Understanding the Ministry of Finance CGEGIS Table 2012

The Central Government Employees Group Insurance Scheme (CGEGIS) is a social security scheme for central government employees in India. Periodically, the Ministry of Finance updates the tables that define the contribution rates and the insurance cover available under the scheme. The 2012 table represents one such update, reflecting adjustments to align with prevailing economic conditions and ensure adequate protection for employees and their families.

The CGEGIS operates as a contributory scheme. Employees contribute a fixed amount regularly, and in return, they receive insurance coverage in case of death while in service and a savings component payable upon retirement. The 2012 table essentially recalibrated the contribution amounts and the corresponding insurance and savings benefits. The specifics of these changes were aimed at balancing the affordability of the scheme for employees with the adequacy of the financial protection offered.

Key aspects of the 2012 table likely included revised contribution rates for different groups of employees, classified based on their pay scales. Higher pay generally meant higher contributions, corresponding to a higher insurance cover. The table would specify the monthly contribution an employee in a particular pay band was required to make. These contributions were often deducted directly from the employee’s salary.

Furthermore, the 2012 table would detail the sum assured under the insurance component of the CGEGIS. This is the amount payable to the nominee in the event of the employee’s death. The table would likely have shown a clear correlation between the contribution rate and the corresponding insurance coverage. The revision in the table might have resulted in an increased sum assured compared to previous versions, providing a more substantial financial safety net for bereaved families.

Besides the insurance aspect, the CGEGIS also includes a savings component. A portion of the employee’s contribution is allocated to a fund that accumulates over time. Upon retirement, the employee receives a lump-sum payment representing the accumulated savings, along with accrued interest. The 2012 table would have clarified the methodology for calculating the savings component, including the interest rate applied and the manner in which the final amount is determined. The table likely provided projections of the maturity benefit based on different periods of service.

Understanding the specific details of the Ministry of Finance’s CGEGIS Table 2012 is crucial for both government employees and administrators. Employees can use the table to understand their contribution obligations, the level of insurance coverage they have, and the potential savings they can expect upon retirement. Administrators can use it as a reference for accurately calculating contributions, processing claims, and managing the CGEGIS fund. Accurate implementation of the table ensures that the scheme effectively serves its purpose of providing financial security to central government employees and their families.