Savings scheme

Postal staff reject investment of settlement funds in senior savings scheme

Post office staff do not appear to be well aware of the regulations, said Suresh Parthasarathy. founder, Myassetsconsolidation.com; 30 days is not enough during the pandemic to make the investment, he said

Despite rules allowing employees over 55, who have opted for voluntary or mandatory retirement, to invest their settlement funds in the Post’s Senior Citizens Savings Plan, frontline staff would reject such deposits.

A natural person over the age of 60 can invest in a postal senior savings plan (SCSS). However, there is an exemption clause which allows employees over 55 and under 60 to invest their liquidation amount in this scheme, provided that the investment is made within one month of receiving the payment. ‘such an amount.

“Government guidelines make it clear that these employees can invest in SCSS, but frontline post office staff do not accept investments because they appear to be unfamiliar with the regulations,” Suresh Parthasarathy. founder, Myassetsconsolidation.com, pointed out. He guided retirees to invest in SCSS.

“The employment outlook for employees over 55 is bleak, and they have to rely on monthly interest income to manage their family’s cash flow. Products such as bank term deposits and postal deposits are the main sources of interest for them, ”he added.

Currently, SCSS offers a better interest rate of 7.4% per annum, compared to rates between 5.3 and 5.5% offered by banks. In addition, the deposits of the Post Office come with a sovereign guarantee.

Employees are also struggling to meet the requirement that settlement funds must be invested within one month of receipt, amid the COVID-19 pandemic.

Mr Parthasarathy said that with the easing of COVID-19 lockdowns, the 30-day deadline given to invest the settlement amount is not sufficient and the Union Finance Ministry should consider extending the deadline , to help this category of employees invest in SCSC.

“It is high time for the postal service to take the initiative to popularize the device and it must have sufficient displays in post offices to educate the general public,” he added.

When contacted, a senior post office official said the finance ministry should take an appeal regarding the extension of the 30-day deadline. He also pointed out that if field staff reject the investment, the person concerned can make representation to a senior official.


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