Thursday 20 December 2018

We Demand to Scrap NPS and restore Defined Benefit Pension Scheme under CCS (Pension) Rules 1972 to all Central Government Employees joined in service on or after 01-01- 2004.

Contributory Pension Scheme (called as New Pension Scheme - NPS) was introduced through an executive order with effect from 01-01-2004 for all Central 
Government employees who joined service on or after 01-01-2004. 
Subsequently Pension Fund Regulatory and Development Authority Act (PFRDA) was enacted to make it statutory. 
As per the NPS 10% Pay plus DA will be recovered from the employee each month and an equal amount will be contributed by Government. The amount goes to the Pension Fund and from there to share market. 
As per the PFRDA Act - “There shall not be any implicit or explicit assurance of benefit except market based guarantee mechanism to be purchased by the subscribers”. 
Thus it can be seen that the contribution in the Pension Fund is fully dependent on the vagaries of share market. There is no guarantee whether pension will be received at the age of 60 years and even if received what will be the amount of pension. 
Now, many employees who entered service on or after 01-01-2004 has started retiring from service after completing 12 to 13 years service. They receive a megre amount of 900 to 1700 as monthly pension, whereas as per the old pension scheme an employee with minimum 10 years service is eligible for 50% of last pay drawn as monthly pension, subject to a minimum of Rs.9,000/- per month, that too without giving any contribution to the pension fund. 
With meager amount of Rs.900 to 1700 how a pensioner and his family can survive?
It is this bitter reality that compels the employees to demand scraping of NPS and restoration of the old Pension Scheme for all those employees who entered service on or after 01-01-2004.

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