No. 7(1) /EV /2016
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, the 17th March, 2017
Sub: Simplification of procedure for payment of Central Government Employees Group Insurance Scheme (CGEGIS) dues – regarding
It has been brought to the notice of this Department that in a number of cases delay occurs in payment of Central Government Employees Group Insurance Scheme (CGEGIS) dues, owing to missing entries, despite the fact that a provision has been made for making entries of subscription for CGEGIS, recovered from pay & allowances every year in Part- VII-C of the service book.
2. In terms of para 8,1 of the Central Government Employees Group Insurance Scheme, 1980, as contained in this Ministry’s O.M. No. F.7(5)-EV/89 dated 15th May, 1989, which relates to Savings Fund of the Scheme, the total accumulation of savings together with interest thereon will be payable to the member on retirement or on cessation of his employment with the Central Government or to his family on his death while in service. The total accumulation under Savings Fund is provided for in terms of the applicable Table of Benefits pertaining to a particular year as prescribed under the relevant Orders issued by this Ministry from time to time.
3. The issue has been considered in consultation with Department of Pension & Pensioners’ Welfare and Controller General of Accounts. It has been decided that in order to ease the process of payment of Savings Fund on account of CGEGIS at the time of retirement of a Central Government employee, in all cases where the service of the retiring Central Government employee has been verified, payment of the accumulation under Savings Fund of CGEGIS be made without awaiting confirmation of deduction of each monthly subscription of CGEGIS, as service verification is carried out based on the monthly salary payment and the CGEGIS subscriptions are mandatory deductions from these payments.
4. All Ministries/ Departments are accordingly advised to ensure compliance of above instructions so that the dues of CGEGIS in respect of Government servants retiring on attaining the age of superannuation are discharged with due promptness. Further, it may be ensured that Ministries/ Departments send their budget requirements for payments under CGEGIS to CCA (Finance) well in advance, preferably, at the time of RE/BE so that the budget under this head is made on a realistic basis.
(Amar Nath Singh)