Central Government Employees Group Insurance Scheme: Until retirement, a Central Government employee keeps making a contribution towards the Central Government Employees Group Insurance Scheme (CGEGIS). The CGEGIS 1980 scheme comes with insurance coverage and also serves as a Savings Fund for the employee. Out of the total contribution, a portion of the contribution goes towards the insurance cover while the balance goes into the Savings Fund. The accumulated amount in the Savings Fund is paid to the employee at the time of retirement from service. Each quarter, the government releases a Table of Benefits for Savings Fund, which helps the employee to get an idea about the amount to be received at the time of retirement.
The government has issued the Table of Benefits for the Savings Fund to the beneficiaries under the CGEGIS 1980 for the quarter from July to September, on an interest rate of 7.1 per cent compounded quarterly.
Table of Benefits for Savings Fund 2020 from January onwards
Table I: On the subscription of Rs 10 per month from 1.1.1982 to 31.12.1989 and Rs 15 per month from 1.1.1990 onwards.
The accumulated value of contributions from January 1 of the year of entry to the month and year of cessation – Year of cessation of membership 2020/ Month of cessation of membership:
Table II: On the subscription of Rs 10 per month for those employees who had opted out of the revised rate of subscription from 1.1.1990.
The accumulated value of contributions from January 1 of the year of entry to the month and year of cessation – Year of cessation of membership 2020 / Month of cessation of membership
The objective of the CGEGIS 1980 the scheme is to provide the Central Government employees a low cost and a wholly contributory and self-funded insurance cover to help their families in the event of death during service and a lump sum payment on retirement. A portion of the monthly contribution goes towards the insurance cover while the balance goes into the savings fund.
The interest rate applicable to the Savings Fund will keep varying as per the prevailing rates in the economy. The Table of Benefits is constructed on the basis of one’s contribution reduced by the cost of insurance or the mortality cost. On death during the service period, the amount of insurance cover plus the amount in the Savings Fund is paid to the family.
In order to avoid any delay in the payment of the benefits to the retiring employee, the government had earlier instructed that in cases where the service of the retiring CG the employee has been verified, payment of the accumulation under the 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 CGEGIS subscriptions are mandatory deductions from those payments