Step motherly Treatment to retirees from Pvt Sector
Govt slashes small savings rates by up to 140 basis pts The government on Tuesday announced one of the steepest-ever cuts in small savings rates, which will see returns on the popular public provident fund deposits fall by 80 basis points to 7.1%, starting Wednesday, while the Senior Citizens Savings Scheme (SCSS2004) will see the annual interest rate drop by more than a percentage point. The reduction in Senior Citizens savings Scheme will hurt Senior Citizens, Retirees from private sector who do not get pension and Divyangjans. On one hand government has increased the Dearness Allowance rate by 4% for government pensioners, the non pensioners from private sector have been made poorer by reducing the interest rate of SCSS2004 to 7.1%. SCSS2004 was started in 2004 as a welfare scheme to provide a regular income stream to retirees from private sector who do not get pension, at interest rate of 9%. The maximum deposit allowed is Rs.15 Lakhs and interest income is taxable. After 11 years in April 2015 the interest rate was increased to 9.3% to take care of increasing prices of essential commodities, medicines and health care. As soon as NDA government came to power the interest rate of SCSS2004 was reduced to 8.3% from July 2015 causing a drop in quarterly taxable interest income of senior citizens for meeting their daily needs. After representations to PM the interest rate was increased to 8.6% and now reduced to 7.1%. This is going to make lives of senior citizens and divyangjans miserable. We request Local Circles to take up this issue with PM with a request to restore the rate to 9.3% for this welfare scheme in line with promise made in BJP Manifesto to ease living conditions of senior citizens and divyangjans.