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
The 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.
The New 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 the Government.