Dear Sir, GST on Health Insurance Premium
At our recently held CC at Ujjain, we had discussed measures to approach the authorities on reducing the GST on health Insurance premium, especially for Senior citizens in India. The increase in the health premium has become exorbitant for the Bank retirees, as also for senior citizens of India.
We are attaching a letter addressed to the Prime Minister, written by the General Insurance Pensioners All India Federation, making out a case for reduction in GST on Health Insurance premium. It is pertinent to point out the sentence, among other well stated points of arguements:
"While health Care is out of GST, Health Insurance is subject to GST at the normal rate of 18%. The premium in health insurance is going up due to increase in the claims in recent years."
We feel that in the interests of Bank retirees, as well as the general senior citizens of India, we too should state our case to the government of India for reduction in Health Insurance Premium.
We hope this suggestion will meet with your approval.
Massive Rise In Pension of Private Sector Employees after Historic Order Given By Supreme court In august 2016
This refers to news published today regarding 1200% rise in pension of some retired employees who have been fighting his case in court for last four years ---
In his 37-year career Praveen Kohli hadn't got the kind of hike that he received four years after he retired as a general manager with Haryana Tourism Corporation.
On November 1 this year, Kohli's pension rose by nearly 1200%-from Rs 2,372 to Rs 30,592 per month.
The windfall was courtesy a Supreme Court order of October 2016 that directed the EPFO to revise the pension of 12 petitioners under the employee pension scheme (EPS).The pension scheme, which is part of EPF, has over 5 crore members. Every employee in the organised sector contributes 12% of basic salary and dearness allowance to EPF. The employer makes a matching contribution. Of the employer's contribution, 8.33% goes to the EPS. When people withdraw their EPF after a job switch or during unemployment, the EPS is not given out. It's payable only after superannuation.
There is also a ceiling on EPS contributions. The current cap on salary (basic + DA) is Rs 15,000 per month so, the maximum one can contribute to the EPS is 8.33% of Rs 15,000, which is Rs 1,250 a month.
Between July 2001 and September 2014, the EPS salary cap was Rs 6,500 a month, which translated to a maximum contribution of Rs 541.4 a month. Prior to 2001, the ceiling was Rs 5,000, which yielded a maximum contribution of Rs 416.5.
So how did 62-year-old Kohli get a pension of over Rs 30,000 a month with such a meagre contribution to the pension fund?
Cases were filed against EPFO in various high courts. By 2016 all except one high court ruled against EPFO stating that the six-month deadline was arbitrary and the employees must be allowed to raise their pension contribution whenever they wish to. The case went to Supreme Court which, in two separate rulings in 2016, ruled in favour of employees' right to raise their contributions to pension fund without imposing any cut-off date for eligibility.
Following is link to Newspaper
Link to Times of India
Period Of Service As ‘Work-Charged Employee Will Be Treated As ‘Qualifying Service’ For Pension-Supreme Court [Read Judgment] BY: MANU SEBASTIAN SEPTEMBER 16, 2017 11:22 AM...
Read more at: http://www.livelaw.in/period-service-work-charged-employee-will-treated-qualifying-service-pension-supreme-court/