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Questions and Answers

Anomaly in conversion of Pension to 1997 salary scale :

Question: I explained the anomaly to the Ministry of PA and HA by my letter dated 25.07.2007 mentioning that I had earned 19 increments at retirement, but only 15 had been considered as the circular shows the working only up to 15 increments, in the conversion to 1997 salary scale. (Pension No. 420731)

This being referred to Director General of Pensions, he approved the removal of this anomaly, by his letter dated 19.09.2007 to the Divisional Secretary Panadura (copy annexed).

This has still not been paid as the Accountant at the Divisional Secretary’s Office, Panadura, has not understood the Director General’s letter. Earlier they had sent my file on two occasions to the Director General. His replies were to take action accordingly.

This has still not been paid. The delay now is over 16 months. Now they have sent the file for the third time.

This has still not been paid. I shall thank you to please take suitable action to see that this anomaly is remedied by considering 19 increments in the conversion to 1997 salary scale as approved by the Director General of Pensions by his letter dated 19.09.2007 to Divisional Secretary Panadura.

W. R. P. de Mel, Panadura.

Answer: Although you had earned 19 increments at retirement you would have enjoyed the benefit of the 19 increments until 1997.

However we have been given to understand from the Pensions Department, that with the revision of salary in 1997 and this revised salary being applied to the pension, only a maximum of 15 increments is to be granted.

Even as per the copy of the letter you have forwarded from the Director General of Pensions from 11.01.1997 he has allowed only 15 increments. Thus our understanding is that you will be granted a maximum of only 15 increments on the revised 1997 scale.

Non payment of EPF and gratuity

Question: I have worked for 30 years in a reputed motor company. I retired in January 2008. I have applied for my EPF and Gratuity payments. The EPF is company managed and not with the Central Bank.

I am told no funds are available in the EPF section as the funds were taken by management for some other purposes. For the gratuity also the same answer saying company has no funds, will pay in due course.

Almost 14 months passed and several verbal reminders given but all in vain. Please inform what I can do, can I sue the Managing Director as the company is still functioning.

A lady accountant informed me that no sufficient funds were available to pay the EPF as well as the gratuity. All the EPF money taken by the company for their own purposes. Can the management play with the Employees Provident Fund.

Awaiting your early response.

Raja Cooke, Dehiwela.

Answer: In fact your employer should have contributed to the ETF as well. You have stated that your company has its own EPF scheme. Have they been deducting your share of the contribution from your monthly salary.

You may talk to your Managing Director and see what he has to say. If not we suggest you go to the Labour Secretariat at Kirula Road, Narahenpita and report your matter to the Commissioner of Industrial Relations. It is best that you go to the Head Office of the Department of Labour as stated above than to the regional office in your area.

Obtaining certified copy of Birth Certificate for adopted child

Question: I am an adopted person and possess a photocopy of my birth certificate with the wordings adopted on top.

The original of same is found in the Dam Street branch. I need an original copy of this but somehow officials are refusing to give and have sent me several times to Maligawatta branch.

But they don’t have it. What I only need is an original copy from the Dam Street branch to submit for my official commitments. Help me to get one. Whom do I see in the Dam Street branch? Cos the moment I say I am adopted they chase me to Maligawatte. They don’t understand that my Birth Certificate is in their volumes and not at any other place.

Thanks.

Y.W. e-mail

Answer: We have contacted the Divisional Secretary at Dam Street. He has requested you to come and meet him. He says no problem in giving you a certified copy of your Birth Certificate under your adopted parents name included in the certificate. What they can’t give you is a certificate with your (original) biological parent’s name. You can contact the Divisional Secretary on Tel. 2434902 to check his availability in office and then go and meet him.

Assessable income for exemption of VAT, Budget 2008

Question: Your explanation appeared in the Daily News of 23.04.2009 is not correct.

You have stated that:

1. Exemption limit of assessable income has increased from Rs. 300,000 to Rs. 400,000 for Withholding Tax.

2. Withholding Tax on Assessable Income from Rs. 400,000 to Rs. 1,000,000 is 2 1/2 percent.

3. Exemption for senior citizen’s is Rs. 600,000 (including special investment income from banks).

4. Tax rate on assessable income for senior citizen’s from Rs. 600,000 to 1,000,000 - 2 1/2 percent.

The correct position is:

1. Exemption income is Rs. 300,000 only. No change.

2. Tax rate from Rs. 300,000 to 1,000,000 is 2 1/2 percent (beyond this it is 10 percent).

3. It is true that senior citizen’s are entitled to additional limit of 200,000 in respect of income from special bank deposits. However it cannot be consolidated with the exemption limit of 300,000.

For example: If a senior citizen has special bank investment income of Rs. 175,000 and other income of Rs. 325,000 he cannot claim exemption for Rs. 500,000. Though Rs. 175,000 is within the limit other income of Rs. 325,000 is liable at 2 1/2 percent as it had exceeded the exemption limit of Rs. 300,000.

Kindly publish this for the benefit of the readers.

S. R. Balachandran, Wellawatte.

Answer: We thank Mr. Balachandran for pointing out our error. The figures quoted by us were from the budget proposals. However, the final approved (gazetted) figures are as quoted above by Mr. Balachandran.

Pension arrears

Question: The pension arrears of Sivaloganathan Mayooran’s have been delayed by the Pensions Department for more than 9 years. The pension numbers 302918, 800662.

I am the maternal uncle of S. Mayooran. I attend to his matters. Since the deaths of his father and mother matters became further complicated.

His application for his fathers pension had been updated. But consider our pathetic case; they have not released his pension and arrears. Please be good enough to take early action regarding this matter.

Awaiting you favourable reply.

S. Kanag Rajeswaran.

Answer: Your problem is not very clear, also you have not indicated the name of the deceased person whose pension file Nos. 302918, 800662. From your question we understand that this deceased persons wife too has died.

Was she already drawing a pension (W&OP) prior to her death. You as a maternal uncle is trying to get the pension and the pension arrears to your nephew Sivaloganathan Mayooran, who happens to be the son of the deceased persons. You have not stated the age of either S. Mayooran now and at the time of death of his mother.

Arbitrary variation of interest by Finance Companies

Question: I invested a large sum of money in a leading Finance Company. When I called over to collect the proceeds on maturity I realised that:

(a) The agreed rate of interest at the time of deposit, had been drastically reduced.

(b) Inexplainable amount of money deducted as ‘miscellaneous charges’.

Despite expressing my total dissatisfaction in respect of the reach of the terms and conditions of deposit. The authorities only provided conflicting reasons. Totally disappointed and deceived, I wrote numerous letters expressing my disagreement with the computation of interest and irregular deductions, and being subject to financial loss.

Since the Finance Company has ignored my numerous written representations and not even provided a reply please advise what course of action is available to me? Can I make representations to the Central Bank? Please advise.

Mrs. S. D. Bulankulame, Battaramulla.

Answer: There are several finance companies that are not registered with the Central Bank. Hope the finance company you have chosen is a registered one. Due to problems with certain finance companies, the Central Bank publishes in the newspapers, the names of registered (authorised) finance companies.

If this finance company is a registered finance company you can first complain the Financial Ombudsman by a written complaint addressed to the above, at 143A, Vajira Road, Colombo 5. The Financial Ombudsman will call both parties concerned and resolve the matter after calling for an explanation from the Finance Company in the first place.

If it is not a registered finance company, the Financial Ombudsman will not be able to deal with them. In which case you should write to the Central Bank who will first take action on the existence of such a finance company. The Central Bank will not resolve your interest dispute. Whether this finance company is registered, you can check from the Financial Ombudsman’s office by calling tel. No. 2595625.

Pension anomaly

Question: I was an officer of the Provincial Public Service, attached to the Colombo Municipal Council was an Administrative Officer and retired from service with effect from 04.02.03. I was promoted to the Super grade of the clerical service on 1.7.97, according to the results of a competitive exam and the relevant salary scale of that grade was Rs. 901,220 - 16-2460 - 129,480 and when I retired my pension was calculated accordingly.

I may mention that even after a lapse of 5 years I received a paltry sum as pension whereas officers of similar grade get enhance pensions.

Recently on 27.11.08, to be exact, the Secretary of the Government Services Pension Fund, Colombo Branch in a press release published in the Dinamina newspaper has given the salary scales of various categories of government employees which had been effective from 01.01.97, and according to same the starting salary of a Super Grade Officer in government service as at 01.01.97 is Rs. 14,616.62 p.m. and its corresponding scale as Rs. 26,046.40 p.m. w.e.f. 01.01.2006 as per the 2006 salary revision. In terms of that report if the starting salary of a super grade officer is Rs. 14,616.62 p.m. in 1997 I feel my pension too should be calculated accordingly as I retired in 2003, but I am getting a much lesser amount, and I am yet to receive a similar amount even after a lapse of 5 years.

I know the authorities have not yet decided to implement the recommendations of the 2006 circular to the pensioners who retired prior to 2005, but don’t you think my pension should be prepared at least according to the 1997 salary point? If an officer who retired prior to 1997 is entitled to that salary for the computation of his pension, surely I who retired after six years too should get the benefits of that particular circular?

I wrote to the Director Pensions under registered cover (copy attached) and to the relevant Divisional Secretary but regret to note I am yet to get any response from either party. I believe I am being under paid, so I would be grateful to you if you could sort this out with the authorities and help me to get over this anomaly in my pension. In conclusion my humble thanks for the services you are rendering for the helpless.

N. N. Nanayakkara, Gampaha.

Answer: We contacted the office of the Director Pensions. According to them your matter has to be taken up with the Colombo Municipal Council. The place where you worked last, prior to going on pension and this office would have in fact prepared your pension papers.

The Divisional Secretary will be making your pension payment as advised by the Colombo Municipal Council at the time of your retirement. Neither the office of the Director Pensions nor the Divisional Secretary can adjust your pension, further they do not know about your promotion to the Super Grade on 01.07.93 suggests you take up your pension anomaly with the Colombo Municipal Council, failing which let us know so that we can help you by contracting relevant persons at the CMC.

Change of name in Birth Certificate

Question: My name is given as M. Kasturiarachchi in the British Certificate, issued in Lanka. I am now an American citizen. In all documents, pay records, passport, citizenship certificate my name appears as M. Kasturi (abbreviated for convenience). I intend to apply for dual citizenship prior to settling here.

Please let me know whether I could change the name in my Birth Certificate to read as M. Kasturi to avoid problem.

If so, please let met know the steps I should take to get it done.

M. Kasturi, Boralesgamuwa.

Answer: The procedure to change your name in the Birth Certificate is the same process as to be followed for change of name. You have to first inform the public of your change of name from M. Kasturiarachchi to M. Kasturi by publishing in the newspapers.

You have to also inform the Grama Seva Niladhari in writing and get his acknowledgement similarly you have to inform your banks of your change of name and use the new name for at least one year. After which you can apply to the Divisional Secretary’s office requesting for the change of your name in the Birth Certificate.

The above relevant proof should be produced such as newspaper advertisement, having informed the GSN and correspondence with your bank etc. Both in your old name as well as your new name you have to state in full what ‘M’ stands for (first name in full). In your case since you have been already using the name ‘M. Kasturi’ you have to check with the DS office whether you have to wait for one year or not after advertising in the newspaper.