Bring back old pension scheme, Central government employees write 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
Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
E-Mail: nc.jcm.np@gmail.com
No. NC-JCM-2020/CS/PM/NPS
November 02, 2022
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amongst the employees including para military forces and also the fact that four State Governments have already withdrawn NPS and restore the Old Pension Scheme for their employees.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-Ã -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-Ã -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
Click here to download PDF FileSenior Congress functionary speaks out against Old Pension Scheme
Bringing back the retirement scheme was a key poll promise of the party in Himachal Pradesh and Gujarat
November 15, 2022 10:37 pm | Updated 10:37 pm IST - New Delhi
Photo used for illustration purpose only.
In the middle of the Gujarat Assembly election campaign, where the Congress has promised government employees to bring back the old pension scheme (OPS), a senior party functionary has questioned the move.
Praveen Chakravarty, who heads the Data Analytics department of the Congress, took to Twitter to air his differences.
“Out of 6.5 crore (65 mn) people in Gujarat, about 3 lakh (300k) are in govt service. The old pension scheme will cost roughly 15% of tax revenues. Why should the top 0.5% of people get 15% of all taxpayers’ money as post-retirement pension? @APanagariya is right to question,” tweeted Mr. Chakravarty.
He also shared a screenshot of a recent interview of former vice chairman NITI Ayog Arvind Panagariya, in which the noted economist said that it was “sinful” to revert back to the OPS.
Mr. Chakravarty’s tweet reflected a divide within the Congress over the pension scheme promise. In the recently concluded Assembly elections of Himachal Pradesh, reverting back to OPS was the main poll plank of the Congress party.
Congress’ main campaigner Priyanka Gandhi Vadra, in her rallies, had promised to revert back to OPS if the party came to power in the hill State.
While former party chief Rahul Gandhi too had tweeted in favour of OPS in Himachal Pradesh, the Congress-ruled Rajasthan and Chhattisgarh had already announced their decision to revert back to the old scheme for retirement benefits last year.
However, with voices against the OPS coming from within the Congress, the BJP is likely to use it to their advantage in Gujarat. COMMENTS
Bring back old pension scheme, Central government employees write to Cabinet Secretary
The National Pension System is a disaster for retiring employees, says an apex body of various government unions; pension under existing scheme just 15% of that under earlier one
A federation of Central government employees’ unions has written to the Cabinet Secretary to restore the Old Pension Scheme (OPS), stating that the National Pension System (NPS) is a disaster for retiring employees in their old age.
The federation said a Defence establishment official who recently retired after more than 13 years of service received only 15% of the assured pension he would have otherwise availed under the OPS.
Under the NPS, the official with a basic pay of ₹30,500 received ₹2,417 as monthly pension as against the ₹15,250 pension he would have been given under the OPS.
Also Read | Data | Making a case for the Old Pension Scheme
Another official with a basic pay of ₹34,300, received ₹2,506 as monthly pension after more than 15 years of service, whereas under the OPS, he would have been entitled to ₹17,150 as pension.
The letter signed by the Joint Consultative Machinery (JCM), an apex body of various government unions comprising Group B and Group C officials, said: “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-Ã -vis the OPS. The pension under NPS remain static and there is no Dearness Relief to compensate the price rise /inflation as available in the OPS.” It said that all Central government employees, including paramilitary personnel, are opposing the “no guaranteed NPS” and were demanding the government scrap the NPS.
Also Read | ‘Restore old pension scheme’
The Cabinet Secretary is the chair of the JCM.
“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,” the letter signed by Shiva Gopal Mishra, Secretary, National Council (Staff Side), JCM, said.
Mr. Mishra told The Hindu that the NPS was “an atrocity committed on government employees” and the federation was contemplating serious measures to draw the government’s attention.
Also Read | Defence unions demand restoration of old pension scheme
“It is a do-or-die situation. The fight will be taken to the national level. We are in touch with the bank and insurance [employees’] associations. We are aware about the country’s economic situation and are seeking a practical solution but how can a retired government employee run their household with a pension of ₹1,800?” Mr. Mishra asked.
He added that he had had several rounds of meetings with the Cabinet Secretary, Department of Personnel and Training, and Department of Expenditure, and had been told that it was a policy issue beyond the remit of bureaucracy.
The OPS or the Defined Pension Benefit Scheme assured life-long income post-retirement, usually equivalent to 50% of the last drawn salary. Government bears the expenditure incurred on the pension.
The Atal Bihari Vajpayee government in 2003 decided to discontinue the OPS and introduced the NPS. The scheme, applicable to all new recruits joining Central Government service (except the Armed Forces) from April 1, 2004, is a participatory scheme, where employees contribute to pension corpus from their salaries, with matching contribution from the government, and is market-linked.
Except West Bengal, all States implemented the NPS. This year, Opposition-ruled Chhattisgarh, Rajasthan, Jharkhand and Punjab announced that they would restore the OPS. In the ensuing Himachal Pradesh Assembly elections, the OPS has emerged as a key poll issue as the hill State is home to many government employees.
Till February, there were 22.74 lakh Central government employees and 55.44 lakh State government employees enrolled under the NPS.
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