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National Council (NC JCM) Demands Prime Minister to restore OPS in place of NPS for Government Employees

Subect: Restoration of the Defined Old Pension Scheme (OPS) in place of NPS for the Central Government Employees — Reg.

Download NC JCM Letter to Prime Minister to restore OPS in place of NPS in PDF

National Council (NC)(Staff Side)JCM Joint Consultative Machinary (JCM)

Shiva Gopal Mishra 


Dated: April 1, 2023

Sub.: Restoration of the Defined Old Pension Scheme in place of NPS for the Government Employees — Reg.

The Defined Old Pension Scheme, introduced after persistent demand of the Organized Labour and implemented under CCS(Pension) Rules, 1972 for the Central Government Employees, was subsequantly implemented in case of various State and Other Government Employees as well, has been in vogue for the last more than four decades. Since this Defined Old Pension Scheme provides for 50% of the last pay drawn as Pension to the Retirees, it has been serving the purpose of !he Social Security to the Senior Citizen Government Employees after their retirement, and the same further provides for the Family Pension for the Dependent Family Members case of death of the Pensioner.

Your goodself may appreciate that the Constitution of India, Under Article 21, provides for decent retirement life of the Retired Employees and their family members. Moreover, India is a Welfare State, as per Preamble of our Constitution as also a Dignified Member of the ILO, and the ILO Convention 102 ILO, titled Social Security(Minimum Standards), Convention, 1952, envisages a minimum standard of the level of the Social Security benefits, which includes Pension and Family Pension, and the same needs to be ensured by the member countries.”

The Union Government, however, intrcduced  New Contributory Pension Scheme without any guarantee of Minimum Pension, named “National Pension System”, in case of those Central Government Employees appointed on or after 01.01.2004, replacing Defined Old Pension Scheme, on the plea that, due to average longer life- span of the Pensioners, Pension Fund is impacting excessive burden on the Government Exchequer. This NPS has been further implemented in case of various States, Teachers and Other Government Employees appointed on or after 01.01.2004. The NSDL is the agency to manage the funds accumulated by 10% deduction from the salary of the Employee as well as Employer's contribution(which is 14% in case of the CGEs) and invests the same in various equities for creating corpus for payment of the Pension and other funds after the retirement.

Since 19 years period has already elapsed after implementation of the NPS, w.e.f. 01.01.2004, some of the Government Employees, appointed on or after 01.01.2004 and have retired from the Government Service, are getting a very meagre amount as Pension, absolutely insufficient even to maintain their livelihood what to talk of meeting their other requirements.

It may further be appreciated that the needs of the Senior Citizens increase with the passage of time due to various ailments and other social obligations, as such Defined Monthly Income, which could meet these requirements, is utmost necessary. The Defined Pension Scheme has been serving this purpose properly because Sr. Citizens may not be able to earn regular income to meet their day-to-day requirements as explained above.

We, therefore, earnestly request your good honour to kindly look into this matter with an open mind and take necessary action for coverage of the Government Employees appointed on or after 01.01.2004 under Defined Old Pension Scheme in place of the National Pension System(NPS), so that, they can also lead a dignified and easy life with their families.

We earnestly hope for favourable decision by the Government of India early.

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