Clarifications on settlement of severance amount to all discharged/promoted/resigned / voluntarily retired and expired GDS - Reg.
Tuesday, December 08, 2015
Office of the General Manager, Postal Accounts & Finance
Tamilnadu Circle, Chennai-600 008
No. /SDBS/Genl. Dt.7.12.2015
The Senior Supdt./Supdt. Of Post offices, RMS & Airmail sorting Divisions,
Sub: Clarifications on settlement of severance amount to all discharged/promoted/resigned / voluntarily retired and expired GDS-Reg.
Ref : This office letter No.3527 to 3576/SDBS/Genl. Dt.26.11.2015
Following this office letter referred to above, some of the Divisions have raised doubts on some of the key issues over phone . In order to clear some more doubts that may arise in settlement of severance amount to all exit cases in SDBS ,the following clarifications are issued for the guidance of all Divisional Heads and DDOs.
Divisions have to issue sanctions for settlement of severance amount accrued against the discharged/ promoted/ resigned/voluntarily retired/ expired GDS and instruct the DDOs to draw NIL bills.
How the amount is proposed to be paid to the concerned GDS?
a) On submission of Nil bills by the DDOs for severance amount,the amount shall be uploaded into the CRA system against PRANs of respective GDS.
b) The funds for such uploads shall be remitted to the Trustee bank by this office as being followed in monthly contribution uploads.
c) All claim forms submitted (in Form-501,502 and 503 ) along with the KYC documents by the GDS through the NL-CCs shall be forwarded to the NSDL for further processing.
d) On getting the approval from the NPS trust, the Trustee bank shall transfer the entitled amount to the subscriber’s bank accounts after apportioning the amount for investments in annuities as per the rules extant.
Hence ,No direct cash payment should be made by the DDOs under any circumstance
How the sanctions proposed to be issued by the Divisions should be?
Sanctions proposed to be issued by the Divisional Heads for settlement of severance for SDBS subscribers is unique in way that while all other payments sanctions would normally read as “ sanction is accorded for the payment of …………” followed with cash payments where as the proposed sanction for severance amount shall read as “ sanction is accorded for drawal of Nil bill for the following GDS …………” and does not involve any cash payment by the DDO.
In addition, the proposed sanction for settlement of severance amount for GDS enrolled under SDBS would have an explicit alert to the DDOs as “No cash payment should be made from this sanction” besides stating that “No severance amount has been authorised /paid for those GDS so far” to whom the sanction is being issued.
For settling the severance amount as per severance amount, sanctions are being issued by the Divisions quoting the relevant ruling provisions.
What ruling provisions have to be quoted in the proposed sanctions for settlement of severance amount to the GDS enrolled under SDBS on their exit?
All decisions on SDBS are arrived only on the basis of the Directorate orders No.6-11/ 2009-PE.II dated 1.4.2011.
Severance amount accrued upto 31.3.2011 for the GDS enrolled under SDBS who were subsequently promoted should be settled as per Para- 5 of the Directorate orders ibid while the same has to be settled to all other exit cases as per Para-27 (b) of the Directorate orders ibid .
Is it enough to submit severance amount calculation sheets only for those GDS whose claim papers have already been sent to the GM’s office?
Severance amount calculation sheets should be submitted for all exit cases as two lists one for those exit cases from 1.4.2011 to 30.11.2015 and another list for those GDS who are going to be discharged from 1.12.2015 to 31.3.2016 without any linkage to the submission of claim forms by the GDS .
Hence all Divisional Heads should issue sanctions for all exit cases without waiting for the submission of claim forms by the GDS.
It was instructed to issue sanctions and prepare Nil bills 3 months in advance before the actual discharge of the GDS. Does this 3 months mean
3 calendar months or 3 months before the actual date of discharge
It may be reckoned as 3 months before the actual date of discharge.
Since the CRA system does not accept any upload after the date of discharge of the GDS, the Directorate has arranged for one time acceptance of severance uploads against all past discharged GDS besides instructing to stop drawal and upload of contributions for the last three months preceding the date of discharge, the Divisional Heads are advised to initiate the proceedings to issue sanctions much before that so as the DDOs draw Nil bill and submit to this office 3 months in advance before the date of discharge of the GDS.
The modalities for the payment of the amount equivalent to the Govt. contributions for the last 3 months preceding the date of discharge shall be intimated on receipt of further orders from the Directorate in this regard.
Are the promoted/Resigned/ voluntarily retired/nominees of expired GDS who have completed only 10 years of service or less eligible for severance amount?
As per para- 3 (a) (iv) (1) and (iv) (2) of the Directorate orders No.6-11/ 2009-PE.II dated 1.4.2011,severance amount has to be calculated for every completed year and month from the date of commencement of continuous of regular engagement till the time of enrolment under SDBS that is upto 31.3.2011 or 30.9.2013 depending upon the date of enrolment of the GDS under SDBS.
The minimum/ maximum ceiling limit of time/ amount applicable for the severance amount scheme cannot be extended for SDBS.
Hence all GDS enrolled under SDBS who have been promoted/resigned/voluntarily retired/expired after 1.4.2011 are entitled for severance amount in proportion to the completed period of service as per the extant orders.
How to calculate the severance amount from 1.4.2011 onwards?
It may be noted that SDBS is a replacement scheme for the existing severance amount scheme and drawal and upload of monthly Govt .contributions is equivalent to the payment of severance amount to the GDS on a month to month basis.
All GDS who have been regularly appointed and enrolled under SDBS on 1.4.2011( on completion 1 year of regular service ) are eligible for severance amount upto 31.3.2011 only.
Those GDS who were regularly appointed before 1.1.2011 ,who have not opted for enrolment on 1.4.2011 but opted later for enrolment from 1.10.2013 under SDBS following one more opportunity given by the Department are eligible for severance amount upto 30.9.2013 only.
Those GDS who were regularly appointed on or after 1.1.2011 are not eligible for any severance amount.
Whether the names of those GDS who are put-off duty now can be included in the severance amount calculation sheets in case their date of discharge is nearing in three months ?
Yes, the names of those GDS who are put-off duty now can be included in the severance amount calculation sheets in case their date of discharge is nearing in three months .
In case an administrative decision is taken to remove such GDS, the entire accumulations in SDBS PRAs including severance amount can be refunded into the Govt. account.
Action may be taken to speed up the administrative decision on such pending put-off duty cases under intimation to this office.
Are the removed GDS eligible for any severance amount? and can the names of such removed GDS also be included in the sanction ?
No. The removed GDS are not eligible for any severance amount. The names of such removed GDS should not be included in the sanction.
The list of removed GDS has been called for by this office so as to deactivate their PRANs after getting the refund of entire accumulations in their SDBS PRAs .
Senior Accounts Officer
No. /SDBS/Genl. Dt. 7.12.2015
1. The Chief Postmasters/Senior Postmasters/Postmasters and Head Record officers ,Tamilnadu circle for information and guidance.
2. The Senior Accounts Officer (Budget) O/O The Chief Postmaster Postmaster General , Tamilnadu circle,Chennai-600 002 .
3. The Senior Accounts Officers, O/O Postmasters General ,Chennai City,Central,Southern and Western Regions for information.
Senior Accounts Officer
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