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

NJCA
National Joint Council of Action

4, State Entry Road, New Delhi – 110055

No.NC-JCM-2019/NPS

March 8, 2019

To
The Chief Executive,
All Recognised National and State level Political Parties

Sub:- Proposal to include in the election manifesto of your party with regard to the scrapping of the National Pension System which has taken away the pension right of Central Government Employees

Dear Sir I Madam,

We write this on behalf of the organisations of the Central Govemment employees participating in the Joint Consultative Machinery, set up by the Government of India in 1960s as a negotiating forum to settle various demands and grievances of the employees through discussions. In the meeting that was held on 8th February, 2019, of the Standing committee of the National Council, Staff Side, it was unanimously decided that I in my capacity as the Secretary, Staff side National Council, must write to you to draw your kind attention to one of the most significant demands of the Central Govenunent employees i.e. to replace the newly introduced contributory pension scheme with the old statutory defined Pension system and also to restore the GPF Scheme which was withdrawn by the Government. I have been asked to seek your support to this vital demand of the employees especially of the young workers who have entered government service after 1.1 .2004 and obtain an assurance from you that you will accede to the demand for the withdrawal of the New contributory scheme to replace it with the old Statutory pension system if elected to power in the ensuing general elections to constitute the 1 i 11 Lok Sabha. Before going into the difficulties being faced by the employees governed under the New Contributory Pension Scheme which is at present christened as “National Pension System (NPS)”, I would like to invite your attention to the historical judgment delivered by the Hon’ble Supreme Court by a 5 Member Bench consisting of Hon’ ble Chief Justice Y.B.Chandrachud. The Hon’ble Supreme Coutt in this case has analyzed in detail the entire issue of Pension. The most impotiant portion of the above historical judgment is reproduced below for your kind consideration please.

“From the discussions 3 things emerge

(i) that pension is neither a bounty nor a matter of grace depending upon the sweetwi/1 of the employer and that it creates a vested rights subject to 1972 Rules which are statutory in character, because they are enacted in exercise of powers conferred by the proviso to Article 309 and Clause (5) of article 148 of the constitution,

(ii) that Pension is not an ex-gratia payment but it is a payment for the past service rendered and

(iii) it is a social welfare measure rendering socio economic justice to those who in the heyday of their life ceaselessly toiled for the employer on an assurance that in their old age they would not be left in the lurch.”

As you are aware Sir/Madam, that the new contribut01y pension scheme was introduced by the then NDA Government in 2004 initially through an executive fiat. Later, rather much later, a bill was introduced in the Parliament to enact the Pension Fund Regulatory and Development Authority. After the promulgation of the Notification in 2004, many State Governments adopted the scheme to cover their employees, the only exception being the State of West Bengal presently. The ostentatious reason adduced at the time of promulgation of the Notification and thereafter at the time of the introduction of the PFRDA bill, was the ever increasing financial outflow on pension account, which makes fiscal deficit management difficult. Prima facie the said reason appeared to be true as the quantum of outflow on account of Pension had been on increase. But the fact that it had always been on rise was concealed as also the one that as a percentage to the GDP, the pension payment had been continuously dwindling over the years.

The employees organisations had been pointing out to the Government that the desired objective of containing pension outflow would not come about for the next four decades. When the probable drastic reduction in pension under the new scheme was raised by the Staff Side in the National Council, the Government stated that under the new dispensation, employees will become entitled more annuity than the then existing entitlement of Pension, this assurance was given in writing by Government in the Standing Committee Meeting of the National Council (JCM) held under the Chairmanship of Secretary (Personnel) on 14′h December, 2007 and went on to assure the Government’s intervention if things turns out otherwise. It is also pertinent to mention here that the Government has exempted the Armed Force Personnel from the NPS and they continue to be in the old Pension Scheme. If the NPS is so attractive then why the Government has exempted them
from NPS. This is a clear proof that the NPS is vety much detrimental when compare to the old Pension Scheme.

The scheme is presently in vogue for the last 15 years. A few employees who were originally recruited as casual workers but got regularised later (retired before completion of the 33 or 35 years of service.) They were given a paltry amount as pension amounting to less than Rs, 2000. Had they been covered under the old Pension scheme, they would have certainly got more than 20,000 as pension. The new scheme has thus become “NO pension scheme’. The new scheme has thus created consternation of a very high order amongst the employees as they rightly feel that their hard earned savings are in effect compulsorily channelled to benefit the corporate entities. Since the Govt. will have to contribute equal amount or more (now 14%)the same would act in future as a real drain on the resources of the Government and will cause hardship in the form of increased tax liability. The anger and discontent of the employees have manifested itself in huge demonstrations and such other programmes and some of them have even resorted to strike action.

We are proud to mention that our principled opposition to the scheme right from the beginning, when it was introduced by the then NDA Government, has now been vindicated as it neither benefits the subscriber nor the Nation. Incidentally we may point out that in the wake of the 6th CPC, Government agreed to set up an expert committee under the chairmanship of Dr.Gayatri, at the Indian institute of social sciences to look into all aspects of the New Pension scheme. The committee has clearly indicated that the new scheme will draw more funds from the exchequer in the coming 40 years, before any reduction in the outflow could be brought about.

We fervently feel that the new contributory scheme must be replaced by the old Pension Scheme under the CCS (Pension) Rules, 1972. If you will be able to indicate your intention to replace the present new contributory scheme with the old Statutory Pension structure, in your manifesto, it might help immensely to elicit the support of the Central Government employees and their family members to your party candidates in the ensuing general election.

We shall also be grateful for favour of a word in response to this communication from your end.

With kindest regards,

Yours sincerely,
(Shiva Gopal Mishra)
Convener

Source: http://ncjcmstaffside.com

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Family Pension to family to missing employees covered under NPS: CPAO Order dated 13.02.2019

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
3/5 TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI-110066

CPAO/IT & Tech/NPS Procedure/22(Vol-II)/2018-19/2)

13.02.2019

Office Memorandum

Sub:- Extension of provisions of OM No.38/41/06-P&PW (A), dated 05.05.2009 for family pension to family to missing employees covered under NPS.

Attention is invited to Deptt. of Pensions & Pensioners Welfare OM No.1/24/2018-P&PW (E) dated 01.01.2019 (copy enclosed) wherein it is mentioned that the department is in the process of framing separate service rules for regulating the pensionary benefits. The question of extension of pensionary benefits to the families of missing NPS employees will be considered based on the NPS rules being finalized by DP&PW. This is for your kind information.

Encl:-As above

sd/-
(Md. Shahid Kamal Ansari)
(Asstt. Controller of Accounts)

View order

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Guaranteed Pension to the Central Government Employees governed under NPS – FRDA

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan, Qutab Institutional Area,
Katwaria Sarai, New Delhi-110016

File No. PFRDA/16/3/29/0081/2017-REG-PF

Date: 13th February, 2019

To
Shri C.SriKumar
General Secretary
All India Defence Employee’s Federation
S.M.Joshi Bhavan, Survey No.81,
Dr.Babasaheb Ambedkar Road,
Khadki, Pune – 411 003

Subject: Guaranteed Pension to the Central Government Employees governed under NPS – reg.

Dear Sir,

We refer to your letter No.94/1094/NPS/AIDEF/19 dated 1st February,2019 regarding subject mentioned above.

2. In this regard, we inform that the Authority is in process of designing a scheme providing minimum assured returns to the NPS subscribers in terms of Pension Fund Regulatory and Development Authority Act, 2013, in consultation with the Pension Funds Actuaries and Financial Sector Regulators.

The Proposal is under active deliberation and being workout in best possible way. It is proposed that the final proposal would be put up for stakeholder consultation in our website once the same is ready and feedback would be received from all concerned before finalizing the proposal.

3. The Authority would notify such minimum assured scheme once finalized with the approval of the Government.

4. This is for your information.

Yours sincerely,
sd/-
(Venkateswarlu Peri)
Chief General Manager

Source: PFRDA

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TAMIL NADU GOVT. ORDERS CONSTITUTING
EXPERT COMMITTEE TO REVIEW NPS

In the Government Order firs read above, orders were issued constituting an Expert Committee with the following composition to examine the feasibility of implementing the demand of various Government employee associations o continue old pension scheme and make necessary recommendations on the possible options to the Government for appropriate decision and its term was fixed as four months.

Click to Continue the detailed order

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No.49014/2/2014-Estt.(C)-PT.I
Government of India
Ministry of Personnel, PG and Pensions
Department of personnel & Training

North Block, New Delhi
Dated: 11th October, 2018

OFFICE MEMORANDUM

Subject: Clarification on modalities of transfer of the NPS contribution to casual labourer with temporary status to their GPF accounts.

The undersigned is directed to refer to this Department’s 0M No.51016/2/90-Estt (C) dated the 10th September, 1993 vide which a scheme for grant of temporary status to the casual employees was framed. The scheme applied to those casual labourers who were in employment on the date of the issue of the 0M and had rendered one year of continuous service in Central Government offices, which meant that they must have been engaged for a period of at least 240 days (206 days in the of offices observing days week). The scheme did not apply to Departments of Telecom & posts and Ministry of Railways.

2. As the scheme, after rendering three years’ continuous service after conferment of tempeorary status, the casual labourers were to be treated at par with tempeorary Group ‘D’ employees for the purpose of contribution to the General Provident Fund. Further, after their regularisation, of the service rendered under tempeorary status was to counted for of retirement benefits.

3. As per para 8 of the scheme, two out of every three vacancies in Group ‘D’ in respective offices where the casual labourers had been working was to be filled up as per extant recruitment rules and in accordance with the instructions issued by Department of Personnel and Training from amongst casual workers with temporary status. However, regular Group ‘D’ staff rendered surplus for any reason would have prior claim for absorption against existing/future vacancies.

4. Vide the O.M. No.49014/1/2004 -Estt.(C) dated the 26th April, 2004, the above scheme was reviewed in light of introduction of New Pension Scheme in respect of appointed to the Central Government service on or after 1.1.2004. These casual labourers with temporary Status were now to be considered under the NPS and their underlying amount in GPI was credited to them.

5. The 0M dated 26th April, 2004 was quashed by various benches of CAT/High Courts who had decided that the scheme could not modified retrospectively.

6. The position was reviewed in the light of the Court judgements in consultation with the Department of Expenditute. It was then decided vide this Department’s O.M. No. 49014/2/2014- Estt(C) dated 26.02.2016 and 0M. No. dated 28.07.2016 that the casual labourers who had been granted temporary status under the scheme, and have completed 3 years of continuous service after that were entitled to contribute to the General Provident Fund. It was also decided that of the service rendered under temporary status would be counted for the purpose of retirement benefits in respect of those casual labourers who have been regularised in terms of para 8 of the 0M dated 10.09. 1993. This was applicable to all casual labourers covered under the scheme Of 1993 whether they were regularised before or after 31.12.2003.

7. It was emphasised that the benefit of temporary status is available only to those casual labourers who were in employment on the date of the issue of the 0M dated 10th Septetmber, 1993 and were otherwise eligible for it. No grant of temporary status is permissible after that date. The employees erroneously granted temproary status between 10.09.1993 and the date of Hon’ble Supreme Court judgernent in Union Of India And Anr vs Mohan Pal. 2002 (3) SCR 613, delivered on April, 2002, will however be deemed to have covered under the scheme of 10.09.93.

8. Subsequent to the issue of this Department’s O. M. 49014/2/2014-Esst(C) dated 26.02.2016 and O.M. No. 49014/2/2014-Estt(C) dated 28.07.2016 several Ministries/ Departments were seeking clarifications as regards to the modalities of transfer of the amount lying in the NPS account to the GPF account of these casual labourers. The matter has been examined in consultation with D/o Pensions & Pensioners’ Welfare, D/o Financial Services and D/o Expenditure.

9. D/o Pension and Pensioners’ Welfare have clarified/ stated that the employees’ share or the NPS subscription with interest should withdrawn and deposited in the GPE accounts if these CL-TS regularized after 31.12.2003 and the Government share with interest accrued under NPS should be deposited in Government’s account.

10. Controller General of Accounts (CGA) have furnished following clarifications vide letter No. dt 11.03.2016 on a similar matter which are as under:

(i)Adjustment of Employees contribution in Accounts:- Amount may be credited to individual GPF Account and the account may he recasred permitting up-to-dare interest (Authority-FR-16 & Rule / of GPF Rules)

(ii) Adjustment Of Government contribution under NPS in Accounts. TO be accounted for as (-) Dr. to object heads Recoveries under major Head 2071- Pension and Other Retirement benefit-Minor Head 911- Deduct Recoveries Of over payment (GAR 35 and para 3.10 of List of Major and Minor Heads of Accounts)

(iii) Adjustment of increased value of subscription on account of appreciation of investment- may be for crediting the amount Govt. account under Contribution towards pensions and other Retirement Benefit  SOO- Other Receipts (Note under the above Head in LMMHA).

11. The principle underlying the consideration of the case of CL(TS) is that Casual labourers Who were covered under the scheme Of 1993 and have been regularised in terms Of the above scheme were entitled to GPF and Old Pension scheme even if they were regularised after 31.12,2003.

12. Furthermore. as per Dio Expenditure/CGA, if the benefits under old pension scheme are to allowed to a retired employee, who had contributed towards NPS at any stage. the entire NPS accumulations i.e. employee’s contribution + Government’s matching contribution + appreciation thereon should be remitted into the accredited bank of the PAO concerned and the accounting procedure will be same in this case as prescribed at par 10 above.

13. All Ministries/Departments are requested to settle the matter explained.  If any further clarification is needed in the matter, they should approach CGA (Controller General of Accounts) directly, since CGA is the accounting agency and is competent to clarify the matter.

sd/-
(N.Sriraman)
Director (Establishment)

Source: https://dopt.gov.in/

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