Despite rules allowing employees above the age of 55 years, who have opted for voluntary retirement or given compulsory retirement, to invest their settlement funds in the Post Office Senior Citizen Savings Scheme, frontline staff are allegedly rejecting such deposits.
An individual above 60 years of age can invest in a post office senior citizen savings scheme (SCSS). However, there is an exemption clause which allows employees above 55 years of age and below 60 years of age to invest their settlement amount in this scheme, subject to the condition that the investment be made within one month of receipt of such an amount.
“The government guidelines clearly state that such employees can invest in SCSS, but the frontline staff at post offices are not accepting the investments, as it appears they are not well versed with the regulation,” Suresh Parthasarathy. founder, Myassetsconsolidation.com, pointed out. He has been guiding retirees to invest in SCSS.
“The prospects of getting a job for employees above 55 are bleak, and they have to depend on monthly interest incomes to manage their family cash flow. Products like bank fixed deposits and postal deposits are the major interest earners for them,” he added.
Currently SCSS offers a better interest rate of 7.4% per annum, when compared to rates between 5.3-5.5% offered by banks. Also, Post Office deposits come with a sovereign guarantee.
Employees are also finding it difficult to meet the requirement that the settlement funds need to be invested within a month of receipt, amid the COVID-19 pandemic.
Mr. Parthasarathy said with COVID-19 lockdowns only now being eased, the 30-day time frame given to invest the settlement amount is not sufficient and the Union Finance Ministry needs to look at extending the time frame, to help this category of employees to invest in SCSC.
“It is high time the postal department takes the initiative to popularise the scheme and it must have sufficient displays at post offices to educate the general public,” he added.
When contacted a senior official from the Postal department said the Finance Ministry has to take a call regarding extension of time frame from 30 days. He also pointed out that if the field staff are rejecting the investment, the concerned individual can make a representation to a higher official.
