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Children Education Allowance for Central Government Employees – An Overview

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Children Education Allowance for CG Employees – An Overview

7TH PAY COMMISSION AND INDIAN GOVERNMENT DECISION ON CHILDREN EDUCATION ALLOWANCE

One of the most anticipated hike in the allowance of CEA by Central Government employees, but 7th Pay Commission has recommended the allowance would continue as CEA Rs. 2250 pm per child and Hostel subsidy Rs. 6750 pm per child.

And the allowance will continue to be double for differently abled children. And the commission has strongly object to extend the allowance beyond Class XII.

Rate of Children Education Allowance (CEA) has been increased from Rs. 1500 per month / child (max. 2) to Rs. 2250 per month / child (max.2). Hostel Subsidy will also go up from Rs. 4500 per month to Rs. 6750 per month. Annual amount of CEA for the academic year 2017-18 will be Rs. 24750 and Hostel Subsidy will be Rs. 74250.

CEA an Overview: (Child education allowance in 7th Pay Commission)

The Children Education allowance was introduced w.e.f. 1-9-2008 on the basis of the recommendation of 6th CPC.

In the background of escalation of school fees, and other expenses connected with education of Children, the present scheme has been a big relief for the Government employees.

Presently the allowance is admissible for two children, for studying in a recognized school upto XII standard.

The maximum ceiling is stipulated at Rs.18000/- since this allowance had been hiked by 50% because of the DA component in salary having been crossed 100% on 1.1.2014.

We suggest doubling of this allowance and increasing the same by 50 % whenever the DA crosses over by 50%

Procedure of Reimbursement: The commission also recommended that the simplification of procedure for reimbursement. For CEA, a certificate from the head of institution where the ward of government employee studies should be sufficient for this purpose.

The certificate should confirm that the child studied in the school during the previous academic year.

The insistence of receipt for each and every expense to claim the allowance is a cumbersome procedure, which serves no purpose at all.

In order to avoid a probable misuse, the employer may be asked to produce an affidavit to the effect this child/children were bonafide student of the school. The production of receipt may be dispensed with.

We also suggest that the scheme may be extended to cover children studying for Graduate/Post Graduate and Professional courses.

This suggestion is being made in view of the huge expenses involved for the children’s higher studies, especially in the background of the Government with from higher education sector and allowing private institutions to come up and extract exorbitant changes for courses.

Since the quantum of allowance is fixed with a ceiling on maximum, our suggestion increase the coverage.

FAQ on CEA and Hostel Subsidy (Central government employees child education allowance)

REIMBURSEMENT CHILDREN EDUCATION ALLOWANCE – CLARIFICATION ON LEAVE OR SUSPENSION
The Children Education Allowance or hostel subsidy shall be admissible to a Govt. servant while he/she is on duty…

CLASS ELIGIBILITY OF CHILDREN FOR CHILDREN EDUCATION ALLOWANCE
Reimbursement of CEA and Hostel Subsidy shall be applicable for children from class nursery to twelfth…

UPPER AGE LIMIT FOR CHILDREN EDUCATION ALLOWANCE
The upper age limit for Divyaang children has been set at 22 years…

REIMBURSEMENT OF CHILDREN EDUCATION ALLOWANCE – IN CASE OF RETIREMENT…
In case of retirement, discharge, dismissal or removal from service, clarification given…

CEA CLARIFICATION – IF A GOVERNMENT SERVANT DIES…
If a Government servant dies while in service, the Children Education Allowance or hostel subsidy…

CLARIFICATION ON CEA – CHILD FAILS IN A PARTICULAR CLASS
The reimbursement of Children Education Allowance and Hostel Subsidy shall have no nexus…

CHILDREN EDUCATION ALLOWANCE – DISTANCE OF RESIDENTIAL EDUCATIONAL INSTITUTION
Clarification on distance for Residential Educational Institution studied children’s reimbursement…

REIMBURSEMENT OF CHILDREN EDUCATION ALLOWANCE – BOTH ARE GOVERNMENT SERVANTS
Clarification on Husband and wife both are Government Servants, reimbursement…

CHILDREN EDUCATION ALLOWANCE – PERIOD FOR REIMBURSEMENT
Quarterly, Half-Yearly or Annual reimbursement of Children Education Allowance…

REIMBURSEMENT OF CHILDREN EDUCATION ALLOWANCE – DA IMPACT
Increasing DA over 25%, the amount of Children Education Allowance…

REIMBURSEMENT OF CHILDREN EDUCATION ALLOWANCE – FOR DIVYAANG CHILDREN
Eligibility criteria of a Divyaang Children for reimbursement of CEA…

REIMBURSEMENT OF HOSTEL SUBSIDY – ELIGIBILITY OF AMOUNT
The amount of ceiling of hostel subsidy is…

REIMBURSEMENT OF CHILDREN EDUCATION ALLOWANCE – ELIGIBILITY OF AMOUNT
Eligibility amount of a Children for reimbursement of CEA…

REIMBURSEMENT OF CHILDREN EDUCATION ALLOWANCE – ELIGIBILITY OF CHILDREN
In case of failure of sterilization operation,…

CHILDREN EDUCATION ALLOWANCE PAYABLE FOR CITIZENS OF NEPAL AND BHUTAN – CLARIFICATION
CEA is payable for the children of all Central Government employees including citizens of Nepal and Bhutan…

Increment Issue Retiring on 30th June and 31st December – NFIR

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Increment Issue Retiring on 30th Jun and 31st December – NFIR

Grant of increment on notional basis on 1st January & 1st of July to those employees retiring on 30th June/31st of December – Apex Court order

NFIR
National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi – 110 055

No.I/II/Part-I

Dated 11.12.2018

The Secretary (Pers),
Ministry of Finance,
Department of Expenditure,
North Block,
New Delhi

Sub: Grant of increment on notional basis on 1st January & 1st of July to those employees retiring on 30th June/31st of December – Apex Court order-reg.

Dear Sir,
Pursuant to the implementation of the recommendations of 6th CPC, the Staff Side of National Council (JCM) had raised the demand, urging that the Central Government Employees including Railway employees who complete one year service as on 30th June and 31st December every year should be granted one increment notionally on 1st January or 1st July for calculating settlement benefit of those employees who retire on 30th, June or 31st December each year.

The Government however did not agree to the demand on the plea that allowing increment is not covered under the rules.

In the above context, NFIR desires to bring to the notice of MoF that the High Court at Madras was approached by some employees through Writ Petition No. 15732/2017 praying relief in the matter.

On 15/09/2017, the High Court at Madras decided on the Writ Petition and passed order as follows:‑

“Para-7 The Petitioner herein had completed one full year service as on 30/06/2013, but the increment fell due on 01/07/2013, on which date he was not in service.

In view of the above Judgment of this Court, naturally he has to be treated as having completed one full year of service, though the date of increment falls on the next day of his retirement.

Applying the said one notional increment for the period from 01/07/2012 to 30/06/2013, as he has completed one full year of service, though his increment fell on 01/07/2013, for the purpose of pensionary benefits and not for any other purpose”.

Against the above order of the High Court an SLP was filed by the Government of India before the Hon’ble Supreme Court, which was however dismissed by the Apex Court.

The legal position as established above clearly indicates that the employee who has completed one full year service as on 30th June or 31st December, as the case may be, should be granted one notional increment despite the fact that the increment falls on 1st July or 1st January of the year. The Federation cites following illustration to prove our contention:-

“An employee who has completed one full year of service as on 30th June (date of birth being 30th June or 1st July) and 31st of December (date of birth being 31st December or 1st January) is eligible to get one notional increment for the period from 01/07/2018.

Similarly an employee is eligible to get one notional increment for the period from 01/01/2018 to 31/12/2018 even though the increment falls on 01/01/2019 whose date of retirement is 31/12/2018″.

NFIR, therefore, requests the Secretary, MoF to kindly consider the above points and see that instructions are issued to all Ministries/Departments to grant increment on notional basis to the staff in the situations mentioned above to calculate the terminal/retirement benefits and also revise these benefits in favour of those who have already retired. A copy of instructions issued may kindly be endorsed to the Federation.

Yours faithfully
sd
(Dr.M.Raghavaiah)
General Secretary

Source: NFIR

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CGEGIS Benefit Table 2018 – From 1.10.2018 to 31.12.2018

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CGEGIS Benefit Table 2018 – From 1.10.2018 to 31.12.2018

Central Government Employees Group Insurance Scheme-1980 – Table of Benefits for the savings fund for the period from 01.10.2018 to 31.12.2018

No.7(2)/EV/2016
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, the 10 December, 2018

OFFICE MEMORANDUM

Sub: Central Government Employees Group Insurance Scheme-1980 – Table of Benefits for the savings fund for the period from 01.10.2018 to 31.12.2018.

The Tables of Benefits for Savings Fund to the beneficiaries under the Central Government Employees Group Insurance Scheme-1980, which are being issued on a quarterly basis from 01.01.2017 onwards, as brought out in this Ministry’s OM of even number dated 17.03.2017, for the quarter from 01.10.2018 to 31.12.2018, as worked out by IRDA based on the interest rate or 8% per annum (compounded quarterly) as notified by the Department or Economic Affairs as per their Resolution No. 5(1)-B(PD)/2018 dated 04.10.2018, are enclosed.

2. The Tables enclosed are of two categories as per the existing practice. As hitherto the first Table of Benefits for the saving fund of the scheme is based on the subscription or Rs.10 p.m. from 1.1.1982 to 31.12.1989 and Rs 15 p.m. w.e.f.. 1.1.1990 onwards. The second Table or Benefits for savings fund is based on a subscription of Rs.10 p.m. for those employees who hod opted out or the revised rate or subscription w.e.f. 1.1.1990.

3. While these orders are in respect of Table or Benefits for the period from 01.10.2018 to 31.12.2018, the Tables already issued for the first quarter, second quarter and third quarter i.e. for the period 01.01.2018 to 30.09.2018 are also reproduced for the sake convenience and consolidation.

4. In their application to the employees of Indian Audit and Accounts Department , these orders are issued after consultation with the Comptroller & Auditor General of India.

5 Hindi version of these orders is attached.

sd/-
(Amar Nath Singh)
Director

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NPS To OPS: Cabinet Approved Contribution 10% to 14%

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NPS To OPS: Cabinet Approved Contribution 10% to 14%

The Union Cabinet in its Meeting on 6th December, 2018 has approved the enhancement of the mandatory contribution by the Central Government for its employees covered under NPS Tier-I from the existing 10% to 14%.

Ministry of Finance
Streamlining of National Pension System (NPS)

Decision

The Union Cabinet in its Meeting on 6th December, 2018 has approved the following proposal for streamlining the National Pension System (NPS).

· Enhancement of the mandatory contribution by the Central Government for its employees covered under NPS Tier-I from the existing 10% to 14%.

· Providing freedom of choice for selection of Pension Funds and pattern of investment to central government employees.

· Payment of compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012.

· Tax exemption limit for lump sum withdrawal on exit has been enhanced to 60%. With this, the entire withdrawal will now be exempt from income tax. (At present, 40% of the total accumulated corpus utilized for purchase of annuity is already tax exempted.

Out of 60% of the accumulated corpus withdrawn by the NPS subscriber at the time of retirement, 40% is tax exempt and balance 20% is taxable.)

· Contribution by the Government employees under Tier-II of NPS will now be covered under Section 80 C for deduction up to Rs. 1.50 lakh for the purpose of income tax at par with the other schemes such as General Provident Fund, Contributory Provident Fund, Employees Provident Fund and Public Provident Fund provided that there is a lock-in period of 3 years.

Background

The new entrants to the central government service on or after 01.01.2004 are covered under the National Pension System (NPS). The Seventh Pay Commission (7th CPC), during its deliberations, examined certain concerns regarding NPS and made recommendations in the year 2015.

The 7th CPC recommended for setting up of a Committee of Secretaries in this regard. Accordingly, a Committee of Secretaries was constituted by the Government to suggest measures for streamlining the implementation of NPS in the year 2016.

The Committee submitted its report in the year 2018. Accordingly, based on the recommendations of the Committee, draft Cabinet Note was placed before the Cabinet for its approval.

Implementation strategy and targets

The proposed changes to NPS would be made applicable immediately once time critical decisions are taken in consultation with the other concerned Ministries / Departments.

Major impact

· Increase in the eventual accumulated corpus of all central government employees covered under NPS.

· Greater pension payouts after retirement without any additional burden on the employee.

· Freedom of choice for selection of Pension Funds and investment pattern to central government employees.

· Benefit to approximately 18 lakh central government employees covered under NPS.

· Augmenting old-age security in a time of rising life expectancy.

· By making NPS more attractive, government will be facilitated in attracting and retaining the best talent.

Expenditure involved

The impact on the exchequer on this account is estimated to be to the tune of around Rs. 2840 crores for the financial year 2019-20, and will be in the nature of a recurring expenditure.

The financial implications on account of provisions regarding payment of compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012, would be in addition to the amount indicated above.

No. of beneficiaries: Approximately 18 lakh central government employees covered under NPS would be benefited from the streamlining of the National Pension System.

States/districts covered

Pan India.

Details and progress of scheme if already running

Presently, the new entrants to the central government service on or after 01.01.2004 are covered under the NPS. NPS is being implemented and regulated by Pension Fund Regulatory and Development Authority in the country.

Source: PIB

NPS To OPS: Major Change in NPS – Govt Contribution Raised to 14%

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NPS To OPS: Major Change in NPS

Govt Contribution Raised to 14%

New Pension Scheme to Old Pension Scheme: As per the media news, the Union Cabinet approved on Thursday (6.12.2018) to raise the contribution to National Pension Scheme (NPS) to 14 per cent.

Major Changes has been initiated by the Central Government in the existing National Pension Scheme applicable for the employees joined on or after 1.1.2004 in Central Government Services.

The maximum contribution is now 10% of basic pay. The Government contribution may be raised to 14% of basic pay.

National Pension System (NPS) is a defined contribution pension system in place of existing defined benefit system, applicable for fresh entrants to Central Government Service from 1-1-2004 except the Armed Forces.

The monthly contribution to be deducted amounts to 10% of the Basic Pay and DA to be paid by the employee and matched by the Central Government. The maximum limit of monthly contribution is 10%.

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The Cabinet Committee also approved to increase the commutation percentage from 40% to 60%.

At present, there is only one default scheme for Tier I for Government employees. In the default scheme, the contribution is allocated to three PFMs, viz. SBI Pension Funds Private Limited, UTI Retirement Solutions Limited and LIC Pension Fund Limited in a predefined proportion.

With effect from 10.06.2015, each of the PFMs will invest the funds in the proportion of upto 50% in Government Securities and Related Investments, upto 45% in Debt Instruments and Related Investments, Upto 5% in Short-term Debt Instruments and Related Investments, upto 15% in Equities and Related Investments and upto 5% in Asset Backed, Trust Structured and Miscellaneous Investments.

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NPS To OPS : Nationwide 2 Days Strike (8th and 9th Jan 2019)

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NPS To OPS : Nationwide 2 Days Strike (8th and 9th Jan 2019)

SCRAP NPS – RESTORE OPS
(Pension is My Right – Restore OPS)

Prepare For The Final Show Down
With The Hostile Government

Participate and Make Success

Two Days
STRIKE
On 8th & 9th January 2019

Demands
Scrap New Pension Scheme And Extend Defined Pension To All

1. Revise Minimum Pay And Fitment Factor
2. Fill Up All Vacant Posts
3. No Shutting Down And Privatization, No Outsourcing Of Government Establishments,Regularization And Grant Of Civil Servants Status to GDS
4. Ensure Five Promotions/Upgradations;
5. MACP In Hierarchical Order, Removal of “Very Good” Benchmark.
Struggle is the Right Path

Strike is The Only Weapon

V.Nageswara Rao
(Chairman)

A.Azeez
(General Secretary)

Confederation of Central Government Employees & Workers
Telangana & A.P Unit

Source: Confederation