Promotional and Incentive Structure of PLI / RPLI - Clarification in respect of sales force

Latest Central Government Employees News

F.No: 28-03/2019-L1(3)Government of India
Ministry of Communications
Department of Posts
(Directorate of Postal Life Insurance)

Chanakyapuri P.O Complex,
New Delhi-110021
Dated 31.08.2020

Sub: Promotional and Incentive Structure of PLI / RPLI - Clarification in respect of sales force - reg

This is regarding the promotional and incentive structure of PLI/RPLI, circulated vide PLI Directorate OM No. 28-03/2019-LI dated 19.06.2020 and implemented in Circles w.e.f. 01.07.2020.

2. In this connection, the following is clarified in respect of sales force procuring, PLI/ RPLI business:

Also check: Revision of acceptance limits for PLI RPLI plans & claims resolution – DoP

Sl. No.	Issue	Clarification
(i)	Order of preference in payment of incentive to sales force of PLI/RPLI.	Direct Agents are not Departmental Employees and majority of them are dependent on incentive for their livelihood. Therefore, there is a need to nurture and handhold Direct Agents by way of giving priority to them in incentive payment. Accordingly, the following order of preference shall be followed by Circles while making payment of incentive to sales force of PLI/RPLI: (i) Direct Agents (ii) Gramin Dak Sevaks (iii) Field Officers (iv) Departmental Employees
(ii)	Nomination facility for sales force of PLI/RPLI.	(i) Nomination facility may be provided to sales force of PLI/RPLI. In the event of unfortunate death of a sales force, incentive will be paid to the nominee of that sales force for the PLI/RPLI business procured by that sales force for the period she/he was alive. (ii) Further, if the nominee of the deceased sales force wants to procure PLI/RPLI business, she/he may apply for fresh direct agency licence. If found suitable, the concerned Division may issue fresh licence to her/him. Procurement/renewal incentive shall be paid only for the business procured by her/him subsequent to the issue of fresh licence.
(iii)	Abolition of group agency system of  incentive	(i) Earlier, Group Leader was paid group incentive @ 7 % of the total procurement and renewal incentive payable to sales force under his jurisdiction. Resultantly, out of the total incentive on a PLI policy, the sales force used to get only 93% of the incentive and the remaining 7% used to be payable to the Group Leader. (ii) In the new incentive structure, the group incentive structure has been abolished and done away with. (iii) As a result, sales force of PLI and RPLI will get 100% of procurement and renewal incentive payable on PLI/RPLI policies as per prescribed rates effective from 01.07.2020. (iv) In the new structure, Development Officer will be paid procurement incentive @ 1 % of total PLI/RPLI new business premium procured by Direct Agents attached to that Development Officer. The incentive payable to Development Officer will be over, and above the incentive payable to Direct Agents working under her/him.
(iv)	Procurement of business by family members of Development Officer.	In order to avoid conflict of interest, members of family of business by family of Development Officer are not allowed to procure PLI/RPLI business and claim incentive. Members of the family for this purpose would include the following: (a) The spouse, but not including a separated spouse or one living separately while judicial separation proceedings are on; (b) Children and stepchildren but not including children and stepchildren of whose custody the serving postal employee has been deprived by law; (c) Other persons such as wards and parents, who are dependent on and live with the Development Officer.
(v)	Rate of incentive payable on PLI/RPLI policies.	Incentive payable on PLI/RPLI policies is being explained with the help of following illustration:For a PLI policy procured on 1st November 2009, the procurement and renewal incentive payable on this policy is detailed as under: (i) 01.11.2009 to 31.10,2010 (First Year Premium): PLI Procurement Incentive during this period will be paid as per the procurement incentive rate applicable during that period. (ii) 91.11.2010 to 30.06.2020:Renewal Incentive during this period will be paid as per the renewal incentive rate applicable during that period. (iii) 91.07.2020 onwards: Renewal Incentive from 01.07.2020 onwards will be paid @ 1% of renewal premium.

3. This issues with approval of the competent authority.

Special increment to Central Government Servants for participation in sporting of national or international

7th CPC

Special increment to Central Government Servants for participation in sporting of national or international

[Part of the Minutes of the 47th Meeting of National Council (JCM) held on 13th April, 2019 issued by DoPT vide OM No. 3/1/2019-JCA dated 13.06.2019]

6.4 DoPT

6.4.14 Item No.29/19 /NC-47 - Revision of Sports increment
Staff Sided stated that in order to encourage sports activities, every department has been permitted to recruit sports personnel and maintain teams at the Government cost. However, presently practice of providing incentive to sports personnel varies from department to department as there are no uniform guidelines. It is necessary that some general guidelines must be issued in this regard.

Reply of the Official Side :
DoPT has issued guidelines from time to time on the issue of special increment in the form of personal pay to Central Government Servants for participation in sporting events and tournaments of national or international importance. Vide OM dated 11.06.2018, DoPT has revised the rates of these increments in the context of the 7th CPC applicable to all the Central Government Civilian Employees and posts.

This item may be treated as closed.

Cabinet approves enhancement of Honorarium to Anganwadi Workers (AWWs)

Cabinet Committee on Economic Affairs (CCEA)
 

Cabinet approves enhancement of Honorarium to Anganwadi Workers (AWWs) and Anganwadi Helpers (AWHs) and Performance Linked Incentive to AWHs Under Anganwadi Services (Umbrella ICDS Scheme)

19 SEP 2018

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has approved enhancement of honorarium to Anganwadi Workers/Anganwadi Helpers
(AWWs/AWHs)and performance linked incentive to AWHs [Umbrella Integrated Child Development Services (ICDS) Scheme] with a total cost of Rs. 10,649.41 crore (GoI Share) for the period from 01.10.2018 to 31.03.2020.

Nearly 27 lakh AWWs/AWHs will be benefitted by the approval. Anganwadi Services (Umbrella ICDS) is a universal scheme and beneficiaries are spread all over the country at AWC/village level.

Details:
The proposals approved consist of the following:

Name of Functionary	Old Rates p.m.	Revised Rates p.m.
Anganwadi Worker	Rs.3,000/-	Rs.4,500/-
Anganwadi Worker at Mini-AWC	Rs.2,250/-	Rs.3,500/-
Anganwadi Helper	Rs.1,500/-	Rs.2,250/-  (*)

(*) In addition, monthly performance linked incentive of Rs.250/- has also been approved for Anganwadi Helpers for facilitating proper functioning of Anganwadi Centres (AWCs).
The enhanced rate of honorarium and performance linked incentive would be effective from 1st October, 2018.

Impact:
The programme through targeted interventions will strive to reduce the level of malnutrition, anaemia and low birth weight babies, ensure empowerment of adolescent girls, provide protection to the children who are in conflict with law, provide safe place for day-care to children of working mothers, create synergy, ensure better monitoring, issue negative alerts for timely action, encourage States/UTs to perform, guide and supervise line Ministries and States/UTs to achieve the targeted goals and bring more transparency.

Financial Implications:
The details of expenditure for the period from 1st October, 2018 to 31st March 2020 for payment of honorarium to AWWs/AWHs and performance linked incentives to AWHs are as under:

(Rupees in crore)

Name of the Components	2018-19(6 months)	2019-20	Total
Honorarium to AWWs	2182.63	4365.27	6547.90
Honorarium to Mini-AWWs	154.60	309.19	463.79
Honorarium to AWHs	1212.57	2425.15	3637.72
Total	3549.8	7099.61	10649.41

Background:
Anganwadi Services (ICDS) aims at holistic development of children under the age of six years and its beneficiaries are children of this age group and Pregnant Women & Lactating Mothers.The rate of honorarium paid to the Anganwadi Workers and Anganwadi Helpers was last revised in the year 2011. Since then the cost of living has increased and the cost norms for the administration of Supplementary Nutrition have also been revised recently in the year 2017.

PIB

Cabinet approves Productivity Linked Bonus for Railway Employees Payment before Dussehra/Puja Festival season Incentive to Improve Productivity and Efficiency of Railways

Cabinet approves Productivity Linked Bonus for Railway Employees Payment before Dussehra/Puja Festival season Incentive to Improve Productivity and Efficiency of Railways

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to pay Productivity Linked Bonus (PLB) equivalent to 78 days wages to eligible non-gazetted railway employees (excluding RPF/RPSF personnel) for the financial year 2016-17. About 12.30 lakh non-gazetted Railway employees are likely to benefit from the decision. This payment will be made before Dussehra/Puja holidays, bringing a smile to lakhs of families ahead of the festive season.

The payment of PLB would serve as an incentive, and result in motivating a large number of Railway employees, particularly those involved in execution and operations of railways, to improve their productivity and ensure safety, speed and service for Railway customers. Indian Railways operates on the principle of maximum public welfare, and in this context, this bonus payment will help in improving accountability and efficiency in railways operations.

The financial implication of payment of 78 days' PLB to railway employees has been estimated to be Rs. 2,245.45 crores. The wage calculation ceiling prescribed for payment of PLB is Rs. 7,000/- p.m. The maximum amount payable per eligible railway employee is Rs. 17,951 for 78 days.

PIB

Relaxation from payment of Service Charge in internet booking of Railway tickets through IRCTC

Relaxation from payment of Service Charge in internet booking of Railway tickets through IRCTC

Ministry of Railways has decided that in order to help passengers and incentivise the payment through credit/debit/cash cards instead of cash payment for booking of reserved tickets, Service Charge shall not be collected on booking of e-tickets/ i-tickets from 23rd November to 31st December, 2016.

Service Charge is Rs. 20 on sleeper/ 2nd Class and Rs. 40 on AC classes for booking through IRCTC.

PIB

Payment of Overtime, Piece Work Earning & Incentive Bonus on Implementation of instructions of 7th CPC recommendations:BPMS

Payment of Overtime, Piece Work Earning & Incentive Bonus on Implementation of instructions of 7th CPC recommendations:BPMS

BHARTIYA PRATIRAKSHA MAZDOOR SANGH

Ref: BPMS /OFB / OTA / 43 A (7/2/R)
Dated: 30.07.2016

To,
The DGOF & Chairman,
Ordnance Factory Board,
10-A, S. K. Bose Road,
Kolkata – 700001

Kind Attention: (Shri S K Singh, Director/IR, OFB)

Subject: Payment of Overtime, Piece Work Earning & Incentive Bonus on Implementation of instructions of 7th CPC recommendations regarding.

Respected Sir,
With due regards, I would like to invite your kind attention to the Section 59 of Factories Act, 1948, which states that a worker shall be entitled to wages at the rate of twice of his ordinary rate of wages, in respect of Overtime work and as per Sub Section (2) of Section 59 the ‘ordinary rate of wages’ means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional rate to workers of food grains and other articles, as the worker is for the time being entitled to but does not include a bonus and wages for overtime work.

Now, Govt of India, Min of Finance (Department of Expenditure) has passed & adopted the Resolution (No. 1-2/2016-IC, Dated 25.07.2016) regarding 07th CPC recommendations on revised pay structure with effect from 01.01.2016.

Hence, all the industrial & non-industrial employees of Ordnance & Ordnance Equipment Factories, who are deputed on overtime, have become eligible for payment of overtime allowance on the revised pay under the CCS (Revised Pay) Rules, 2016 in compliance of statutory order of Section 59 of the Factories Act, 1948.
It is worth to mention here that regarding fixation of pay and payment of arrears, instructions have been issued vide Implementation Cell, 7th CPC O.M. No. 1-5/2016-IC, Dated 29.07.2016.

Therefore, you are requested to issue necessary directives for the payment of overtime allowance on the revised pay of 7th CPC and also to co-relate the piece work & incentive accordingly.

Thanking you

Sincerely Yours

(M P SINGH)
General Secretary

Source: http://bpms.org.in/documents/overtime-revision-mqvg.pdf

Report of the committee to decide reassessment of CVO positions in CPSEs and other organizations under Ministries/Departments and rationalization of pay, incentive, allowances etc. of CVOs

Report of the committee to decide reassessment of CVO positions in CPSEs and other organizations under Ministries/Departments and rationalization of pay, incentive, allowances etc. of CVOs.

Most Immediate Out Today

F.No.325/10/2015-AVD-III
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

North Block, New Delhi
Dated the 21st June, 2016

MEETING NOTICE

Subject: Report of the committee to decide reassessment of CVO positions in CPSEs and other organizations under Ministries/Departments and rationalization of pay, incentive, allowances etc. of CVOs.

The undersigned is directed to refer to this Department’s O.M. of even number dated 10.12.2015 & 10.06.2016 on the above subject, wherein comments were sought from concerned Ministries/Departments on the report of the committee chaired by AS(S&V), DoPT, for reassessment of CVO positions in CPSEs and other organizations under Ministries/Departments and rationalization of pay, incentive, allowances of CVOs in CPSEs etc. However, no comments have been received, so far, till date. It is, therefore, once again requested to furnish the same at the earliest, latest by 22.06.2016 positively.

2. As the matter is being reviewed at higher level, a meeting has also been scheduled to be held at 10.30 a.m. on 23.06.2016 in the conference Room No. 190 of DoPT, North Block, New Delhi under the Chairmanship of Shri Devesh Chaturvedi, Joint Secretary, DoPT to discuss & finalize the matter.

3. It is, therefore, requested to depute an officer at the level of JS/Director, who is well conversant with the subject matter, alongwith the required input, if not already furnished, for the said meeting on the scheduled date & time.

(Gayatri Mishra)
Director (AVD-III)
Tel. No. 23092755

Download signed copy here

Report of the committee to decide reassessment of CVO positions in CPSEs and other organizations under different Ministries/Departments and rationalization of pay, incentive, allowances etc. of CVOs

F.No.325/10/2015-AVD-III
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

North Block, New Delhi
Dated the 10 June, 2016

OFFICE MEMORANDUM

Subject: Report of the committee to decide reassessment of CVO positions in CPSEs and other organizations under different Ministries/Departments and rationalization of pay, incentive, allowances etc. of CVOs.

The undersigned is directed to refer to this Department’s O.M. of even number dated 10thDecember, 2015 whereas a report of the committee chaired by AS(S&V), DoPT, for reassessment of CVO positions in CPSEs and other organizations under different Ministries/Departments and rationalization of pay, incentive, allowances etc. of CVOs, was sent to 33 Ministries/Departments with the request to furnish comments, if any positively by 23rd December, 2015. It was also mentioned that if no comments are received within the prescribe time it will be presumed that Ministries/Departments have nothing to say in the matter. However, comments were received only from 16 Ministries/Departments till date. 17 Ministries/Departments have not furnished any comments.

2. All 17 remaining Ministries/Departments are once again requested to furnish their comments, if any in this matter positively by 20th June, 2016. If no comments are received within the prescribe time it will be presumed that Ministries/Departments have nothing to say in the matter and DoPT will finalize the same.

(Sarita Nair)
Under Secretary to the Government of India
Tel. No. 23094541

 DoPT Circular

PFRDA Order: Incentive for mobilization and registration of subscribers under Atal Pension Yojana

PFRDA Order: Incentive for mobilization and registration of subscribers under Atal Pension Yojana

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

1st Floor, ICADR Building, Plot No. 6.

Vasant Kunj Institutional Area,

Phase – II, New Delhi – 110070

No. PFRDAIAPY/4/62

19th May, 2015

To,
All Banks under APY
Sir,

Subject: Incentive for mobilization and registration of subscribers under Atal Pension Yojana.

I am directed to say that incentive structure for Banks to mobilize and register subscriber under Atal Pension Yojana has been under the consideration of PFRDA.

2. In consultation with the Department of Financial Services, Ministry of Finance, it has been decided that for mobilizing each account the Banks will be paid an incentive as per the table below:
i. Per capita incentive at Rs 100
ii. Incentive payable for promotion and development of APY:

S no	Number of subscribers under APY with each Bank	Incentive for promotional efforts (only for new accounts opened during the year)
1	Less than 1 lakh	Rs 20/-
2	More than 1 lakh upto 3 lakh	Rs 30/-
3	More than 3 lakh upto 5 lakh	Rs 40/-
4	More than 5 lakh	Rs 50/-

As Banks are expected to engage the Banking Correspondents (BCs) / Micro Finance Institutions (MFIs) / Non-bank aggregators to mobilize the subscribers, they can Share the incentives with such BCs / MFIs / Non-bank aggregators etc. in the ratio 50:50 :: Banks : BCs/MFIs/ Non-bank aggregators.

 

3. Banks are advised to contact aggregators for shifting of existing eligible Swavalamban subscribers to APY as per the scheme.

 

4. Payment of incentives to banks each year will be made after the completion of the financial year on receipt of funds from the government.

Yours sincerely,

(Purnima Sharma)

Dy. General Manager

Source: http://pfrda.org.in/WriteReadData/Links/Incentive%20Structure%20for%20APY5c598c21-5021-481a-8866-16213d2d1343.pdf

Grant of incentive for acquiring higher qualifications

Grant of incentive for acquiring higher qualifications

No.1/3/2008-Estt.(Pay-I)(Vol.II)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training

North Block, New Delhi
Dated the 7th April, 2015

OFFICE MEMORANDUM

Sub: Grant of incentive for acquiring higher qualifications – Inclusion of additional qualifications / Review of the qualifications listed in the Annexure to this Department’s OM No.1/2/89-Estt.(Pay-I) dated 9/4/1999 – reg

The undersigned is directed to refer to this Department’s OM of even number dated 28.4.2009 and subsequent reminders of even number dated 11.8.2009, 20.8.2009, 30.10.2009, 7.1.2010 and 22.11.2013 calling for suggestions regarding addition / deletion of qualifications listed in the Annexure to this Department’s OM dated 9.4.1999.

2. Only few Ministries / Departments have sent in their suggestions on the subject.

The meeting of the Centralized Committee for considering the inclusion of new qualifications for grant of lump sum incentives is going to be held shortly.

3. All the Ministries / Departments are once again requested to furnish their suggestions to this Department latest by 10th April, 2015, This may please be accorded priority.

(A K. Jain)
Deputy Secretary to the Government of India
Tel.: 2309 3178

To
1. All the Secretaries to the Government of India
2. NIC, DoP&T, with a request to upload this OM on the Department’s website under “What is new”

DOPT ORDER

EPFO Pension Scheme: Age Limit May Be Raised

EPFO Pension Scheme: Age Limit May Be Raised

New Delhi: The Employees’ Provident Fund Organisation’s trustees in a meeting on Thursday will consider a proposal to raise the age limit from 58 to 60 years for vesting of pension under the Employees’ Pension Scheme (EPS-95).

At present, a formal sector worker covered under the EPS-95 can make contributions towards the pension scheme till the age of 58 years and can claim pension after that.

The Pension Implementation Committee (PIC) has recommended an increase in the age for vesting pension to 60 years, while suggesting that the actuary should be asked to develop a model to give incentive to those persons who opt for drawing pension at the age of 60 years.

An actuary analyses financial consequences of risk after studying uncertain future events, particularly of concerns to pension and insurance plans.

Raising the age limit would reduce the deficit in pension fund and would increase the pension benefits of members as there would be two additional years of service, as per the agenda listed for the meeting of the Employees’ Provident Fund Organisation’s apex decision making body – Central Board of Trustees (CBT).

According to a report of the valuer on the scheme, increasing the age limit would reduce the shortfall in the pension fund to the extent of Rs 27,067 crore.

The level of deficit is not a matter of concern, though it is recommended that the retirement fund body should look into investment returns more carefully and not increase benefits without consulting the actuary, and do sensitivity analysis more frequently, the valuer has suggested.

As per the the valuer, appointed by EPFO, net liability or deficit is Rs 10,855 crore as of March 31, 2012, Rs 6,712.96 crores as of March 31, 2013 and Rs 7,832.74 crore as of March 31, 2014.

It is also proposed by the committee to increase the short service pension entitlement age from 50 years to 55 years. This measure would reduce the shortfall in pension fund to the extent of Rs 12,028 crore.

At present, members can ask for fixing pension at attaining the age of 50 years provided they have served for at least 10 years.

It is also proposed that the pensionable salary should be determined on the basis of 36 months average wages immediately preceding the date of exit from the scheme in place of existing 60 months.

It may be noted that there is no bar of any kind for contributing towards other social security schemes run by the Employees’ Provident Fund Organisation (EPFO) – Employees’ Provident Fund Scheme 1952 and Employees’ Deposit Linked Insurance Scheme 1976.

Read at: NDTV Profit

Performance Related Incentive Scheme (PRIS): About a reader’s Opinion

Performance Related Incentive Scheme (PRIS): About a reader’s Opinion

The Tamil newspaper Dinamalar recently published an opinion of one of its readers about Performance Related Incentive Scheme.

According to the write-up, based on the recommendations by the Sixth Pay Commission, the scheme had been introduced more than five years ago in select central government departments like atomic energy, space research and defence.

The scheme has already been implemented in atomic energy, space research and scientific and technical research departments under the name of “Performance Based Incentive Scheme”. As a result, there has been tremendous improvement in the productivity and output of these departments.

One can use the Right to Information Act to find out how the performance is evaluated and details regarding promotions. The annual performance appraisals submitted by the employees and the feedback and comments marked by their senior officials are now declassified and are accessible to all. The employee is evaluated based on the annual targets, and the amount of work accomplished that year.

Options have been created to constantly improve management practices. Still, there are issues that need to be addressed. There is fear that such target-based appraisals would encourage unhealthy and selfish result-obsessed-performances, and discourage team spirit and selfless acts aimed at general welfare.

In order to successfully implement these schemes, it is very important for the management to be proactive, benevolent, focused, with clear thinking process, and very impartial.

In other words, a mere rod isn’t sufficient to control an elephant. One also has to have a properly qualified and trained mahout. Similarly, mere schemes alone wouldn’t bring the required transformation in the central government departments. They also need excellent management teams to implement them successfully.