Revised Accounting Procedure for Central Government Employees Group Insurance Scheme (CGEGIS-1980)

The Department of Expenditure, Ministry of Finance, has issued a consolidated and revised accounting procedure for the Central Government Employees Group Insurance Scheme (CGEGIS), 1980, incorporating all amendments issued from time to time. The revised instructions aim to streamline accounting, improve uniformity across Ministries and Departments, and ensure accurate management of Insurance and Savings Funds under the scheme.

Background of the Scheme

The CGEGIS, 1980 was introduced to provide insurance cover and a savings component to Central Government employees. Over the years, multiple Office Memoranda and circulars were issued to clarify accounting treatment, reporting formats, fund management, and reconciliation procedures. For ease of reference and operational consistency, these instructions have now been consolidated into a single revised accounting procedure.

Head of Account and Classification

All transactions relating to CGEGIS-1980 are to be accounted for in the Public Account of India under a distinct minor head. The scheme is classified under “8011 – Insurance and Pension Funds”, with a specific sub-head for Central Government Employees Group Insurance Scheme. Separate accounting is required for the Insurance Fund and the Savings Fund, ensuring clear identification of receipts, payments, and balances.

Deduction of Subscription from Pay Bills

Drawing and Disbursing Officers (DDOs) are required to exhibit CGEGIS subscriptions distinctly in pay bills. Monthly recoveries from employees must be shown separately and compiled through prescribed schedules. The schedules form the basis for crediting contributions to the appropriate fund and for future reconciliation.

Accounting of Receipts and Payments

DDOs must prepare separate bills in simple receipt form for CGEGIS recoveries and remit them to the Pay and Accounts Office (PAO). The PAO records these transactions in the Service Books of employees and maintains nominee details, particularly important in cases involving death while in service.

Payments under CGEGIS—whether insurance claims or savings fund withdrawals—are made only after due verification and authorization. Each payment is to be distinctly recorded, with proper cross-reference to supporting documents.

Annual Accounts and Reporting

Pay and Accounts Officers are required to prepare annual accounts of CGEGIS showing opening balances, recoveries, interest credited, payments made, and closing balances separately for the Insurance Fund and the Savings Fund.

These accounts are consolidated by the Controller General of Accounts (CGA) and forwarded to the Ministry of Finance within the stipulated timelines. The consolidated position is also shared with audit authorities to ensure transparency and accountability.

Interest Crediting Mechanism

Interest on CGEGIS balances is credited annually, based on rates notified by the Government. The interest is calculated on monthly balances and apportioned separately between the Insurance Fund and the Savings Fund. The procedure clearly specifies that interest should be credited as soon as the accounts for the financial year are finalized, including through supplementary adjustments if required.

Transfer of Employees Between Offices

In cases where an employee is transferred from one Ministry, Department, or Office to another, the transfer order must clearly indicate CGEGIS membership details. The Head of Office forwards the necessary information to the PAO to ensure continuity of subscription recovery and proper accounting of accumulated balances.

Treatment of Recoveries, Refunds, and Errors

The revised procedure lays down clear instructions for handling recoveries due to errors, omissions, or delayed deductions. Responsibility for monitoring recoveries rests with the DDO, while PAOs are tasked with ensuring that credits are correctly reflected in individual accounts.

Proforma Accounts and Restricted Utilisation

Amounts accumulated under CGEGIS are maintained in proforma accounts and are not available for general expenditure. Utilisation of these funds is strictly limited to CGEGIS-related payments, such as insurance claims, savings fund withdrawals, and interest payments, with necessary approvals.

Consolidation of Earlier Instructions

The revised accounting procedure formally incorporates and supersedes earlier Office Memoranda issued in 1982, 1984, 1985, 1995, and 2012, to the extent they relate to accounting and reporting under CGEGIS-1980. Numeric codes used in earlier classifications have also been updated to align with the current accounting framework.

Objective of the Revision

The consolidation is intended to:

• Remove ambiguity caused by multiple legacy instructions
• Ensure uniform accounting practices across Ministries and Departments
• Strengthen audit trails and reconciliation
• Improve the accuracy and timeliness of interest credit and benefit payments

What Employees and Offices Should Note

While the scheme itself remains unchanged, Ministries, Departments, DDOs, and PAOs are required to strictly follow the revised accounting procedure with immediate effect. Employees are advised to ensure that their CGEGIS subscriptions are correctly reflected in pay slips and service records.

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