Should Fund Organisation
continue?
Sir,
It looks from the
series of letters recently published in Daily
Excelsior that employees are not happy with the
functioning of Fund Organisation. It is observed
that GP Fund remains a great source of tension
for employees throughout the service. Sometimes
employees become tense when they are not provided
GP Fund schedule in time. Sometime their tension
increases when they see that some credits are
missing. Even it gives lot of trouble to the
employees in transfer of their GP Fund account
from one District to other District at the time
of their transfer. It is seen that when an
employee wants to draw some money from his GP
Fund, he has to oblige many persons for it and
sometimes even he fails to draw this money at the
time of dire need due to unnecessary hindrances
of some official or officer.
Even employees
after retirement have to spend lot of his old age
energy and time in settlement of this account.
Due to those reasons employees always deposit
money reluctantly in this account. For example an
employees can invest upto 80,000 in GP P.F.T.
N.S.C. L.I.C. etc. to get 20 per cent rebate in
the income tax. One can easily verify that
employees contribute minimum in GP Fund that is
too under compulsion because every employees has
to deposite 6.5 per cent of his basic pay in GP
Fund. Rest of the money they invest in other
organisation like PP Fund, NSC, LIC etc. inspite
of less rate of interest in some of these
organisations as compared to GP Fund. Under such
circumstances we should think whether Fund
Organisation should continue or not? Mr K L Dhar
in his letter "working of Fund
Organisation" published in Daily Excelsior
dated 24-4-2001 has suggested to wind up Fund
Organisation and transfer of GP Fund accounts to
nationalised bank. I also agree with this
suggestion with little amendment as under :-
Firstly start
Personal Provident Scheme (PPF) in all
nationalised banks. This scheme at present is
available in State Bank. The terms and conditions
of this scheme are almost same as that of GP Fund
except in case of PP Fund the account is operated
by the account holder himself/herself.
Secondly every
employees should be allowed to open his/her PPF
account in any bank authorised for this account.
Naturally every employees will prefer to open
this account in his own locality.
Thirdly it should
be compulsory for every employees to deposit
atleast 6.5 per cent of his/her basic pay in this
PPF account because it is compulsory in case of
GP Fund account. It should be upto the employees
to deposit this personally either monthly or once
or twice a year. For example if total basic pay
of an employee is Rs 1,00,000 then he has to
deposit Rs 6,500 in his PPF account. Here I mean
to say that it should be upto the employees
whether he/she deposits this amount in
instalments or in one or two instalments. But it
should be the duty of the drawing disbursing
officers to check at the end of the year whether
their employees have deposited this amount or
not. The employee will get a certificate from the
bank that he/she has deposited how much amount in
PPF and show it to his drawing disbursing
officers.
Fifthly, the
already amount of employees in GP Fund be
transferred to their PPF accounts.
In this way, I
think the tension of employees will reduce and
business of banks will increase. I am sure that
employees will deposit more and more money in
PPF.
Yours etc....
Shakeel Ahmed Raina
Rajouri
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