Postal staff rejecting investment of settlement funds in Senior Citizen Savings Scheme
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Staff at publish workplaces don’t appear nicely versed in the rules, stated Suresh Parthasarathy. founder, Myassetsconsolidation.com; 30 days time not sufficient in the course of the pandemic to make the investment, he stated
Despite guidelines permitting workers above the age of 55 years, who’ve opted for voluntary retirement or given obligatory retirement, to speculate their settlement funds in the Post Office Senior Citizen Savings Scheme, frontline staff are allegedly rejecting such deposits.
An particular person above 60 years of age can make investments in a publish workplace senior citizen financial savings scheme (SCSS). However, there may be an exemption clause which permits workers above 55 years of age and beneath 60 years of age to speculate their settlement quantity in this scheme, topic to the situation that the investment be made inside one month of receipt of such an quantity.
“The government guidelines clearly state that such employees can invest in SCSS, but the frontline staff at post offices are not accepting the investments, as it appears they are not well versed with the regulation,” Suresh Parthasarathy. founder, Myassetsconsolidation.com, identified. He has been guiding retirees to speculate in SCSS.
“The prospects of getting a job for employees above 55 are bleak, and they have to depend on monthly interest incomes to manage their family cash flow. Products like bank fixed deposits and postal deposits are the major interest earners for them,” he added.
Currently SCSS provides a greater rate of interest of 7.4% each year, when in comparison with charges between 5.3-5.5% provided by banks. Also, Post Office deposits include a sovereign assure.
Employees are additionally discovering it troublesome to satisfy the requirement that the settlement funds must be invested inside a month of receipt, amid the COVID-19 pandemic.
Mr. Parthasarathy stated with COVID-19 lockdowns solely now being eased, the 30-day timeframe given to speculate the settlement quantity is just not ample and the Union Finance Ministry wants to have a look at extending the timeframe, to assist this class of workers to speculate in SCSC.
“It is high time the postal department takes the initiative to popularise the scheme and it must have sufficient displays at post offices to educate the general public,” he added.
When contacted a senior official from the Postal division stated the Finance Ministry has to take a name concerning extension of timeframe from 30 days. He additionally identified that if the sector staff are rejecting the investment, the involved particular person could make a illustration to the next official.
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