Other States - Madhya Pradesh   

M.P. Govt. to introduce Central pension scheme

Bhopal: Madhya Pradesh Government has decided to introduce Central pension scheme in the State by declaring the existing Directorate of Pensions as Central Pension Treasury. The decision in this regard was taken by the State Cabinet chaired by Chief Minister Shivraj Singh Chouhan on Saturday, an official release said.

The Cabinet has decided to declare the existing Directorate of Pension as the Central Pension Treasury and would soon upgrade its associate offices.

Hardware and software required for the purpose would be outsourced, it said.

The Pension Fund Regulatory Depository Authority (PFRDA) has appointed the National Security Depository Limited (NSDL) as Central Record Keeping Agency and the State Government would appoint the NSDL as Central Record Keeping Agency in this regard. The PFRDA has appointed the SBI Pension Fund Limited, UTI Retirement Solution Limited and LIC Pension Fund Limited as Pension Fund Manager.

Similarly, the State Government would make Bank of India as trustee bank and Stock Holding Corporation of India as its custodian.

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

Besides, the Cabinet also accorded sanction for payment of five per cent Dearness Allowance (DA) to the State Government employees from June 2008 and six per cent DA from July 1, 2008 and the pension relief to the pensioners at the same 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.

This benefit would also be given to the Teacher 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. -- PTI

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

M.P. Govt. to introduce Central pension scheme
Bus falls into culvert, two killed

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu