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Railway Minister seeks NPS exemption for Railways workers

Prabhu seeks pension scheme exemption for railways workers: The Hindu

Unions are drawing a parallel with the nature of duties performed by the armed forces.
Union Railways Minister Suresh Prabhu has urged Finance Minister Arun Jaitley to consider a long-pending demand of Railways employees to exempt them from the National Pension Scheme just like the defence forces.
“May I request you to kindly have a re-look into the case sympathetically and consider favourably the demand of the Railway Federations to exempt Railway employees from the purview of NPS,” the minister wrote in a letter last month, adding there was strong merit in the case.
Mr. Prabhu said railway unions had been drawing a parallel with the nature of duties performed by the armed forces, which are exempt from the NPS at present.

Mr. Prabhu informed the All India Railwaymen’s Federation (AIRF) about his submission to the Finance Minister at a meeting on Wednesday.
The Minister recently also said that he was in discussion with the Finance Ministry seeking additional help to meet the ‘unbearable burden’ of the Seventh Pay Commission’s recommendations.
Mallikarjun Kharge, the Railways Minister in the previous government, had also raised the issue with the then Finance Minister in March 2014.
However, the Ministry of Finance, through a letter written in May this year, didn’t agree to the proposal to exempt railway workers from the purview of NPS.
Every central government employee appointed on or after January 1, 2004, has to face a deduction from his or her salary (10 per cent equal contribution from the employee and the employer) toward the NPS, which is a defined contribution scheme, instead of the defined benefit scheme that prevailed earlier.
Prior to 2004, government employees, including 1.4 million employees in the Railways, were entitled to a fixed pension linked to their final salary at the time of their retirement.

Read at : The Hindu

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  • Please don't compare Railway workers with defence forces. If they are willing to deliver duties like defence forces please consider the following before comparison. If they are willing to deliver duties in the following manner (a)Retirement at the age between 45 and 50 years irrespective of length of service.(b) 16 hrs. duties without claiming overtime. Reporting for duty at 6 AM and finish only after reliever take over the duty and remaining alert till 10 PM ready to perform any duties assigned by the immediate superior. (C) Take casual and annual or earned leave only with prior permission of the sanctioning authority. In addition to this, They must ready for change their location within short notice in emergencies. There are many more duties that is performed by the soldiers that a railway employ will never be able to perform. So, it is suggested that you can fight for your right without comparing the facilities enjoyed by the defence force.