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The provincial government of Khyber Pakhtunkhwa has passed The Khyber Pakhtunkhwa Civil Servants Retirement Benefits and Death Compensation Bill, 2014 to establish a fund for the retirement benefits and death compensation of the civil servants of the province.
Under the legislation all employees of the provincial government from BPS-1 to BPS 20 and above will make contribution to the retirement benefits and death compensation fund to be paid to a civil servant or to the family of a civil servant. Specific rates for contribution from their monthly salaries have been fixed for the employees of all categories. According to the rate, a BPS 01 to 04 would contribute an amount of Rs 300 per month from their salaries and on retirement and death would be paid an amount of Rs 0.2 million while the employees from BPS 05 to 10 would receive Rs 0.3 million against the deduction of Rs 450 per month.
The employees from BPS 11-15 on retirement or death would receive Rs 0.4 million against the deduction of Rs 600 per month. BPS 16 Rs 045 million and deduction of Rs 650 per month while BPS 17 would be paid Rs 0.6 million against Rs 900 per month, BPS 18 Rs 0.875 million against Rs 1350 per month, BPS 19 would be receive Rs 1.5 million against the month deduction at the rate of Rs 1600 per month. Civil servants of BPS 20 and above would be paid Rs 1.25 million against the month deduction of Rs 2000 per month.
The legislation was earlier applicable to only all the civil servants of the province, however the inclusion of the amendments of Mst Anisa Zeb Tahirkheli of QWP, Jaffar Shah of ANP and Zarin Gul of JUI-F extended it to the employees of the Provincial Assembly Secretariat of Khyber Pakhtunkhwa.
On the commencement of the Act, the provincial would constitute a board to be known as the Board of Management to control, supervise and administer the fund established under the Section 7 of the Act concerned. The board would be comprised of 12 members including its chairman, the Chief Secretary, Government of Khyber Pakhtunkhwa while members would include secretary finance, secretary law and parliamentary affairs, secretary establishment, secretary administration, secretary higher education, secretary elementary and secondary education, secretary health, Accountant General, two representatives of the civil servants (one from BPS-01 to 16 and the other from BPS-17 and above) to be nominated by government for a period of two years and Additional Secretary, Finance as member-cum-secretary of the board. The principal office of the board would be established at Peshawar while the Finance Department would provide secretariat to the fund.
The powers and functions of the board would include settlement of claims for retirement and death compensation benefits and all matters connected with such claims, sanction grant from the fund to the civil servants or their families in accordance with the provisions of the Act and the rules made there under.
The board is also empowered to invest surplus money held in the fund in profitable ventures especially in Islamic mode of investment, control, supervise and administer the assets of the fund in such manner as to promote the purpose for which the fund is established, determine and revise the rates of contribution and amounts of benefits as it may be necessary, make arrangement, if necessary for the life insurance of civil servants in lieu of payment of death compensation with insurance company or other insurer and for such period as it may be deem fit; and do or cause to be done all things ancillary or incidental to any of the aforesaid powers or to the purpose of the fund. The meeting of the board would be convened at least once in very months or earlier as may be directed by the chairman and would be held at Peshawar or at any other place as may be decided by the chairman. Six members including chairman would constitute a quorum for the meeting of the board.
All decisions of the board would be taken by majority of votes; provided that in case of equality of votes, the chairman would have a casting vote. The chairman would preside the meeting of the board, however, in his absence secretary finance would preside the meeting. Furthermore, all orders and decisions of the board would be authenticated by the signature of the chairman or of such other person as authorised by the board.
The board would as soon as possible, constitute a Management Committee, for the efficient and speedy disposal of claims of civil servants and their families and incurrence of expenditure on management of the fund. The management committee would be comprised of Secretary Finance, as chairman, Secretary Administration, two representatives of the civil servants nominated by the government and secretary of the board. The management committee would perform such functions and exercise such powers as delegated to it by the board.
Under the Act, there would be fund to be called the Retirement Benefits and Death Compensation Fund, which would rest in the board and be administered by it. The fund established under the Khyber Pakhtunkhwa Government Employees Welfare Fund Ordinance, 1969, would be deemed to be a part of this fund, all sums received from civil servants as contribution for the fund and any interest or profit accruing thereon and any grant by government and any other amount related to the fund would be credited to the fund and the moneys credited to the fund would be kept in such banks and financial institutions as the board may decide.
At the time of the retirement of a civil servant, the amount, as provided in the schedule, would be paid to the civil servant with the following percentage: The amount of benefit on retirement during the first five years from promulgation of this Act, would be 25 per cent, the amount of benefit on retirement during the second five years would be 50 per cent, the amount of benefit on retirement during the third five years, from the promulgation of this Act, would be 75 per cent and the amount of benefit on retirement after 15 years would be 100 per cent. However, any civil servant, who is dismissed, removed, terminated or resigned from service would entitled for the amount to the extent he had actually contributed to the fund. If a civil servant dies while in service; his family would be paid full amount as prescribed for his grade or pay from the fund.
The amount would be paid to the civil servant or his family at the time of retirement or death according to his last pay scale or grade. In case of civil servant is given promotion from retrospective effect after his retirement or death the differential amount would be paid according to the revised grade or pay, subject to payment of difference in monthly contribution for the uncovered period. The retired civil servant or the family of the deceased civil servant would submit the application on the form prescribed by the board for the grant of retirement benefit.

Copyright Business Recorder, 2014

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