Suggestion
to include the right of Central Government employees in your party's
election manifesto regarding the scrapping of the National Pension
System
Proposal to include in the election manifesto of your party with regard to the scrapping of the National Pension System
"If
you will be able to indicate your intention to replace the present new
contributory scheme with the old Statutory Pension structure, in your
manifesto, it might help immensely to elicit the support of the Central
Government employees and their family members to your party candidates
in the ensuing general election."
NJCA
National Joint Council of Action
4, State Entry Road, New Delhi - 110055
No.NC-JCM-2019/NPS
March 8, 2019
To
The Chief Executive,
All Recognised National and State level Political Parties
Sub:-
Proposal
to include in the election manifesto of your party with regard to the
scrapping of the National Pension System which has taken away the
pension right of Central Government Employees
Dear Sir /Madam,
We
write this on behalf of the organisations of the Central Government
employees participating in the Joint Consultative Machinery, set up by
the Government of India in 1960s as a negotiating forum to settle
various demands and grievances of the employees through discussions. In
the meeting that was held on 8th February, 2019, of the Standing
committee of the National Council, Staff Side, it was unanimously
decided that I in my capacity as the Secretary, Staff side National
Council, must write to you to draw your kind attention to one of the
most significant demands of the Central Government employees i.e. to
replace the newly introduced contributory pension scheme with the old
statutory defined Pension system and also to restore the GPF Scheme
which was withdrawn by the Government. I have been asked to seek your
support to this vital demand of the employees especially of the young
workers who have entered government service after 1.1 .2004 and obtain
an assurance from you that you will accede to the demand for the
withdrawal of the New contributory scheme to replace it with the old
Statutory pension system if elected to power in the ensuing general
elections to constitute the Lok Sabha. Before going into the
difficulties being faced by the employees governed under the New
Contributory Pension Scheme which is at present christened as “National
Pension System (NPS)”, I would like to invite your attention to the
historical judgment delivered by the Hon’ble Supreme Court by a 5 Member
Bench consisting of Hon’ ble Chief Justice Y.B.Chandrachud. The Hon’ble
Supreme Coutt in this case has analyzed in detail the entire issue of
Pension. The most impotant portion of the above historical judgment is
reproduced below for your kind consideration please.
“From the discussions 3 things emerge
(i)
that pension is neither a bounty nor a matter of grace depending upon
the sweeting of the employer and that it creates a vested rights subject
to 1972 Rules which are statutory in character, because they are
enacted in exercise of powers conferred by the proviso to Article 309
and Clause (5) of article 148 of the constitution,
(ii) that Pension is not an ex-gratia payment but it is a payment for the past service rendered and
(iii)
it is a social welfare measure rendering socio economic justice to
those who in the heyday of their life ceaselessly toiled for the
employer on an assurance that in their old age they would not be left in
the lurch.”
As you are aware Sir/Madam, that the new
contributory pension scheme was introduced by the then NDA Government in
2004 initially through an executive fiat. Later, rather much later, a
bill was introduced in the Parliament to enact the Pension Fund
Regulatory and Development Authority. After the promulgation of the
Notification in 2004, many State Governments adopted the scheme to cover
their employees, the only exception being the State of West Bengal
presently. The ostentatious reason adduced at the time of promulgation
of the Notification and thereafter at the time of the introduction of
the PFRDA bill, was the ever increasing financial outflow on pension
account, which makes fiscal deficit management difficult. Prima facie
the said reason appeared to be true as the quantum of outflow on account
of Pension had been on increase. But the fact that it had always been
on rise was concealed as also the one that as a percentage to the GDP,
the pension payment had been continuously dwindling over the years.
The
employees organisations had been pointing out to the Government that
the desired objective of containing pension outflow would not come about
for the next four decades. When the probable drastic reduction in
pension under the new scheme was raised by the Staff Side in the
National Council, the Government stated that under the new dispensation,
employees will become entitled more annuity than the then existing
entitlement of Pension, this assurance was given in writing by
Government in the Standing Committee Meeting of the National Council
(JCM) held under the Chairmanship of Secretary (Personnel) on 14th
December, 2007 and went on to assure the Government’s intervention if
things turns out otherwise. It is also pertinent to mention here that
the Government has exempted the Armed Force Personnel from the NPS and
they continue to be in the old Pension Scheme. If the NPS is so
attractive then why the Government has exempted them from NPS. This is a
clear proof that the NPS is vety much detrimental when compare to the
old Pension Scheme.
The scheme is presently in vogue
for the last 15 years. A few employees who were originally recruited as
casual workers but got regularised later (retired before completion of
the 33 or 35 years of service.) They were given a paltry amount as
pension amounting to less than Rs, 2000. Had they been covered under the
old Pension scheme, they would have certainly got more than 20,000 as
pension. The new scheme has thus become “NO pension scheme’. The new
scheme has thus created consternation of a very high order amongst the
employees as they rightly feel that their hard earned savings are in
effect compulsorily channelled to benefit the corporate entities. Since
the Govt. will have to contribute equal amount or more (now 14%)the same
would act in future as a real drain on the resources of the Government
and will cause hardship in the form of increased tax liability. The
anger and discontent of the employees have manifested itself in huge
demonstrations and such other programmes and some of them have even
resorted to strike action.
We are proud to mention that
our principled opposition to the scheme right from the beginning, when
it was introduced by the then NDA Government, has now been vindicated as
it neither benefits the subscriber nor the Nation. Incidentally we may
point out that in the wake of the 6th CPC, Government agreed to set up
an expert committee under the chairmanship of Dr.Gayatri, at the Indian
institute of social sciences to look into all aspects of the New Pension
scheme. The committee has clearly indicated that the new scheme will
draw more funds from the exchequer in the coming 40 years, before any
reduction in the outflow could be brought about.
We
fervently feel that the new contributory scheme must be replaced by the
old Pension Scheme under the CCS (Pension) Rules, 1972. If you will be
able to indicate your intention to replace the present new contributory
scheme with the old Statutory Pension structure, in your manifesto, it
might help immensely to elicit the support of the Central Government
employees and their family members to your party candidates in the
ensuing general election.
We shall also be grateful for favour of a word in response to this communication from your end.
With kindest regards,
Yours sincerely,
(Shiva Gopal Mishra)
Convener
Source: ncjcmstaffside.com
