A complete reference blog for Indian Government Employees

Showing posts with label NPS To OPS. Show all posts
Showing posts with label NPS To OPS. Show all posts

Monday, 21 September 2020

NPS to OPS Contract for Old Pension Scheme – Rajya Sabha

NPS to OPS

Contract for Old Pension Scheme – Rajya Sabha

National Pension System (NPS) was introduced for Central Government employees by a Notification of Ministry of Finance (Department of Economic Affairs) dated 22nd December, 2003. NPS is mandatory for all new recruits to the Central Government service from 1st January, 2004 (except the armed forces). However, in some specific court cases, like WP(C) No. 3834/2013 titled Permanand Yadav Vs. Union of India and WP(C) No. 2810/2016 viz.Rajendra Singh Vs. Union of India, where the selection of candidates had been made before 01.01.2004 but their actual appointment in the Government service could be made on or after 01.01.2004 due to various reasons, on the direction of the Hon’ble High Court of Delhi, the benefit of Old Pension Scheme was allowed to the petitioners.

After considering all the relevant aspects and to extend the benefit to similarly placed Government servants in order to reduce further litigation, the Government has decided, vide an Office Memorandum No. 57/04/2019-P&PW(B) dated 17th February, 2020 of the Department of Pension & Pensioners’ Welfare, that in all cases where the results for recruitment were declared before 01.01.2004 against vacancies occurring on or before 31.12.2003, the candidates declared successful for recruitment shall be eligible for coverage under the Central Civil Services (Pension) Rules, 1972. Accordingly, such Government servants who were declared successful for recruitment in the results declared on or before 31.12.2003 against vacancies occurring before 01.01.2004 and covered under the National Pension System on joining service on or after 01.01.2004, may be given a one – time option to be covered under the Central Civil Services (Pension) Rules, 1972.

The advertisements issued before the introduction of the National Pension System may or may not have contained a clause regarding the pension scheme applicable to the selected candidates. In its order dated 27.03.2019 in W.P.(C) 10306/2016 – Union of India & others versus Dr. Narayan Rao Battu& another, Hon’ble High Court of Delhi observed that since the new pension scheme was in effect and a policy decision had already been taken to make the said scheme applicable to all incumbents joining government service on or after 01.01.2004, the Respondent, who was appointed on 25.02.2005, cannot claim the right to be covered by the old pension scheme, merely because the vacancy against which he was appointed was initially advertised at a time when the old pension scheme was in force. Hon’ble Court also observed that once the new pension scheme unambiguously and specifically provided that since all incoming office bearers, whose date of appointment is on or after 01.01.2004, would be governed by the new pension scheme, no reference can be made to either the date of vacancy, or the date of advertisement.

In view of the specific provisions of the Notification dated 22.12.2003, the date of advertisement for the vacancies or the date of examination for selection against those vacancies is not considered relevant for determining the eligibility for coverage under the Old Pension Scheme or the National Pension System. There is no proposal to revise the orders issued vide aforesaid Office Memorandum dated 17.02.2020.

This information was given by the Union Minister of State (Independent Charge), Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh in a written reply in Rajya Sabha today.

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Monday, 9 March 2020

Latest news on NPS to OPS

Latest news on NPS to OPS

Latest news on NPS to OPS

Withdrawal of NPS and reintroduction of Old Pension Scheme under CCS (Pension) Rules, 1972 to the Central Government Employees recruited on or after 01.01.2004.
 
Demand: In a nutshell all those employees irrespective of their date of recruitment / selection who were recruited against the available vacancies as on 31.12.2003 should all be brought under the Old Pension Scheme under CCS (Pension) Rules, 1972.

Latest Central Government Employees News

Shiva Gopal Mishra
Secretary

National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi - 110001
NC-JCM-2020/CS/PM/NPS
March 2, 2020

The Cabinet Secretary
&
Chairman
National Council (JCM)
Cabinet Secretariat, Rashtrapati Bhawan,
New Delhi

Subject: Withdrawal of NPS and reintroduction of Old Pension Scheme under CCS (Pension) Rules, 1972 to the Central Government Employees recruited on or after 01.01.2004.

Reference: Department of Pension and Pensioners Welfare OM No. 57/04/2019-P& PW(B) dated 17th February, 2020.

Dear Sir,

Your kind and immediate attention is drawn to the above mentioned subject. You are aware that the entire Central Government Employees are opposing the National Pension System (NPS) imposed arbitrarily by the Government on the Central Government Employees who are recruited on or after 01st January, 2004. The Staff Side of the National Council (JCM) is repeatedly representing to the Government to withdraw the NPS and reintroduce the Old Pension Scheme under CCS (Pension) Rules, 1972 to the Central Government Employees recruited on or after 01.01.2004.

Also check: Steps to complete the pension case as prescribed in in CCS Pension Rules, 1972

This issue was discussed as an Agenda Item (2. Item No. 02/05/NC-44) in the 44th Ordinary Meeting of National Council (JCM) held on 28th May, 2005 under the Chairmanship of Cabinet Secretary. In this meeting the Staff Side have specifically stated that “they would not accept the new Scheme and prefer to disagree.” The Official Side reiterated that the new Scheme was a Defined Contribution Scheme which is fundamentally different from a Defined benefit Scheme. Financial compulsions have necessitated to shift to the New Scheme.

The Official Side, however, stated that the views and concerns of the Staff Side have been noted.
Staff Side requested that action taken on the views noted may be reported and further discussed.
The issue was again discussed in the 45th Meeting of the National Council (JCM) held on 14th October, 2006, as Agenda Item (Item No. 03/06/NC-45). In this meeting the Staff Side has stated “The new Scheme that has been imposed on the new entrants to Government service (recruited after 01.01.2004) is not acceptable, as the same is subject to the vagaries of the stock market.”
Further again the issue was discussed in the meeting of the Standing Committee of the National Council (JCM) held on 14th November, 2006, the Staff Side once again oppose the NPS and reiterated their demand for withdrawing the NPS.

The Staff Side again raised the issue in the Standing Committee Meeting of the National Council (JCM) held on 14th December, 2007, wherein the Official side gave the following assurance. “For employees who had entered w.e.f. 01.01.2004 are not likely to be worse off vis-a-vis the current Pension system in force, as the replacement rate would match to the present one. Thus, NPS is a win-win situation for employees and the Government.”

However, the above assurance given by the Government has proved to be false since at present the employees who are appointed after 01.01.2004 and governed under the NPS have now started retiring from service and they are getting a very meager Pension of Rs. 2,000/- to 3,500/- per month, whereas the minimum Pension under the Government of India to the Central Government Employees is now Rs. 9,000/- + DR.

Considering the above situation we once again represented the matter before the 7th CPC and based on the 7th CPCs recommendation , Government constituted a Committee on NPS. The Staff Side submitted its detailed Memorandum to the Committee and also appeared in person before the Committee and have reiterated our position that the Central Government Employees as a whole must be fully excluded from the ambit of the Defined Contributory Pension Scheme, since it has taken away the benefit of defined and guaranteed Pension to the Central Government Employees.
The issue was once again raised by the Staff Side in the meeting of the Standing Committee of National Council (JCM) held under the Chairmanship of Secretary / DOP&T. The extract of the Minutes is given below for your ready reference.

“Item No. 7 : Scrap PFRDA Act and re-introduce the Defined Benefit Statutory Pension Scheme :

Staff Side told that they reiterate their stand in that, the NPS should be scraped and the Defined Guaranteed Pension under the CCS (Pension) Rules, 1972 should be ·restored to the employees, who were recruited on or after 01.01.2004. They also demanded that GPF facility may be provided to the NPS governed employees on an optional basis.

Chairman desired that the Department of Pension may consider the demand in reference to GPF of the Staff Side.”

The Staff Side again raised the issue in the presence of the then Cabinet Secretary in the National Council (JCM) Meeting held on 13.04.2009. The relevant portion of the Minutes of the Meeting is given below :-

"4.3 Withdrawal of NPS and re-introduction of Defined pension under CCS (Pension) Rules, 1972 he emphasized the Government to recommend at least 50% of the last pay drawn as minimum Pension to the retired I retiring Central Government Employees."

“5.14 Secretary, Staff Side stated that they were opposed to NPS and demanded that the Old Pension Scheme be restored. He further stated that the Government should guarantee Pension of 50% of the last pay drawn to the employees recruited on nor after 01.01.2004. He further demanded facility of GPF and Family Pension to all employees."
 
From all the above deliberations which have taken place in the National Council (JCM) you will appreciate that how serious the issue is.

In this situation the Department of Pension and PW vide OM No. 57/04/2019-P&PW (B) dated 17th February, 2020 have issued an instructions extending the benefit of the Old Pension Scheme to a particular section of employees. The relevant portion of the DOP&T OM dated 17th February, 2020 is given below for your kind ready reference.

“4. ……………… in all cases where the results for recruitment were declared before 01.01.2004 against vacancies occurring on or before 31.12.2003, the candidates declared successful for recruitment shall be eligible for coverage under CCS (Pension) Rules, 1972. Accordingly, such Government servants who were declared successful for recruitment in the results declared on nor before 31.12.2003 against vacancies occurring before 01.01.2004 and are covered under the National Pension System on joining on or after 01.01.2004, may be given a onetime option to be covered under the CCS (Pension) Rules, 1972.”

Already the Government employees are divided into two classes, one making subscription and another making no subscription but receiving 50% of the last Basic Pay as Guaranteed Pension. Now by the above mentioned DOP&T OM again another class of employees within the NPS Scheme has been introduced. This has resulted in lot of discontentment amongst the Central Government Employees. Therefore, without prejudice to our right to continue to represent to the Government to withdraw the NPS and to reintroduce the Old Pension Scheme under CCS (Pension) Rules, 1972 to all the Central Government Employees especially those who are recruited on or after 01.01.2004, we suggest the following as an immediate redressal of the grievance.

1) All the Central Government Employees who were recruited against the available sanctioned vacancies in different categories during the Year 2003, irrespective of the fact that whether selection process was completed on or before 31.12.2003, or the Notification / Call Letter / Interview / Selection process was completed on any year after 31.12.2003, but vacancies on the particular post were available on 31.12.2003, all such cases should be brought under the coverage of the Old Pension Scheme, since the recruitment process was delayed by the concerned Departments even though vacancies were available on 31.12.2003. In a nutshell all those employees irrespective of their date of recruitment / selection who were recruited against the available vacancies as on 31.12.2003 should all be brought under the Old Pension Scheme under CCS (Pension) Rules, 1972.

As assured in the National Council (JCM) Meeting, GPF Scheme may be introduced to the employees governed under NPS at present.

As demanded by the Staff Side 50% of the last pay drawn should be guaranteed as Pension under the NPS Scheme till the Government withdraws the NPS for Central Government Employees.

Conclusion
We request you to convene a meeting of the Standing Committee of the National Council (JCM) under your Chairmanship to discuss the entire issue and to reach an amicable settlement.

Thanking you,
Yours Sincerely,
Sd/-
(SHIVA GOPAL MISHRA)
Secretary
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Wednesday, 19 February 2020

Latest News on NPS: Old Pension Scheme for 2004 CG Employees

Latest News on NPS: Old Pension Scheme for 2004 CG Employees

Latest News on NPS: Old Pension Scheme for 2004 CG Employees


The Department of Pension and Pensioners ' Welfare released a significant order on 17 February 2020 on extending the benefit to Central government employees whose appointment has been postponed after 31 December 2003.

Under this Order, a single right to be protected under CCS (Pension) Rules (1972) may be given to government officers who have been deemed effective to obtain the results declared before or on 31.12.2003 against vacancies that take place before 01.01.2004 for joints on or after 01.01.2004. The Central government employees in question can exercise this option by 31.05.2020 at the earliest.

Latest news on NPS to OPS

Amendment in CCS (Pension) Rules 1972 - Central Government Employees

No. 57/04/2019-P&PVW/(B)
Government of India
Department of Pension and PW

Lok Nayak Bhawan, Khan Market,
New Delhi, the 17 February, 2020

OFFICE MEMORANDUM

Subject: Coverage under Central Civil Services (Pension) Rules, 1972, in place of National Pension System, of those Central Government employees whose selection for appointment was finalized before 01.01.2004 but who joined Government service on or after 01.01.2004.

The undersigned is directed to say that consequent on introduction of National Pension System (NPS) vide Ministry of Finance (Department of Economic Affairs) Notification No. 5/7/2003-ECB & PR dated 22.12.2003, all Government servants appointed on or after 01.01.2004 to the posts in the Central Government service (except armed forces) are mandatorily covered under the said scheme. The Central Civil Services (Pension) Rules, 1972 and other connected rules were also amended vide Notification dated 30.12.2003 and, after the said amendment, those rules are not applicable to the Government servants appointed to Government service after 31.12.2003.

2. Representations have been received in this Department from the Government servants appointed on or after 1.1.2004 requesting for the benefit of the pension scheme under Central Civil Services (Pension) Rules, 1972 on the ground that their appointment was delayed on account of administrative reasons or lapses. Similar references have been received from Ministries/Departments seeking advice of this Department on the question whether the Government servants who were appointed on or after 1.1.2004 could also be extended the benefit of pension scheme under CCS (Pension) Rules, if their appointment was delayed beyond 31.12.2003 on account of administrative reasons and the delay in appointment was beyond the control of the said Government servants.

Also check: Benefit of gratuity in respect of Central Government Employees counting of service on joining new service covered under National Pension System (NPS)

3. From the representations of the Central Government employees and the references received from Ministries /Departments, it has been observed that in many of the cases referred to this Department, selection process (including written examination, interview and declaration of result) for recruitment had been completed before 01.01.2004 but the employee joined the Government service on or after 01.01.2004. A few illustrations where the selection was finalized before 01.01.2004 but actual joining took place on or after 01.01.2004 are as under:
(i) The result for recruitment was declared before 01.01.2004 but the offer of appointment and actual joining of the Government servant was delayed on account of police verification, medical examination etc.;
(ii) Some of the candidates selected through a common selection process were issued offers of appointments and were also appointed before 01.01.2004 whereas the offers of appointment to other selected candidates were issued on or after 1.1.2004 due to administrative reasons/constraints including pending Court/ CAT cases.
(iii) Candidates selected before 01.01.2004 through a common competitive examination were allocated to different Departments/ organization. While recruitment process was completed by some Department(s) / organizations on or before 31.12.2003 in respect of one or more candidates, the offers of appointment to the candidates allocated to the other Departments / organization were issued on or after 01.01.2004.
(iv) Offers of appointment to selected candidates were made before 01.01.2004 with a direction to join on or after 01.01.2004.
(v) Offers of appointment were issued to selected candidates before 01.01.2004, and many/ most candidates joined service before 01.01.2004. However, some candidate(s) were allowed extension of joining time and they joined service on or after 01.01.2004. However, their seniority was either unaffected or was depressed in the same batch or to a subsequent batch, the result for which subsequent batch was declared before 01.01.2004.
(vi) The result for recruitment was declared before 01.01.2004 but one or more candidates were declared disqualified on the grounds of medical fitness or verification of character and antecedents, caste or income certificates. Subsequently, on review, they were found fit for appointment and were issued offers of appointment on or after 01.01.2004.
In all the above illustrative cases, since the result for recruitment was declared before 01.01.2004, denial of the benefit of pension under CCS (Pension) Rules, 1972 to the affected Government servants is not considered justified.

4. The matter has been examined in consultation with the Department of Personnel & Training, Department of Expenditure and Department of Legal Affairs in the light of the various representations/references and decisions of the Courts in this regard. It has been decided that in all cases where the results for recruitment were declared before 01.01.2004 against vacancies occurring on or before 31.12.2003, the candidates declared successful for recruitment shall be eligible for coverage under the CCS (Pension) Rules, 1972. Accordingly, such Government servants who were declared successful for recruitment in the results declared on or before 31.12.2003 against vacancies occurring before 01.01.2004 and are covered under the National Pension System on joining service on or after 01.01.2004, may be given a one-time option to be covered under the CCS(Pension) Rules, 1972. This option may be exercised by the concerned Government servants latest by 31.05.2020.

5. Those Government servants who are eligible to exercise option in accordance with para-4 above, but who do not exercise this option by the stipulated date, shall continue to be covered by the National Pension system (NPS).

6. The option once exercised shall be final.

7. It is clarified, that the above option would be available to only those Government servants who were declared successful for recruitment before 01.01.2004, against vacancies pertaining to the period prior to that date. This option shall, however, not be available to the Government servants appointed on or after 01.01.2004 if they fall in any of the following categories:
(i) Government servants whose names were included in a panel of selected candidates before 01.01.2004 for recruitment against vacancies occurring on or after 01.01.2004 and were, accordingly, recruited on or after 01.01.2004.
(ii) A Government servant whose name was included in a panel of selected candidates prepared before 01.01.2004 for vacancies arising before and after 01.01.2004 but was actually appointed after 31.12.2003 against a vacancy arising on or after 01.01.2004.
(iii) Government servants who were selected against vacancies pertaining to the period prior to 01.01.2004 on the basis of an advertisement / notification issued before 01.01.2004 or a written examination / interview held before 01.01.2004 but results for recruitment were declared on or after 01.01.2004.
(iv) Government servants who joined on or after 01.01.2004 after they were granted extension of joining time on their own request and, in accordance with the instructions issued by the Department of Personnel & Training, their seniority was depressed on account of such extension of joining time to a batch for which the result for recruitment was declared on or after 01.01.2004.
8. The matter regarding coverage under the CCS (Pension) Rules, 1972 based on the option exercised by the Government servant shall be placed before the appointing authority for consideration in accordance with these instructions. In case the Government servant fulfils the conditions for coverage under the CCS (Pension) Rules, 1972, in accordance with these instructions, necessary order in this regard shall be issued latest by 30 September, 2020. The NPS account of such Government servants shall, consequently, be closed w.e.f. 01st November, 2020.

9. The Government servants who exercise option to switch over to the pension scheme under CCS (Pension) Rules, 1972, shall be required to subscribe to the General Provident Fund (GPF). Regarding accountal of the corpus in the NPS account of the Government servant, Controller General of Accounts (CGA) has furnished the following clarification vide letter No. 1(7)(2)/2010/cla./TA III/390 dated 14.11.2019:
i. Adjustment of Employees’ contribution in Accounts: Amount may be credited to individual’s GPF account and the account may be recasted permitting up-to-date interest (Authority-FR-16 &Rule 11 of GPF Rules).
ii. Adjustment of Government contribution under NPS in Accounts: To be accounted for as (-) Dr. to object head 70 – Deduct Recoveries under Major Head 2071 - Pension and other Retirement benefit – Minor Head 911- Deduct Recoveries of overpayment (GAR 35 and para 3.10 of List of Major and Minor Heads of Accounts).
iii. Adjustment of increased value of subscription on account of appreciation of investments - May be accounted for by crediting the amount to Govt. account under M.H. 0071- Contribution towards Pension and Other Retirements Benefits 800- Other Receipts ( Note under the above Head in LMMHA).
10. All Ministries / Departments are requested to give wide publicity to these orders. The cases of those Government servants who fulfil the conditions mentioned in this O.M. and who exercise option to switch over to the pension scheme under CCS (Pension) Rules may be settled by the administrative Ministries / Departments in accordance with these orders.

11. These orders issue with the concurrence of Ministry of Finance, Department of Expenditure, vide their I.D. Note No. 1(7) EV/2019 dated 08.01.2020.

12. In their application to the employees of Indian Audit and Accounts Department, these orders are issued after consultation with Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution.

13. Hindi version will follow.

(Ruchir Mittal)
Deputy Secretary to the Government of India

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Wednesday, 18 December 2019

Additional Relief on death/disability of Central Government servants covered by NPS - CPAO Life Certificate

Additional Relief on death/disability of Central Government servants covered by NPS - CPAO Life Certificate

Government of India
Ministry of Finance
Department of Expenditure
Central Pension Accounting Office
Trikoot-II, Bhaikaji Cama Place,
New Delhi-110066
Phones: 26174596,26174456,26174438

CPAO/IT&Tech/Life Certificate/2 Vol―V/2019-20/159 Dated 13.12.2019

OFFICE MEMORANDUM

Attention is invited to Para 3 (xix) of OM No.1(7)/DCPS(NPS)/2009/TA/221 dated 02,07.2009 and subsequent corrigendum No. 1(7)/DCPS(NPS)/2099/TA/295 dated 27.05.2013 issued by O/o the Controller General of Accounts, Department of Expenditure, Ministry of Finance for submission of the requisite certificates by the Pensioners/Family Pensioners covered under NPS-Additional Relief Scheme(NPS-AR) wherein it is mentioned that -

"The Pension Account Holding Bank will be responsible for obtaining periodical certificates such as Life Certificate, Re-employment Certificate, etc. (as prescribed in CPAO's Scheme for "Payment of Pensions to Central Government Civil Pensioners through Authorised Banks") and intimating electronically to CPAO on due dates. (Life Certificate should be obtained on 1st November each year and intimation uploaded on CPAO's website.) Drawing of pensions/family pension will be subject to the receipt of Life Certificate by CPAO".

Also Check: Availing benefit of Additional Relief on Death / Disability of the Government Servant covered under NPS


2. This office is receiving Grievances from Pensioners/Family Pensioners covered under NPS-AR wherein it is stated that some Pension Account Holding Banks are not receiving periodical certificates such as Life Certificate, Re-employment Certificate, for onward transmission to CPAO electronically (through email) on due dates which results in delay in crediting the pension into the pensioner's account by CPAO.

3. All the Heads of CPPCs/Government Business Departments are requested to direct the concerned Branches of their Bank to obtain the requisite certificates , i.e. as Life Certificate, Re-employment Certificate, etc from the pensioners and intimate electronically (through email) to CPAO on due dates for making timely payment of pension and family pension to pensioners under NPS-AR Scheme.

This issues with the approval of the Chief Controller (Pensions).

Md.Shahid Kamal Ansari
(Dy. Controller of Accounts)

Additional Relief on death/disability of Central Government servants covered by NPS - CPAO Life Certificate


Download Order
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Thursday, 18 July 2019

Proposed 'Hunger Strike:24Hrs. Hunger Fast' and 'Chakka Jam' by "All India Loco Running Staff Association" (AILICSA) on 15th July to 17th July, 2019


Proposed 'Hunger Strike:24Hrs. Hunger Fast' and 'Chakka Jam' by "All India Loco Running Staff Association" (AILICSA) on 15th July to 17th July, 2019

(GOVERNMENT OF INDIA)
(MINISTRY OF RAILWAYS)
(RAILWAY BOARD)
No. 2018/E(LR)II/1/14
The General Managers,
All Zonal Railways &
Including PUs etc

Sub: Proposed ‘Hunger Strike:24Hrs. Hunger Fast’ and `Chakka Jam’ by “All India Loco Running Staff Association”(AILICSA) on 15th July to 17th July, 2019.

It has come to notice that AILRSA has given a call for Hunger Strike: 24Hrs Hunger Fast' and 'Chakka Jam' on the issues of (i) Revision of KMA rates as per 1980 formula; (ii) Parity in Pension for Running Staff Pensioners; (iii) Implementation of Safety Committee recommendations; (iv) Retention of Railways in Service sector under the Government; (v) Withdrawal of NPS and restoration of OPS; and (vi) Against the 100 days’ Action Plan for Railway Privatisation; (vii) Issues related to Crew Beat and their working hours etc.

In view of aforesaid, there should not be any room for complacency on the part of the Railway administrations and all necessary stringent steps must be taken to ensure discipline and smooth functioning of rail movement. It most he ensured that Railway Servants need to seek necessary permissions from the Competent Authority on their respective Railways/ Production Units to leave their headquarters.

Their particular attention should be drawn to relevant penal provisions i.e. Section 173, 174 and 175 of the Railways Act, 1989 which are attracted in cases of abandoning train without authority, obstructing running of train and endangering the safety of persons by disobeying rules etc.

In case any Railway Servant participates in the aforementioned protests including 'Hunger Strike', 'Chukka Jam' etc, a report indicating the number of Railway Servants who took part in such protests should be conveyed to Board’s office on the evening of 15th , 16th and 17th July, 2019.

(Alok Kumar)
Executive Director Estt.(IR)
Railway Board
Source: Confederation
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Wednesday, 17 July 2019

Restoration of Old Pension Scheme – Loksabha

Restoration of Old Pension Scheme – Loksabha Q & A

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
*****
LOK SABHA
UNSTARRED QUESTION NO:3569
TO BE ANSWERED ON JULY 15.07.2019

Restoration of Old Pension Scheme

Rakesh Singh
Rodmal Nagar

Will the Minister of FINANCE be pleased to state:-

(a) whether the demand is being made by trade unions/Government employees to restore the old pension scheme for the Central Government employees as the pension amount is lower and uncertain under the new pension scheme which was implemented in the year 2004;
(b) if so, whether the Government is considering the aforesaid demand of the employees; and
(c) if so, the details thereof and if not, the reasons therefor?

ANSWER

The Minister of State (Finance)
(Shri Anurag Singh Thakur)


(a) Yes, Sir.

(b) and (c) Due to rising and unsustainable pension bill, the Government had made a conscious move to shift from the defined benefit, pay-as-you-go pension scheme to defined contribution pension scheme now called as National Pension System (NPS). The transition also helped in freeing the limited resources of the Government for more productive and socio-economic sectoral development.

There is no proposal to replace the NPS with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

******

Source: Loksabha
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Thursday, 25 April 2019

NPS to OPS - Extension of old pension scheme under CCS(Pension) Rules 1972 to the employees who were selected During the year 2003 and who had joined service On or after 01-01-2004


NPS to OPS - Extension of old pension scheme under CCS(Pension) Rules 1972 to the employees who were selected During the year 2003 and who had joined service On or after 01-01-2004
Shiva Gopal Mishra
Secretary
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13C, Ferozshah Road, New Delhi - 110001
E-Mail : nc.jcm.np@gmail.com
No.NC-JCM-2019/Pension/NPS
April , 2019
The Secretary
Government of India
Department of Pension and Pensioners welfare
3rd Floor, Lok Nayak Bhawan.
Khan Market, New Delhi.

Sub: Extension of old pension scheme under CCS(Pension) Rules 1972 to the employees who were selected During the year 2003 and who had joined service On or after 01/01/2004.

Ref: 1) Judgment of the Hon’ble High Court of Delhi
Judgment in WP (C)3834/2013 & in WP(C) 28/10/2016 dtd. 27/03/2017.
2) Min. of Home Affairs (Pay & Accounts Office)
CRPF Lt. No.PAO/CRPF/MHA/NPS/DA-9(1)/ 2018-19/797, dtd. 15th March 2019.

Sir,
You are aware that the Staff Side of National Council(JCM) is representing in various forums to withdraw the National Pension System and to restore the old Pension Scheme under CCS(Pension) Rules 1972, to the Defence Civilian Employees recruited on or after 01/01/2004, since the NPS is determental to the employees as there is no defined guarantee for Pension during the old age. This was one of the important demand, for which the NJCA has served Strike notice on the Govt. For observing In-definite Strike. However due to the assurance given by the Group of Ministers, the proposed In-Definite Strike was deferred.

Sir, at present based on the Judgment of the Hon’ble High Court of Delhi in the above referred cases, the Ministry of Home Affairs have decided to extend the benefits of the old pension scheme under CCS(Pension) Rules 1972, to the Para-Military forces who were selected during the year 2003, but joined service on or after 01/01/2004. In this regard your kind attention is drawn to the letter of Ministry of Home Affairs, dtd. 15th March 2019 referred at (2) above (copy enclosed for ready reference). The Ministry of Home Affairs have decided to transfer the NPS contribution of the concerned employees to the GPF Scheme and also to bring the employees who were selected during 2003 on the basis of notification issued during 2002/2003 and joined service on or after 2004, under the coverage of CCS(Pension) Rules 1972.

A large number of Central Govt. Employees in various Departments Like Railways, Defence, Postal and other Departments are similarly placed. These employees were selected for appointment during the year 2003, based on the employment notification issued during 2002/2003 however due to delay in receiving the Attestation Forms(Police Verification Report), Medical fitness etc., they were forced to join service on or after 01/01/2004. Due to no mistake of theirs’ they were brought under the coverage of NPS, thereby denying them the benefit of GPF and Defined Guaranteed Pension under the CCS(Pension) Rules 1972. These employees also have now started representing for extending the benefit given to the Home Ministry Staff for them, and their demand is fully justified and is covered under the Judgment of Hon’ble High Court of Delhi.

Sir, in view of the above, it is requested that you may kindly look into the matter and arrange to issue instructions for extending the benefit given to the Para-Military forces in the Home Ministry to the similarly placed Central Govt. Employees by extending them the benefit of Old Pension Scheme under CCS(Pension) Rules 1972. A copy of your instruction may please be endorsed to this office.

Thanking you
Yours faithfully,
sd/-
(Shiva Gopal Mishra)
Secretary
Encl: 1) Copy of Ministry of Home Affairs Lt. Dtd. 15th March 2019.
2) Copy of the Judgment of High Court of Delhi, dtd. 12th Feb. 2015 and 27 March 2017.
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Monday, 15 April 2019

General Provident Fund (GPF) to be introduced to willing National Pension System (NPS) employees- AIDEF Circular


General Provident Fund (GPF) to be introduced to willing National Pension System (NPS) employees- AIDEF Circular

ALL INDIA DEFENCE EMPLOYEES’ FEDERATION

Special Circular No.72
Date : 13.04.2019
As already informed to you the meeting of the National Council (JCM) was held on 13/04/2019 under the Chairmanship of the Cabinet Secretary. AIDEF was represented by Comrades C. Srikumar, K.Balakrishnan and R.S.Reddy. After the introductory remark by the Cabinet Secretary the Staff Side raised the following issues:
  1. The 47th Meeting of the National Council (ICM) is being Called by the Chairman after a period of 9 years. The last i. e. the 46th meeting of the National Council (JCM) was held on 15 May 2010. Under the JCM Scheme the Ordinary meetings of the National Council shall be held as often as necessary, and not less than once in four months. Special meetings can also be called by the Chairman or on a request from the Staff Side. Unfortunately between 1999 and as on date only 7 meetings are held, which means within a period of 20 years only 7 times the National Council has met. This is a clear proof of violation and dilution of the JCM Scheme. Since the National Council of JCM is not functioning, the Departmental Council JCM’s under the Chairmanship of the Secretaries of the Concerned Departments are also not taking place. Therefore I request the Chairman to take a serious note of the situation and a decision may be taken to hold regular meetings of the National Council, its Standing Committee and also the Departmental Council JCM meetings and the decision may be communicated to all Departments.
  2. When the JCM Scheme came in to effect from 1966 all the Non- Gazetted employees were allowed to participate in the JCM Scheme. However due to upgradation of various Group C Posts to Group B these categories are now exempted from the JCM Scheme. The Staff Side is demanding for review of the same and to permit all Non Gazetted employees irrespective of their pay should be allowed to participate in the JCM Scheme.
  3. In the past due to repeated discussions in the National Council JCM, the Cabinet Secretary has written a D.O. Letter to all the Secretaries that before implementing any decisions to privatize, Outsource and closures, downsizing, corporatization, rationalization etc the staff side of the Departmental Council JCM should be consulted and their views may be kept in mind while framing such policy decision. However arbitrary decisions are taken especially by Ministry of Railway’s, Defence, Printing and Stationery, Postal and other departments for privatizing the work being done by permanent employees, closure of many units etc. This has resulted in total Labour unrest and series of agitations are being held including strike action. It is therefore requested that all these activities against the interest of employees may be stopped immediately and the entire issue may be discussed in the Departmental Council JCM meetings with the Staff Side.
  4. After the submission of the 7th CPC recommendations, the Central Government Employees were very much disappointed and there was an all around dissatisfaction since the 7th CPC has not taken into account the proposals of the Staff Side in determining the minimum pay and corresponding fitment factor. The 7th CPC has also rejected our demand to scrap the NPS implemented for employees recruited on or after 1/1/2004. In this backdrop the National Joint Council of Action of the Central Government employees have issued an Indefinite Strike Notice on the Government. A meeting was convened under the Chairman ship of Hon’ble Home Minister Sh. Rajnath Singh in which other three Senior Ministers including the Finance Minister and Railway Minister were also present. The meeting was held on 30th of June 2016 and based on the assurance given by the senior Ministers that the demands of the Central Government employees would be considered by a high Level committee, the strike was deferred. It is unfortunate that the commitment given to the NJCA was never honored and the discontentment amongst the Central Government employees still prevails. It is therefore urged upon the Government that the commitment of the Group of Ministers may be honoured in letter and spirit and Government may come forward to restore the negotiations with the NJCA for reaching an agreement on the following demands. - a. Enhancement of Minimum Pay and Fitment Factor w.e.f. 1.1.2006 - b. Scraping of NPS and restoration of guaranteed Pension under CCS (Pension) Rules 1972. - c. Option No. 1 recommended by 7th CPC for employees who retired prior to 01/01/2016.
  5. The Staff Side are repeatedly representing to grant one more option to switch over to 7th CPC pay scale from a date subsequent to 25/07/2016. Even though there is no much financial implication, the Department of Expenditure is not extending the benefit. This issue needs to be considered favourably.
  6. Inspite of the Government orders for grant of entry pay to the employees promoted on or after 1/1/2006 prescribed for direct recruits in the pay band is not yet implemented in many of the Departments for want of certain clarifications from Department of Expenditure. The issue was discussed in the last Standing Committee meeting and it was assured that necessary clarifications would be issued. However the same has not yet been issued.
  7. Due to non functioning of JCM and non acceptance of genuine demands of the Central Governments employees there is a multiplicity of litigation on service matters including MACP issues like date of implementation of MACP from 1/1/2006, MACP in promotional hierarchy, Annual Increment to employees retired on 30th June and 31st December etc. In majority of the cases the judgements have gone in favour of the employees and as usual the Government drag the employees up to Supreme Court and even after Establishing the Law on service matters by the Supreme Court the benefits are restricted only to the petitioners. A separate meeting with Staff Side may be held so that the demand for implementation of various Court judgements on service matters can be settled and the number of litigations can be reduced.
  8. The Defence Industry like Ordnance Factories, DRDO, Units under Army and Navy etc. are under serious attack. The entire policy decision needs to be reconsidered and all these Defence Establishments should be strengthened and developed.
  9. One time relaxation of LTC-80 cases, where employees have purchased Air Tickets from other than authorized Agents is pending for quite some time. The same may be considered favourably.
  10. Compassionate Appointment to the wards of employees who dies/medically invalidated on accidents while performing Government duty should be given over and above the 5% quota.
  11. Outsourcing of permanent Jobs which are being performed by erstwhile Group “D” Employees should be stopped and all the vacancies should be filled up

Decision on Agenda Points/ Points Raised in the meeting

  • Judgement of Supreme Court on service matters where policies are involved will be made applicable to all the similarly placed Employees.
  • GPF to be introduced to willing NPS employees.
  • Government seriously and positively considering the demand of allotment of salary budget separately to Ordnance Factories.
  • Stepping up of pay will be permitted in MACP.
  • Services of Temporary Status Employees of GSF Cossipore will be regularized.
  • Government Orders on Risk Allowance and Night Duty Allowance will be issued soon.
  • Relaxation of Educational Qualification for Compassionate Appointment to wife of employees medically boarded out from service would be considered.
  • Regarding residency period for promotion from one post to another, the Staff Side should forward a detailed proposal.
  • Grant of 90% Medical Advance for conventional diseases would be considered by Ministry of Health.
  • Proposal for relaxation of LTC-80 is under consideration.
  • Revision of pension to employees those who were compulsorily retired would be considered.
  • The provision of “Wherever feasible” given in the Government order for grant of HRA without NAC would be considered.
  • 13.Regarding implementation of Arbitration Awards separate meeting would be held with staff side.
  • The decision on applicability of CCS (RSA) Rules 1993 to the workers of the Defence Ministry would be taken within a month. 15. The Demand for creation of NFSG grade in cadre of UDC / Stenographers in all offices outside Secretariat is under consideration of the Government.
  • Reimbursement of Medical expenditure involved for over stay in the Hospital, because of infection / side effects would be considered by the Ministry of Health.
With Greetings,
(C.SRIKUMAR)
General Secretary
Source : AIDEF Circular
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Tuesday, 26 March 2019

NPS to OPS: Abolition of National Pension System and for restoration of Old Pension Scheme

NPS to OPS: Abolition of National Pension System and for restoration of Old Pension Scheme
Annexure-I
F.No-20/07/2017-PR
18.03.2019
To
Shri C. Srikumar, General Secretary,
All India Defence Employees' Federation,
S.M. Joshi BhavanI, Survey No. 81 ,
Dr. Babasaheb Ambedkar Road,
Khadki, Pune - 411 003.

Subject: Representation received for abolition of National Pension System and for restoration of Old Pension Scheme - reg.

Sir,
Kindly refer, to your representation dated 03.11.2018 on the subject cited above.

In this connection, it is started that the introduction of National Pension System (NPS) was a policy decision of the Government of India in view of the Increasing pension liability on the economy.
Your concerns In this regard have been noted. It Is informed that based on the feedback received from time to time from the subscribers covered under NPS and other stakeholders, the Government of India, based on the Committee of Secretaries recommendations, has recently approved the following proposals for streamlining NPS for Central Government employees.
  • Enhancement of the Government's contribution from the existing 10% to 14% of the employee's pay + DA While keeping the employee's contribution at the existing 10%
  • Providing freedom of choice for selection of Pension Funds and pattern of investment to subscribers
  • Payment of compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012
  • Providing tax deduction to the contribution made under Tier-II of NPS under Section 80 C for deduction up to Rs. 1.50 Iakh provided that there is a lock in period of 3 years
  • Increase In the tax exemption limit for lump sum withdrawal on exit from the existing 40% to 60% making the entire withdrawal exempt from Income tax.
It Is further assured that keeping in view the concerns of NPS subscribers, the Government will continue to do its best to ensure that the Interests of the subscribers are protected to the best extent.

Yours faithfully,
(Abhay Garg)
Under Secretary to the Government of India

NPS-OPS-Abolition-National-Pension-System

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Saturday, 16 March 2019

Demands include in election manifestos to Recognized political parties taking part in the 17th Lok Sabha general election

Demands include in election manifestos to Recognized political parties taking part in the 17th Lok Sabha general election

LokSabha_General_Election_CG_Employees_demands

Bharatiya Pratiraksha Mazdoor Singh
(An All India Federation of Defence Workers)
(An Industrial Unit of B.M.S.)
REF: BPMS/ Cir/ 18th TC/ 5
Dated: 12.03.2019
To,
The Office Bearers & CEC Members
Bharatiya Pratiraksha Mazdoor Sangh
&
The General Secretaries/ Presidents
Unions affiliated to this federation

Subject: Recognised Political Parties Participating in 17th Lok Sabha General Election: Request to include demands in Election Manifestos.

Dear Brothers & Sisters,
Sadar Namaskar

It is for your kind information that this federation along with two other recognized federations has decided to submit to all Recognised Political Parities, National/ State Level the demands/ issues of Defence Civilian Employees for inclusion in their manifestos of 17th Lok Sabha General Election.
The issues are as under

1. Self Reliance in Defence Preparedness through State Owned Defence Industries viz Ordnance Factories, DRDO, Army Workshops, Ordnance Depots, Supply Depots, DGQA etc.

As you are well aware with the issue, State Owned Defence Industries are facing serious challenges/ threats these days. It is prime responsibility of Govt to safeguard the existence of these industries in interest of the Nation and take steps so that it may flourish and provide job opportunities to citizen of India. But of late Govt made various decisions regarding these establishments led to total destruction of these industries.

Burning Issues/ Challenges of Industries
  1. Categorization of more than 275 products being manufactured in the Ordnance Factories as “Non-Core”.
  2. Transfer of technology developed by DRDO to Private Sectors depriving
    Ordnance Factories & DPSUs.
  3. Large scale outsourcing of work of more than 1.5 lakh Civilian Posts depriving Young generation with Permanent Job.
  4. Induction of 100% FDI in Defence Sector.
  5. Privatization of Defence Industries by adopting various models like GOCO etc.
  6. Denial of Job to trained Trade Apprentices.
  7. Closure of various defence establishments like Ordnance Depots, Military Farms, Army Postal Establishments etc.
  8. Inclusion of Third Party Inspection at the cost of DGQA/ DGAQA etc.
    Our Proposal that is to be included:
"To achieve self reliance in defence expand, develop and strengthen the state owned Defence Industry and to ensure full capacity utilization of these Industries."

2. National Pension System

Govt introduced a contributory pension system under National pension system for all Central Govt employees recruited on or after 01.01,2004 and deprived them of very elementary benefits of old age social security by denying CCS (Pension) Rules, 1972 to them. The employees have been opposing this pension system since its introduction because it lacks the following essential benefits
  1. No guarantee of any Minimum Pension under this scheme.
  2. No safeguard from Price rise in absence of element of Dearness Allowance.
  3. Absence of additional Pension on attaining the age of 80 Years/ 85 Years/ 90 Years/ 95 Years/ 100 Years.
  4. No safeguard to Missing employees.
  5. Absence of Compulsory Retirement Pension, Compassionate Pension etc.
Both Legislative Body and Executive Body are responsible for well functioning of Administration. Both get their dues from Consolidated Fund of India. It is discriminatory that Executive Body has been deprived of its old age security especially lower rung employees would suffer the most.

Our Proposal to be included:

National Pension System will be scraped and CCS (Pension) Rules, 1972 will be implemented for all Central Govt Employees.

3. Appointment on Compassionate Grounds

The appointment on compassionate ground is an exception to the equality clause under Article 14. If an employee dies while in service then according to rule framed by the Central Government or the State Government, appointment to one of the dependants shall not be considered violation of Articles 14 and 16 of the Constitution because this exception has been provided through various rules only to mitigate the hardships of deceased employee family suffering from scarcity of very trivial things of daily life due to the death of sole bread winner of the family and sudden misery faced by the members of the family of such employee who serves the Central Government or the State Government.

A lot of Employees working under MoD are dealing with hazardous and risky operations. Because they are exposed to various hazardous chemical and other materials, they are developing various illness sometimes led to their deaths.

Proposal to be included:

One time relaxation would be provided to offer appointment on compassionate grounds to all the applicants waiting for years in MoD

5% ceiling would be removed and 100% appointment would be made on compassionate ground.

Employees who die/ incapacitate in accident while performing their official duties, Compassionate appointment would be made straight away without any delay.

Thanking You
Brotherly Yours
sd/-
(MUKESH SINGH)
General Secretary
Copy to:
  1. The General Secretary, Bharatiya Mazdoor Sangh, New Delhi
  2. The In-Charge, BPMS, Pune
  3. The Secretary General, GENC, Kanpur
    - For kind information please
Source: BPMS
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Friday, 15 March 2019

Proposal to include in the election manifesto of your party with regard to the scrapping of the National Pension System

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."
Proposal to include in the election manifesto of your party with regard to the scrapping of the National Pension System


 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

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Tuesday, 1 January 2019

NPS To OPS - Revert to Old Defined Benefit Pension System - Parliament Q&A on 28.12.2018


NPS To OPS - Revert to Old Defined Benefit Pension System - Parliament Q&A on 28.12.2018

National Pension System to Old Pension Scheme

NPS-to-OPS-New-Pension-System-Old-Pension-System

In Parliament on 28th December 2018, the Minister of State in the Ministry of Finance Shri Shiv Pratap Shukla said that there is no proposal to replace the National Pension System (NPS) with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.
The detailed report of Questions and Answers are given below for your information…

Lok Sabha Un Starred Question No.2954

(a) Whether the Government is planning to reconsider the Old Pension Scheme on optional basis for Central Government Employees on heavy demand of employee associations across the country and if so, the details thereof;

(b) Whether the Government has received any representation from various State Governments and employees' associations in this regard and if so, the details thereof along with the other major changes demanded by the employee associations and the reaction of the Government thereon;
Representations have been received which inter alia also include the demand that the Government may revert to old defined benefit pension system. However, due to rising and unsustainable pension bill and competing claims on the fiscal, there is no proposal to replace the National Pension System (NPS) with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

(c) Whether the Government has decided to raise the Government contribution in National Pension System (NPS) to 14 per cent from existing 10 per cent and if so, the details thereof along with the increased financial liabilities of the Government thereon;
Yes, the mandatory contribution by the Central Government for Tier I accounts of its employees covered under NPS has been enhanced from the existing 10% to 14%. The employees' contribution rate would remain at the existing 10%. As informed by the Department of Expenditure, the impact on Government exchequer on account of enhancing the mandatory contribution by the Government for its employees covered under NPS from 10% to 14% is estimated to entail an additional financial impact of Rs. 2840 crores on Central Government in the next immediate financial year (2019 2020).

(d) The details of cases of family pension sanctioned so far to the families of deceased Central Government employees and the payment of compensation made for non-deposit or delayed deposit of contributions under the NPS;
Number of Family Pensioners getting pension through Central Pension Accounting Office (CPAO) by authorised Bank under National Pension System- Additional Relief (NPS-AR) as on 30.11.2018 is 4,779.

(e) whether the Government has decided to stop pension scheme to all the Government employees including Government/Public Undertakings organization, if so, the details thereof and the reasons therefor; and
The Government of India vide notification dated 22.12.2003 had introduced the National Pension System (NPS) (earlier known as New Pension Scheme) for its employees and made it mandatory for all new recruits of the Central Government (excluding armed forces) who joined service on or after 01.01.2004. The old defined benefit scheme was withdrawn by the Government for Central Government employees (excluding armed forces) joining service on or after 01.01.2004. There is no proposal to stop the pension scheme for Government employees.

(f) The amount/percentage of the budget consumed every year to pay pensions to employees serving in Government jobs in the country?
As informed by the Department of Expenditure, the details of Budget consumed during 2017-18 to pay pension to pensioners and Budget for financial year 2017-18 are as under:

Budget consumed
HEAD OF ACCOUNTSAMOUNT (IN CRORES) (PROVISIONAL)
2071 Pension & other retirement benefits145745.07
3001-101 Indian Railways Pensionary charges 366.85
3002-11 Indian Railways Pensionary charges1996.97
3003-11 Indian Railways Pensionary charges21.07
3201-07 Pension-Postal Services8511.33
Grand Total156641.29

Budget for the financial year 2017-18 under NPS-AR is as under:
Budget Estimate 2018- 19Expenditure 2018- 19Budget Estimate 2017- 18Expenditure 2017- 18
Rs. 90.20 crRs. 59.71 cr (as on 30.11.2018) Rs. 66.21 crRs. 65.65 cr

Source: https://loksabha.nic.in/
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