Withdrawal of NPS and reintroduction of Old Pension Scheme to the CGE recruited on or after 01.01.2004: NC JCM writes to Cabinet Secretary

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Withdrawal of NPS and reintroduction of Old Pension Scheme to the CGE recruited on or after 01.01.2004: NC JCM writes to Cabinet Secretary

Withdrawal of NPS and reintroduction of Old Pension Scheme under CCS (Pension) Rules 1972 to the Central Government Employees recruited on or after 01/01/2004

withdrawal-of-nps-and-reintroduction-of-old-pension-scheme

Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
E-Mail: [email protected]

Shiva Gopal Mishra
Secretary

No. NC-JCM-2020/CS/PM/NPS

November 02, 2022

The Cabinet Secretary,
Govt. of India
&
Chairman,
National Council JCM
Cabinet Secretariat,
Rastrapati Bhawan,
New Delhi,

Dear Sir,

Sub: Withdrawal of NPS and reintroduction of Old Pension Scheme under CCS (Pension) Rules 1972 to the Central Government Employees recruited on or after 01/01/2004.

Ref: This office letter No. NC-JCM-2020/CS/PM/NPS dated 02/03/2020

The entire Central Government Employees including para Military Personnel are opposing the no guaranteed National Pension System (NPS) and are demanding to the Government to scrap the NPS and to restore the Old Pension Scheme under CCS (Pension) Rules 1972 (at present CCS (Pension) Rules 2021). The Staff Side of the National Council JCM having realized the ill effect of the NPS have opposed the same and in all the National Council-JCM meetings and Standing Committee meetings have demanded for scraping/withdrawal of the NPS and to restore back the old Pension Scheme for those employees who were recruited on or after 01/01/2004. In the last Standing Committee meeting of the National Council – JCM meeting held on 22/09/2022 the Staff Side have once again requested the Government to withdraw the NPS and to restore the Old Pension Scheme considering the discontentment amongst the employees including para military forces and also the fact that four State Governments have already withdrawn NPS and restore the Old Pension Scheme for their employees.

Here we would like to draw your attention to the assurance given by the Government to the Staff Side in the Standing Committee meeting held on 14th December 2007. The extract from the minutes of the meeting is given below for your kind ready reference

“For employees who had entered w.e.f. 01.01.2004 are not likely to be worse off vis-à-vis the current Pension system in force, as the replacement rate would match to the present one. Thus, NPS is a win-win situation for employees and the Government.”

It is now 18 years after the implementation of NPS. Employees who were recruited on or after 01/01/2004 have now started retiring from service.
From the paltry amount they are now getting as pension from NPS it is proved that it is a disaster for the retiring employees in their old age and not a win-win situation. To prove this fact we are giving the examples of a few employees who recently retired from one of the Defence Establishment in the following Chart:-

Name T.No./ Per No. Basic Pay Total Service NPS Pension Pension if under Old Pension Scheme
R. Ramachandran 21048/ 9728 30500 13y/05m/01d 2417/- 15250/-
K. Bhaskar 101755 34300 15y/06m/16d 2506/- 17150/-
S.Sivasankaran 881916 56900 17y/06m/11d 4900/- 28450/-

From the above table it is amply clear that the NPS employees despite their contribution of 10% of their wages every month for their entire service is getting only a very meager pension and are worse off vis-à-vis the old Pension System. The pension under NPS remain static and there is no Dearness Relief to compensate the price rise /inflation as available in the Old Pension Scheme.

Apart from the above there are other benefits in the Old Pension Scheme such as 40% computation, restoration of the computed pension after 15 years, 20% increase in the Pension after 80 years of age and 100% pension at the age of 100 years. None of these benefits are available in the NPS. Therefore it is now proved beyond doubt that NPS is a disaster and not a beneficial Pension Scheme for the Government Employees who serve the Nation with dedication and commitment. Considering these facts West Bengal Government has never introduced NPS at all. Recently four State Governments i. e. Rajasthan, Punjab, Chattishgarh and Jharkhand have already taken decision to withdraw NPS and restore Old Pension Scheme to their employees. Other State Governments are also actively considering to scrap NPS and to restore Old Pension Scheme.

In view of the above since it is proved beyond doubt that the NPS is not going to protect the old age life of the Government employees it is prudent that the Cabinet Secretary as the Chairman of the National Council – JCM to propose to the Cabinet and the Hon’ble Prime Minister to take a positive decision to withdraw the No Guaranteed NPS and to restore back the Old Pension Scheme to the employees who were recruited on or after 01/01/2004 including to those employees who have already retired from NPS.

Sir we hope that since the NPS being a major issue agitating the minds of Central Government Employees, a dispassionate and judicious decision will be taken by the Government in this regard without further delay.

A delegation of the Staff Side Members would also like to meet you in person to apprise your good self in this regard. Awaiting for your earlier and favorable action please.

Thanking you,

Yours faithfully,

(Shiva Gopal Mishra)
Secretary

Source: NCJCM

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COMMENTS

WORDPRESS: 8
  • Mrinal Ganguly 3 weeks ago

    You have given 3 examples comparing NPS pension and OPS pension. Does OPS system gives 50% pension before completing 20 years service? Just wanted to know.

    • M.K.KUMAR 3 weeks ago

      If you have been appointed before 1-1-2004 50% pension will be eligible otherwise accumulated as on date eligible in NPS it will be given or added to your new appointed institution.

  • Biswa 4 weeks ago

    Even high salaried govt employee will not be able to live respectfully from NPS pension.

  • Dr.Biswaprabha Dasgupta 4 weeks ago

    OPS is required mainly for lower grade employees,as upper level salary is too high and getting other facilities. Hence, OPS is mandatory for lower grade employees, requested re-introduce of OPS to all government n autonomous bodies which is under MOE. Nothing is impossible for this government.

    • Amit Kumar 4 weeks ago

      In india the Real executive is group
      A officer,
      then how will they pass
      A rule against him.

      In 2004 they were under old pension scheme.

      Or NPS cursed only for those joined after 2004, and reiring in from 2032 to 2052 and above year.

  • Ranjy 4 weeks ago

    Is this decision is applicable to Central Government undertaking employees such has nationalised banks including SBI?

  • Baskaran 4 weeks ago

    Just pay salary with no other benefits like DA,Medical, Pension etc,let them survive by designing their own retirement plan as allother common public, then only we can have equitable society.

    • Sub (jE E/M) inderjitsing 4 weeks ago

      Sir it’s true NPS reintroduce in OPS.This will be good decision in favour of employees.