Ratio of CGEGIS Savings Fund to Insurance Fund be modified from the present 70:30 to 75:25

Ratio of CGEGIS Savings Fund to Insurance Fund be modified from the present 70:30 to 75:25 – Action Taken Report on recommendation of DRPSC

PARLIAMENT OF INDIA
RAJYA SABHA
DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON
PERSONNEL, PUBLIC GRIEVANCES, LAW AND JUSTICE
Rajya Sabha Secretariat, New Delhi
December, 2022 / Agrahayana, 1944 (Saka)

ONE HUNDRED TWENTIETH REPORT
ON
ACTION TAKEN ON ONE HUNDRED TENTH REPORT OF THE COMMITTEE ON
“PENSIONER’S GRIEVANCES – IMPACT OF PENSION ADALATS AND CENTRALIZED
PENSION GRIEVANCES REDRESS AND MONITORING SYSTEM (CPENGRAMS)”
PERTAINING TO
THE DEPARTMENT OF PENSION & PENSIONERS’ WELFARE
(MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS)

(Presented to the Rajya Sabha on 8th December, 2022)
(Laid on the Table of the Lok Sabha on 8th December, 2022)

Ratio of CGEGIS Savings Fund to Insurance Fund be modified from the present 70:30 to 75:25

RECOMMENDATIONS/OBSERVATIONS WHICH THE COMMITTEE DOES NOT DESIRE TO PURSUE IN VIEW OF THE REPLIES GIVEN BY THE MINISTRY

GRIEVANCES PERTAINING TO PENSION POLICY, PENSION STRUCTURE AND OTHER RETIREMENT BENEFITS

Recommendation/Observation

The Committee takes note of the fact that India has been undergoing rapid demographic changes over the last three decades. The mortality and morbidity rates have also changed remarkably. The Committee also notes that the ‘Table of Benefits’ published by the Ministry of Finance is based on the mortality rate of 3.75 per thousand per annum upto 31.12.1987 and 3.60 per thousand per annum thereafter. Therefore, the Committee is of the opinion that there is a need to review the current mortality rate and accordingly revise the apportionment between the Savings and Insurance funds. The Committee agrees with the observation made by the Seventh Central Pay Commission in this regard and recommends that the ratio of Savings Fund to Insurance Fund be modified from the present 70:30 to 75:25 at the earliest. (3.4)

Action Taken

2.4 Reference has been made to Department of Expenditure vide OM dated 21 December 2021.

Further observation

2.5 The Committee takes note of the reply. The DPPW is expected to pursue the matter actively with the Department of Expenditure.

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Source: Rajya Sabha