Withdrawal of NPS and restoration of Defined Pension Scheme to recruited on or after 1.1.2004 at par with the Armed Forces Personnel: 48th NC JCM Meeting
Minutes of the 48th Meeting of the National Council (JCM) held on 26.06.2021 vide DoP&T OM No.3/4/2021-JCA dated 14th July, 2021
5.16 Item No. NC-48/10/21: Withdrawal of NPS and restoration of Defined Pension Scheme under the CCS(Pension) Rules, 1972 to the employees who are recruited on or after 1.1.2004 at par with the Armed Forces Personnel.
The demand in brief is to scrap NPS and restore the Old Pension Scheme.
Leader, Staff Side mentioned that the employees are not happy with the NPS. He also requested for a copy of the report of the group of Secretaries which recommended to guarantee 50% of Basic Pay as pension under all circumstances. He felt that such a measure in the scheme will satisfy all the employees.
Additional Secretary (Pers) , DoE stated that rolling back to Defined Pension Scheme under the CCS (Pension) Rules, 1972 would be difficult .
Secretary, Staff Side, stated that if roll back is not possible, 50% of basic pay may be ensured as pension at the time of retirement. If required, a provision of a corpus can be considered make up the deficiency, if any. He gave examples of Brazil and some other countries where such a provision for pensioners has been made.
Cabinet Secretary stated that return to old pension scheme is not possible . However, efforts can be made to improve the returns of NPS.
Decision: Chairman directed Additional Secretary (Pers), DoE, to hold discussions with the Staff Side separately on measures to improve the returns of NPS.