Posts Tagged ‘OPS’

Two day strike Banking ops partially affected due to trade union strike

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Two day strike Banking ops partially affected due to trade union strike

Banking operations Tuesday have been affected in some parts of the country as a section of employees refrained from work in support of the two-day strike call given by 10 central trade unions to protest against alleged anti-labour policies of the government.

All India Bank Employees’ Association (AIBEA) and Bank Employees’ Federation of India (BEFI) have supported the strike, which has impacted banking operation where these two unions are strong.

However, the operation in SBI and private sector banks remained unaffected as other seven unions in the banking sector are not part of the strike.

Many public sector banks have already informed their customers about likely impact on services if strike materialises.

“If the strike materialises, a section of the bank’s employees may take part in the proposed strike on the said dates, in which case, the normal functioning of the branches/offices of the bank may get affected,” Indian Bank said in a statement.

A two-day strike on January 8 and 9 has been called by the central trade unions against the alleged repressive policies for workers adopted by the government.

Source: PTINews

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Whether the Government is planning to reconsider the Old Pension Scheme on optional basis for Central Government Employees?

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

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

National Pension System to Old Pension Scheme

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 ACCOUNTS AMOUNT (IN CRORES) (PROVISIONAL)
2071 Pension & other retirement benefits 145745.07
3001-101 Indian Railways Pensionary charges  366.85
3002-11 Indian Railways Pensionary charges 1996.97
3003-11 Indian Railways Pensionary charges 21.07
3201-07 Pension-Postal Services 8511.33
Grand Total 156641.29

Budget for the financial year 2017-18 under NPS-AR is as under:

Budget Estimate 2018-19 Expenditure 2018-19 Budget Estimate 2017-18 Expenditure 2017-18
Rs. 90.20 cr Rs. 59.71 cr (as on 30.11.2018) Rs. 66.21 cr Rs. 65.65 cr

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

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NPS To OPS: Karnataka Government Employees Protest against NPS

NPS To OPS: Karnataka Government Employees Protest against NPS

New Pension System To Old Pension Scheme
Karnataka Government Employees Protest against NPS

Karnataka State Government Employees demanded to scrap NPS and on Wednesday they took a streets in Karnataka’s Belgaum City. As per the media news, thousands of agitating employees assembled in Kondaskoppa area of the city, opposite the Suvarna Vidhana Soudha (State Assembly) where he winter session of the Karnataka Assembly is in session.

Earlier the members of the Karnataka State NPS Employees Association demanded scrapping of NPS.

Nothing More…
Nothing Less…
We Want
OLD PENSION SCHEME

Yesterday (12.12.2018), National Secretariat of Confederation decided to observe as DEMANDS DAY raising the demand “SCRAP NPS & RESTORE OPS” through out the country.

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STRIKE: Scrap New Contributory Pension Scheme (NPS) Restore old defined benefit pension scheme (OPS) to all employees

Strike notice from Confederation – 8th & 9th January 2019

No. Confdn/Strike/2016-19

Dated – 12th December 2018

To,

The Cabinet Secretary
Cabinet Secretariat
Government of India
Rashtrapati Bhawan
New Delhi – 110001

Sir,

This is to give notice that employees who are members of the affiliated organisations of the Confederation of Central Government Employees and Workers will go on Two-days strike on 8th & 9th January 2019. The Charter of demands in pursuance of which the employees will embark upon the Two-days strike action is enclosed.

Thanking you,

Yours faithfully,

(M. Krishnan)
Secretary General
Mob: 09447068125
Email: mkrishnan6854@gmail.com
Encl:  Charter of Demands

Annexure – 1

CHARTER OF DEMANDS

1. Scrap New Contributory Pension Scheme (NPS). Restore old defined benefit pension scheme (OPS) to all employees.

2. Settle 7th CPC related issues including increase in Minimum Pay and Fitment formula, HRA arrears from 01-01-2016, MACP Bench Mark, promotional hierarchy and date of effect of MACP from 01-01-2006. Implement Option-1 for pensioners and settle all anomalies arising out of implementation of 7th CPC recommendations.

3. Fill up all vacant posts. Reintroduce Regional Recruitment for Group B & C posts. Withdraw orders for abolishing posts lying vacant for more than five years. Revive all posts abolished during 2001 to 2008 under Annual Direct Recruitment Plan (ADR) as per May 2001 orders of the former NDA Government.

4. (a) Regularisation of Gramin Dak Sevaks and grant of Civil Servant Status. Implement remaining positive recommendations of Kamlesh Chandra Committee report.
(b) Regularise all casual and contract workers including those appointed on or after 01-09-1993.

5. Ensure equal pay for equal work for all. Remove disparity in pay scales between Central Secretariat staff and similarly placed staff working in field units of various departments.

6. Stop closure of Government establishments and outsourcing of Government functions. Withdraw closure orders of Govt. of India Printing Presses. Stop proposed move to close down salt department. Stop Foreign Direct Investment (FDI) in Railways and Defence departments.

7. Implement 7th CPC Wage revision and pension revision of Autonomous body employees and pensioners. Grant Bonus to Autonomous body employees pending from 2016-17 onwards.

8. Remove 5% condition imposed on compassionate appointments and grant appointment in all deserving cases. Rejected cases for want of 5% quota vacancies may be reviewed and appointment to dependents may be granted.

9. Grant five time bound promotions to all Group C & B employees on completion of 8,7,6,5 and 4 years of service respectively. Complete Cadre Reviews in all departments within a time frame.

10. (a) Stop attack on trade union rights. Ensure prompt functioning of various negotiating forums under JCM scheme at all levels.
(b) Withdraw the draconian FR 56(j) and Rule 48 of CCS (Pension) Rules, 1972

Source: confederationhq.blogspot.com

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New Pension Scheme Demand To Scrap it: NPS to OPS

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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NPS To OPS: Government of Andhra Pradesh Issued Orders based on Expert Committee

NPS To OPS: Government of Andhra Pradesh Issued Orders based on Expert Committee

National Pension System To Old Pension Scheme

Govt of AP Issued Orders based on Expert Committee

“In case it is to withdraw the Contributory Pension Scheme and in lieu of it to implement the Statutory Pension Scheme, what will be the legality of such a decision with respect to those who have already retired from service after serving under the Contributory Pension Scheme? or expired while in service?”

GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Contributory Pension Scheme (CPS/NPS)- An Expert Committee for review of the Contributory Pension Scheme and examining demand for continuing Old Pension Scheme – Constituted – Orders – Issued.

FINANCE (HR.3-PENSION-I) DEPARTMENT

G.O.R .RT.No. 2052

Dated: 28-11-2018

Read the following : –

1. G.O.Ms.No.653 Finance(Pen-1) Department, dated: 22.09.2004.
2. G.O.Ms.No.654 Finance(Pen-1) Department, dated: 22.09.2004.
3. G.O.Ms.No.655 Finance(Pen-1) Department, dated: 22.09.2004.
4. Representations from various Service Associations, public representatives for restoration of Old Pension Scheme.

ORDER :

In G.O. 1st to 3rd read above, Government of Andhra Pradesh adopted the Government of India’s New Pension Scheme based on Defined Contributions for the employees of the State, who are newly recruited on or after 01.09.2004.

2. Several representations and requests have been received from various service associations and people representatives for de-adoption of Contributory Pension Scheme and restoration of Old Pension Scheme for the State Government employees.

3. Keeping in view of the representations from the service associations and people representatives, the Government hereby constitute an Expert committee with the following composition.

1 Sri. S.P.Tucker, IAS (Retd),

Former Chief Secretary to Government

: Chairperson
2 Sri. Peeyush Kumar, IAS ,

Secretary to Govt (FP), Finance Department

: Member Secretary
3 Sri. D.Venkata Ramana,

Secretary to Government, Law Department

: Member
4 Prof. K. Muniratnam Naidu

(Retd),

Professor in Economics, S.P.Mahila University, Tirupathi

: Member
5 Prof Galab

Professor in Economics,

Director, CESS, Hyderabad

: Member

4. Terms of reference for the committee:

i. To submit a detailed report analysing the repercussions, both legal and financial of reviewing the Contributory Pension Scheme now in force.

ii. To submit a detailed report analysing the impact of Contributory Pension Scheme on the State Finances.

iii. To suggest propositions regarding the liabilities and risks that may arise out of the agreements entered into with NPS trust and NSDL.

iv. In case it is to withdraw the Contributory Pension Scheme and in lieu of it to implement the Statutory Pension Scheme, suggest propositions for refund of the contributions made by the employees & employer so far?

v. In case it is to withdraw the Contributory Pension Scheme and in lieu of it to implement the Statutory Pension Scheme, what will be the legality of such a decision with respect to those who have already retired from service after serving under the Contributory Pension Scheme? or expired while in service?.

vi. To analyse the status of the scheme in detail and the experiences and current scenarios of other states that have implemented the Contributory Pension Scheme.

vii. In case if the scheme is continued, what are the various steps that can be taken to make it more attractive/beneficial?

viii. To make suggestions in other matters that the committee finds relevant with regard to the review of the Contributory Pension Scheme.

5. The term of the committee shall be 3 months from the date of issue of orders.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

ANIL CHANDRA PUNETHA

CHIEF SECRETARY TO GOVERNMENT

Source: Confederation

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NPS to OPS: Proceeding on adoption of Resolution on Abolishing NPS by Delhi Assembly

National Pension System to Old Pension Scheme

Proceeding on adoption of Resolution on Abolishing NPS

Proceeding on adoption of Resolution on Abolishing NPS by Delhi Assembly- एन.पी.एस को समाप्त करने के संकल्प पर दिल्ली विधान सभा की कार्यवाही

LEGISLATIVE ASSEMBLY

NATIONAL CAPITAL TERRITORY OF DELHI
Bulletin Part-I

delhi-assembly-proceeding-on-nps-resolution

(Brief summary of proceedings)

Monday, 26 November 2018 / 05 Margshirsha 1940 (Saka)

No. 91

10. 6.51 PM Calling Attention (Rule-54) :

Shri Ajay Dutt called the attention of the Government towards “Abolishing National Pension System (NPS) and reinstate the old Pension System in the interest of lakhs of Government Servants“.

Sh. Arvind Kejriwal, Hon’ble Chief Minister made a brief statement.

The following Resolution moved by Sh. Ajay Dutt was put to vote and adopted by voice-vote :

The Legislative Assembly of NCT of Delhi, having its sitting on 26 November 2018 :

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-I, UPA-II and NDA-II Governments,

Given the fact that, unlike the old pension scheme, the NPS :

  • does not give any guarantee to the employees 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 the medical emergencies,
  • leaves the employees at the mercy of volatile markets and the forces that have notoriously been 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 a 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 privileges 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 legitimate pensions’ benefits are disbursed through the Consolidated 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 t he old pension scheme in place of NPS or the benefit of all the Government Servants working under the Government of India and also to actively encourage other States to follow this true welfare measure”

Source: Delhi Assembly

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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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Government employees demand restoration of old pension scheme

Government employees demand restoration of old pension scheme

govt-employees-old-pension-scheme

Central and state government employees protested here Sunday, demanding restoration of the old pension scheme.

Hundreds of employees staged a dharna outside the Hamirpur office of local MP Anurag Thakur and raised slogans against the new pension scheme.

The employees said if the old scheme was not restored then they would be compelled to launch a nation-wide stir.

Bikram Singh Rana, a national-level leader of the employees association, alleged the new scheme was launched to help big companies and not for the benefit of the employees and that all employees were against it.

The employees demanded all parties declare in their manifestos that the old pension scheme would be reverted back to.

Senior BJP leader Prem Kumar Dhumal, who was in Hamirpur during the dharna, addressed the employees and assured them that he would take up their issue with the central and state governments. He said their case was justified.

PTI

Be the first to comment - What do you think?  Posted by admin - October 28, 2018 at 9:51 pm

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Scrap NPS restore defined benefit old pension scheme (OPS) for all Central govt employees & State Govt employees. Settle 10 points charter of demands of confederation.

Scrap NPS restore defined benefit old pension scheme (OPS) for all Central govt employees & State Govt employees. Settle 10 points charter of demands of confederation.

Confederation of Central Government Employees & Workers Central Headquarters
1st Floor, North Avenue Post office Building, New Delhi-110001

Ref: Confdn/2016-19 Dated – 28.06.2018

* SCRAP NPS Restore Defined Benefit Old Pension Scheme (OPS) for all employees.
* SETTLE 10 POINTS CHARACTER OF DEMANDS OF CONFEDERATION

NATIONWIDE ONE DAY STRIKE ON 15-11-2018
MASS RALLY AT NEW DELHI ON 25TH SEPTEMBER 2018

Central Govt. Employees, State Govt. Employees, Public Sector Employees and other Class and Mass organisations will participate.

Dear Comrades,
Please refer to the Confederation Circular dated 25-06-2018 wherein the Resolution & declaration, Programme of action and charter of demands adopted in the 10th June 2018 National Convention of Central Govt. Employees are published. A very big mass rally will be organised at New Delhi on 05-09-2018 along with State Government employees, Public sector employees and other class and mass organisations. Quota fixed for each affiliate and C-O-Cs are furnished below. Regarding accommodation etc. for the participants in the rally, each organisation/C-O-C shall make their own arrangements. Up and down travel tickets of the participants should be booked well in advance. As State Govt. Employees etc. are also participating in the rally, it will be difficult to get confirmed tickets in the last minute. All affiliates and C-O-Cs are requested to finalise the delegates of each unit and first priority may be given for booking tickets. For any help at New Delhi, C-O-C, Delhi State Committee may be contacted.

1. Com. Vrigu Bhattacharjee 09868520926
General Secretary, C-O-C. 09013163804
2. Com. Giriraj Singh 09811213808
President, C-O-C.

Name of affiliated
organisation/C-O-C

No.of employees –
quota fixed for mobilising and
participating in the rally.

1. National Federation of Postal Employees (NFPE)  – 5,000
2. Income Tax Employees Federation (ITEF) – 1,000
3. All India Audit & Accounts Association – 500
4. All India Civil Accounts Employees Association – 500
5. National Federation of Atomic Energy Employees (NFAEE)  – 300
6. All India Central Ground Water Board Employees Association (AICGWBEA) – 300
7. Geological Survey of India Employees Association (GSIEA) – 200
8. All other affiliated organisations  – 100 each
9. C-O-C Delhi – 500
10. C-O-Cs UP  – 800
11. C-O-C West Bengal – 300
12. C-O-C Kerala – 150
13. C-O-C Tamilnadu – 200
14. C-O-C AP & Telangana – 300
15. C-O-C Karnataka – 200
16. C-O-Cs Maharashtra – 300
17. C-O-C Odisha – 150
18. C-O-C Assam & NE – 200
19. All other state C-O-Cs 100 – each

All affiliates are requested to allote quota to their lower units immediately. Please instruct all units to book tickets immediately.

Fraternally Yours,

M. Krishnan
Secretary General,
Confederation.
Mob.& Whats App: 09447068125
Email: mkrishnan6854@gmail.com

Source: http://confederationhq.blogspot.com/

Be the first to comment - What do you think?  Posted by admin - June 29, 2018 at 10:24 pm

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Casual Labourers with temporary Status in Deptt of Post, Clarification regarding GPF and Old Pension Scheme

Casual Labourers with temporary Status in Deptt of Post – Clarification regarding contribution to GPF and Pension under the Old Pension Scheme

No.01-07/2016-SPB-I
Government Of India
Ministry Of Communications & IT
Department of Posts

Dak Bhawan, Sansad Marg,
New Delhi 110 001.
Dated: 12th September, 2016

Subject: Casual Labourers with temporary Status – Clarification regarding contribution to GPF and Pension under the Old Pension Scheme.

Sir,

I am directed to refer to this Department’s letter no.01-07/2016-SPB-I dated 22.07.2016 on the above cited subject and say that following clarifications are hereby issued in respect of Casual Labourers in the Postal Department in line with DOP&T OM No.49014/2/2014-Estt(c) dated 28.07.2016:

(a) The Department’s letter No.01-07/2016-SPB-I dated 22.07.2016 restores the provisions of the scheme as it existed prior to this Department’s letter No.45-6/2005-SPB-I dated 02.09.2005. The benefit of GPF and Old Pension Scheme is applicable to all those Casual Labourers who are covered under the Casual Labourers (Grant of Temporary Status and Regularization) Scheme issued vide letter No.45-95/87-SPB-I dated 12.04.1991 even if they have been regularized on or after 01-01-2004.

(b) As the benefit of Old Pension Scheme and GPF is applicable to only those casual workers who are covered under the above stated scheme of 1991, all the circles may strictly ensure that it does not lead to demand by regularly recruited fresh employees appointed on or after 01.01.2004 for similar benefit in place of NPS.

Yours faithfully,
(Abhay Kumar)
Assistant Director General (SPN)

Source: Department of Posts [Click here]

Be the first to comment - What do you think?  Posted by admin - September 23, 2016 at 6:57 am

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