Ministry of Finance CGEGIS Table 2011

The Central Government Employees Group Insurance Scheme (CGEGIS) is a social security scheme introduced by the Government of India for the benefit of its employees. It provides a dual benefit of insurance cover and savings fund. The Ministry of Finance plays a crucial role in periodically updating and notifying the tables that determine the accumulation in the savings fund component of the scheme. The CGEGIS Table 2011, specifically relevant to employees covered under the scheme during that period, illustrates the guaranteed returns accrued over time.

The primary purpose of the CGEGIS Table 2011, like other CGEGIS tables, is to provide clarity and predictability to subscribers regarding the savings portion of their contribution. This table showcases the progressive accumulation of funds contributed by the employee, along with the applicable interest rate compounded annually. The interest rates are declared by the government, taking into account prevailing economic conditions and interest rate benchmarks. The table is essentially a ready reckoner that enables employees to estimate the maturity value of their savings at different points in time, depending on their contribution level and the duration of their subscription to the scheme.

Understanding the CGEGIS Table 2011 is important for government employees for several reasons. Firstly, it allows them to plan their finances more effectively, knowing the approximate returns they can expect from the savings component of the scheme. This information can be crucial for retirement planning, children's education, or other long-term financial goals. Secondly, it fosters transparency and accountability, as employees can independently verify the correctness of the accumulated amount in their savings fund account. Thirdly, the table helps employees make informed decisions about their contribution levels, as they can assess the impact of higher contributions on the ultimate maturity value.

While the CGEGIS provides a defined contribution towards insurance and savings, the interest rates applied to the savings fund are subject to change based on government notifications. Therefore, employees need to refer to the specific table applicable to their period of subscription to the scheme. The Ministry of Finance regularly issues revised tables, reflecting changes in the interest rate environment. The CGEGIS Table 2011 is particularly relevant for those who joined the scheme and were contributing according to the prevailing subscription and interest rate regime around that period. Subsequent revisions to the scheme and interest rates would have resulted in new tables applicable to later subscribers.

In summary, the CGEGIS Table 2011 served as a vital tool for Central Government employees to understand the financial implications of their participation in the CGEGIS scheme. It provided a clear and transparent framework for estimating the maturity value of their savings fund, facilitating better financial planning and informed decision-making. It is important to note that this table is historically significant and remains relevant only to those whose contributions and accruals fall under its specific timeframe and interest rate regime. Newer versions of the table will be applicable to employees who are newer to the scheme.