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Wednesday, July 9, 2014

Employee Welfare Scheme

Employee Welfare Scheme


F. 1-4 (01)/2002/KVS-GIS/HQ/P&I                                                               Date: - 01.03.2002
In order to provide a security to the employees of the Sangathan and at the same time enhancing their resources at the time of superannuation, K.V.S. has been having group insurance Scheme from time to time. The present Group Saving Linked Insurance Scheme was started in 1993 through LIC. After decentralization of Pension and Provident Fund work, it has been experienced that although Sangathan has been able to discharge other pensionary liabilities in time, the same is not possible in the matter of GIS due to delay in settlement of claims by LIC. Even in cases of death there have been delays which defeats the very purpose of having insurance. It has therefore, been decided to introduce w.e.f. 1st April, 2002, a new scheme called 'KVS EMPLOYEES WELFARE SCHEME'. It provides for the KVS employees at a low cost and on a wholly contributory and self-finance basis, the twin benefits of a welfare cover to help their families in the event of unfortunate death while in service and lump sum payment to augment their resources on retirement, resignation, etc. The benefit under the scheme would be akin with the benefits granted to Central Government Employees under CGEGIS, 1980.

All regular employees in the services of KVS as on 01/01/1993 and all those who have entered/enter into service of KVS thereafter will be compulsorily covered by the scheme. Employees would be enrolled as members of the Scheme only from 1st January every year. If an employee enters into service of the Sangathan on or after 2nd January in any year, he/she would be enrolled as a member only from 1st January of the next year. From the actual date of appointment to 31st December in the years of entry into service, the employee will be entitled only to welfare cover.
The monthly contribution and the amount of Welfare Cover under the scheme would be as under:
Group to which the belongs
Rate of monthly Subscription
Amount of Welfare Cover employee

4.       Promotion during the year & recovery of subscription for a month:
On regular promotion of a member to higher Group after 1st January in any year, his subscription will be raised only from the 1st January of the next year. As for example Group 'C' employee is promoted to Group 'B' in March in a year, his subscription and Welfare Cover will be Rs.30.00 P.M. and Rs.30,000.00 respectively till the end of December that year and will be raised to Rs.60.00 P.M. and Rs.60,000.00 respectively from January next. Once an employee is admitted to the higher group, his subscription and welfare cover will continue to be at the same rate, even if he is subsequently reverted to the lower group for any reason.
Recovery of subscription for a month will be affected from the pay for that month e.g. for January, it would be deducted from the pay for the month of January payable on the last working day of January and so on.
Subscription is payable till the end of service including the month in which an employee retires, dies, resigns, removed from service. If an employee dies during a month before recovery of subscription for that months, his dues will be paid after deducting the subscription.
5.        Interest on arrears of subscription:
Arrears of subscription of an employee who was on extraordinary leave for any period will be recovered with interest due under the scheme from his salary for the month following the month in which he resumes duty in not more than three installments. If an employee dies while on extraordinary leave, the arrears of subscription due from him will be recovered with compound interest at 12% per annum rounded to the nearest whole rupee from the amount payable under the scheme.
No interest will be levied on the arrears if the non-recovery is due to delayed payment of salary.
6.        Benefits payable:
(a)           Retirement, resignation, etc.: The employee will be paid as per the Table of benefits (as per cessation Table given at Annexure-I)
(i)            Lumpsum due to him out of the Savings Fund for entire period of membership in the lowest group; and
(ii)           Amount(s) due to him for the additional units by which subscription was raised due to promotion - for the period from which the rate was raised, to the date of cessation of membership.
(b)           Death while in service : The nominee/heir will be paid :-
(i)            The amount of appropriate Welfare Cover to which the employee was entitled at the time of death; and
(ii)           Lumpsum and amount(s) as in the case of (a) above, for the period till the date of death;
(iii)          Only the Welfare Cover, if death takes place before becoming a member.
Income tax rebate is not admissible for the amount of subscriptions paid under the scheme.
Nomination will have to be obtained in the prescribed form and pasted on the Service Book of the employee, and an entry to that effect recorded in the Service Book. If the employee has a 'family', he shall make such nomination only in favour of member of members or his 'family'.
Entries for recoveries shall be made in the Service Book. Every year, in the month of January, head of office will be record a certificate in the Service Book in the form:
"Subscription at the rate of Rs.______________ appropriate to Group................. of the
scheme recovered from pay and allowance for the period form January........................
to December..............
No recovery from the amount payable under the scheme can be made except the dues under the scheme or as specifically authorized by the employee. It is legally not permissible to adjust other Sangathan dues against the payment due to the employee or his nominees from the scheme.
The Kendriya Vidyalaya and Regional Office will not send to the Headquarters office cheques /draft in respect of the amounts deducted from the monthly pay bills under the Scheme but these amounts will be retained by them for appropriation against funds released to them. The amount recoverable in respect of these deductions will be reduced by the Main Account at the time of release of funds through Regional Officers.
Assistant Commissioner shall furnish a quarterly requisition for funds to KVS (HQ.) (P&I Section) in advance in the first week of January, April, July & October each year in respect of prospective retirees during succeeding quarter based on ceasation table as may be provided from time to time. (Annexure-I) Requisition has to be supported by a statement showing details of retirees for whom requisition is made indicating Group/Date of Retirement/ if all
subscription recovered up to retirement/Rate of subscription and cover etc. (standard form shall follows).
(a)                   For all the members of staff working under the Region (teaching and non-teaching staff) including Principal/Vice-Principal and Regional Office Staff/Officer's upto the level of Education Officer the Assistant Commissioner will be the competent authority.
(b)                  For staff/officers of KVS (Hqrs.) including those working in KVS abroad. The Sr. Audit & Account Officer, Assistant Commissioner (Admn & Fin.) and Deputy Commissioner (Fin.) will be the competent authority.
(a)                   A separate Saving Bank A/C may be opened with KVS Employees
Welfare Fund, Regional Office, _____________________  A/c with Canara
Bank or any other nationalized bank to be operated under the signature of Assistant Commissioner/Audit & Accounts Officer jointly.
(b)                  A separate cash book may be maintained for the fund.
(c)                   A quarterly statement of account (receipt & payment) be furnished along with quarterly requisition of fund in January, April, July, & October every year.
(d)                  An Imprest of Rs.1,50,000.00 shall be provided to each Regional Office. In case of death of a subscriber the amount towards 'Welfare Cover' shall be paid to the subscriber's nominee within 24 hours of receipt of intimation of death, out of the imprest and thereafter imprest can be recouped by requisitioning the amount from KVS (Hqrs.).
(e)                  Annual Accounts (Receipt & Payment) as on 31st March each year may be furnished to KVS (Hqrs.) for consolidation at KVS (Hqrs.) level.
(a)                   In order to ensure liquidity l/12th of the total accretion under the scheme shall be placed at the disposal of Pension & Insurance Section based on figures in the Annual Consolidated Statement of Accounts of preceding year as was being done heretofore subject to adjustment with reference to the figure to that of succeeding year.
(b)                  Surrender value to be received under dispensed GLIS Scheme alongwith the existing fund already lying with KVS (Hqrs.) shall be operated under the head Employees Welfare Scheme.
(c)                  Annual Accounts in respect of all the Regional Office shall be
consolidated at Hqrs. as on 31st March each year.
Investment will be done at KVS (Hqrs.) level on the pattern prescribed from time to time for Provident Fund investment.
Other residuary matters relating to the scheme shall be decided as may be necessary from time to time, by the KVS.
Suppose, Mr. 'A' a Group 'A' KVS Employee, is a member of KVS Group Insurance Scheme Since 1993 and also member of KVS Welfare Scheme w.e.f. 01/4/2002 with basic pay of Rs.12,600.00 in the scale of Rs.10000- 15200 and dies on 30/4/2002. The benefit admissible to him under the KVS Welfare Scheme would be as under :
Period for 01/1/1993 to 30/4/2002
For every Rs.15/-                             = Rs.2100.00
Therefore for Rs.120/-             = Rs.2100X8 = Rs.16800.00
(i)            Welfare Cover                       Rs.1,20,000.00
(ii)           Saving portion                       Rs. 16,800.00
(Benefit as per Cessation Table)
Total amount payable to Mr. 'A' Group A would be Rs.1,36,800.00 ( 'X' )
On the example as above 1 if employee retired on 30/04/2002, the benefits would be as under:
Period for 01/1/1993 to 30/4/2002
For every Rs.15/-                             = Rs.2100.00
Therefore for Rs.120/-             = Rs.2100X8 = Rs.16800.00
(i)            Welfare Cover                       Rs. NIL
(ii)           Saving portion Rs.16,800.00
 (as mentioned above)   ________________
Rs. 16.800.00

                           Amount payable to Mr. A – 16,800.00(X)

Mr. 'X' is a member under the said scheme w.e.f. 01.1.1993. He was Assistant Group-C on 01.1.1983 and promoted to the post of Superintendent (Group-B) on 01/9/1995 and selected as Administrative Officer(Group 'A') w.e.f. 01/11/1988 and retired on 31/5/2002. Calculate the amount payable to Mr. 'X' on his retirement.
Period for 01/1/1993 to 31/5/2002
(i)            Welfare Cover                          NIL
(ii)           Saving portion
(a)           01/1/1993 to 31/5/2002        Rs.2127X2 = 4254.00 (Group 'C') @ Rs.30.00
(b)          01/1/1993 to 31/5/2002        Rs.1182X2 = 2364.00 (Group 'B') @ Rs.60.00
(c)           01/1/1993 to 31/5/2002        Rs. 519X4 = 2076.00 (Group 'A') @ Rs.120.00                
Rs._______ = 8694.00
Total amount payable to Mr. 'X' Rs.8,694.00
Mr. 'Y' Group "D" was appointed on 01/6/1998 and expired P.M. 05/11/1998. Calculate the amount payable to him under this scheme.
Period for 11/6/1998 to 05/11/1998
(i)            Welfare Cover                                  Rs.15,000.00
(ii)           Saving portion                                    NIL
(even after recovery of -                              Rs.15,000.00
Subscription w.e.f.
 June 1998 to 05/11/1998)
Total amount payable to Mr. 'Y' Rs.15,000.00(('X')
The payment are subject to deduction of Income Tax at source and as per Income Tax Act. 961 and as per rates applicable from time to time.

 NEW DELHI-110016
F. No. 1-4(01) /2001 -2002/ KVS EWS /P&I                                                                    Date: - 19.04.2010
The Assistant Commissioner/Director,
All Regional Offices /ZIETs,
Kendriya Vidyalaya Sangathan
Subject: - Deduction of KVS EWS Subscription from KVS employees w.e.f. 01.01.2006 consequent on classification of Groups.
Sir / Madam,
  In continuation to this office letter No. 11029-18/2009-KVS (Admn -1) dated
16.09.2009  you are requested to make deduction of subscription towards KVS EWS in respect of all regular employees in the service of KVS as on 01.01.2006, as under
Classification of Post
Rate of Monthly Subscription
Amount of
1 .a.
Scale (Rs.90000/-fixed ) Apex Scale (Rs.80000/- fixed) and grade plus scale ( Rs.75500-80000)
Group (A)
Rs.12000/-,Rs.10000/-,Rs.8900/- and Rs.8700/-in the scale of pay of Rs.37400/- - 67000/- in pay Band -4 And Rs.7600/-,Rs.6600/- and Rs.5400/- in the scale of pay of
Rs.15600/- 39100/- in pay Band -3
Group (A)
Rs.5400/-, Rs.4800/-, Rs4600/-, and Rs.4200/-in the scale of pay Rs.9300/- -34800/- in pay Band -2
Rs.2800/-, Rs.2400/-, Rs.2000/- Rs.1900/- and Rs.1800/- in the scale of pay of Rs.5200/- - 20300/-in pay Band-1
Group ( C)
Rs.1300/-, Rs.1400/-, Rs.1600/-
Rs.1650/- in the scale of pay
Rs.4440/- 7440/- in IS scale
Group ( D )
Rs.15000.00 ( till the posts are upgraded )

The contents of this letter may please be circulated among all K.Vs of your Region requesting them to make the recoveries of subscription of KVS EWS due from 01.01.2006 based on the above reclassification of Groups as contained in O.M. No.l 1012/7/2008-Esstt (A) dated

09.04.2009    issued by the Ministry of Personnel Public Grievance and Pension, Department of Personnel and Training, Government of India New Delhi.

Please note that recoveries are also to be affected by you in respect of the employees of Regional office.Cases settled before the issue of the circular need not be re-opened.
Yours faithfully,
                       (M.V.PATKAR) Assistant

                                                                                                                                          Assistant Commissioner (Finance)

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