Pensions Current Affairs

Disability pension for defence forces at par with civilians: Government

The Union Government has accepted recommendations of National Anomaly Committee (NAC) to maintain disability pension for defence forces in parity with civilians under 6th Central Pay Commission (CPC).

With acceptance of recommendations of NAC, Government will not go ahead with new disability pension parity regime recommended by 7th CPC and continue earlier system of disbursing disability pension.

Background

The armed forces were pressing for reverting to percentage-based regime for disability pension and were strongly opposed to slab-based system conceived by 7th CPC. They felt that new slab-based system would result in reduction in amount of disability pension for existing as well as future retirees compared to percentage-based disability pension. They were also upset as civilian pensioners were to be paid pension according to earlier percentage system. To address the issue, Defence Ministry had referred this matter to NAC to decide methodology for calculation of disability element of disability pension under 7th CPC.

Complaint and Litigation Reduction Scheme

The Ex-Servicemen Health Contributory Scheme (ECHS) has launched Complaint and Litigation Reduction Scheme (CLRS) for grievance redressal of veterans and their dependents. It will assist Defence Ministry to increase focus on formulation of caring policy and implementation initiatives preserving time and resources of our veterans who have served the nation.

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Union Cabinet approves Varishtha Pension Bima Yojana 2017

The Union Cabinet has given its approval for launching of Varishtha Pension Bima Yojana 2017 (VPBY 2017).  The scheme will be launched as part of Government’s commitment for financial inclusion and social security.

The scheme will be implemented through Life Insurance Corporation of India (LIC) during the current financial year i.e. FY 2016-17. It will be open for subscription for a period of one year from the date of launch.

Features of Scheme
  • The purpose of the scheme is to provide social security during old age and protect elderly persons aged 60 years and above against future fall in their interest income due to uncertain market conditions.
  • It will provide an assured pension based on a guaranteed rate of return of 8% per annum for ten years, with an option to opt for pension on a monthly, quarterly, half yearly and annual basis.
  • The Union Government will bear the differential return i.e., the difference between the return generated by LIC and the assured return of 8% per annum as subsidy on an annual basis.

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