Tuesday, May 10, 2016

NPS Subscription earns double digit yearly returns for the past 5 years

NPS Subscription earns double digit yearly returns for the past 5 years which comparatively higher than EPF interest rates – Central and state government employees covered by the scheme earned between 9.3% and 10.15% during this period.

If the 5 basis point hike in interest rate of the Employees’ Provident Fund (EPF) made subscribers smile, those covered by the New Pension System (NPS) must be laughing.

Most NPS investors earned double-digit returns in the past 3-5 years. Central and state government employees covered by the scheme earned between 9.3% and 10.15% during this period.

The performance of individual schemes is not very helpful because NPS investors put money in a combination of funds. Therefore Economic Times studied the blended returns of four different combinations of the equity, corporate debt and gilt funds. Ultra-safe investors are assumed to have put 60% in gilt funds, 40% in corporate bond funds and nothing in equity funds.

A conservative investor would put 20% in stocks, 30% in corporate bonds and 50% in gilts. A balanced allocation would put 33.3% in each of the three classes of funds while an aggressive investor would invest the maximum 50% in the equity fund, 30% in corporate bonds and 20% in gilts. The table shows the average blended returns of the seven pension funds.

Admittedly, the short-term picture of the NPS is not very encouraging because of the negative returns from stocks in the past one year. Aggressive investors have earned less than 3% and balanced investors made only 4.93%, though ultra-safe investors who stayed away from stocks got 8.89%.

But the long-term picture is different. On average, gilt funds have given 9.75% annualised returns while corporate debt funds have churned out more than 11% in the past five years. As a result, the average return for ultra-safe investors in the past five years is in double digits.

The average NPS fund has given 100-125 basis points more than what the retirement savings of the estimated 3.7 crore EPF subscribers have earned during this period. “Even a 100 basis point higher return can make large impact on the corpus in the long term,” says Sumit Shukla, CEO of HDFC Pension Fund.

Will the good times continue for gilt funds and corporate bond funds? Experts say this trend will not stay forever. “NPS is a long-term investment and the bonds are predominantly held to maturity. Over a longer period, the portfolios will deliver returns similar to the yield-to-maturity of the bonds in the portfolios,” says Manoj Nagpal, CEO of Outlook Asia Capital. The average yield-to-maturity of the bonds is roughly 8.4%, which is higher than the PPF rate but lower than what the EPF offers.

Should you switch from EPF to NPS?

This raises the critical question: should you switch from EPF to the pension scheme? The proposal to switch from EPF to NPS was announced in last year’s budget and this year’s budget extended a onetime tax exemption to such a shift.

A legislation to amend the Employees’ Provident Fund & Miscellaneous Provisions Act has already been framed and is lying with the Law Ministry. The amendment allows EPF subscribers to make a one-time switch to the NPS. Once he shifts to NPS, the employee will have a one-time chance to return to the EPF fold.

But experts believe it may not be a wise move to shift your retirement savings to the NPS because of the difference in tax treatment. While the EPF corpus is completely tax free, this year’s budget has proposed to make 40% of the NPS tax free.

Pension Fund Regulatory and Development Authority (PFRDA) chairman Hemant Contractor says there should be tax parity in all retirement products.

“Why would anybody want to shift his money from the fully tax-free EPF to the NPS where only 40% of the corpus will escape tax? If there is parity in the tax treatment, a lot of subscribers would shift from EPF to NPS,” he told Economic Times recently.

For investors, the tax benefits are an important consideration. The new tax deduction offered on the NPS attracted investors in a big way in 2014-15, with almost 1.2 lakh new voluntary accounts opened during the year. Within nine months, the assets under management of funds for the private sector shot up more than three-fold from Rs 6,361 crore in April 2015 to touch Rs 20,261 crore by December 31, 2015.

Financial advisors see another problem in the NPS. At least 40% of the maturity corpus has to be put in an annuity to earn a monthly pension. Annuity rates in India are very low compared to what other options can offer.

The Senior Citizens’ Saving Scheme, for instance, gives 8.6% returns compared to 6.75% offered by annuities that return the principal after death. The PFRDA wants that the investor should be allowed to look beyond annuities.

Source: The Economic Times

Abolition of 85% post falling vacant and meant for direct recruitment in the grade of JSA (erstwhile LDC)

DoPT has abolished 85% reservation for direct recruitment quota in the grade of JSA (erstwhile LDC) of CSCS based on Cadre Restructure committee recommendations.

No. 13/3/2016-CS.II(B)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel and Training
(CS.II Division)
3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi – 110 003.
Dated: 5th May, 2016.
Subject: Abolition of 85% post falling vacant meant for direct recruitment in the grade of JSA(erstwhile LDC)-reg.
In pursuance of DoP&T’s O.M. No. 9/2/2003-CS-ll dated 20th April, 2005, it was decided to abolish 85% of the posts falling vacant on or after 03-10-2003 meant for direct recruitment quota in the grade of JSA (erstwhile LDC) of CSCS. The said decision was taken by the Cabinet after considering the recommendations of the report of First Cadre Restructuring of CSS.
2. However, it is observed that though a number of the cadre units have achieved the target of abolition of 85% of the posts falling vacant on or after 03-10-2003 meant for direct recruitment in the grade of JSA(erstwhile LDC) of CSCS every year. Some cadre units as shown in Annexure still have to achieve the target.
3. The Ministries/Departments shown in the Annexure are requested to take necessary action to abolish the remaining posts immediately and furnish a compliance report to DoP&T by 13th May, 2016 along-with a copy of the Office Order of the number of posts abolished. The deadline may please be strictly adhered to.
(Rajesh Sarswat)
Under Secretary to the Govt. of India

7th CPC: Govt to consider minimum monthly pay at Rs 24,000; payout to begin from July

New Delhi: With each passing day, the picture of higher monthly payout for central government employees, than what was recommended by the 7th Pay Commission, is emerging clear.

In a meeting with the BJP's labour wing Bharatiya Mazdoor Sangh, Jitendra Prasad, Union Minister of State for Personnel, Public Grievances, Pensions, told the delegation that government would positively look into the demand of the central government employees. "The minister said we will consider the proposal of minimum pay of at 24,000”, Pawan Kumar, Regional Organizing Secretary told Zee Media Bureau.

The Bhartiya Mazdoor Sangh is the largest central trade union organization in India, and claims to have more than 10 million members.
The trade union also sought increase in the Multiplication Factor and changes in the HRA.
The 7th CPC under AK Mathur had proposed Multiplication Factor of 2.57, according to which the fitment of each employee in the new pay matrix is proposed to be done by multiplying his or her basic pay on the date of implementation by a factor of 2.57.

"We are expecting the notification for implementation of the 7th Pay Commission in the last week of June, and payout to begin in July", added Kumar.

He further assured that DoP&T is actively considering for grant of one time relaxation for compassionate appointment in Ministry of Defence. He added that Bhartiya Mazdoor Sangh has ruled out possibilities of strike to get a better salary revision under 7th Pay Commission. "We are not part of those who say that we will strike"to get a better pay hike, added Kumar. 

As per report, the National Joint Council of Action (NJCA) has decided to serve indefinite strike notice to the Govt on 9th June 2016 and to commence indefinite strike from 11th July 2016, if the Govt fails to come to a negotiated settlement on 7th CPC related issues with the JCM National Council Staff Side.

Bonus ceiling

Press Information Bureau 
Government of India

Ministry of Labour & Employment

09-May-2016 17:47 IST

Bonus ceiling

The ceiling of calculating Bonus for factory workers and establishment with 20 or more workers under section 12 of the Payment of Bonus Act has been increased from Rs.3500/- per month to Rs.7000/- per month or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher with effect from 1st day of April 2014 through the Payment of Bonus (Amendment) Act, 2015, notified on 1st January, 2016.  

The pension under the Employees Pension Scheme, 1995 has been fixed at minimum of Rs.1,000/-per month vide Government of India notification No.GSR 593 (E) dated 19.8.2014.  The number of pensioners benefited during the year 2014-15 was 17,65,307 after issue of notification for minimum pension of Rs. 1000/- per month on 19.08.2014. A statement showing the State-wise details of pensioners benefited from this move is at enlisted

Minimum Pension of Rs.1000/- per month 
Sl. No.
No. of Pensioners Benefited with Notification No. GSR 593(E) Dated 19.08.2014
Andhra Pradesh
Himachal Pradesh
Madhya Pradesh
NE Region
Tamil Nadu
Telangana State
Uttar Pradesh
West Bengal
 This information given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.


Minimum wages Act

Press Information Bureau 

Government of India
Ministry of Labour & Employment
09-May-2016 17:43 IST

Minimum wages Act
The total number of contract labourers both in organized and unorganized sector engaged on the basis of license issued under Contract Labour(Regulation & Abolition) Act, 1970 in the Central Sphere for last 3 years is given below:-
  No. of Contract Labour
  2012-13  1804389
  2013-14  1967747
  2014-15  1903170

The data in respect of casual workers in not centrally maintained.

Considering the reality of industrial practices as well as the wage security for the contract workers, proposal for rationalization of wages for contract workers, so as to ensure that the minimum monthly wage of such workers does not fall below Rs. 10,000/-, was under consideration of the Government. After due deliberation, a draft Notification for amending Rule 25(2)(iv) of the Contract Labour (Regulation & Abolition) Central Rules, 1971 has already been issued to give effect to the above stated objective and comments of stakeholders were solicited vide Notification No. G.S.R. 368(E) dated 30.03.2016. All comments/suggestions received from stakeholders within the prescribed time limit are under examination. The final notification will accordingly be issued after consideration of the suggestions and approval of the competent authority.

The minimum wages for the Contract Workers employed as Scheduled Employment are revised twice in a year i.e. in April and October by adding Variable Dearness Allowance in the basic rate.

A well-established Central Industrial Relations Machinery (CIRM) is in place to enforce various labour laws including the Minimum Wages Act, 1948. The country-wide CIRM network of Dy. Chief Labour Commissioners and Regional Labour Commissioners under the control of Chief Labour Commissioner (Central) is mandated to settle the complaints/claims arising out of non-payment or payment of lower wages. Besides, a grievance redressal mechanism exists in the States/UTs in respect of the grievances pertaining to establishment coming under the State Sphere.

The Contract Labour (Regulation & Abolition) Act, 1970 does not cover those contract workmen who are employed in an establishment where less than twenty workmen were employed on any day of the preceding twelve months. However, the number of contract labourers engaged on the basis of license issued under Contract Labour (Regulation & Abolition) Act, 1970 in the Central Sphere for last 3 years has been furnished above in reply to part (a) of question.

The details of inspections conducted under Minimum Wages Act, 1948 are enlisted.


No. of inspections conducted




No. of irregularities detected




No. of prosecutions launched




No. of convictions




 This information given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.

Issue of SC/ST/Residance Certificate in School

Issue of SC/ST/Residance Certificate in School

Introduction of "Swachh Bharat Pakhwada" in Central Govt. Ministries

Introduction of "Swachh Bharat Pakhwada" in Central Govt. Ministries

Confrontation Will Become Inevitable If Unilateral Orders Are Issued on 7th CPC Implementation: Confederation

It seems that Modi Govt. is not in favour of a negotiated settlement on the 7th CPC related issues with the staff side. The Seventh CPC report was submitted on 19th November 2015. Six months are almost over since then. Till date the Govt. has not come forward for a negotiated settlement. Instead, Empowered Committee of Secretaries (ECoS) headed by Cabinet Secretary conducted a meeting with the staff side on 1st March 2016. In the meeting Govt. did not disclose its mind on any of the demands raised by the staf fside in the charter of demands submitted to Govt. Staf fside explained the justification for each demand but official side didn’t make any comment, either positive or negative. The concluding paragraph of the minutes of the meeting reads as follows:

“After hearing the participants, Cabinet Secretary observed that the deliberations have helped ECoS in understanding the major concerns of the staff side and said that all issues have been taken note of. He assured that fair consideration will be given to all points brought out by JCM before taking final views. He further stated that the ECoS needs to examine the Report of the Commission in entirety as well as the issues raised by JCM in consultation with all other stake holders. As such, it may take some time to take a final call on the recommendations of the Commission.”

It may be seen that, neither did the Govt. side made any commitment on any demands, nor did they indicate in the minutes that further discussion will be held with the staff side to arrive at a negotiated settlement on each demands. It seems that the Modi Govt is moving ahead to issue unilateral orders taking the staff side for a ride.

The JCM staff side Secretary, in his letter dated 2nd May 2016, addressed to Cabinet Secretary, has made the stand of the staff side clear, without any ambiguity. The letter reads as follows:

“I have been directed to draw your attention towards minutes of the Standing Committee of National Council JCM held on 7th May 2008 and our rejoinder submitted to Govt. in the matter of Report of 6th CPC.

You will kindly find that it was not only a general discussion, but also official side explained their views on each and every issue.
I would therefore request your good self to kindly arrange for similar type of meeting for bi-lateral settlement on each of the issues raised by the staff side, NC/JCM before the Empowered Committee of Secretaries.”
Thus the picture is clear now. The Govt, it seems, has a hidden agenda to take the staff side for granted without giving any further opportunity for a negotiated settlement. The staff side on the other hand has taken a position that if unilateral orders are issued, without taking the staff side into confidence, the NJCA shall go ahead with the indefinite strike from 11th July 2016 as already informed to the Govt. Employees have faith in the NJCA and they believe that the NJCA leadership shall assert itself and shall not compromise on major demands.

The coming days are crucial. If the Govt. adopts delaying tactics or issue unilateral orders rejecting our demands, then confrontation shall become inevitable. The stand taken by the then Nehru Govt. that “Pay Commission report is an award and is not negotiable” has resulted in the historic indefinite strike of 1960, which commenced on July 11th midnight.

The NJCA leadership should be ready for a showdown, if Modi Govt refuse to arrive at a negotiated settlement with the staff side as demanded by Secretary, JCM(NC) staff side.

Secretary General

Counting of induction Training period for grant of financial upgradation under TBOP/BCR scheme

Click here to view Postal Directorate letter dated 05.05.2016 on the above subject.

MACP On Promotional Hierarchy Case at SC Likely to be Listed on - 13/05/2016


SLP(C) No. 21803/2014 (Union Of India and Ors Vs.  M.V. Mohanan Nair) Tagged With Case Numbers SLP(C) No. 22181/2014 , SLP(C) No. 23335/2014, SLP(C) No. 23333/2014, SLP(C) No. 18227/2015

Case Details

Special Leave Petition (Civil)   21803 / 2014
Petitioner                                                  Union Of India and Ors.
Respondent                                              M.V. Mohanan Nair

Advocate(Petitioner)                               Mr. B. V. Balaram Das

Advocate(Respondent)                           Mr. C. K. Sasi

Appealed Against                                    High Court Details - Not Available

Matter is Connected To                          Connected Details - Not Available

Subject Matter                                         Matters Relating To Judiciary Matters Pertaining To Employees of District Courts  And Tribunals

Listing Details                                       Likely to be Listed on -  13/05/2016

Finacle Training Lesson 14 [ HTM PART III ]


In the previous lesson, we have learned in detail about interest withdrawal process (reversal transaction). In today’s lesson we will learn about how to credit the interest amount in customer SB account.

Interest payment by crediting to SB account or by RBI cheque.

In many cases interest credited in sundry account will be more than 20,000. For example in SCSS and TD interest amount in many cases will be much more than 20,000.

As per POSB rules we cannot pay any amount 20,000 as cash. So in such cases we have to transfer the interest amount either to customer’s SB account or to Repayment account {0340}.

We will transfer the amount to customer’s SB account if customer has an SB account and we will transfer the amount to Repayment account {0340} if payment is made by RBI cheque.

Follow carefully now. We know that in Finacle every transaction has a Credit entry and a Debit entry. In the previous transaction where we have done interest reversal by cash, Sundry account was debited and Teller account was credited.

But here we have to credit either customer’s SB account or Repayment account {0340}. Let’s see how it is done.

Invoke HTM, choose function as Add and Transaction Type/Sub Type as T/CI Customer Induced and click on Go. See the image below.

After Clicking on Go you will see the screen as shown below.

Observe the fields which I have put in a box in the above image. What did you observe? Part Transaction Type is selected as Debit. Have you ever encountered this word “Part Transaction”? Yes many of you should have seen this error “Part Transaction already posted”. Have you ever wondered what a part transaction is? You will know the answer now.

I shall repeat once again all transactions in finacle we will have a debit entry and a credit entry. Even while doing transactions using CTM, CRDP, CPDTM etc debit and credit transactions will take place in the background.

They have created these customized menus to help us from not getting confused due to debit and credit entries. In CTM, CRDP, CPDTM etc C stands for Customized. It means these menus are created especially for DOP. In HTM, HACLI, HFINRPT etc H stands for Hypertext. All default Finacle menus start with H. Those menus which are specially designed for us start with C.

For your information I will tell you that we can do all transactions like SB deposit/Withdrawal, RD deposit, PPF deposit, etc using HTM menu itself. But you should know the correct debit and credit accounts.

Now coming back to our lesson, to transfer interest from Sundry to SB account we know that Debit account is Sundry account and credit account is customer’s SB account.

To transfer interest from sundry to SB account, there are 2 steps involved. In the first step we debit the sundry account and second step we credit the customer SB account or Repayment account.

These steps are called as Part Transactions. So technically we should say, in the first part transaction we debit the sundry account and in the second part transaction we credit the sb/repayment account.

It is not mandatory that the first part transaction should be debit only. If you are comfortable enough to play with debit and credits you can do any part transaction first.

If you observe in the interest withdrawal by cash in the previous lesson we only debited the sundry account. It doesn’t mean that there is no credit transaction. Credit transaction took place without our knowledge in the background.

Hope you are getting my point.
Coming back to our actual transaction let see what we should do.

In the first step we debit the Sundry account. This process is same as we have done in the interest withdrawal by cash transaction. Let’s quickly see the steps involved.
1. Function – ADD
2. Transaction Type/Sub Type – T/CI Customer Induced
3. GO
4. Enter Sundry account number
5. Enter amount
6. Enter actual MIS/TD/SCSS account number in ref number
7. Click on GO
8. Enter actual MIS/TD/SCSS account number in ref number again
9. Click on GO
10. Tick the entry and click on Accept
After clicking on Accept you will be taken to the first screen again. Wait don’t click on Post. For interest payment by cash we just clicked on Post to complete the transaction.

But here we completed only half of transaction. Only one part transaction is completed. To do the second part transaction click on ADD, as shown in the figure.

After Clicking on ADD button you will get the same screen with empty fields again. This means you have to enter second part transaction details here. Second part transaction details is nothing but entering the credit account id and amount.

Enter the customer account id and amount change the part transaction type to Credit.

That’s it. Click on Post. Your transaction is over. Amount will transferred to either customer’s SB account or Repayment account.

Read this lesson and the step by step procedure in our book Pineapple you will understand very clearly what is happening behind the scenes.

Hope you have understood this lesson.

The procedure is same for MIS/TD/SCSS accounts. Only the sundry account number will change.
That’s all for now see you tomorrow, same time same place.

Read more

Union Public Service Commission (UPSC) Civil Service Exam 2016 |Notification for UPSC Exam 2016

UPSC Civil Service Exam 2016 

Union Public Service Commission (UPSC) introduce Civil Service Examination in April 2016 for the Recruitment of IPS, IAS, IRS, IFS etc posts. This exam can be applied by online procedure. As per notification total number of posts is 1079. The official notification has been uploaded, full information regarding these posts is below, we are requesting to all candidates please read full information carefully. Please download official notification from below link. Any query and problem just comment in box below, we will contact you immediately. Number of posts can be increase or decrease by department without any notice. Read full information for UPSC Civil Service Exam 2016.

Organization Name:UPSC Civil Service Exam 2016

Profile Name:Civil Service Examination

No. of Total Vacancies :1079

Pay Scale :For pay scale details of all above posts, candidates please go through official notification.

Important Dates:

Starting date to apply online application forms is 27th April, 2016.
Last date for submitting application forms through online is 27th May, 2016.

Educational Eligibility :

Educational Qualification for all category candidates must be a Graduation degree of any University/ Institute with good academic records or its equivalent Qualification. Check the official detail for the complete detail.

Age Bond :Age limit for all category candidates is in between 21 years to 32 years as on 01st August, 2016. Otherwise they will not eligible for Recruitment process. There is relaxation also in upper age limit for selected candidates.

Application Fee :Application fee is Rs.100/- (One Hundred Rupees only) for all category candidates. SC/ST/PH/ Women category candidate are exempted from payment of an application fee. Pay this application fee in online mode only.

Selection Process :
Applicants will be selected on the basis of their performance in Union Public Service Commission (UPSC) Civil Service Exam 2016.

How To Apply For UPSC Civil Service Examination 2016:Online application for these posts are required by department. Candidates have to apply online with true based information. Last Date of online apply is 27/05/2016. After this you can’t apply. Before next step please read advertisement carefully :
A) To apply online for Civil Service Exam 2016 at UPSC, go through official website link given below.
B) Check all details and all information regarding Civil Service Exam 2016.
C) Apply online from 27th April, 2016 to 27th May, 2016.
D) Take print out of system generated online application form for future referrence.
Document Needed To Apply Online For this UPSC Civil Service Exam 2016 :
Here some list of document that are necessary for online apply :
Qualification Certificate
Caste certificate
Adhar/ Voter Card

Must Follow Tips :

Candidates must avoid sending multiple application forms.
Please mention active E-Mail ID only in the online application form.
Do not fill artificial information.