarchy 10, 20, 30 years of service from the date of induction will result that certain cadres would be placed in the grade pay which are not sanctioned in the structure of the departments and therefore it can not be treated as career progression at all. The official Side wanted the particulars of those cadres which are going to face this problem, so that they could consider how to overcome such anomalies. The Staff Side agreed to provide the necessary information and departments concerned may also be asked to provide such information.

Item Nos. 2, 10 and 48:
The Staff Side also pressed for introducing MACP Scheme with effect from 1.1.2006 so that those who did not get any benefit under old ACP could atleast get the MACP scheme benefit before their retirement during the period from 1.1.2006 to 31.8.2008. The Official Side stated that this item has been closed and concluded and can not be allowed to be opened / reviewed. The Staff Side then stated that they would like to raise this issue in the meeting of National Anomaly Committee as the joint Committee on MACP Scheme is sub committee of the National Anomaly Committee. The Official Side stated that this may be raised as afresh item in the National Anomaly Committee. The Staff Side also wanted that the option to choose ACP or MACP should be given to the individual employees and not the Department. The Official Side also did not agree to reopen this issue which has been concluded in the last meeting.

Item No. 57: Ignoring the placement of Artisans of Ministry of Defence from HS grade II to HS grade I for the purpose of MACP Scheme.

The Staff Side pointed out that this restructuring by keeping 50% of Artisans in the HS grade I and placing 50% in the HS grade II was by way of placement and therefore it could not be treated as promotion. The Staff Side cited Supreme Court ruling to this effect. However the Official Side did not agree with this. The case of restructuring in IA & AD in 1984 and in organized accounts were also cited in which it was clearly stated that those who are in the higher grade would be treated as placement only those who are promoted later on against vacancies would be treated as promotion. The official Side view was that only in those cases where the entire cadre is placed in the higher pay scale it would not be treated as promotion. This matter will also have to be raised in the meeting of National Anomaly Committee.

Items Nos. 11, 15, 22, 39, 47 and 51: Promotion in identical Grade Pay.

The decision that the normal promotions are in the same grade pay, they cannot be ignored for purpose off MACP Scheme and the specific cases would be examined separately.

Item Nos. 12, 30 and 49:  Employees appointed limited competitive examination from lower to higher post may treated as direct recruits in the higher post ignoring the service in the lower posts.

The matter is still being considered with reference to old ACP scheme clarification.

Item Nos. 13, 32, 38, 44, 50 and 58:  Counting of old service in the new establishments for the purpose off MACP. And  Item Nos. 21, 27, and 28:

Benchmark for financial up gradation under MACP. Orders have been issued on 1.11.2010.

It was agreed that action taken statement would be finalized and circulated so that further discussion thereon can take place in the meeting of National Anomaly Committee.

SOURCE-http://confederationhq.blogspot.com/2011/03/macp-sub-committee-meeting-minutes.html