Centralised pension system to be introduced in MP

Bhopal, May 31 (UNI) The Madhya Pradesh Government today decided to introduce central pension system in the state with the objective to ensuring proper maintenance of pension accounts of government employees.

The decision was taken at the state cabinet meeting chaired by Chief Minister Shivraj Singh Chouhan here today.

For this, the Directorate of Pension would be declared as the Central Pension Treasury and its office would be upgraded.

The Pension Fund Regulatory Depository Authority (PFRDA) has appointed the National Security Depository Limited (NSDL) as central record keeping agency. The government would also appoint the National Security Depository Limited as Central Record Keeping Agency, an official release said here today.

Likewise, the PFRDA has appointed the SBI Pension Fund Limited, UTI Retirement Solution Limited and LIC Pension Fund Limited as its Pension Fund manager. The state government would appoint these institutions as Pension Fund Manager.

Similarly, the government would make the Bank of India as trustee bank and the Stock Holding Corporation of India as custodian. Since January 1, 2005, till date deductions and government contributions of the employees are deposited in Major Head 8342117 (01) and (02).

For calculation of the deposited amount and interest, the amount would have to be paid after appointment of fund manager. The finance department has been authorised to make available this amount to the fund manager drawing the amount from this head.

After introduction of the centralized pension system, contribution equal to the contribution of employees would be deposited with the Directorate of Pension for which required budget would be provided to it.

The new system would help maintain proper account of the pension dues and check possible overpayment to the pensioners.

The cabinet accorded sanction for payment of five per cent DA to government employees from June 2008 and six percent DA from July 1, 2008 and pension relief to pensioners at the sate rate.

With this the rate of DA payable to the government employees and dearness relief to the pensioners would be 41 per cent from June 1, 2008 and 47 per cent from July 1, 2008 47 per cent. This benefit would also be given to the Teachers Cadre constituted by the state government from April 2007.

The payment of DA and dearness relief would entail an additional financial burden of Rs 698.82 crore annually on the government, the release added.

UNI PS 2002