Rate of Monthly subscription and insurance cover under CGEGIS-1980 for Railway Employees

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBE.No. 145/2010
dated 6.10.2010.

S.No.PC-VI/230
No.PC-VI/2010/GIS/I

The General Managers,
All Indian Railways/PUs etc.

Subject : Rate of Monthly subscription and insurance cover under CGEGIS-1980 for erstwhile Group 'D' employees placed in PB-1, Grade Pay Rs.1800/- and classified as Group 'C'.

-----------

Attention is invited to Ministry of Finance's OM No.E7.(5)-EV/89 dated 15-05-1989 updating the Central Government Employees Group Insurance Scheme-1980 (CGEGIS), circulated vide Board's letter No.PC-III/89/GIS/I dated 19-09-1989.

2. Consequent upon implementation of recommendations of 6th Central Pay Commission as accepted by the Government and issue of revised classification vide Board's letter No. PC-VI/2009/I/RSRP/4 dated 08-01-2010, the issue of rate of recovery of monthly subscription and insurance cover under CGEGIS-1980 for erstwhile Group 'D' employees placed in PB-1, Grade Pay Rs.1800/-, have been under consideration in consultation with Ministry of Finance, the nodal Ministry for this purpose, for some time.

3. It has now been decided that subscription towards CGEGIS and insurance coverage to the erstwhile Group 'D' employees placed in PB-1 with Grade Pay Rs.1800 and classified as Group 'C' vide Board's letter No. PC-VI/2009/I/RSRP/4 dated 08-01-2010 (RBE No.05/2010), may be enhanced @ Rs.30/- per month from 1st January of the next calendar year i.e. January-2011.

4. This issues with the concurrence of the Finance Directorate of the Ministry.

5. Kindly acknowledge receipt.
(This disposes of Metro Railway's letter No.MRTS/E.340/VIth PC dt. 28-04-2010)

s/d
(Hari Krishan)
Director Pay Commission II
Railway Board

Source: www.indianrailways.gov.in

Rate of monthly subscription and insurance cover under CGEGIS-1980 for Group 'D' employees

No.7(1)/EV/2008
Government of India
Ministry of Finance
Department of Expenditure
-------

New Delhi, Dated 10^th September, 2010

Office Memorandum

Subject:    Rate of monthly subscription and insurance cover under CGEGIS-1980 for erstwhile Group 'D' employees placed in PB-1, Grade Pay Rs.1800/- and classified as Group 'C'.

-------

      The undersigned is directed to invite the attention of all Ministries/Departments of the Central Government to this Ministry's O.M. No.F.7(5)-EV/89 dated 15^th May, 1989 updating the Central Government Employees Group Insurance Scheme, 1980.

2.       The 6^th Central Pay Commission in para 4.9.4. of its report has recommended that the rate of monthly subscription and the amount of insurance cover under the Central Government Employees Group Insurance Scheme (CGEGIS) should be enhanced 6 times. The Commission has also recommended up-gradation of Group D in the Government with all existing Group D employees being upgraded and placed in the entry grade of Group C. Accordingly, no separate slab for Group D has been recommended.

3.       In view of the recommendations of 6^th CPC, Department of Personnel & Training vide notification dated 9/4/2009 has classified the posts carrying the Grade Pay of 1800/- as Group C.

4.       Therefore, it has been decided to enhance the monthly subscription towards CGEGIS and insurance coverage to the erstwhile Group 'D' employees placed in PB-1 with Grade Pay of 1800 and classified as Group 'C', @ '30/- per month from 1st January of the next calendar year i.e. January, 2011.

s/d
(Manoj Sahay)
Director

www.finmin.nic.in

CGEGIS - Tables of Benefits for the savings fund for the period from 1.1.2010 to 31.12.2010.

No.7(2)/EV/2009

Government of India

Ministry of Finance

Department of Expenditure

*********

New Delhi, the 29th December,2009.

Subject:- Central Government Employees Group Insurance Scheme - 1980 - Tables of Benefits for the savings fund for the period from 1.1.2010 to 31.12.2010.

The undersigned is directed to refer to this Ministry's O.M.No.7(2)/EV/2008 dated 22nd December, 2008 forwarding therewith Tables of Benefits under CGEGIS for the year 2009. New Tables of Benefits for the savings fund of the Scheme based on a subscription of Rs.10 per month from 1.1.1982 to 31.12.1989 and Rs.15 per month w.e.f. 1.1.1990 onwards have been prepaid for the year 2010 and a copy of the table is enclosed. Another Table of Benefits for the savings fund based on a subscription of Rs.10 per month for those employees who had opted out of the revised rates of subscription w.e.f. 1.1.1990 have also been drawn up for the year 2010 and a copy of that table is also enclosed. The amounts in the Tables have been worked out on the basis of interest @ 10% per annum(compounded quarterly) for the period from 1.1.1982 to 31.12.1982, 11% per annum (compounded quarterly) w.e.f. 1.1.1983 to 31.12.1986, 12% per annum (compounded quarterly) w.e.f.1.1.1987 to 31.12.2000, 11% per annum (compounded quarterly) w.e.f. 1.1.2001 to 31.12.2001, 9.5% per annum (compounded quarterly) w.e.f. 1.1.2002 to 31.12.2002, 9.0% per annum (compounded quarterly)w.e.f.1.1.2003 to 31.12.2003 and 8% per annum (compounded quarterly) w.e.f.1.1.2004 onwards. The mortality rate under the Scheme has been taken as 3.75 per thousand per annum up to 31.12.1987 and 3.60 per thousand per annum thereafter in both the cases. While calculating the amount it has been assumed that the subscription has been recovered or will be recovered from the salary of the month in which a member ceases to be in service failing which it should be deducted from accumulated amounts payable.

In its application to the employees of Indian Audit and Accounts Department this Office Memorandum issues in consultation with the Comptroller and Auditor General of India.

(MANOJ SAHAY)
DIRECTOR

Central Government Employees Group Insurance Scheme

A portion of monthly contributions paid while in service is credited in a Saving Fund, on which interest accrues. A Government servant while entering service has to apply in Form No. 4 of the above Scheme to the Head of Office, who shall issue a sanction for the payment of subscriber’s accumulation in the Savings Fund segment together with interest and arrange for its disbursement, soon after retirement. Payments under this Scheme are made in accordance with the Table of Benefit which takes in to account interest up to the date of cessation of service. Insurance cover benefit under this Scheme is available to the family in the event of death of the subscriber. No interest is payable on account of delayed payments under this Scheme.

central Government Employees Group Insurance Scheme, 1980 - Tables of Benefits for the Savings Fund for the period from 1.1.2009 to 31.12.2009.

Railway Ministry:

In continuation of this Ministry's letter No.PC-III/2000/GIS/2 dated 15.01.2008, a copy of O. M. No.7(2)/EV/2008 dated 22.12.2008 of the Ministry of Finance, Department of Expenditure on the above subject is forwarded herewith for information and necessary action.

Finance Ministry:

The undersigned is directed to r/efer to this Ministry's O.M. No.7{3)/EV/2oo7 dated 18th December, 2007 forwarding ther ewith Tables of Benefits under CGEGISfor the year 2008. New Tables of Benefits for the savings fund of the Scheme based on a subscription of Rs.I0 per month from 1.1.1982to 31.12.1989 and Rs.15 per month w.e.f. 1.1.1990 onwards have been prepared for the year 2009 and a copy of the table is enclosed. Another Table of Benefits for the savings fund based on a subscription of Rs.10 per month for those employees who has opted out of the revised rates of subscription w.eJ. 1.1.1990 have also been drawn up for the year 2009 and a copy of that table Is also enclosed. The amounts in the Tables have been worked out on the basis of interest @ 10% per annum(compounded quarterly) for the period from 1.1.1982 to 31.12.1982, 11% per annum(compounded quarterly) w.e.f. 1.1.1983 to 31.12.1986, 12%per annum(compounded quarterly) w.e.f. 1.1.1987 to 31.12.2000, 11% per annum (compounded quarterly) w.eJ. 1.1.2001 'co 31.12.2001, 9.5% per annum(compounded quarterly) w.eJ. 1.1.2002 to 31.12.2002, 9.0% per annum(compounded quarterly) w.e.f. 1.1.2003 to 31.12.2003 and 8% per :annum (compounded quarterly) w.eJ. 1.1.2004 onwards. The mortality rate under the Scheme has been taken as 3.75 per thousand per annum up to 31.12.1987 and 3.60 per thousand per annum thereafter in both the cases. While calculating the amount it has been assumed that the subscription has been recovered or will be recovered fr om the salary of the month in which a member ceases to be in service failing which it sh'Juld be deducted from accumulated amounts payable.

2. In its application to the employees of Indian Audit and Accounts Depa.rtment this Office Memorandum issues in consultation with the Comptroller and Auditor General of India.

CGEGIS

Retirement Benefits:- Central Government Employees Group Insurance Scheme The Scheme, Central Government Employees' Group Insurance Scheme (CGEGIS) came into force from 1st January,1982. This scheme provides for the Central Govt. employees the two fold benefit viz. (1) insurance cover to help their families and (2) lump sum payment to augment their resources on retirement. The scheme has two funds namely (1) Insurance Fund and (2) Savings Fund. A portion of the subscription is credited to Insurance Fund and the other portion to the Savings Fund in the ratio of 3:7. The Savings Fund will earn interest at the prescribed rate to be compounded quarterly. Eligibility (i) The scheme is compulsory for all regular employees including canteen employees. (ii) Employee joining service from Ist January of a year will be a member of the Scheme from the date of joining. (iii) Employee joining service on any other date will be entitled for insurance cover alone from the actual date of joining till the end of that year and will become full fledged member from the 1st January of the next year. (iv) Re-employed defence personnel shall not be admitted to this scheme until the expiry of extended insurance cover under the Group Insurance Scheme for Armed Forces. Subscription and Insurance Cover (i) Under the scheme monthly subscriptions are to be made by each group of employees to get the appropriate insurance cover as follows (a) For members as on 31.1.1989, who opted for the old scheme :

Group of Employees	Subscription per month (Rs.)	Amount of Insurance cover (Rs.)
A	80	80,000
B	40	40,000
C	20	20,000
D	10	10,000

(b) For members as on 31.1.1989 who opted for the new scheme and those joining on or after 1.2.1989 :

Employees	From date of joining to succeeding Ist January	From succeeding Ist January	Insurance cover (Rs.)
A	40	120	1,20,000
B	20	60	60,000
C	10	30	30,000
D	5	15	15,000

(ii) If an employee is promoted to a higher grade in between a calendar year, his subscription will be raised w.e.f. the following 1st January. (iii) If an employee is reverted to a lower grade, his subscription and insurance will not be changed. It will remain as applicable to the higher grade to which he belonged before reversion. (iv) Subscription for a month shall be recovered from the employee’s salary for that month. (v) Subscription shall be recovered even for the month in which the employee ceases to be in service on account of retirement, death, resignation, removal etc. from service, or is on leave or suspension. (vi) If subscription is not paid during any period of extraordinary leave, the arrears will be recovered with interest due under the Scheme, in maximum 3 instalments, from the month following the month in which employee returns for duty. If an employee dies while on extraordinary leave , the arrears will be recovered with compound interest @ 12% p.a. from the amount payable to the family under the scheme. (vii) If subscription is delayed due to delayed payment of salary, no interest will be charged. (viii) In exceptional circumstances, when employee cannot subscribe to CGEGIS, he can make non-refundable withdrawal from his PF account and pay the subscription. (ix) 30% of the subscription will go to Insurance Fund and the balance 70% will go to Savings Funds. Fifth Pay Commission has recommended to revise the proportion to 25% and 75% provisionally and review the same based on mortality rates. Interest on Savings Fund Interest will be paid on the balance in the Savings Fund at prescribed rates, compounded quarterly. Benefits under the Scheme (i) On Resignation/Retirement :- Amount of subscription credited to the Savings Fund alongwith interest thereon will be paid to the employee. (ii) On Death : Amount of insurance cover of the group to which he belongs on the date of death and the accumulation in Savings Fund will be paid to his nominee/heirs. (iii) If an employee dies before he was enrolled as a member (i.e. between the date of his joining service and the following Ist January), only the insurance amount will be paid to the nominee/heirs. (iv) Assignment of Insurance Cover and Savings Fund for obtaining loans : An employee can assign the insurance cover and accumulation in the savings fund to a recognised financial institution, for obtaining housing loans. However, no loans/advance or withdrawals are permitted from Insurance Fund/Savings Fund. (v) The amount of subscription is eligible for Income Tax Rebate u/s 88 of IT Act. Mode of Payment (i) The payment under the scheme shall be made to the employee in case of retirement, or quitting service otherwise. (ii) In case of employee's death, the amount shall be paid to : (a) if there is a valid nomination, to the nominee(s) in the manner prescribed. (b) if there is no valid nomination, as per valid nomination for GPF. (c) if there is no valid nomination for PF also, then in equal shares to widow(s)/minor sons and unmarried daughters. When none of these are alive, then to other members of the family in equal shares. (d) if neither any valid nomination is there, nor any member of the family is alive then to legal heirs on furnishing the succession certificate. (iii) When the whereabouts of an employee are not known : (a) Savings Fund accumulation will be paid to the nominees/members of the family/legal heirs after one year following the month of disappearance on furnishing a police report that employee is not traceable in spite of all efforts and an Indemnity Bond. (b) The insurance amount will be paid after 7 years of the disappearance on production of decree of presumed death of the employee. (c) Full subscription for the first year and reduced subscription for the insurance premium alone for the next 6 years will be recovered from the amount payable. Other Conditions : (a) The amount due to the minor can be paid to mother as natural guardian without any certificate in the case of non-Muslims and with guardianship certificate in the case of Muslims. (b) If any person eligible for share of benefits is charged with murder or abetting murder of the employee, his claim will be suspended. If he is convicted he will be debarred from receiving any share, if he is acquitted his share will be paid without any interest. (c) Any dues to the government cannot be recovered from amount payable under the scheme.