Thursday, 24 January 2019

SCRAP NEW CONTRIBUTORY PENSION SCHEME AND RESTORE OLD DEFINED BENEFIT PENSION SCHEME TO ALL EMPLOYEES & OFFICERS


Restoration of the Defined benefit pension scheme to all Central Government employees & Officers irrespective of the date of their entry into Government service is the paramount amongst all issues and demands of the Central Government employees & Officers. The struggle against the New contributory pension scheme introduced by the Government in 2004 must be incessant till the Government agrees to withdraw the same and restore the defined benefit pension scheme for all civil servants in the country.

The Contributory pension scheme was the product of the neo-liberal economic policies pursued by the successive Governments that came to rule since 1991. It was conceived, formulated and imposed at the instance of the International Monetary Fund and the World Bank combine to ensure free flow of funds to the corporate entities to enable them to maximise profits.

AIDTOA, CCGGOO,CCGEW and no doubt the All India State Government Employees Federation & others realised right at the beginning its pernicious impact and demanded its withdrawal. The very purpose of the new scheme was not to arrest the financial outflow of the Government as has been made out both by the Government and the IMF but only to help the corporate to access easy funds. Never had been such a naked attempt in the past on the part of any Government to compel the employees to subscribe to a fund whose benefits to the subscriber were not defined.

In the beginning, a section of intellectuals in the society, the rulers, a predominant segment of the people’s representatives, the top echelons of the bureaucracy; even some trade union leaders and their organisations eulogised the scheme projecting the never-existant benefits to mislead the workers and the public at large. While presenting the proposal before the Parliament, the Government in fact misled the house to inform them over the benefits the Government might reap due to lesser financial outflow for meeting the pension entitlements of the Civil servants.

 When we opposed NPS, the then UPA Government stuck to its position and introduced the PFRDA bill in the Parliament and ultimately they could get it legislated with the support of the BJP which was in opposition then. In the background of the well reasoned submissions made by us and others the Government appointed Committees and Commissions to go into the matter, which had been loaded with self serving bureaucrats. Most of these commissions sang what the political masters wanted to hear except the one appointed by the 6th CPC. 

 Dr.Gayatri’s report was categorical that the Government will have to bear in fact additional financial burden for the next 35 to 40 years due to the introduction of the New Contributory pension scheme. The bureaucrats also began to realise the reality later. The employees, nay all subscribers, to their dismay found that the new Pension system is in fact a No pension system. The oft-repeated argument that it was necessary to arrest the accelerated financial outflow from the exchequer was established to be false in the face of Dr. Gayatri’s report.

 Crores of rupees from the State Treasury and the poor employees’ contributions went to enrich the corporate houses through the stock market and mutual funds. The young employees, who were recruited after 1.1.2004, who were compulsorily made to be the subscribers of the New Contributory Pension scheme found fault with not only Government but some of the leaders of the Trade Union movement of Central Govt. Employees. In sum, this is the present scenario.

 What All India DRDO Technical Officers Association declares is to fight against this new scheme. It is an uncompromising war to ensure that the present contributory pension scheme is scrapped lock stock and barrel and the erstwhile defined benefit pension scheme is brought back to cover all Government employees.

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