Monday, 21 January 2019

SCRAP NEW CONTRIBUTORY PENSION SCHEME (NPS) - RESTORE OPS

Everyone of us is aware that it is the previous NDA Government which introduced the NPS in 2003 through a Gazette Notification dated 22nd December 2003, to all new entrants recruited on or after 01-01-2004.  We are also aware that the UPA-II Government passed the PFRDA Bill in Parliament to legalise NPS, with the full support of opposition BJP MPs in 2013 and thereafter PFRDA Act came into effect from 18th September 2013.  AIDRDOTOA, CCGGOO, CCGEW, All India State Govt. Employees Federation (AISGEF) and others conducted series of agitational programmes against NPS from 2003 onwards.
7th Central Pay Commission headed by Shri. Ashok Kumar Mathur, Retired Justice of Supreme Court of India, in Para 1.24 of its Report made the following observations:
          “Almost a whole lot of Central Government employees appointed on or after 01-01-2004 were unhappy with the New Pension Scheme.  While National Pension System (NPS) did not form a part of our Terms of Reference; we have recorded the sentiments of the affected employees.  The Government should take a call and step into to look into their demands”. 
In Para 10.03.11, the 7th CPC again made the following comments:
          “The larger Federations and Staff Associations advocated scrapping of the NPS on the ground that it discriminate between two sets of Government employees.  Individuals covered under NPS have pleaded for reverting to Old Pension Scheme (OPS) on the grounds of uncertainty regarding the actual value of their future pension, on the face of market related risks.”
Naturally, in tune with the recommendations of 7th CPC, when the NDA Govt. decided to appoint a High Level Committee called “NPS Committee”, the Central Government employees, especially the younger generation, expected that their anxiety and concerns will be taken into account by the Central Government and NPS will be scraped and OPS will be restored.  But the final decision of the Government not to scrap NPS but only to increase the percentage of contribution by the Government from 10% to 14% was a great blow to the NPS employees.  Their hopes are shattered, “their legitimate aspirations are guillotined” and a situation is created where their “hopes ended in despair”.
Their hope faded further when Shri. Arun Jaitley, Finance Minister, in his letter dated 3rd January 2019 addressed to Shri. Nitin Gadkari, another Cabinet Minister in the NDA Government, justified the continuation of NPS as follows:
“NPS is expected to provide old age income security to subscribers besides providing capital for the social and economic development of the economy”. 
The final blow came when the NDA Government made its stand clear without any ambiguity in a reply dated 25-12-2018 given in Parliament stating that - “Representations have been received which inter-alia also include the demand that Government may revert to Old defined benefit pension system. However, due to the rising and unsustainable pension bill and competing claims on the fiscal, there is no proposal to replace the National Pension System (NPS) with Old Pension System (OPS) in respect of Central Govt. employees recruited on or after 01-01-2004”.
During the past 2-3 years many NPS  recruited employees and also aged dependents of deceased employees who got compassionate appointment after 01-01-2004 etc, retired from service after completing 10 to 13 years service.  Their Annuity Pension under NPS is Rs.700/- to Rs.2700/- maximum per month, thus confirming our apprehension that “NPS is nothing but No Pension System”.
Unlike the NDA Government at the Centre, certain State Governments understood the seriousness of the situation and they have declared that they want to scrap NPS.  (Delhi, Andhra Pradesh, Tamilnadu during Jayaalalitha’s time, Karnataka and Kerala Governments).  Some of them appointed expert Review Committees to work out modalities for coming out of NPS.  From the stand taken by the above State Governments it can be seen that it is the political stand of the ruling party that matter.  At the centre, it is the political stand of the Political Party ruling the country which is crucial.


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