YEAR END REVIEW-2020, DEPARTMENT of posts

 

YEAR END REVIEW-2020, DEPARTMENT OF POSTS

  

Ministry of Communications

YEAR END REVIEW-2020, DEPARTMENT OF POSTS

New version of DARPAN-PLI App deployed in Core Integration System (CIS) with facility of processing various financial and non-financial requests of PLI/RPLI insurants at 127115 Branch Post Offices

17,092 villages brought under the coverage of Bima Gram Yojana (BGY) From January, 2020 to November, 2020

Over 7 lakh Passport applications and more than 99 lakh requests for Aadhar enrollments / updations processed from January, 2020 to November, 2020

India Post tied-ups with Indian Drug Manufacturers Association, Director General of Health Services and a number of private firms and online pharmaceutical companies for delivery of medicines from their facilities to hospitals and beneficiaries during COVID-19

31 crore financial transactions enabled through Post Office and IPPB accounts during COVID 19 period

India Post won India Today Healthgiri Award for providing the best logistic services during COVID 19

Posted On: 29 DEC 2020 5:07PM by PIB Delhi

For more than 150 years, the Department of Posts (DoP) has been the backbone of the country’s communication and has played a crucial role in the country’s social economic development. It touches the lives of Indian citizens in many ways: delivering mails, accepting deposits under Small Savings Schemes, providing life insurance cover under Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) and providing retail services like bill collection, sale of forms, etc. The DoP also acts as an agent for Government of India in discharging other services for citizens such as Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) wage disbursement and old age pension payments. In the year 2020, the Department strengthened its supply chain through capacity upgradation and expanding Road Transport Network. It played important role in countering impact of COVID-19 pandemic by enabling doorstep delivery of financial services and medicines etc. The Year End Review for Department of Posts highlights the achievements, and progress on various initiatives of department in the year 2020.

1.         Supply Chain and e-Commerce: Mail, Express Services and Parcel:

·         Capacity upgradation: Parcel handling capacity has increased from 6.0 crore per annum to 7.5 crore per annum.

·         Road Transport Network: National level dedicated Road Transport Network rolled out on 56 routes touching 80 cities. Approx. 15000 bags containing 75 tonnes of parcels are being carried daily through the setup network.

·         Improvement in Pan – India Average Transit Time for Speed Post: Average Transit time of Speed Post reduced from 105 hrs. in July,2019 to 81 hrs. in Feb,2020.

·         Real–Time updation of Delivery: Postman Mobile App implemented in 1.47 Lakh POs including 98,454 post offices in rural areas. Real time delivery status of 14 crore Speed Post and Registered articles done through the Postman Mobile App.

·         E-Commerce exports: ‘DakGharNiryat Kendra’ are being established at around 800 Post Offices covering all District headquarters to promote exports of MSMEs.

·         International Tracked Packet Service extended to 3 more countries Mongolia, Bhutan and Sri Lanka taking the total from 12 to 15 countries.

2.         Banking Services and Financial Inclusion:

·         Digital Financial empowerment of the public at large: DOP serves more than 50 crore POSB customers through 1.56 lakh post offices across length & breadth of the country and have an outstanding balance of Rs. 10,81,293 crore under Post Office Savings Bank (POSB) Schemes.  The Post Office CBS system is the largest network in the world with 23,483 Post Offices already on this network. Further 1,29,151 Branch Post Offices have been also enabled to access the network on real time basis. The CBS has enabled the DOP in providing 24x7 services through ATMs, Internet & Mobile Banking.

·         Financial Empowerment of Rural Populace: All the 9 Small Savings Schemes of MoF are available in 1.56 lakh Post Offices.  5 Schemes, namely, Monthly Income Scheme, Senior Citizens Savings Scheme, Public Provident Fund, National Savings Certificate &KisanVikasPatrahave been introduced in BOs through SB Order 27/2020 dated 23.07.2020.  People living in rural India will not be required to come to town & cities to do any Post Office Savings Bank (POSB) transaction. The same will be available at their doorstep through local Branch Post Offices.

·         Economic Empowerment of Girl Child: SukanyaSamriddhi Account (SSA) scheme is also known as girl child prosperity scheme and was launched by Prime Minister Shri Narendra Modi Ji on 22^nd January, 2015 in Panipat, Haryana. SSA scheme ensures a bright future for girl children. This scheme has facilitated them in proper education, marriage expenses and securing their future. The SukanyaSamriddhi Account can be opened in any post office. A total of 1.83 CroreSukanyaSamriddhi Accounts have been opened with deposits amounting to Rs. 58,822.62 Crore, by the Department of Posts, till November, 2020 since introduction of the scheme.

·         Insurance and Pension coverage of masses at reasonable rates: The PM Jan Suraksha Schemes, namely, Pradhan Mantri Suraksha BimaYojana (PMSBY), Pradhan MantriJeewanJyotiBimaYojana (PMJJBY) & Atal Pension Yojana (APY) were launched by Hon’ble Prime Minister in May, 2015. The DOP has been playing an active role under these Government of India flagship schemes and had made 3.2 Lakh Atal Pension Yojana (APY), 5.9 Lakh Pradhan MantriJeevanJyotiBimaYojana (PMJJBY) and 1.17 crore PradhanMantri Suraksha BimaYojana (PMSBY) enrolments so far.

·         Simplified processing of deceased claim cases to expedite deceased claim settlement process and help claimants to get the claim amount expeditiously.

·         Post Bank of India:More than 1.36 Lakhs Access Points enables for India Post Payments Bank (IPPB) transactions thus creating largest single bank network across the country. More than 2.90 Lakhs GraminDakSewaks (GDS) and Postmen enables to act as Doorstep Banking Service Providers taking Banking services to the doorstep. More than 3.61 crore people benefitted from Aadhar enabled Payment System (AePS) transactions involving an amount of Rs.7,667 crore, majority of them during COVID-19 lockdown.

·         Direct Benefit Transfer (DBT):More than 3.99 crores transactions were performed involving an amount of Rs. 4,040crore for a period from January, 2020 to November, 2020. Disbursed benefits of more than 275 schemes of different Ministries to beneficiaries including those in remote and rural areas.

·         Digital Inclusion: 1,29,159 Branch Post offices are using SIM based handheld POS devices. 40 crore digital transactions have been facilitated through promotion of Remotely Managed Franking Machines for a period from January, 2020 to November, 2020.

3.         Postal Life Insurance (PLI)/Rural Postal Life Insurance (RPLI):

·         Bonus of PLI for the financial years 2016-17, 2017-18, 2018-19, 2019-20 and 2020-21 have been declared in the month of March, 2020. Similarly, Bonus of RPLI for the financial years 2016-17, 2017-18, 2018-19, 2019-20 and 2020-21 have been declared in the month of April, 2020.

·         A total of 26,54,652 transactions were done in respect of PLI/RPLI amounting to Rs. 5,15,14,03,966/- in the month of April, 2020, inspite of nation-wide lockdown and extension of premium payment period to June, 2020.

·         Since, April, 2020, there has been 48% increase in monthly PLI/RPLI online transactions.

·         Inspite of lockdown and severe restrictions on transportation and staff attendance in offices, more than 90% of Central Processing Centres (CPCs) across the country were functional, more than 70,000 new proposals were processed and more than 40,000 claims were sanctioned in the month of April, 2020.

·         Wirecard, the then existing payment gateway has been replaced by PayU for online premia payment, offering multiple channel of payment by customers, namely Debit Card, Credit Card, Net Banking, Wallets and UPI.

·         To simplify the process of acceptance of new proposals and facilitate settlement of claims within citizen charter’ norms, approver limits for acceptance of new proposals and settlements of claims have been revised and has been decentralized to Head Post Office/GPO/Divisional Level (except for early death claims involving inquiry, for which approving authority is Director). Accordingly, Rules 55, 55(1), 55(2), 58(1) and 59(2) of PLI (Postal Life Insurance) Rules, 2011 were amended.

·         The process of settlement of Death Claim, Maturity Claim and handing of Loan requests in PLI/RPLI has been simplified by prescribing Comprehensive Standard Operating Procedure (SoP) for each.

·         To facilitate faster processing of death claim cases, Rule 39 of PLI (Postal Life Insurance) Rules, 2011 has been amended keeping in line with the existing Industry practice.

·         A new version of DARPAN-PLI App has been deployed in Core Integration System (CIS) with facility of processing various financial and non-financial requests of PLI/RPLI insurants at level of 127115 Branch Post Officesincluding those in remote and rural areas.

·         Department has brought in more transparency in communication with customer by adding more SMSs relating to policy servicing.

·         Department has removed 2 revival restrictions during the policy contract. Along with this,provision for revival of policy in instalments has been provisioned in the PLI system.

·         Business Performance of PLI and RPLI:As on 30-11-2020, there were a total of 96.79 lakh active PLI and RPLI policies with an aggregate sum assured of Rs. 2.05 lakh crores.

·         Investment Functions of PLI / RPLI Fund:The total corpus of PLI / RPLI fund has reached Rs 1.13 lakh crore by 30-11-2020.

·         Bima Gram Yojana:From January, 2020 to November, 2020, 17,092 villages brought under the coverage of Bima Gram Yojana (BGY). Each BGY village has at least 100 households covered by one RPLI policy.

4.         Citizen Centric Services:

·         Post Office Passport SevaKendras (PoPSK): With the growing need of its citizens for a passport for various purposes, Ministry of External Affairs and Department of Posts mutually agreed for setting up Post Office Passport SevaKendras (PoPSKs) in post offices to utilise the post office infrastructure and reach for delivering passport services. 426PoPSKs have been made operational till date, of which 02 PoPSKs opened in 2020 namely (i) Seoni, Madhya Pradesh and (ii) Port Blair, Andaman & Nicobar Island. 7,27,329applications have been processed through PoPSKsfrom January, 2020 to November, 2020.

·         Aadhar Enrolment and Updation Centres: The facility has brought convenience to the citizens by way of generating new Aadhaar and updating their Aadhaar cards in case of any change/mis-match. More than 42,000 Postal Officials/MTS/GDS have been trained/certified to perform Aadhaar operations. The Aadhaar Enrolments are done free of cost. A sum of Rs. 100/- is reimbursed by UIDAI for every successful Aadhaar Enrolment to India Post. AadhaarUpdations are chargeable and a sum of Rs. 50/- is collected from the citizens for every demographic updation and Rs. 100/- is collected from the citizens for every biometric updation.13,352 Post Office Aadhaar Centres have been set up across the country. 99,25,630requests for enrollments / updationshave been processed by these Centres from January, 2020 to November, 2020.

·         A total no of 3,43,296 Gangajal Bottles have been supplied for the period from January, 2020 to November, 2020.

·         Digital Advancement of Rural Post Offices for a New India (DARPAN): Carried out 17.41 crores online Postal and financial transactions involving Rs. 23,251/- crores for a period from January, 2020 to November, 2020 through 1.29 lakh Branch Post Offices in the rural areas of the country.More than 1.5 crores transactions per month are taking place through DARPAN devices.

·         PO-CSC (Post Office-Common Service Centres):A convergence of Post Offices and Common Service Centres (Part of CSC e-Governance Services India Limited under Ministry of Electronics & Information Technology) for effective delivery of various citizen centric services is a part of the five-year Vision Document of the Department of Posts.  Accordingly,10136 Post Offices are now providing services of Common Service Centres through the Digital Sewa portal of CSC. As on 30.11.2020, 48234 transactions worth Rs. 4.62 Crore were delivered through these Post Offices.

There are 100+ CSC Services which are offered through these post officeswhich include Government to Citizen Schemes(G2C) such as Pradhan Manthri Street Vendors’ AthmanirbharNidhiYojana (PMSVANIDHI), Pradhan Manthri Jan ArogyaYojana (Ayushman Bharat), Pradhan ManthriShram Yogi Maan-dhanYojana (PM-SYM), Pradhan MantriLaghuVyapari Maan-dhanYojana (PM-LVM), The Election Card Printing, E-Stamp Service, and Various e-District Services. Some of B2C (Business to Citizens) Services offered includes Bharat Bill Payment System Bills (Electric, Gas, Water bills etc...), Renewal Premium collection for Life Insurance Policies and General Insurance such as Motor Vehicle, Health and Fire Insurance etc, Third party services such as EMI collections for various loans offered by financial institutions and submission of online application forms for loans and Travel services such as Ticket booking service is available for Flight, Train and Bus Tickets.

·         Opening of new Branch Post Offices (BOs) in 90 identified Left Wing Extremism (LWE) affected districts in the country:In pursuance of the Ministry of Home Affairs (MHA) Note for Cabinet Committee on Security(CCS), a proposal for opening of 4903 new Branch Post Offices (BOs) in 90 identified LWE districts in the country was under taken. In the first Phase, 1789 Branch Post Offices in Panchayats not having post offices opened in LWE districtsacross the country, of which 16 Branch Post Offices have been opened from January, 2020 to November, 2020.

5.         Public Grievances:

·         Centralized Public Grievance Redress and Monitoring System (CPGRAMS):Department of Posts processes complaints registered by consumers of postal servicesin the Centralized Public Grievance Redress and Monitoring System (CPGRAMS). Streamlining of CPGRAMS was done by mapping over 1.55 lakh Post Offices till the levelof Branch Post Offices by intuitive navigation of complaints to the line-end offices for fasterresolution. This was done in collaboration with Department of Administrative Reforms & Public Grievances (DARPG) and the new version 7.0was successfully launched in September 2019. Department of Posts is the only Departmentselected for the pilot study for the revamping by DARPG. The details of the complaintshandled in 2020 upto 30.11.2020 are as under: -

 

S. No.	Year	Complaints received during the period	Complaints settled during the period	% of settlement	Average disposal time (days)
1	01.01.2020 to 30.11.2020	57604	56935	98.8%	16

 

·         Social Media Cell:Social media Cell is an independent entity and deals with the Twitter and Facebookaccounts of the Department of Posts. The social media cell monitors the complaints sent to all the Circles on daily basis. The averagefirst response time is approximately 4 hours. The details of the complaints handled in 2020upto 30.11.2020 are as under: -

 

S. No.	Year	Complaints received during the period	Complaints settled during the period	% of settlement
1	01.01.2020 to 30.11.2020	197801	195896	99%

 

·         India Post Call Centre (IPCC):ln wake of the initiatives taken up by Prime Minister to bring transparencyand accountability in the Government, Department of Posts established 2^ndIndia Post Call Centrewith 24x7x365 IVRS (Interactive Voice Response System) facilityfor the citizens in Patna on 01.07.2019. IPCC is workingin the four languages namely Hindi, English, Odiyaand Bengali for the convenience of thecitizens. 36,72,136 calls were received in IPCC from 01.01.2020 to 30.11.2020.

·         Implementation of Dynamic Queue Management System (DQMS) in Post Offices:Dynamic Queue Management System (DQMS) has been installed in 57 Head Post Offices in the last one year having six or more than six working counters. Overall DQMS have been installed in 340 Post Offices. The Objectives & scopeofDQMS are given below:-

o     

·         To reduce waiting time.

·         To increase processing capacity.

·         To reduce miscommunication among customers.

·         To give a comfort level to staff and customers.

·         To monitor customer flow.

6.         Initiatives taken by the Department in the COVID-l9 situation:

·         Postal services were identified as essential services during lockdown. The vast network of post offices had been galvanized to respond to the challenges in coordination with State Governments and local bodies. Control Rooms at India Post HQ and Circle (State) HQs were established to manage, receive and respond for immediate needs.

·         Supply Chain: Road Transport Network connecting 56 routes and 75 cities was commenced in April, 2020 utilizing Departmental Mail Vans. The network came handy to delivery essentials, medicines and medical equipment including ventilators, defibrillators, COVID 19 testing kits, masks and PPE kits. Around 36,000 tonnes of material were delivered through postal channels which also include use of Parcel Trains. Supply chain arrangements were also made for farmers to connect their farm produce to markets.

·         Financial Inclusion: During lockdown and initial phase of unlocking more than 33.95 crore transactions valuing around Rs. 7.02 lakh crore were made through POSB accounts. Around 78 lakh POSB ATM transactions amounting to Rs. 2389 crore were made.

·         Instructions issued during lockdown for the ease of customers:

1. Waive off penalty/revival fee (default fee) in RD/PPF/SSA Accounts for the deposits due in FY 2019-20 and April, 2020, till June, 2020.
2. Relaxation in guidelines in respect of PPF/SSA Accounts for a Single Deposit pertaining to FY 2019-20 till June, 2020.
3. Extensionof the prescribed time limit of one month post retirement for retirees, of Feb 2020 to April 2020, to invest in Senior Citizen Savings Scheme (SCSS) till June, 2020.
4. Relaxation in provisions for rebate on RD Advance deposits & default fee for the month of March 2020 to May, 2020 without default/ revival fee, till June, 2020.
5. Reduction in TDS rate in POSB Schemes for the period from 14.05.2020 to March, 2021.
6. Various relaxation under POSB schemes extended till 30.07.2020 instead of 30.06.2020.

 

·         India Post tied-ups with Indian Drug Manufacturers Association, DirectorGeneral of Health Services and a number of private firms and online pharmaceutical companies for delivery of medicines from their facilities to hospitals and beneficiaries.

·         During COVID period, Rs. 5200 crore disbursed to 2.5 crore beneficiaries through AePS at the doorstep who were not able to access banking facilities.

·         31 crore financial transactions enabled during COVID19 period through Post Office and IPPB accounts.

·         Taking initiative in public interest, special features have been added to Post info App for accepting emergent service requests from people.More than 60,000 service requests have been attended by Department of Posts during lockdown.

·         Activated Mobile Post Offices across the country to provide basic postal services, food and masks distribution etc.

·         Free distribution of around 10 lakhs food and ration packets was made to the needy.

·         Launched dedicated Road Transport Network in April, 2020 on 56 long haul routes and connected farm produce of farmers to markets by activating postal supply chain.

·         India Post won India Today Healthgiri Award for providing the best logistic services during COVID19. The selfless service of the employees of India Post did not go unnoticed!

·         Special Covers, Post Cards and Special Impressions were issued with messages to create awareness about social distancing and to express gratitude to Corona Warriors.

·         A grace period was provided to all the Registered Newspapers from March, 2020 to November, 2020 for printing and posting of their editions as per their convenience.

·         Department of Posts has extended the Postal Life Insurance (PLI) / Rural Postal Life Insurance (RPLI) premium payment period due on March, 2020, April, 2020 and May, 2020 upto 30.06.2020 without penalty/default fee due to outbreak of COVID19.Due to outbreak of COVID19, date for revival of lapsed policies, in which premia have not been paid during the last 5 years, was extended in phases.

·         CPGRAMS Portal: A separate category for 'COVID-19' grievances was created on CPGRAMS to address and monitor grievances of the public with regard to their postal needs in the backdrop of the pandemic. 1235 grievances have been resolved within the prescribed timeline of 3 days since the creation of the category i.e. from 30.03.2020.

·         Social Media: Social Media (Twitter handle of India Post) had a mitigating effect in this pandemic by providing immediate relief to the citizens by redressing their concerns in booking and delivering medicines and arranging financial transactions in post offices. 1.54 lakh grievances have been resolved during the period of lockdown.

·         Separate category of COVID 19 Grievances provided on the Online portal. IPPC services over 25 Lakh calls during COVID 19 lockdown.

7.         Miscellaneous:

·         Human Resource Management:The Department has conducted various training sessions and a total no of 92,824 officers / officials were trained for the period from January, 2020 to November, 2020.

Merry Christmas & Happy New Year - 2021

 Merry Christmas & Happy New Year - 2021

Intra Circle Rule 38 Transfer memo of Odisha Circle (PA / Postman /MTS Cadre)

 

Intra Circle Rule 38 Transfer memo of Odisha Circle (PA / Postman /MTS Cadre)

 Click Here to view (7 Pages)

Wait list for Intra Circle Rule 38 Transfer

 

Wait list for Intra Circle Rule 38 Transfer (IP/Stenographer/PA/SA/Postman/Mail guard/MTS) for the next year ie,2021 (Vacancy year 2022)_Odisha Circle

 Click Here to view (27 Pages)

TRAVELLING ALLOWANCE RULES – PRODUCTION OF

 TRAVELLING ALLOWANCE RULES – PRODUCTION OF RECEIPTS/VOUCHERS FOR REIMBURSEMENT OF TRAVELLING CHARGES FOR TRAVEL WITHIN THE CITY ADMISSIBLE UNDER DAILY ALLOWANCE ON TOUR

No. 19030/2/2020-E.IV
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 22nd December, 2020

OFFICE MEMORANDUM

Subject: Travelling Allowance Rules – production of receipts/vouchers for reimbursement of Travelling charges for travel within the city admissible under Daily Allowance on tour- regarding.

 

The undersigned is directed to refer to Para 2 (E) (i) & (ill) of this Department’s OM No. 19030/1/2017-E.IV dated 13.07.2017 regarding Travelling Allowance Rules — Implementation of 7th CPC vide which reimbursement for Travelling Charges for travel within the city admissible under Daily Allowance on Tour, has been prescribed. As per Para 2E(iii) of this O.M. Level 8 & Below have been allowed reimbursement of Travelling Charges without production of vouchers against self — certification and Level 9 & above have to produce vouchers.

 

2.         Several references have been received in this Department regarding difficulties being faced by the officials in Pay Level 9 to 11 for production of receipts/vouchers while claiming reimbursement of Travelling Charges for travel within the city admissible under Daily Allowance on Tour as per Para 2E(i) of Annexure to this Department’s OM dated 13.07.2017.

 

3.         The matter has been considered in this Department and it has been decided that for reimbursement of Travelling Charges admissible under Daily Allowance on tour as mentioned in Para 2E(i) of OM dated 13.07.2017, condition of production of receipts/vouchers for officials in Pay Level 9 to 11, is done away with subject to furnishing of self-certification in which officials have to indicate the period of travel, vehicle Number etc.

 

4.         In their application to the persons belonging to the Indian Audit & Accounts Department, this order is issued under Article 148(5) of the Constitution and after consultation with the Comptroller & Auditor General of India.

 

9.         This is issued with the approval of Secretary (Expenditure).

Hindi version is attached.

Sd/-
(Nirmala Dev)
Director

To,

All Ministries and Departments of the Govt. of India etc. as per standard distribution list.

Copy to : C&AG and U.P.S.C. etc. as per standard endorsement list.

NATIONAL PENSION SYSTEM (NPS) AND FUTURE OF PENSION IN THE NEO-LIBERAL ERA. M. Krishnan

 NATIONAL  PENSION  SYSTEM (NPS)

AND FUTURE OF PENSION IN THE NEO-LIBERAL ERA.

M. Krishnan

Ex-Secretary General, NFPE &

Confederation of Central Govt. Employees & Workers

(Paper presented in the National Webinar organised by AIPRPA
on 17-12-2020)

              Fourth Central Pay Commission headed by the Retired Justice of Supreme Court of India Shri. Ashok Singhal, made the following observations regarding pension in para 2.13 of Part-II of its report:

              “The concept of pension, however old in its origin, had the latent and real desire to provide for an eventuality - known and unknown.  The known eventuality was old age and probable reduction in earning power, while unknown eventuality was disability by decease or accident or death.  It’s real purpose was security, social security.  Eventhough the beginning was oblique, indiscernible and faint, but the germ of an effort to provide security ran through the provision and it is natural that it should have grown and flowered with the development of human understanding and desire to look after and provide for those who deserve it, for, man has constantly been seeking means by which to enhance his economic security.”

              Payment of pension to Government employees started in Europe for the first time in Nineteenth Century.  It’s genesis can be traced to the first Act of Parliament in United Kingdom (Britain) in1810, to be concerned with the provision of pension generally in Public Offices.  The Act which substantively devoted itself exclusively to the problem of Superannuation pension was passed in 1834, called Superannuation Act 1834.  These are landmarks in pension history because they attempted for the first time to establish a comprehensive and uniform scheme for all, whom we may call civil servants.  In England, the basic social security pension was introduced from the year 1946.  In USA the pension was first introduced as a social security scheme.  It was thereafter, that the Civil services retirement pension system was introduced in USA in 1920.  In fact, social security in old age commended itself in earlier stages as a moral concept, but in the course of time it required legal connotation. 

              In India the first pensioner’s Act was introduced in 1871.  Under the Pensioners Act 1871,  enacted during the British Regime, Pension is a bounty given as a matter of grace, depending on the sweet will of the employer and was to be paid by the Collector or the Deputy Commissioner or other authorised officer.  Initially this class of Pension appears to have been introduced as a reward for loyal service.

              In the course of transformation of society from feudal to welfare state and as socialistic thinking acquired responsibility, states obligation to provide security in old age, an escape from undeserved want, was recognised and as a first step, pension was treated not only as a reward for past service, but with a view to helping the employee to avoid destitution in old age.  The quid-pro-quo was that when the employee was physically and mentally alert, he/she has rendered unto the master the best, expecting the master to look after him in the fall of life.

              After Independence of our country, just like every citizen of our country, Pensioners also expected positive changes in the attitude of the National Government towards, the issues of pensioners and improvement in the Pension structure.  But nothing of that sort happened.  Instead, the very same attitude of the British Government was followed and pensioners became a neglected lot, a category of unwanted people, a non-productive financial burden, a head-ache to the Government.  Once an employee retires from service, the nexus between him and the Government was broken.  Problems of pensioners were being placed at the lowest position in the priority list, instead of seriously considering them on top priority basis.  The Government mostly remained adamant, refused to budge, turned a deaf ear to the problems of pensioners.  In the 1st, 2nd and 3rd Central Pay Commission’s terms of reference, revision of pension structure and other pensionary benefits of the Central Government employees was not included.  Poor Pensioners could not ventilate their grievances and they could not demonstrate as there was no organised movement of pensioners at that time.  Most of the poor pensioners prayed to the God to improve their lot.

              Inspite of acknowledging the right to pension in Article 366(17) of the Constitution of India, in reality no preference was given to pensioner’s till 1982.  1982 became a turning point in the history of Pensioners in India.  It is in that year, Honourable Supreme Court of India upheld the right to Pension.  The historic judgement in the Nakara case, which is called the magna carta of pensioners, was delivered on 17-12-1982 by the five member constitution bench of the Hon’. Supreme Court of India.  I am not going into the details of the Judgement, as my collegue Com: K.Raghavendran has already dealt in detail, the important aspects of the judgement.

              It is at that time, in 1983, Central Government appointed 4th Central Pay Commission.  Inspired by the historic judgement, Pensioners Associations, big and small, sprang up at all important cities of the country.  The National Council, Staff side of the Joint Consultative Machinery, of the Central Government serving employees also siezed of the importance of the judgement.  Just like 1st, 2nd & 3rd Central Pay Commissions in the terms of reference of the 4th Central Pay Commission also, there was no mention about revision of pension and other pensionery benefits of Central Government employees.  Combined demand of National Council (JCM) staff side and the Pensioners organisations compelled the Government to amend the terms of reference of 4th CPC and the following item was also incorporated in the terms of reference.

              “to examine the existing pension structure including DCRG and making recommendations which may be desirable and feasible”.

              Fifth Central Pay Commission headed by Retired Supreme Court Justice (Shri) S.Ratnavel Pandian made the following observation regarding pension.

              “Pension is their deferred wage.  Pension is their statutory, inalienable and legally enforceable right and it had been earned by the sweat of their brow”.

              In the year 1971, the Hon’ble Supreme Court of India while disposing the case pertaining to Deokinandan Prasad Vs. State of Bihar, declared that pension is a property under Article 31(1) of the Constitution and by a mere Executive order, the state had no power to withhold the same.

              Fourth Central Pay Commission in para 2.3 of the Part-II Report, reiterated as follows:-

              “Pension is not by way of charity or an ex-gratia payment, or a purely social welfare measure, but may fairly be said to be in the nature of a “right” which is enforceable by law”.

              As already mentioned consequent on pronouncement of Nakara Judgement by the Hon’ble Supreme Court of India, the Government was compelled to include the clause regarding revision of pension and pensionary benefits, in the terms of reference of 4th and 5th Central Pay Commission.  But when it came to 6th Central Pay Commission, the terms of reference was modified as follows:

              “To examine the principles which should govern the structure of pension to the present and former Central Govt. Employees appointed before 1st January 2004.”

              Thus the revision of pension and pensionary benefits of Central Govt. Employees appointed after 01-01-2004, was completely excluded from the purview of 6th Pay Commission.

              The reason for this change is that the Govt. of India has introduced a New Contributory Pension Scheme for the Central Govt. employees who joined service on or after 01-01-2004.

Pension Refeorms in India and New Contributory Pension Scheme (NPS):

              Consequent on implementation of neo-liberal globalisation policies in 1980s, Pension privatisation offensives has engulfed the workers and employees almost all over the world.  Govt. of India also faithfully followed the international dictates of the world capitalism.  Union Finance Minister of the erstwhile BJP Govt. ie. A.B.Vajpayee Government in its budget speech 2001-02 envisaged a new Pension Scheme based on defined contribution instead of defined benefit, to new entrants entering Government service.  As a sequel to the above announcement  a High Level Expert Group was constituted on 25th June 2001 to review the existing pension scheme and provide roadmap for introducing a new pension system based on defined contributions.  Based on the recommendations of this committee called “Bhattacharyya Committee on pension reforms”, the BJP Govt. issued an order on 17-12-2003, under the title “New Pension for those appointed on or after 01-01-2004”.  Government of India promulgated an ordinance on New Pension Scheme (NPS) on 4th December 2004 to give legislative sanction to the order.  Most of the State Government in India also followed the suit.  Govt’s repeated attempt to pass an Act in parliament could not succeed due to stiff opposition of left parties who supported the then UPA Government in power.  Finally when a Government without the support of Left Parties came to power the Pension Fund Regulatory and Development Authority Act (PFRDA Act) was passed in the Parliament on 2013 September 18th.

Political and Economic background of the New Pension System (NPS).  The concept of privatized and individual pension account and Private Fund Managers arose in the mid-eighties in Europe and United States, when the economy of these countries, suffered from a serious recessionary situation.  In Europe, the Government and Corporate sector thought of this change in concept and implementation of Pension reforms largely by promoting a gradual switch over for providing “Pensions” through funded schemes - ie; from defined benefit to defined contribution, either managed by or on behalf of employing companies (known in Britain as occupational pension scheme) or else on an individual basis (Personal pensions).

              Official propaganda sought to justify this to the public on the grounds that the cost of tax payers on the state funded schemes is no longer affordable and the pension fund scheme can provide finance for productive investment and economic regeneration.  The idea was that this private individual finance, collected as pension contribution from the employees, when invested will boost ,the declining share market and help economic revival.  In fact, the impetus behind the switch over towards funded pension schemes came from politically powerful vested interests in the financial sector (ie. corporates) who were anxious to strengthen and perpetuate the importance and profitability of their own “industry”, thereby also increase the size of the “wall of money” which helps to prop up the market value of their financial securities and other assets.

              Naturally, those who also promote such increasing flows of funds into financial markets (share markets) did not care to dwell on the likelihood that supply of funds may be rapidly out-stripping the demand, and that there is consequent risk of serious losses to investors (here in the case of Pension fund investors are employees) and the collapse of the financial institutions.  In reality, any benefit supposed to depend on the vagaries of share market is always vulnerable to total ruin.  This happened during 2008 world recession.

              At the beginning of 1980’s, the International Monetory Fund (IMF) and World Bank, seriously took up the cause of privatised Pension Scheme and consequent Pension Funds and burnt mid-night oil to make a number of studies and set up various working groups.  Publishing of the India specific report released by World Bank in April 2001 titled - “India - Challenge of old age income security” was followed by another report ‘ “IMF working paper on Pension reforms in India” published in September 2001.  The reports clearly stated that Pension obligation (ie. obligation of the Government to pay pension as per the Pension Rules) or promise ,made by the Government, which has potential on exerting pressure on Government finance, has been the focuss in assessing medium to long-term fiscal sustainability.  In tune with the above neo-liberal dictates of the IMF and World Bank, in the 2001-2002 Budget spech of Finance Minister of then BJP Government made the observations the Central Govt.’s Pension liability has reached unsustainable proportions and hence it is high time that a new contributory pension scheme is introduced for the Government servants entering the Central Government services.

              It is quite clear that what the Government of India was trying to do by introducing the so called “New Pension Scheme” was nothing but faithfully following the pro-corporate pension reforms in toto and thus it is a part of the imperialist globalisastion in the interest of big capitalists and Multi National Companies and it has nothing to do with the welfare of the employees or pensioners or any individual or even Government finances. 

              Parliamentary Standing Committee on Finance (2010-2011) of 15th Lok Sabha of Ministry of Finance headed by shri. Yaswanth Sinha in its 14th Report on PFRDA Bill, has made the following observations - Para 44 - “The Committee, deeply concerned about the uncertainty of returns on the funds of the subscribers, are dismayed at the casual approach of the Government as reflected in clause 20(g), wherein the hapless subscribers have no implicit or explicit assurance of benefits, except market based guaranteed returns mechanism, neither tried or tested.  As any effective pension scheme needs to be underpinned by stability of returns and reasonable post retirement incomes, it is imperative that Government should provide for minimum guaranteed returns, and not mere camouflage of market based guarantee, which should not be less than the minimum returns available currently under ,the defined benefit pension scheme.  The Committee therefore, desire that the Government must divise a mechanism to enable subscribers of NPS to be ensured of such a minimum assured/guaranteed returns for their pensioners, so that they are not put to any disadvantage vis-a-vis other pensioners and thus going a long way in creating a sense of security amongst the employees that not only would their capital be safe but they would also be getting stable returns on the same.  The Committee, therefore, recommended that clause 20 (2)(g) of the Bill be altered accordingly”.

              Neither the Government has taken any action to guarantee Minimum Pension as recommended by Parliamentary Standing Committee, nor it has introduced a minimum assured returns scheme as provided in sub-section 2(d) of section 20 of PFRDA Act 2013.

              The Audit Report dated 4th August 2020 on National Pension System by the Comptroller and Auditor General of India (C&AG) in Para 3.7 of its report made the following observations/recommendations -

              “As per PFRDA Act 2013, vide sub section 2(d) under Section 20, the subscriber seeking minimum assured returns shall have the option to invest his funds in such schemes providing minimum assured returns as may be notified by the Authority.  Even after a lapse of more than 15 years since introduction of the NPS, the subscribers were yet to receive such minimum assurance.  Immediate steps need to be taken for providing Minimum Assured Returns Scheme (MARS) in compliance to the provisions of the PFRDA Act, to the subscriber for ensuring their social security post retirement”.

              As per the C&AG Audit report dated 4th August, 2020, as on 31st March 2018, there are 58.01 lakhs Government sector subscribers including 17,58,144 Central Government employees, 31,63,415 State Government employees, 1,70,856 Central Autonomous body employees and 7,08,585 State Autonomous body employees.  The pension of these 58 lakhs employees is not guaranteed and hence they are living in a State of uncertainty about their futurte.  Further they are not eligible for family pension after death on retirement, Dearness relief, Additional pension inspite of the fact that they are paying 10% of their salary every month including Dearness Allowance towards New Pension Scheme.  They are also not eligible for pension revision through Pay Commissions. 

              At the same time Corporates and Multi National Companies are happy because as per the C&AG Audit report dated 4th August 2020, the total Asset Under Management (AUM) in NPS amounted to 3,99,245 crores as on 31st January 2020 with 3,41,815.87 crores pertaining to Government Sector.  (Central and State Government employees).

Employees and Pensioners under Old Pension scheme (OPS) are also not safe:

Clause 12(5) of PFRDA  Act is reads as follows:

              “Notwithstanding anything contained in clause (c) of sub section (3), the Central Govt. may, by notification extend the application of this Act to any other pension scheme (including any other pension scheme exempted and notified ,under clause (c) of Sub section (3)”.    That means no seperate Act is to be passed in Parliament for this purpose.

              The Central Govt. has made an attempt in this regard, through 6th Central Pay Commission appointed in 2004, ie. immediately after the introduction of New Pension Scheme from 01-01-2004.

              As mandated by Government, the 6th Central Pay Commission chaired by Rtd. Justice Sreekrishna has appointed Centre for Economic Study and Policy, Institute for Social and Economic Change (ISEC), Bangalore to suggest various options for suitable self-sustaining models to finance the pensions of Central Government employees with the final objective that funds so devised are able to meet substantially the entire pension liability of the Government ie; pension liability of employees and pensioners coming under the Old Pension Scheme (OPS)  and to assess the financial liability that will need to be initially incurred by the Government for implementation of such self-sustaining models.

              The Committee made the following recommendations -

              “In case, the Government want to create a pension fund to discharge their entire pension liability (ie; the pension liability of Central Government employees and Pensioners coming under old Pension Scheme), the study by the Institute of Scoial and Economic Change (ISEC) reveals that the net present value of the projected pension liability is Rs.3,35,628 Crores; based on an assumed rate of return of 8 percent.  A fund of this magnitude will help the Government to meet the pension payments from the returns of the fund and help avoid earmarking resources on an annual basis for the mounting pension outgo that takes place on account of Pay As You Go System (ie. old Pension System) that currently happens in each budget.”

              Government has neither accepted this recommendation of 2006 of 6th Central Pay Commission nor rejected it.  As ,the number of Old Pension Scheme pensioners and Old Pension Scheme Central Govt. employees are coming down every year, the Government may consider the proposal at the appropriate time.  Thus, it may be seen that the chances of converting the existing OPS pensioners and OPS Central Government employees into pensioners getting pension from Pension fund is still hanging over their head ,as a democleus sword.  Suppose the pensioners and employees coming munder the purview of Old Pension Scheme are brought under a Funded Pension Scheme, as explained earlier, by a Gazette notification by the Government, they will be governed by clauses and rules of PFRDA  Act.  Their pension will be from Pension fund.  The amount of pension will depend upon the vagaries of share market.  If Pension Fund collapse, there is no guarantee that they will get pension.  Further, they will not be eligible for Dearness Relief, additional pension on attaining the age of 80 years, family pension if death takes place after retirement, pension revision  based on the recommendations of Pay Commissions.

What shall we do and how we can overcome this situation?

              There is no short cut before the Central Government employees and Central Government Pensioners, both NPS and OPS, to overcome this situation.  Our social security is in danger.  We have to mobilise and fight against these neo-liberal pension reforms.  We should build up a mass movement.  We should learn lessons from the farmers of India.  Immediately on passing the farms reforms Acts, they spontaneously reacted.  It is high time to organise, similar type of movement against NPS.  Our one and the only demand should be “Scrap NPS and restore OPS” (ie; Scrap National Pension System mand restore Old Pension System).  If 32 lakhs Central Government Employees and 33 lakhs Central Government Pensioners rally behind the demand and come to the street, no Government can ignore it.  Along with the Central Government Employees and Pensioners, if we succeed in making the State Government employees and State Government Pensioner and Autonomous body employees and Pensioners,  numbering about 150 lakhs also join the movement,  it will become a force of about more than two crores in numbers and the Government will be compelled to Scrap NPS and restore OPS. Let us work together for such a mass movement of Employees & Pensioners.  It is not impossible.  If farmers can do it, we can also do. 

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