General Secretary,
All India Postal Extra Departmental Employees Union,
Padam Singh Nagar PO Building.
Delhi 110007
Sub:- Introduction of Service Discharge Benefit Scheme (SOBS) for Gramin Oak Sevaks
I am directed to refer to your letter no. GDS/CHQ/41 /1/2010(ii) dated,23-092010 and 24-09-2010 on the above mentioned subject.
3. This issues have been examined.
3.1 One-man Committee headed by Shri R.S. Nataraja Murti recommended for introduction of a Discharge Benefit Scheme on annuity basis and his recommendation was for contributing Rs.200 for each Gramin Dak Sevaks and these contributions have to be annuitised for payment of some benefit. He recommended for managing this scheme either through PLI Directorate or through PFRDA. It was clearly recommended that the existing Gramin Dak Sevaks will be provided an option either to switch over to the new Service Discharge Benefit Scheme (SDBS) or to retain the payment of Severance Amount Scheme and that for new incumbents, it will be mandatory to join the Service Discharge Benefit Scheme (SDBS). The financial implication on account of introduction was also projected as the difference of revised severance amount payable for every continuous year of service and the contribution of Rs.200 per month. Obviously, the Service Discharge Benefit Scheme (SDBS) is in lieu of severance amount and however the existing working Gramin Dak Sevaks are provided the option as indicated above. Further the existing scheme of payment of ex-gratia gratuity remains undisturbed. Even the employees working in private sector are covered by EPF and gratuity, and there is no third benefit component. Therefore, at this stage, it is not feasible to change the structure and make it in addition to Severance Amount
3.2 Gramin Dak Sevaks are not covered by the Central Civil Services (Classification, Control & Appeal) Rules, 1965 and they are covered by separate set of Conduct and Employment Rules formulated in 2001. According to Rule 9, there are 6 punishments that can be imposed on Gramin Dak Sevaks for good and sufficient reasons. The 'discharge' does not constitute a punishment. Even for departmental officials, there is no such penalty of discharge as specified in Rule 11 of Central Civil Services (Classification, Control & Appeal) Rules, 1965.
The original order issued for grant of Ex-gratia gratuity, it was stated that the ED Agents whose services are terminated otherwise than on (i) for unsatisfactory work or (ii) as a measure of Disciplinary action or (iii) in consequence of their being appointed in a regular post, may be sanctioned ex-gratia gratuity provided that they have not put in less than 10 years of continuous satisfactory service as Gramin Dak Sevaks. Even in the communications sent to Circles, the word 'exit' was used withdrawal from the Service Discharge Benefit Scheme (SDBS) either after attaining the age of 58 years or at the time of discharge from service. It may not be worthwhile to change the nomenclature at this stage and it does not construe that discharge means removal or dismissal on punishment. Every care has been taken to ensure that discharge means on attaining the age of 65 years. The word 'retirement' cannot be used since the Gramin Dak Sevaks are not covered by CCS (Pension) Rules, 1972 and not eligible for pension scheme. It is further stated that the SDBS is run on the platform of New Pensions Scheme - LITE. Therefore, the word 'Discharge Benefit' does not
reflect any negative or ignominious accent as contended.
3.3. Your objection in endorsing the copy to GS, NUGDS is found to be unwarranted. Though it may not be a recognised union under GDS RSA Rules 1995 still that union commands a sizable chunk of Gramin Dak Sevaks. The scheme being a welfare one, the intention of the Department was to make it known to all so that a wide publicity is given for active participation in the scheme. Your allegation that, some sort of legitimacy is being given to one particular union is denied and no such preference given to any particular union and the intention was only for giving wide publicity.
3.4 No such assurance what so ever was given for having a formal meeting. The GS and his team were called on 16-8-2010 and highlighted the salient features of the scheme, which was formulated on discussions with Pension Fund Regulatory Development Authority (PFRDA). There is no need felt for issuing minutes for an informal meeting. Since the scheme has been approved and in the stage of implementation, there may not be any need for a formal meeting at this stage
3.5 Service Discharge Benefit Scheme(SDBS) is proposed to be organised on the lines pf NPS-Lite platform through Pension Regulatory Development Authority (PFRDA). The provisions made for subscriber in the event of death in NPS lite is being adopted for Service Discharge Benefit Scheme (SDBS) also. The suggestion for allowing the nominee for purchase of annuity from any life insurance company authorised by Insurance Regulatory Development Authority (IRDA) is not as per offer document under new pension system. However the nominee can subscribe individually after following due KYC procedure. The department has no authority to change the distinctive feature of the scheme.
3.6 The crediting of severance amount at Rs.1500 for every completed year of service to the accumulations is in respect of such Gramin Dak Sevaks who have opted to join this scheme and it will be admissible only to such Gramin Dak Sevaks who die while in service or demit office, after attaining the age of 65 years. If the advance credit is made, there is no guarantee that every opted Gramin Dak Sevak will continue as Gramin Dak Sevak till his discharge and many happenings may occur like absorption in the departmental post, removal/dismissal in consequence of disciplinary proceedings. That being the position, the Department cannot take risk of making severance amount credit in the beginning it self as it will involve huge financial implication.
3.7 Your suggestion for reckoning a period of more than 6 months as completed year of service cannot be considered since there is no such provision made in the severance amount rules framed in 1998 and it was stated as completed year of service. Rounding of such period is admissible under CCS (Pension) Rules, 1972. Gramin Dak Sevaks not being covered by the said rules, they are not eligible for such benefit.
3.8. The Service Discharge Benefit Scheme (SDBS) is being on the lines of NPS platform and the provisions of NPS are strictly followed here also. The GDS who exits after attaining the age of 58 years, he is deemed to have gone out of the scheme voluntarily and therefore the Government has no liability for making contribution for the balance period. There is no such provision for part-final withdrawal under new pension scheme.
3.9. The Department Of Posts Has Given An Assurance To The Parliament Standing Committing on Ministry of Communications and Information Technology for implementation of this scheme. Therefore, the time frame is set for various course of action.
3.10 As per NPS-Lite scheme, the Department has the discretion for deciding the mode of investment and as per the PFRDA 85% of the accumulations will be invested in securities and 15% in equities
3.11 The minimum period of one year qualifying service is providing for joining the scheme in order to avoid any exclusions even before completion of one year. In respect of regular departmental employees also, they are made eligible for General Provident Fund after rendering one year service. In respect of GDS. having a short span of service cannot accumulate more amounts and may not be able to purchase required annuity for providing benefits. Therefore, it was provided that Gramin Dak Sevaks having less than 3 years' service, are not allowed to become members of this scheme
4. The recommendations of One man Committee has been formulated after obtaining the approval of the Nodal Ministry and Pension Fund Regulatory Development Authority (PFRDA) which is the apex body of the government for organizing new pension scheme. The Department has therefore no authority to alter distinctive features of the scheme.
5. This issues with the approval of Competent Authority
(K.Rameswara Rao)
Asst. Director General (Estt)
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S.S.Mahadevaiah
General Secretary
All India Postal Extra Departmental Employees Union
