TN Govt Pensioners’ Family Security Fund Scheme – Enhancement of Pensioners contribution

Tamil Nadu Government Pensioners’ Family Security Fund Scheme – Enhancement of Pensioners contribution: G.O.Ms.No.164 dated 07.07.2021

FINANCE [Pension] DEPARTMENT
G.O.Ms.No.164, Dated 07th July 2021.
(Pilava, Aani -23, Thiruvalluvar Aandu-2052)

ABSTRACT

Pension – Tamil Nadu Government Pensioners’ Family Security Fund Scheme – Enhancement of Pensioners contribution – Orders – Issued.

Read the following:-

1. G.O.Ms.No.762, Finance (Pension) Department, dated 31-12-1996.
2. G.O.Ms.No.315, Finance (Pension) Department, dated 12-06-1997.
3. G.O.Ms.No.639, Finance (Pension) Department, dated 26-12-1997.
4. G.O.Ms.No.167, Finance (Pension) Department, dated 26-04-1999.
5. G.O.Ms.No.242, Finance (PGC) Department, dated 30.05.2000.
6. G.O.Ms.No.413, Finance (PGC) Department, dated 17.10.2001.
7. G.O.Ms.No.189, Finance (Pension) Department, dated 07.06.2013.
8. From the Director of Pension Letter Rc.No.1899/F1/2020, dated 04.05.2021.

-oOo-

ORDER:

In the Government Order first read above, as amended in Government order second read above, orders have been issued implementing the Tamil Nadu Government Pensioners’ Family Security Fund Scheme in respect of State Government pensioners including Teacher pensioners and the pensioners of All India Services belonging to the Tamil Nadu Cadre with effect from 01.01.1997. In the Government order third read above, orders have been issued prescribing the procedure for the recovery of pensioners contribution and the payment of lumpsum amount to the Tamil Nadu Government pensioners including Teacher pensioners and the pensioners of All India Services belonging to the Tamil Nadu Cadre who are drawing pension from the Treasuries / Sub-Treasuries and under the Public Sector Bank Scheme outside the State. According to the scheme, the contribution of Rs.20/- per month was deducted from the pension towards the Tamil Nadu Government Pensioners’ Family Security Fund Scheme till their death. In the case of death of the pensioners, after contributing for one year to the fund, a sum of Rs.25,000/- was paid to his spouse and if the spouse is not alive, the amount was paid to the nominee if specific nomination is filed with the pension disbursing officer failing which to all the legal heirs in the equal share. This is a self supporting scheme run on the contribution given by the pensioners.

2. As the inflow to the fund was not sufficient to meet the outflow, the contribution was increased from Rs.20/- per month to Rs.40/- per month with effect from 01.04.1999 in the Government Order fourth read above and again the contribution was increased from Rs.40/- per month to Rs.50/- per month with effect from June, 2000 in the Government Order fifth read above.

3. Subsequently, in the Government Order sixth read above, the contribution was increased from Rs.50/- per month to Rs.70/- per month with effect from 01.11.2001 and this contribution was not enhanced eventhough the Family Security Fund amount was increased from Rs.25,000/- to Rs.35,000/- w.e.f. 01.06.2012 and later the contribution was increased marginally from Rs.70/- per month to Rs.80/- per month with effect from 07.06.2013 in the Government Order seventh read above when the Family Security Fund amount was increased from Rs.35,000/- to Rs.50,000/-.

4. In the letter eighth read above, the Director of Pension, has stated that there are a large number of claims pending for settlement in Family Security Fund as on date due to insufficient fund provisions. He has pointed out that though the Tamil Nadu Government Pensioners’ Family Security Fund Scheme is a self-supporting scheme, the subscription amount collected from the pensioners is not sufficient to settle the Family Security Fund claims on time and therefore the spouse / nominees of the Pensioners are urging for early settlement. He has therefore requested the Government to enhance the subscription collected from the pensioners suitably to settle the claims without delay.

5. The Government have examined the proposal of Director of Pension in the light of the fact that, the annual receipt is about Rs.43.00 crore, while the outgo given the average annual claims of 15,500 will be around Rs.77.50 crore annually. Hence, the annual deficit of accrual into the fund is about Rs.35.00 crore and clearly not sustainable on the basis of the contribution made by the Pensioners and therefore it is considered imperative to enhance the contribution from the Pensioners suitably. Accordingly, Government direct that the Pensioners contribution towards Tamil Nadu Government Pensioners’ Family Security Fund Scheme shall be enhanced from Rs.80/- per month to Rs.150/- per month to run the scheme effectively for making payments of the claims without any backlog.

6. There shall be no change in the existing rules and regulations governing the sanction of assistance under Tamil Nadu Government Pensioners’ Family Security Fund Scheme.

7. This order shall take effect from 01.07.2021.

(BY ORDER OF THE GOVERNOR)
S.KRISHNAN
ADDITIONAL CHIEF SECRETARY TO GOVERNMENT

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