Port Authority is governed by Major Port Authorities Act, 2021. It began its initial
operations on 7th October 1933. We are also governed by Indian
Ports Act 1908, Merchant Shipping Act 1958, Dock Labour Regulations,
VPA Regulations, 1967 Licensing of Stevedores and allied matters | Employee Regulations -Hindi / English | Authorization of Pilots Regulation
NEW PENSION SCHEME - A BRIEF INFORMATION
Government of India has accounted for a “ New Pension Scheme”. The Ministry of
Shipping and Transport vide letter No.14018/2/2003 dated 22-12-2003 has
directed the Port Authority to implement the New Pension Scheme in the Ports also
in respect of the employees/workers/officers those who have appointed in the
Port service on or after 01-01-2004.
Pension Scheme is mandatory for all the new entrants appointed w.e.r. 01-01-2004
onwards. As a result of this, the existing system of the defined benefit of the
Pension system is replaced.
In the new
pension scheme system, the employee is required to pay 10% of his basic Pay+DA
as a monthly contribution for which a matching contribution is to be paid by
the VPA to each individual as long as the contributions are recovered from the employees/officers
in the above matter. All the sums so recovered and credited shall be kept in
pension non-withdrawable account tier-1 in a nationalized Bank. This is
mandatory. In addition to the above pension account, the employees/officers may
also be allowed for an optional withdrawable account tier-II. The VPA will not
make any contribution to the sums recovered under the tier-II account. This
account amount would be free to withdrawable at any time by the employees/officers.
This account also does not constitute pension investment and would attract no
special tax treatment. However, under Tier-II will not be made operative during
the period of Interim arrangement and therefore no recoveries will be made from
the salaries of the employees on this account.
For all the employees/officers
who are going to retire after attaining the age of superannuation 58 / 60
years, the sums available in the pension tier-I account are to be payable to
the tune of 60% only and the remaining balance of 40% amount would be arranged
to be invested for an annuity is handed by. The annuity should provide for
pension for the lifetime of the employee and his dependent parents/spouse at
the time of retirement. However, the employees are also allowed to leave the
pension system ever prior to the retirement age of 58 / 60 years. In such
cases, it is mandatory annuitisation would be around 80% of his pension wealth.
All the above information is temporary and likely to be changed at any time by