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New Pension Scheme Demand To Scrap it: NPS to OPS

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NPS to OPS: New Pension Scheme Demand To Scrap it

New Pension Scheme Demand To Scrap it

New-Pension-Scheme-Scrap-NPS-OPSNEW PENSION SCHEME (NPS): The New Pension Scheme is made compulsory for Government employees was brought into effect 2004, this has effected them a lot, lot of agitations are being carried out on scrapping the New Pension Scheme, this agitations has forced many State Governments such as Karnataka, Kerala, Andhra Pradesh, Delhi State Governments to reconsider this New Pension Scheme and formed an expert committee to review this New Pension Scheme. This New Pension Scheme was not implemented by West Bengal State Government. In this angle an analysis is made all about New Pension Scheme and ways to scarp or modify the New Pension Scheme to benefit the Government employees at large is suggested.

Need for Pension : The Pension System thus started in India was finalized by the Indian Pension Act of 1871. It appears that the British Government had the conception of providing its pensioners increase in their pensions to neutralize the effect of inflation.

Pension is a reward for past service. It is undoubtedly a condition of service but not an incentive to attract new entrants, the Pension is paid for past satisfactory service rendered, and to avoid destitution in old age as well as a social welfare or socio-economic justice measure, the fact that the cost of living has shot up and correspondingly the possibility of savings has gone down and consequently the drop in wages on retirement.

That pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer and that it creates a vested right subject to 1972 rules which are statutory in character because they are enacted in exercise of powers conferred by the proviso to Art. 309 and clause (5) of Art. 148 of the Constitution; (ii) that the 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 hey-day of their life ceaselessly toiled for the employer on an assurance that in their old age they would not be left in lurch.

As on 01-01-2018 there were 51.96 lakh pensioners in the country, including from Central Civil Services, Railways, and Post, Defence and Defence civilians.

EVOLUTION OF NEW PENSION SCHEME (NPS) IN INDIA:

In 1991 Government of India as introduced diverse economic reforms to pull the country out of economic crisis and to accelerate the rate of growth. These reforms are often described as the New economic policy (NEP) or policy of LPG where L for liberalisation; P for privatisation; G for globalisation. The Congress Government under the Prime Ministership of Hon’ble Prime Minister Shri P. V. Narasimha Rao, the signed an agreement with the International Monetary Fund (IMF) to get the IMF loan in which the IMF had imposed various conditions to get the soft loan which includes pension reforms , which the Indian Government Congress Government had accepted it to reform in a 10 years period .

On the basis of the decision taken in the Eleventh Conference of State Finance Secretaries held in the Reserve Bank of India (RBI) during January 2003, a Group was constituted by the RBI in February 2003 to study the pension liabilities of the State Governments and make suitable recommendations.

The “Pension Fund” to be created under the proposed revised schemes should be kept completely outside the States’ Consolidated Fund and the Public Account
The pension systems, both for Civil Servants and other citizens, as evolved over the years have begun to show signs of financial stress in many countries, including India. Since the pension benefits of Government employees are usually paid from the general revenue of the Governments, the steep rise in such liabilities adversely affect the fiscal soundness of the Government entities. In India too, the increasing pension liabilities of the Central and State Governments have emerged as a major area of concern, especially in the wake of fiscal deterioration in recent years. About 20% of the state Government funds are spent on pension.

During the Hon’ble Prime Minister Shri Atal Bihari Vajpayee of NDA was in power from 1998 to 2004 which implemented this agreement of IMF on pension reforms . The NDA Government constituted two committees namely B.K.Bhattacharya committee headed by Shri B.K.Bhattacharya, Former Chief Secretary, Government of Karnataka as chairman and under the Chairmanship of Shri Biju Patnaik, Chief Minister of Orissa , both these committees recommended introduction of New Pension Scheme (NPS) & Hon’ble Prime Minister Shri Manmohan Singh of Congress (UPA) was in power from 2004 to 2014 continued to accept these pension reforms.
The New Pension Scheme (NPS) was announced on December 22, 2003 by the NDA Government, for all new government employees excepting those in the Armed Forces. This brand new system replaces the defined benefit system of pension and this includes GPF. Contributory pension scheme is for entrants who joined after 1st January 2004.

While the NPS is mandatory for the Central government employees, it has potentially a much wider reach. As of March 2007, 19 states which have decided to introduce similar schemes, mandating newly recruited civil servants to mandatorily join the NPS‐type scheme.

The NPS started with the decision of the Government of India to stop defined benefit pensions for all its employees who joined after 1 January 2004. While the scheme was initially designed for government employees only, it was opened up for all citizens of India in 2009. Over 15 lakhs Government employees are currently registered in NPS scheme.

The Department of Economic Affairs (DEA) at the Ministry of Finance, notified a new pensions regulator in August 2003, before the NPS commenced operations in January 2004. The PFRDA bill was presented in 2005, and was finally passed in Parliament in 2013.

Let us analyse why Government is adopting the pension reforms:

Sl. no Indian Government View Employees view
1 The ratio of retirees to workers is on continuous rise and further by 2030 the 25% of the population (200 million pensioners) will be above 60 years of age. The large number of employees are effected by the New Pension reforms, hence Government should keep it in mind the interest of the large chunk   of employees
2 The Pension system shall put enormous financial pressure on the Government and take away funds meant for social cause spending, this will cause a drain on the state of economy. About 80 % of employees are Group “C” workers, the pension amount is ultimately spent by them for their daily needs and money flows into the market and economy will not be effected , secondly Government is a model employer and it has social responsibility towards its employees.

After a decade of existence, there is need to examine the existing NPS and compare the performance of this system to the goals with which it was created.

*One of the key bottlenecks has been the lack of a sound regulatory framework, put in place by an empowered and independent regulator. The PFRDA Bill that had been pending since 2002 was finally passed in 2013. This enables the formal institutionalisation of the PFRDA as the regulator of the NPS. The PFRDA can now take on the task of both the relatively short term agenda of closing the gap between the current NPS and the original design.

*Central government employees can invest in these assets only through their Tier II account which get higher returns on longer period.

  • After the enactment of the Pension Fund Regulatory and Development Act, 2013, it is not the exclusive liability of the government to pay the pension.”
    The Ministry of Finance will oversee and supervise the Pension Funds through a new and independent Pension Fund Regulatory and Development Authority.”

WHAT IS THE NATIONAL PENSION SCHEME?
Each Government employee contributes 10 % of his salary (Basic Pay + DA + DP) to the pension account , which is then matched by a Government contribution of an equal amount .

National Pension Scheme or New Pension scheme is a pension plan offered by the government. Investment in this scheme is via debt and equity market. The invested amount is locked until retirement. At retirement age, you can withdraw 60% of the maturity amount while the balance40% must be invested in annuity. The maturity amount is taxable. The NPS is regulated by the PFRDA and fund management is by designated fund managers from the private and public sector. NPS has the lowest charges.

From our salaries and daily allowance, 10 per cent is cut towards pension and an equal amount is given by the government. This amount is invested into the share markets under the new scheme.

An NPS subscriber can withdraw 25% of his contribution to the corpus for emergencies before retirement. Instead of withdrawing the entire amount at retirement, you can withdraw Rs 25,000, or 25% of your contribution, earlier, without any tax incidence. The remaining Rs 1.75 lakh is withdrawn on retirement.

New Pension Scheme extension of benefits of Retirement Gratuity and Death Gratuity to the Central Government employees covered by New Defined Contribution Pension System (National Pension System)-regarding. All these condition would be equally applicable for grant of gratuity to employees covered under New Pension Scheme.

An individual can claim tax deduction of upto 10 percent of the salary contributed towards NPS under Section 80 C. For those contributing through the corporate scheme, an employee can claim tax deduction on contribution made by the employer, not exceeding 10 percent of his basic salary plus dearness allowance (if any) Under Section 80 CCD (2). This is above the overall limit of Rs.1 lakh offered under Section 80C.

How New Pension Scheme (NPS) is affecting the Government employees.

The New Pension Scheme is highly disadvantageous to the Government employees under the present situation the pension amount is invested into the share markets under the new scheme. If the markets are doing well, the employees will get a good pension if the share market fails no pension is available to them. Under the old system, employees would get a fixed amount as pension that was 50 per cent of their last basic salary. When the salary was hiked, the pension amount too would be revised. Under the present NPS system, there is no security as pensions depend on market conditions. Secondly the NPS is highly disadvantageous if the length of the Government service is less if a employee serves for 20 years, he draws a pension of about Rs 3,000/- to Rs 5,000/ only. If he completes 33 years of service he draws about Rs 12,000/- to Rs 15,000/- compared to Rs 15,000/- to Rs 20,000/- in the old pension system, this new pension system needs a deep study and its minimum pension should be at least 50% of the last pay drawn. It is upto the Government how and where the money is invested, but a minimum guarantee of 50% of the last pay drawn should be assured by the Government to the employee.

Under New Pension Scheme is in reality much steeper than what the quantum of pension would indicate the differential treatment for those retiring under Old Pension scheme and New Pension Scheme, would be according differential treatment to pensioners who form a class irrespective of the type of retirement and, therefore, would be violate of Art. 14. It was also contended that classification based on fortuitous circumstance of retirement in old or New Pension Scheme, fixing of which is not shown to be related to any rational principle, would be equally violate of Art. 14.

Pension Scheme around the Globe : The USA, Canada, United Kingdom, China , Germany etc. Governments have a scheme of a Defined Benefit (DB) pension is where you receive a specific amount of pay out that is guaranteed by employer, regardless of how their pension investment performs. Your defined benefit amount depends on how much is paid into the plan and your years of service with that employer.

CONCLUSION:The Indian Government should also have a similar Defined Benefit (DB) pension scheme like other major countries in the world have, as many state Governments are re thinking on the New Pension Scheme, hence this New Pension Scheme should be remodelled to suit the Government employees. The Government should take up more social responsibilities of protecting its employees.

We request the government to reintroduce the old pension system. For this a greater movement should take place amongst the New Pension Scheme employees forcing Central Government to rethink the new pension policy adopted after 2004.

P.S.Prasad
Working President
COC Karnataka

Source: http://karnatakacoc.blogspot.com/

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Be the first to comment - What do you think?  Posted by admin - December 9, 2018 at 2:35 pm

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Resolution adopted by the Legislative Assembly of NCT of Delhi to call the attention of Hon’ble Deputy Chief Minister to abolish National Pension System (NPS) and reinstate the Old Pension System in the interest of lakhs of Government Servants

NPS to OPS: Resolution adopted by Legislative Assembly of NCT of Delhi

Resolution adopted by the Legislative Assembly of NCT of Delhi – Abolish National Pension System (NPS) and reinstate the old Pension System

National-Pension-System-Old-Pension-System

NPS to OPS: Resolution adopted by Legislative Assembly of NCT of Delhi

Resolution adopted by the Legislative Assembly of NCT of Delhi – Abolish National Pension System (NPS) and reinstate the old Pension System

LEGISLATIVE ASSEMBLY SECRETARIAT
NATIONAL CAPITAL TERRITORY OF DELHI
Old Secretariat, Delhi – 110054

No.F.22(3)/Resolutions/2015/LAS-VI/Leg./

Dated: /11/2018

To

1. The Hon’ble Minister of Personnel, Public Grievances and Pensions
Government of India
North Block, New Delhi – 110 001

2. The Hon’ble Deputy Chief Minister,
Government of NCT of Delhi
I.P. Estate, New Delhi – 110002

Sub: Resolution adopted by the Legislative Assembly of NCT of Delhi to call the attention of Hon’ble Deputy Chief Minister to abolish National Pension System (NPS) and reinstate the Old Pension System in the interest of lakhs of Government Servants’.

Sir,

The Legislative Assembly of the National Capital Territory of Delhi unanimously adopted the following resolution moved by Shri Ajay Dutt, Hon’ble Member of Legislative Assembly in its sitting held on 26/11/2018:

“The Legislative Assembly in its sitting on 26 November 2018 resolves that:

Taking note of the negative consequences of the anti-employee National Pension System (NPS) that is imposed on the Government Servants by the then NDA Government in 2004 and sustained by the UPA-1, UPA-II and NDA-II Governments,

given that fact that, unlike the old pension scheme, the NPS;

does not give any guarantee to the employee either for assured returns on investments or for minimum pension,

does not provide for family pension or social security,

does not provide for loan facility when in dire need,

does not provide for annual increments and hike in DA,

does not allow the employees to withdraw enough money from their own pension fund to meet their medical emergencies,

leaves the employees at the mercy of volatile markets and the forces that have notoriously being manipulating the markets,

imposes draconian restrictions on withdrawals from pension fund,

allows the insurance companies to exploit employees by way of forcing them to buy annuity for minimum of ten years even after retirement, and

runs contrary to the spirit of welfare state as enshrined in the Constitution.

Given the fact that the pro-people and welfare oriented Government of NCT of Delhi is strongly in favour of restoring the rights and privilleges of its employees by way of replacing the NPS with the time tested old pension scheme.

Resolves to urge upon the Government of India to scrap the NPS with immediate effect and bring at once all the Government Servants working under the Government of NCT of Delhi under the old pension scheme and restore to them all the benefits of the old pension scheme wherein the fair and legislative pensions benefits are disbursed through the Constitutinal Fund of India, so that the dedicated work force of the Government of NCT of Delhi and their families will be able to lead their lives with sense of security and dignity, and further resolves to urge upon the Government of India to restore the old pension scheme in place of NPS or the benefit of all the Government Servants working under the Government of India and also to activity encourage other States to follow this true welfare measure.”

Yours sincerely,

(C.Velmurugan)
Secretary (L.A.)

No.F.22(3)/Resolutions/2015/LAS-VI/Leg./2982

Dated: 27.11.2018

Copy for information and necessary action to:

1. Chief Secretary, Govt. of NCT of Delhi, Delhi.
2. Principal Secretary to Lt. Governor, Govt. of NCT of Delhi, Delhi.
3. Principal Secretary (Services), Govt. of NCT of Delhi, Delhi.
4. Additional Secretary to the Chief Minister, Govt. of NCT of Delhi, Delhi.

sd/-
(Shnil Dutt Sharma)
Deputy Secretary (Legislation)

Source: Confederation

Be the first to comment - What do you think?  Posted by admin - November 28, 2018 at 1:44 pm

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Old Pension Scheme (OPS) Will Be Restored in Delhi

Old Pension Scheme (OPS) Will Be Restored in Delhi
Kejriwal said a resolution to restore the old pension scheme would be passed in a special session of the assembly. “It will then be sent to the Centre for approval. I will fight with the Centre to get it implemented.”

OLD-PENSION-SCHEME-OPS

Delhi chief minister Arvind Kejriwal announced on Monday, November 26, that the old pension scheme will be restored by his government and he will write to his counterparts in other states to follow suit.

Kejriwal said a resolution to restore the old pension scheme in the city will be passed in a special session of the legislative assembly.

“It will then be sent to the Centre for approval. I will fight with the Centre to get it implemented,” Kejriwal said while addressing a rally organised by the All Teachers, Employees Welfare Association (ATEWA) at Ramlila Ground here.

He said that he would also speak to his counterparts in West Bengal, Kerala, Andhra Pradesh and Karnataka for implementation of the scheme.

“The government employees have the power to change the government of the country. I want to warn the Centre, if the demand of employees is not accepted in three months, there will be an apocalypse in 2019,” the Aam Aadmi Party (AAP) convener said.

Slogans like “desh ka neta kaisa ho, Kejriwal jaisa ho” greeted the Delhi chief minister as he made the announcement at the rally.

Kejriwal slammed the new pension scheme as “betrayal and cheating” with government employees.

“I want to request Modiji that you cannot accomplish nation-building by disappointing the government employees,” he said, adding that the AAP government could perform in the areas of education, health, power and water supply only because of the cooperation of its employees.

The new pension scheme was introduced by the Centre in 2004. Under it, employees contribute towards pension from their monthly salary along with an equal contribution from their employer. The funds are then invested in earmarked investment schemes through pension fund managers.

PTI

Be the first to comment - What do you think?  Posted by admin - November 27, 2018 at 3:16 pm

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Why Government Employees Are Up in Arms About the New Pension Scheme (NPS)

Why Government Employees Are Up in Arms About the New Pension Scheme (NPS)

Unlike the old scheme, government employees are now forced to fund half of their pension themselves. This has caused indignation and sparked widespread protests.

On November 16, Union minister Piyush Goyal was reportedly hounded out of an event in Lucknow by railway employees. Among other issues, the protesters were angry about the new pension scheme and demanded the restoration of the old system.

Not just Uttar Pradesh, unrest against the scheme has been brewing across the country and often manifests in mass protest demonstrations.

Forget sustenance, several recently retired government employees say they can’t even pay their monthly electricity bills with the pension amount.

Many of these employees covered under the new contribution-based pension system are receiving as little as Rs 700-800 as monthly pension while the minimum guaranteed amount in the old defined benefit scheme is Rs 9,000. They are now required to pay 10% of their monthly wages which is matched by the government and invested in equity shares. Retirement pensions are dependent on the returns on that accumulated investment.

In the old system, the entire pension amount was borne by the government while fixed returns were guaranteed for employee contribution to the General Provident Fund (GPF). The government pays 50% of the last drawn salary plus dearness allowance (DA) as pension to employees after retiring, and to their dependent family members in case of death.

 

What is the new pension scheme and how is it different from the old one?

The National Pension System (NPS) is a defined contribution scheme mandatory for all new recruits to the Central government (except armed forces) joining on or after January 1, 2004. All state governments, except West Bengal, have also made it mandatory.

In 2009, the scheme was extended to all Indian citizens from 18-60 years of age, however, the 10% government contribution is only for government employees. An independent Pension Fund Regulatory and Development Authority (PFRDA), set up in 2013, regulates the NPS.

The NPS has two tiers – Tier 1 is mandatory for all government employees and has a fixed lock-in period. Subscribers can only withdraw the accumulated wealth after they retire, i.e., are 60 years old. A recent amendment allows them to withdraw 25% of the employee contribution in case of emergencies.

Even at the time of retirement, subscribers can withdraw only 60% of the total amount, which is taxable, and it’s mandatory to invest the rest 40% to buy a lifelong annuity scheme through an IRDA-regulated insurance company. If they leave the scheme or retire before attaining the age of 60, 80% of the pension wealth has to be invested in the annuity scheme.

Tier 2 is a voluntary account, more of a substitute for the GPF where one can withdraw any amount at any time. The government does not contribute anything in the tier 2 account.

Unlike the pension and GPF in the old scheme, the NPS does not guarantee any fixed returns as it is market-linked.

 

Teething troubles or discriminatory by design?

Since the NPS covers employees recruited after December 2003 and the age of retirement is 60, most employees are yet to avail the new pension benefits.

On being asked why they were protesting more than a decade after the old scheme was replaced, the employees say they initially had little understanding of the scheme as there were no active efforts to educate them or raise awareness about it.

They were told that NPS was better as the government was also matching their contributions. “Many employees have been protesting from the start but NPS was forced on us nevertheless. Such large-scale movements take time. We were fewer in number and it took time to organise,” Manjeet Singh Patel, Delhi state president of the National Movement for Old Pension Scheme (NMOPS)

Many experts and supporters of the scheme argue that just like a standard Systematic Investment Plan, long-term capital gains under NPS would be better than before. However, protesting employees argue that for those retiring after 10-12 years under NPS, the accumulated wealth is too less to provide substantial amount as pensions.

“The total accumulated wealth in my NPS account on retirement was Rs 3.25 lakhs even when I got 13% interest rate on it. After 60% of it was paid to me on retirement, I am receiving less than Rs 700 every month as pension through the annuity scheme,” R.P. Bhatia, a former employee of the Haryana electricity board, told The Wire.

Bhatia was made permanent in November 2006 and retired in 2013. NPS was enforced in Haryana from 2006 itself. He says his colleagues who were recruited not long before him are receiving over Rs 15,000 as pension under the old scheme.

To be sure, employees did not need to contribute anything to avail pension in the earlier scheme. Under NPS, employees have to fund half of their pension themselves.

If they want a GPF-like option where there’s no strict lock-in period, they have to additionally deposit money in the tier 2 account. They say this leaves them with less disposable income and even then, they live in constant anxiety of losing their money in the equity market.

“If the government wanted to encourage us to invest in mutual funds, we should have been educated about it and it should be optional for those willing to risk it. The government is forcing us into it instead of providing a safety net,” Patel added.

In addition to these issues, government employees from many parts of Uttar Pradesh allege their contribution hasn’t even started being deducted from their salaries. “How will we get returns from the market when our money hasn’t even been deducted from our accounts to be invested,” Ajit Verma, a 32-year-old government employee from Lakhimpur Kheri in UP, told The Wire. He adds that this is the case in many blocks of his district.

 

Speculative benefits instead of safety net

“The minimum pension amount under the old scheme is Rs 9,000 which has been calculated keeping in mind entry-level minimum wages. Real pension amounts are much higher as nobody retires on entry-level wages. In the new scheme, even those who have worked for a decade are getting as little as Rs 1,000-2,000. This is a disastrous policy,” Tapan Sen, general secretary, Center of Indian Trade Unions, told The Wire.

Sen also alleges that both the Congress and BJP governments, through this scheme, have been using public money to help those who profit through speculation in the share market at the cost of vulnerable government employees.

In addition to nervousness because of a mistrust in market-linked schemes, the employees also feel they are being discriminated against as armed forces recruits are still covered under the old scheme and they feel their fellow colleagues covered under the old scheme are getting a better deal.

Clearly defined pension amounts and a safety net in the form of fixed interest rates on GPF were the main attractions for a government job for these employees who typically spend their whole working lives in the public sector.

 

Current state of economy adding to woes

The current state of the economy does nothing to inspire confidence in these employees as they see their interest rates dip in the aftermath of events like demonetisation and Goods and Services Tax.

“We were told that our money in the market would also help avoid a 2008-like economic slowdown. How are we to trust this logic when people like Vijay Mallya and Nirav Modi run away with thousands of crores of public money? When even our pension fund managers like SBI goes into massive losses?” Vijay Kumar, national president of the NMOPS, told The Wire.

A rare moment of unity among government employees

As word spreads of an organised movement against the new pension scheme, employees from various government departments and states are joining in. Leaders of the movement say this is one of the rare issues that has united government employees from very diverse sectors and geographical locations.

Workers from the banking sector are also lending their voice to the protest. A charter of demands submitted to the Indian Banks’ Association by the All India Bank Officers’ Confederation also demands scrapping of the NPS.

“Either we go to the old scheme or this scheme can itself be converted into an assured pension scheme. We have also given a workaround on how it can be done. If invested properly, it is possible to guarantee assured income. Instead of investing in the market, the fund can be used in lending activities. Retail lending can alone fetch 12-15% interest and we can avoid the whims of the market,” Thomas Franco, former general secretary of AIBOC, told The Wire. Even while suggesting how to ease anxieties regarding market volatility, Franco’s preference remains going back to the old scheme.

Since no concrete action was taken to address their concerns even after multiple appeals to all concerned authorities, the NMOPS has planned to mobilise lakhs of government employees from across India and march to the parliament on Monday.

Source: thewire.in

Be the first to comment - What do you think?  Posted by admin - at 3:11 pm

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Appeal to NPS Pensioners : NPS PENSIONERS – YOUR ATTENTION PLEASE – Confederation

Appeal to NPS Pensioners – Confederation
NPS PENSIONERS – YOUR ATTENTION PLEASE

As you are aware Confederation of Central Govt Employees & Workers has been opposing and fighting against the Contributory Pension Scheme (known as NPS) from the very beginning.

At the time of introduction of NPS, it is only Confederation Confederation, All India State Govt Employees Federation and the Left parties which strongly opposed it. Now a situation has developed that more than 50% of the employees in Central Government & State Government services and also in Central / State Public Sectors are NPS employees and even those Federations / Unions / Associations in the Central / State Govt services who were either confused or kept quite or supported Govt decision to introduce NPS in the initial stage are compelled to change their original stand and started raising their voice against NPS.

Confederation of Central Govt Employees & Workers, as an organization spear heading this struggle, is making intensive campaign against NPS and trying to build up a broad united movement of all like-minded organizations, so that a wider and bigger movement is built up no sooner than later, with an ultimate aim of organizing a nationwide indefinite strike to “SCRAP NPS” in future, if Govt is not ready to change their stand.

For effective campaign and also to expose the hollowness of the claim of the Govt and supporters of NPS, the following details of those NPS employees who have already retired from service is required.

(1) Name in full and Designation at the time of retirement:

(2) Name of the office and Department from which retired.

(3) Date of entry in service.

(4) Date of retirement.

(5) Completed years of service.

(6) Basic pay at the time of retirement.

(7) Amount of Insurance Annuity Pension being received now per month.

The information should be authentic.

All are requested to cooperate and furnish the above information before 31-10-2018.

M.KRISHNAN
Secretary General Confederation
Mob & WhatsApp: 09447068125
e-mail: mkrishnan6854@gmail.com

Source: Confederation

Be the first to comment - What do you think?  Posted by admin - October 17, 2018 at 1:43 pm

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Reversion to Old Pension Scheme

Reversion to old pension scheme due to administrative delay

“NPS applicable to Government servants appointed to civil posts on or before 31.12.2003. The date on which the vacancies arose or the date on which the examination was conducted for filling up the vacancies is not relevant for deciding the applicability of the Central Civil Services (Pension) rules, 1972″

Reversion to old pension scheme

In accordance with the scheme for National Pension System (NPS), as notified vide Ministry of Finance (Department of Economic Affairs)’s Notification No. 5/7/2003-ECB & PR dated 22.12.2003, the System is mandatory for all new recruits to the Central Government service (except armed forces) from 01.01.2004. Accordingly, as per Rule 2 of the Central Civil Services (Pension) Rules, 1972, as amended on 30.12.2003, these rules are applicable to Government servants appointed to civil posts on or before 31.12.2003. The date on which the vacancies arose or the date on which the examination was conducted for filling up the vacancies is not relevant for deciding the applicability of the Central Civil Services (Pension) rules, 1972.

Ministry of Home Affairs have not sought any advice from Department of Pension and Pensioners’ Welfare on the question of having a policy to cover the paramilitary personnel appointed after 01.01.2004 under the Old Pension Scheme on the ground that the vacancies arose, or the examination was conducted, in the year 2003. However, a reference was received from Ministry of Home Affairs in a specific case relating to appointments as Sub-Inspector in various Central Para Military Forces after selection in August, 2003 on the basis of an Examination conducted in 2002.

Appointments on the basis of these selections were made in Central Reserve Police Force in 2003 and the candidates appointed were covered by the pension scheme under Central Civil Service (Pension) Rules, 1972. However, in the Border Security Force, offers of appointment on the basis of the same examination/selection were issued in January, 2004. On a petition filed by some personnel appointed in the Border Security Force on the basis of that examination, Hon’ble High Court of Delhi directed to cover the petitioners under the Central Civil Service (Pension) Rules, 1972 on the grounds of administrative delay on the part of Border Security Force in making appointments.

The order of Hon’ble High Court of Delhi was implemented by the Ministry of Home Affairs/Border Security Force in view of the peculiar circumstances of that case. The decision taken in that case is, however, not relevant for deciding applicability of Central Civil Service (Pension) Rules to all appointments made on or after 01.01.2004 in the Central Para Military Forces or in any other Department/organization on the basis of year of examination/selection.

This information was provided 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 written reply to a question in Rajya Sabha on 19.7.2018.

Source: PIB

Be the first to comment - What do you think?  Posted by admin - September 26, 2018 at 9:02 pm

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Conference on Implementation of National Pension System by Central Autonomous Bodies

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PRESS RELEASE

Conference on Implementation of National Pension System by Central Autonomous Bodies

A conference on implementation of National Pension System by Central Autonomous Bodies (CABs) was organized by PFRDA on 13th June 2018 at New Delhi. The prime objective was to provide a forum to all Central Autonomous Bodies (CABs), where the progress in the implementation of NPS with respect to compliance of timelines in various NPS related activities could be brought to the fore and a way forward could be provided. Officials from most of the Central Autonomous Bodies (CABs) attended the conference.

Dr. Badri Singh Bhandari, Whole Time Member (Economics) in his opening remarks mentioned that currently there are 557 CABs which have about 1.73 lacs subscribers and about Rs.11800 crores of Asset Under Management (AUM). He further emphasised the need for discipline in submission of subscriber registration forms and remittance of the subscribers’ contributions. He also highlighted the responsibility of nodal officers handling NPS and advised that they should be aware of the NPS and its related process in detail for addressing the queries/grievances of the subscribers.

Chairman, PFRDA, Sh. Hemant Contractor, in his address emphasized the fact that NPS, being a Contributory scheme, was different from the earlier pension system and discussed various determinants of pension such as promptness of the Nodal offices in performing various NPS related activities mainly subscriber registration, upload/remittance of NPS contributions and also period of stay in the scheme, contribution level, returns on investments, annuity schemes chosen, annuity service providers chosen etc. In this regard, he stressed upon the need to work in tandem to ensure that NPS works efficiently and pensions are served effectively. He also highlighted endeavour of PFRDA in educating subscribers in handling their pension accounts, through a dedicated website, Pension Sanchay.

Secretary, Department of Expenditure, Govt. of India Sh. Ajay Narayan Jha, in his key-note address appreciated the initiative of PFRDA for holding this conference exclusively for Central Autonomous Bodies as it provided two-way communications between stakeholders for the ultimate benefit of the subscribers. He stressed to all participants on the need of becoming sensitive and responsible towards employee-subscribers currently covered under NPS in order to protect their interest, while monitoring various NPS related activities. He also stressed upon the role which can be played by the Head of Institutions and PrAOs of the respective CABs in streamlining NPS operations.

A presentation was also made by the NSDL e-Governance Infrastructure Ltd, the Central Recordkeeping Agency for NPS about the operational issues and new functionalities released for the convenience of the nodal officers-PAOs/DDOs and the subscribers. A presentation was also made by Jamia Millia Islamia University about the best practices they have adopted to administer the subscribers’ interface effectively. While presenting the Vote of Thanks Shri Ashish Kumar, GM mentioned that PFRDA is periodically holding Review meetings/ Video conferences also with the CABs on important parameters having financial implications and expects significant improvement from the present state of affairs.

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New Contributory Pension System (NPS) – Confederation

An Overview of New Contributory Pension System (NPS) – Confederation

NEW CONTRIBUTORY PENSION SYSTEM (NPS)

M.Krishnan

Secretary General

Confederation of Central Govt. Employees & Workers

Pension system was in vogue in India for a century or more and the British Government during the pre-independence era introduced Pension Rules for Government employees and thus made it statutory. In the year 1982 Supreme Court in its landmark judgement in Nakara’s case declared that – “as per India’s constitution, Government is obliged to provide social and economic security to pensioners and that Government retirees had the fundamental right to pension….. Pension is not a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment, but a payment for past service rendered. It is a social welfare measure, rendering socio-economic justice to those who in the hey days of their life, ceaselessly toiled for their employers on the assurance that in their old age, they would not be left in lurch.”

During the advent of globalisation policies in 1980’s the pension reforms also started simultaneously. IMF & World Bank started publishing so many reports and documents emphasizing the need for pension reforms. They also started studying about the reforms to be undertaken in the pension sector in India. In 2001, “IMF work paper on pension reforms in India” and World Bank India specific report “India – the challenge of old age income security” were published. Their work reports emphasized that “Pension obligations or promises made by the Governments which have potential of exerting pressure on Govt. finances, have been a subject of increased focus in assessing medium to long term fiscal sustainability.” In tune with the dictates of IMF and World Bank BJP-led NDA Government appointed Bhattacharjee Committee in 2001 headed by Ex-Chief Secretary of Karnataka, to study and recommend pension reforms. Thus after creating ground for pension reforms, under the pretext of implementing recommendations of Bhattacharyya Committee, the NDA Government introduced New Pension System called Defined Contributory pension system for all employees who join service on or after 01-01-2004. The Congress-led UPA Government which came to power in 2004 continued with the reforms and promulgated an ordinance to legalise NPS. But UPA-I Govt. could not pass the Pension Bill in Parliament due to stiff opposition of Left Parties supporting it. Later when UPA-II Government came to power the Pension Regulatory and Development Authority (PFRDA) Bill was passed in the Parliament with the support of BJP, the then opposition party. Many State Governments governed by political parties other than Left Parties, introduced Contributory Pension System for their employees from various dates after 2004. Left Front Governments of Kerala, West Bengal and Tripura refused to introduce the New Pension Scheme and they continued with the old defined benefit pension scheme. Congress-led UDF Government introduced NPS in Kerala. After BJP coming to power in Tripura also Contributory Pension Scheme is introduced recently. In West Bengal old Pension Scheme continues even now. Not only newly appointed Central and State Government employees, almost all new entrants of public sector and Autonomous bodies are also brought under the purview of NPS.

As per New Contributory Pension Scheme an amount of 10% of pay plus Dearness Allowance will be deducted each month from the salary of the employees covered under NPS and credited to their pension account. Equal amount is to be credited by the Government (employer) also. Total amount will go to the Pension Funds constituted under the PFRDA Act. From the pension fund the amount will go to the share market. As per the PFRDA Act – “there shall not be any implicit or explicit assurance of benefit except (share) market based guarantee mechanism to be purchased by the subscribers”. Thus the amount deposited in Pension Fund may or may not grow depending on the fluctuations in the share market. After attaining 60 years of age i.e., at the time of retirement, 60% of the accumulated amount in the Pension Account of the employee will be refunded and the balance 40% will be deposited in an Insurance Annuity Scheme. Monthly amount received from the Insurance Annuity Scheme is the monthly pension i.e., Pension is not paid by Government, but by the Insurance Company and hence NPS is nothing but Pension Privatization..

Thus it can be seen that the growth of the accumulated amount in the Pension fund depends upon the vagaries of share market. If the share markets collapse, as happened during the 2008 world financial crisis, then the entire amount in the pension fund may vanish. In that case employee will not get any pension. Every fluctuation in the share market will affect the future of pension of those employees who are covered under NPS. Uncertainty about pension and retirement life looms large over their heads. Even if there is a stabilized share market the 40% amount in the annuity scheme is not enough to get 50% of the last pay drawn as pension, which is the minimum pension as per old pension scheme. Many employees who entered in service after 01-01-2004 has retired in 2017 and 2018 after completing 12 & 13 years of service. They are getting Rs.1400- to Rs.1700- only as monthly pension from Insurance Annuity Scheme. If they have entered service in 2003 i.e., in the old pension scheme, they would have got 50% of the last pay drawn as pension subject to a minimum of Rs.9000- as minimum pension, that too without giving any monthly contribution towards pension from their salary. In short, NPS is nothing but NO PENSION SYSTEM.

As per clause 12(5) of the PFRDA Act even the employees and pensioners who are not covered under NPS, can be brought under the Act by a Gazette notification by the Government. Thus NPS is a Damocles’ sword hanging over the head of all employees and pensioners.

Who is the beneficiary of this pension reforms? As in the case of every neo-liberal reforms, the ultimate beneficiary is the Corporates. The huge amount collected from the workers through pension fund is invested in share market by the Pension Fund Managers and this amount in turn can be utilied by the multi-national Corporates for multiplying their profit. Amount deducted and credited to the Pension fund from each newly recruited employees plus the employer’s share amount will remain with the pension fund and share market for a period of minimum 30 to 35 years i.e., till the age of 60 years. During this long period of 35 years crores and crores of rupees will be at the disposal of share market controlled by multinational corporate giants. Ultimate causality will be the poor helpless employee/pensioner.

Confederation of Central Government Employees and Workers and All India State Government Employees Federation (AISGEF) has been opposing the NPS from the very beginning and a one day strike was conducted on 30th October 2007. It was one of the main demand in all other strikes during these period. The campaign and struggle against NPS continued and as of now the subjective and objective conditions for a bigger struggle against NPS has emerged as almost 50% of the total employees in Central, State, Public sector and Autonomous bodies are now covered under NPS and are becoming more and more restive and agitated. 7th Central Pay Commission Chairman Retired Supreme court Judge Sri. Asok Kumar Mathur has correctly pointed out that “Almost a whole lot of Government employees appointed on or after 01-01-2004, were unhappy with New Pension Scheme. Govt. should take a call to look into their complaint”.

As per the recommendations of 7th CPC, Central Government appointed a Committee called “NPS Committee” for streamlining the functioning of NPS. The Staff-side has demanded before this Committee to scrap NPS and guarantee for 50% of the last pay drawn as minimum pension subject to a minimum of Rs.9000-. Even though, the Committee has submitted its report 18 months back, the Government has not yet disclosed the recommendations of the Committee.

Confederation and AISGEF has decided countrywide intensive campaign culminating in one day strike on 15th November 2018 demanding that the Defined Contributory Pension Scheme (New Pension Scheme – NPS) imposed on new entrants must be scrapped and the Government should reintroduce the Defined Benefit Pension Scheme (Old Pension Scheme – OPS) that was in vogue for a century or more. We are also exploring the possibility of organizing an indefinite strike in the coming days exclusively on one demand i.e., SCRAP NPS, RESTORE OPS for which wider consultations are being made with all like-minded organizations.

Mob & whatsapp: 09447068125

e-mail: mkrishnan6854@gmail.com

Source: Confederation

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REINTRODUCTION OF OLD PENSION SCHEME

Reintroduction Of Old Pension Scheme

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
UNSTARRED QUESTION NO. 4075
TO BE ANSWERED ON AUGUST 10, 2018/SHRAVANA 19, 1940 (SAKA)
REINTRODUCTION OF OLD PENSION SCHEME

Shri Rakesh Singh

Will the Minister of FINANCE be pleased to state

  • the details of drawbacks of the New Pension Scheme (NPS) introduced for the Government officials;
  • whether the NPS is not as beneficial monetarily as the Old Pension Scheme (OPS) and if so, the details thereof;
  •  whether the Government employees are disgruntled with the NPS and if so, the details thereof; and
  • whether the Government proposes to reintroduce the OPS replacing the NPS, if so, the details thereof and the action taken by the Government in this regard?

ANSWER

The Minister of State in the Ministry of Finance
(Shri Shiv Pratap Shulda)

(a) & (b) National Pension System (NPS) has been designed giving utmost importance to the welfare of the subscribers. Government has made a conscious move to shift from the defined benefit pension scheme to defined contribution pension scheme i.e. NPS, due to rising and unsustainable pension bill. There are a number of benefits available to the employees under NPS. Some of the benefits are enlisted below:

  • NPS is a well designed pension system managed through an unbundled architecture involving intermediaries appointed by the Pension Fund Regulatory and Development Authority (PFRDA) viz. pension funds, custodian, central record keeping and accounting agency, National Pension System Trust, trustee bank, points of presence and Annuity service providers. It is prudently regulated by PFRDA which is a statutory regulatory body established to promote old age income security and to protect the interest of subscribers of NPS.
  • The pension wealth which accumulates over a period of time till retirement grows with a compounding effect. The all-in-costs of the institutional architecture of NPS are among the lowest in the world.
  • Contribution made to the NPS Tier-I account is eligible for tax deduction under the Income Tax Act, 1961. An additional tax rebate of Rs.50000 is also allowed for contributions made to NPS Tier-I under Section 80CCD (1B) of the Income Tax Act, 1961.
  • Subscribers can withdraw up to 25% of their own contributions before attaining age of superannuation, subject to certain conditions. Further, PFRDA vide “PFRDA (Exits and Withdrawals under the NPS) (First Amendment) Regulations, 2017″ dated 10.08.2017 has liberalized norms for partial withdrawals which also include reduction of requirement of minimum years of being enrolled under NPS from 10 years to 3 years from the date of joining.
  • PFRDA has increased the maximum age limit from 60 years to 65 years for joining NPS-All Citizen Model and Corporate Sector Model, vide “PFRDA (Exits and Withdrawals under the NPS) (Second Amendment) Regulations, 2017” dated 06.10.2017.
  • PFRDA vide “PFRDA (Exits and Withdrawals under the NPS) (Third Amendment) Regulations, 2018″ dated 02.2018 has facilitated easy exit & withdrawal in case of disability and incapacitation of the subscriber covered under NPS.
  • Transparency and Portability is ensured through online access of the pension account by the NPS subscribers, across all geographical locations and portability of employments.

(c) & (d) 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 NPS with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

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Defined Contribution Pension Scheme (National Pension System) – Salient Features

Defined Contribution Pension Scheme (National Pension System)
(Salient Features)


  • The National Pension System works on defined contribution basis and will have two tiers – Tier-I and II. Contribution to Tier-I is mandatory for all Government servants joining Government service on or after 1-1-2004 (except the armed forces in the first stage), whereas Tier-II will be optional and at the discretion of Government servants.
  • In Tier-I, a Government servant will have to make a contribution of 10% of his basic pay plus DA, which will be deducted from his salary bill every month by the PAO concerned. The Government will make an equal matching contribution. However, there will be no contribution from the Government in respect of individuals who are not Government employees.
  • Tier-I contributions (and the investment returns) will be kept in a limited partial withdrawable Pension Tier-I Account. Tier-II contributions will be kept in a separate account that will be withdrawable at the option of the Government servant. Government will not make any contribution to Tier-II account.
  • The existing provisions of Defined Benefit Pension and GPF would not be available to the new recruits in the central Government service, i.e. to the Government servants joining Government service on or after 1-1-2004. However, retirement gratuity and death gratuity would be extended to the central government employees covered under NPS on the same terms and conditions as applicable under CCS(Pension) Rules, 1972.
  • In order to implement the Scheme, there will be a Central Record Keeping Agency (CRA) and several Pension Fund Managers (PFM) to offer three categories of Schemes to Government servants, viz., options A,B and C based on the ratio of investment in fixed income instruments and equities. The participating entities (PFMs and CRA) would give out easily understable information about past performance, so that the individual would be able to make informed choices about which scheme to choose.
  • An independent Pension Fund Regulatory and Development Authority (PFRDA) will regulate and develop the NPS.
  • A Government servant can exit at or after the age of 60 years from the Tier-I of the Scheme. At exit, it would be mandatory for him to invest 40 per cent of pension wealth to purchase an annuity (from an IRDA-regulated Life Insurance Company) which will provide for annuity for the lifetime of the employee and his dependent parents/spouse. He would receive a lump-sum of the remaining pension wealth which he would be free to utilize in any manner. In the case of Government servants who leave the Scheme before attaining the age of 60, the mandatory annuitization would be 80% of the pension wealth.
  • Provisionally, central government employees covered under NPS has option to choose benefits under old pension scheme or NPS in the event of their death or discharge from service on invalidation.

2. FAQs about the National Pension System

Frequently Asked Questions (FAQs)
(National Pension  System)

Last updated/Reviewed:  18.12.2017

NPS.1 The  CCS(P)  Rules are applicable to govt. servants appointed on  or  before 31.12.2003. Are the employees who joined pensionable establishments  of  Govt. of India after 31/12/2003 eligible for any benefits under these rules?

In  accordance with DoP&PW O.M. No.  38/41/06 – P&PW(A) dated 5.5.2009 such  employees  who  joined  after  31/12/2003  and/or  their families may be given the benefit of disability pension  or  family  pension  provisionally  till  the finalization of rules under the National Pension System   (NPS) on death/injury.
Further,  the  benefit of Retirement Gratuity and Death Gratuity have  been extended to the Central Government civil employees covered under NPS in the  same  terms  and conditions  as applicable under CCS Pension Rules, 1972 vide this OM no. 7/5/2012 – P&PW(F)/B dated 26/08/2017.

NPS.2 What are the guidelines/orders in regard to settlement of dues of the deceased Government employees covered under NPS?
As per the Department of Pension & PW O.M. No.38/41/06 – P&PW(A) dated 5.5.2009 (available on website) the benefits under the CCS(Pension) Rules has  been  provisionally  extended to the families of deceased employees covered under NPS. Family Pension/gratuity in terms of O.M. dated 5.5.2009 shall  be  payable  to  the  family of the deceased employee if the deceased  employee was  covered  under  NPS  and fulfils the conditions. These payments are provisional and  will  be  adjusted  as  per the final provisions. As per Para 7 of the O.M., the accumulations in pension wealth of deceased employee under NPS  will not be paid during the period provisional benefits under the aforementioned O.M. are payable. The Head of Office will prepare the pension papers as per provisions of the relevant rules and proceed as per the procedure for making the provisional payments to  eligible  Government  servants families explained in Ministry  of  Finance O.M. No.1(7)/DCPS(NPS)/2009/TA/221 dated 2.7.2009 read with corrigendum dated 29.9.2009.

Source: pensionersportal.gov.in

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Abolition of Contributory Pension Scheme

Not Possible to Revert Back to Old Pension Scheme
It is not possible for the government to revert back to old pension scheme – Minister replied in Parliament on 24.7.2018

Abolition of Contributory Pension Scheme

Representations have been received from various Associations of Government Employees on the problems being faced and the demand to withdraw the National Pension System (NPS).

The 7th Central Pay Commission (CPC) also in its report examined the issues related to NPS and made recommendations for addressing these issues. Pursuant thereto, it was decided to constitute a Committee of Secretaries to suggest measures for streamlining NPS. The Committee has submitted its report.

Due to rising and unsustainable pension bill and keeping in view of fiscal imperatives, it is not possible for the government to revert back to old pension scheme.

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BPMS: Grant of Minimum Guaranteed Pension under NPS

 BPMS: Grant of Minimum Guaranteed Pension under NPS

The Central Government had introduced the National Pension System (NPS) with effect from 1 January, 2004 (except for armed forces). During the budget session of 2003-2004 the Government announced introduction of the “New Defined Contribution Pension Scheme” then known as the New Pension Scheme. It was formally notified vide Ministry of Finance, Department of Economic Affairs letter dated 22-12-2003. Later, it was adopted by various State Governments and Central and State Public Sector Corporations.

Upto 28.02.2018, the total figure of subscribers of NPS working in Central Government Establishments/ Offices including Public Sector Undertaking has reached to 19,12,871 with a corpus of Rs 61,145.65 crore and in State Governments Establishments/ Offices including respective Public Sector Undertaking, it has reached to 38,21,266 with corpus of Rs. 86,897.31 crore.

The above mentioned Scheme was made operative since 01.01.2004 without any concrete instructions and with passage of time, Govt has been trying to develop a system regarding its functioning. But the future as well as retiremental security (Social Security) of the employees is at stake without guarantee of Minimum Pension under the Scheme.

This Federation has been consistently demanding that Government should frame a policy to ensure that irrespective of the financial/market conditions at the time of Retirement of the subscriber under NPS, he should get a guaranteed minimum pension equivalent to 50% of his last drawn Basic Pay plus Dearness Relief for neutralization of price rise.

A resolution to this effect was also passed in the CEC Meeting held at Hyderabad during September 2015 and subsequently several correspondence have also occurred. However, in spite of lapse of such a large time, no tangible action is seen from the Government side on the issue.

After having deliberated the issue in details, the Central Executive while recording its displeasure over the absence of action on the part of the Government on such an important issue, hereby calls upon the Government to immediately notify the subject issue.

This resolution is being passed in the Central Executive Committee held at Dehu Road (Pune) on 28/03/2018.

Source: BPMS

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NFIR: Exemption of Railway employees appointed on or after 01.01.2004 from the purview of National Pension System (NPS)

NFIR: Exemption of Railway employees appointed on or after 01.01.2004 from the purview of National Pension System (NPS)

Government of India (BHARAT SARKAR)
Ministry of Railways (RAIL MANTRALAYA)
(RAILWAY BOARD)

No.2012/F(E)III/1(1)/4-Pt.

New Delhi, dated 13/02/2018

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi – 110055

Dear Sir,

Sub : Exemption of Railway employees appointed on or after 01.01.2004 from the purview of National Pension System (NPS) – regarding

The undersigned is directed to refer to NFIRs letter No. IV/NPS/PFRDA BILL/Part- I dated 13.02.2017, 26.10.2017 and 11.12.2017 on the above subject.

2. In this regard it is informed that on the request of NFIR, Hon’ble former Minister of Railways, Sh.Suresh Prabhu had written a D.O letter dated 11.04.2017 to the Hon’ble Minister of Finance and Corporate Affairs, Sh.Arun Jaitley, to have a second look on the issue of exemption of Railway employees from the application of National Pension System (NPS). In reply, Hon’ble Minister of Finance and Corporate Affairs Sh. Arun Jaitley has communicated that the matter was reconsidered in consultation with pension Fund Regulatory and Development Authority (PFRDA) and that the request for exemption railway servants appointed on or after 01.01.2004 from the application of NPS does not seem to be feasible proposition.

Yours faithfully,
sd/-
for Secretary/Railway Board

Source: NFIR

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Age Limit for NPS

Age Limit for NPS

Vide PFRDA (Exits and Withdrawals from National Pension System) Second Amendment Regulations, 2017, dated 6th October, 2017, the Pension Fund Regulatory and Development Authority (PFRDA) has permitted any Indian citizen who is in the age group of 18-65 years to join the National Pension System (NPS) on voluntary basis. As informed by PFRDA, a total of 1056 persons between the ages of 60-65 years have joined up to 31st January, 2018.

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New Contributory Pension Scheme setting up of the Committee

NPS Committee Report Finalised and Submitted to Govt – NC JCM Staff Side
“New Contributory Pension Scheme setting up of the Committee – report”

Shiva Gopal Mishra
Secretary

Ph: 23382286
National Council (Staff Side)
Joint Consultation, Machinery
For Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
E.Mail : nc.jcm.np@gmail.com.

No. NC-JCM-2017/Fin

January 16, 2018

The Cabinet Secretary,
Government of India,
Cabiner Secretariate,
Rastrapati Bhawan,
New Delhi

Sub: New Contributory Pension Scheme setting up of the Committee – report reg.

Dear Sir,
As per the 7th CPC recommendations, Govt had set up a committee under the Chairmanship of the Secretary, to look into the various complaints received by the commission on the new contributory Pension Scheme. As the stake holders, we had interacted with the Committee. We have now come to know that the committee, having finalised its report, submitted the same to you.

We request that the Staff Side-JCM may be provided with a copy of the report and our views are heard and presented, before the Government takes a final view on the matter.

Thanking you,
sd/-
Yours faithfully,
Shiva Gopal Mishra

Source: Confederation

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Exemption of Railways from New Pension Scheme (NPS): NFIR

Exemption of Railways from New Pension Scheme (NPS): NFIR

No. IV/NPS/PFRDA BILL / Part I

Dated : 11/12/2017

Shri Piyush Goyal,
Hon’ble Minister of Railways,
Rail Bhavan,
New Delhi

Respected Sir,

Sub : Exemption of Railways from New Pension Scheme (NPS) – reg.

Ref (i) Hon’ble MR’s D.O. No. 2012/F(E)III/1/4-Pt dated 29th March 2014 to Hon’ble Finance Minister, Government of India.
(ii) Hon’ble MR’s D.O. No. 2012/F(E)III/1/1/4-Pt dated 20th Nov 2015 to the Hon’ble Finance Minister Shri Arun Jaitely.
(iii) NFIR’s letter No. IV/NPS/PFRDA BILL Part I dated 13th Feb.2017 & 26th Oct. 2017.

While enclosing copy of NFIR’s letter sent to you vide dated 26th Oct, 2017, I request you to kindly make special efforts at the level of the Government as well by reaching Hon’ble Prime Minister for the purpose of exempting Railways from the National Pension System (NPS). I also desire to bring to your kind notice that your predecessors Shri Mallikarjun Kharge and Shri Suresh Prabhu have already sent proposals to the Government of India (Ministry of Finance) highlighting the uniqueness of Railways working and the necessity to exempt Railways from the NPS.

 

I trust that you would do the needful for obtaining favourable decision which would motivate all sections of Railway employees to work with grater determination and commitment for providing efficient services.

With regards,

Yours sincerely,

S/d,
(Dr.M.Raghavaiah)
General Secretary


No.IV/NPS/PFRDA BILL/Part 1

Dated : 26 Oct,2017

Shri Piyush Goyal,
Ho’ble Minister of Railways,
Rail Bhavan,
New Delhi

Respected Sir,

Sub: Exemption of Railways from New Pension Scheme (NPS) – reg.

Ref:  (i)    Hon’ble MR’s D.O. No. 2012/F(E)111/1/4-Pt dated 29th March 2014 to Hon’ble Finance

Minister, Government of India.

(ii)           Hon’ble MR’s D.O. No. 2012/F(E)111/1/1/4-Pt dated 20th Nov 2015 to the Hon’ble Finance Minister Shri Arun Jaitely.

(iii)          NFIR’s letter No. IV/NPSIPFRDA BILL/Part I dated 13th Feb, 2017.

Federation invites kind attention of the Hon’ble AIR relating to exemption of Railways from New Pension Scheme (NPS), which was agreed upon by the Railway Ministry, consequently the Railway Minister Shri Suresh Prabhu bad sent proposal to the Hon’ble Finance Minister vide letter No. 2012/F(E)III/1/1/4-Pt dated 20th November, 2015, seeking Government’s approval to exempt Railways from New Pension Scheme (NPS) now called “National Pension System“. Shri Mallikarjun Kharge then Railway Minister had also urged upon the Government to exempt Railways from New Pension Scheme (letter No. 2012/F(E)III/1/4-Pt dated 29th March 2014).

 

In this connection, NFIR desires to reiterate that Pension is very sensitive issue so far as Railways is concerned, due to the reason that the Railway employees have been working at remote places, stations located in jungle areas and have been facing all odds foregoing basic necessities of life, similar to the Defence Forces Personnel, safeguarding the Nation’s Borders, and are involved fully in ensuring uninterrupted flow of Railway Traffic. The Railway employees in their day-to-day working face war like situations to ensure that movement of trains is not adversely affected under any circumstances and in the process they get killed on duty as confirmed by the High Level Safety Review Committee (BLSRC) headed by Shri Anil Kakodkar (Chapter 11-2.3).

 

NFIR, therefore urges upon you to kindly reach the Hon’ble Prime Minister and apprise the Railways unique nature of working as already highlighted by previous Railway Ministers and impress the need for granting exemption of Railways from the New Pension Scheme to enable those Railway employees appointed from January, 2004 get covered by the Liberalized Pension Scheme for receiving guaranteed Pension. Federation strongly believes that your kind intervention and Ell&WS-fivi: with the Hon’ble Prime Minister would result positive decision for exempting Railways from New Pension Scheme soon.

With regards,

Yours sincerely,/

S/d,
(Dr. M. Raghavaiah)
General Secretary

Source : NFIR

 

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Additional benefit on death/disability of Government servant covered by New Pension System

Additional benefit on death/disability of Government servant covered by NPS

“It is once again reiterated that the aforesaid instructions may be followed scrupulously and to review all the cases for ensuring the payment of family pension, disability pension and extra-ordinary pension to the NPS subscribers in case of death/disability”

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No.2012/F(E)111/1(1)/4

New Delhi, Dated: 23/08/2017

The GMs/FA & CAOs,
All Zonal Railways/Production Units.

 

Subject: Additional benefit on death/disability of Government servant covered by New Pension System – clarification regarding.

 

Please refer to the instructions issued vide Board’s letters No. 2008/AC-II/21/19, dated 29/05/2009, No.2010/AC-II/21/18 dated 02/07/2013 and 13/07/2010, letters of even number dated 08/09/2014 and 13/01/2016 on the above mentioned subject.

 

2. Now, one of the recognized Federations (NFIR) have again raised the issue of non-compliance of the above instructions by Zonal Railways and reluctance on the part of Railways in providing additional relief to the widows of NPS subscribers/ NPS subscribers who have been declared invalidated. The Federation have also stated that Zonal administrations are not taking initiatives to ensure additional relief in terms DOP&PW’s D.M. dated 05/05/2009 and that they are reluctant in providing additional relief on death and disability of NPS subscribers.

 

3. It is once again reiterated that the aforesaid instructions may be followed scrupulously and to review all the cases for ensuring the payment of family pension, disability pension and extra-ordinary pension to the NPS subscribers in case of death/disability. Further, Zonal Railways are also advised to sensitize the administration at lower level towards the problems faced by the employees and their families.

sd/-
(G.Priya Sudarsani)
Joint Director, Finance (Estt.),
Railway Board.

Authority: http://www.indianrailways.gov.in/

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Dispensing with the requirement of submission of physical application form in case of NPS account being opened on Aadhaar verification followed by e-Signature

Pension Fund Regulatory and Development Authority circular regarding opening of NPS account with Aadhaar Card.

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan Qutab Institutional Area,
Katwaria Sarai, New Delhi-110016
Phone : 011-26517503
Fax: 011-26517507
Website : www.pfrda.org.in

Dispensing with the requirement of submission of physical application form in case of NPS account being opened on Aadhaar verification followed by e-Signature

CIRCULAR

PFRDA/2016/25/PD/1

15 December 2016

To,

All Stakeholders in the National Pension System

Subject: Dispensing with the requirement of submission of physical application form in case of NPS account being opened on Aadhaar verification followed by e-Signature

1. PFRDA vide circular no. PFRDA/2013/18/PDEX/11 dated 24th October 2013 has allowed acceptance of e-KYC as a valid process for KYC verification in addition to the other allowed valid documents of Identity and address for KYC verification.

2. The Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2015 has been notified on 27th January 2015. As per the rule the Electronic Signatures facilitated through eSign -Online Electronic Signature Service is legally valid provided the eSign signature framework is operated under the provisions of Second Schedule of the Information Technology Act and Guidelines issued by the Controller of Certifying Authorities. E-authentication technique using Aadhhar e-KYC services is legally valid authentication.

3. It has now been decided by PFRDA that in case the POPs integrate the eSign-online electronic signature service, within their applications for online account opening for NPS, the requirement of sending the physical application form to the Central Record keeping Agency by the subscribers/Points-of Presence shall be dispensed with.

4. The Points-of-Presence shall be allowed to charge a maximum of Rs.5/- plus service tax and cess thereon per application for the e-Signature service being provided to the subscribers.

5. In case of account opened through eKYC, the Points of presence will send the soft copy of the application form (along with the supporting documents, if any) to the Central Record keeping Agency.

6. The Points-of-Presence shall adhere to the requirement of submission of KYC details of the subscribers to CERSAI.

7. With the application of the eSign facility, a large number of the subscribers having Aadhaar number will be able to open NPS account without any physical document requirement.

This is being issued in the interest of the subscribers under National Pension System.

Yours faithfully,
(Akhilesk Kumar)
Deputy General Manager

Download PFRDA Circular PFRDA/2016/25/PD/1 dated 15.12.2016

Be the first to comment - What do you think?  Posted by admin - December 17, 2016 at 5:43 pm

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Submission of Pre-budget Views of Central Government Employees – Confederation

Submission of Pre-budget Views of Central Government employees for consideration and inclusion in the Central Budget for the year 2017-18 – Request – Regarding

REF: CONFDN/BUDGET/2016-17

DATED  -12-2016

To,
Shri. Arun Jaitley,
Hon’ble Finance Minister,
Government of India,
North Block, New Delhi – 110001

Sub: Submission of Pre-budget Views of Central Government employees for consideration and inclusion in the Central Budget for the year 2017-18 – Request – Regarding.

Respected Sir,

Confederation of Central Government Employees and Workers is the umbrella organization comprising of various Unions/Associations/Federations of the Central Government employees. Central Government employees are the important segment of the society and contributing for the growth of this country through effective implementation of the policies of the Government of India. Hence, the views of this segment of important stakeholders, I submit, may also be heard and considered. With this request, this organization is bringing the following views for consideration by your good self, as a part of the pre-budget exercise to finalize the budget for the year 2017-18.

Issues of the Central Government employees:

1. New Pension Scheme: Lakhs of employees who joined the Central Government Departments on or after 01-04-2004 are vulnerable to the market fluctuations due to the NPS. It has been pleaded several times to scrap this NPS or grant guarantee of minimum pension at the rate of 50% of last pay drawn. It is requested to concede this request in this budget by making required amendments.

2. Income Tax: It is submitted that Government employees are the most tax compliant segment of the society. At the same time they are the hard hit with heavy tax burden. For many years it is requested to raise the tax exemption limit. It is requested to consider increasing the tax exemption limit for employees to Rs. 5,00,000/-. It is also requested not to include the compensatory allowances in the taxable income.

3. Interest concession on loans and advances: Nationalized Banks are extending housing loans, personal loans for their employees at a lesser rate than the market rate. This facility may also be extended to the Central Government employees.

4. Education loans to the Children of the Central Government employees: In the present set up no bank is giving education loans for pursuing higher studies without keeping immovable property as collateral security. One has to cross many hassles for obtaining education loan for his ward. It is requested that education loan for the ward of a Central Government employee should be hassle free and without any guarantee or collateral security except the employee himself/herself. The total loan should cover the entire fee and living expenses without any restrictions.

5. Minimum Wage & Fitment formula: The minimum wage of Rs.18000/- recommended by 7th CPC is needed to be revised to Rs.26000/- to confirm to the realistic and accepted norms of the wage determination. Accordingly the fitment factor should also be proportionately changed.

6. Curtailment of litigation: Presently due to the policy of DOP&T the Central Government employees are forced to engage in avoidable litigation in the Courts of Law, even on those similar Service matters, which were decided by the Highest Court of the Land. This is resulting in lot of expenditure of Government employees. The judgments of the Courts should be applied to all the similarly placed employees without forcing them to file cases on the very matter.

7. Compassionate appointments: The eligible wards of the employees who died in harness should be given employment by removing the present artificial ceiling of 5% on such employment.

8. Housing needs of the employees working in N.E and Assam Circles: The employees working in these States are facing hardship due to lack of housing facilities. Hence, it is requested to construct more General Pool Resident staff quarters for all the Central Government employees working in N.E. and Assam regions.

9. It is also requested that cash less and Hassle free Medical facilities to serving and retired employees for in-patient and out-patient may also be favourably considered.

General Issues:

Central Trade Unions in their Memorandum dated 19-11-2016 has brought several issues like price raise, strengthening the Public Distribution System, safeguarding the Public Sector, Foreign Direct Investment, employment generation, Same Pay for Same Work, Social Security for unorganized workers, Labour Law Reforms, regularization of Contract and Casual Labour, which has a bearing on the lives of the common masses, employees and workers. This Federation completely endorses their viewpoint on these important issues and requests you to kindly initiate necessary corrective steps in this Budget.

It is earnestly requested to seriously consider the above suggestions for inclusion in the Budget for the year 2017-18, which will go a long way in fulfilling the long pending aspirations of the Central Government employees.

Thanking you,

Yours Sincerely,
(M. Krishnan)
Secretary General
Mob:09447068125
E-mail: mkrishnan6854@gmail.com

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Implementation of National Pension System (NPS) in Central Autonomous Bodies (CABs)

Implementation of National Pension System (NPS) in Central Autonomous Bodies (CABs)

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PRESS RELEASE

Conference on Implementation of National Pension System (NPS) in Central Autonomous Bodies (CABs)

A conference on implementation of National Pension System (NPS) in Central Autonomous Bodies (CABs) was organized by PFRDA on 27th July 2016 at New Delhi. The prime objective of the conference was to understand and address the concerns of the Central Autonomous Bodies who have not yet registered for NPS.

Shri Hemant Contractor, Chairman, PFRDA in his key note address stressed on the need for a regular and steady source of income for old age income security. He informed the participants that it was mandatory for all CABs which had offered CPF to its employees earlier to switch to NPS, but some CABs had not done so, and he urged them to adopt NPS without further delay, in view of the benefits of doing so, apart from the mandatory requirement. He gave the example of State Governments which had voluntarily adopted NPS in view of its merits. He further mentioned that it was important for CABs to offer a pension benefit to their employees in view of the many advantages, which could never be matched by lump sum payments such as CPF payment. He urged the CABs to comply with the Government directives and join NPS at the earliest so that the employees could get the benefit of pension under NPS for their old age income security.

Dr. B. S. Bhandari, Whole Time Member (Economics), PFRDA, while speaking on the occasion highlighted on the introduction of NPS for all Central Government Employees (except armed forces) joining services on or after 01st January 2004 and also informed the participants about the various notifications issued by Government for implementation of NPS in the Central Autonomous Bodies. He also briefed about the basic operational aspects of the NPS, investment pattern & NPS architecture. He also illustrated the benefit of higher return under NPS and power of compounding on this higher return resulting to better yield in comparison to other superannuation benefits.

Shri R V Verma, Whole Time Member (Finance) PFRDA, also urged to all the CABs present in the conference to be part of NPS and said that there is no reason why CABs have not implemented despite all the benefits in NPS. He informed that though the scheme is mandatory for all Central Autonomous Bodies having contributory Provident fund, many of the CABs are yet to join NPS. He expressed PFRDA is confident that this conference will help the participating CABs to understand NPS in a better way and will help them to join NPS at the earliest without further delay. Currently, NPS has more than 1.30 crore subscribers with total Asset Under Management (AUM) of more than Rs.1.37 lakh crores.

Place: New Delhi
Date: 27.07.2016

Authority: http://www.pfrda.org.in/

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