NPS - Withdrawal Norms (New) - CGWN

NPS - Withdrawal Norms (New) - CGWN

CGWN - NPS To OPS : Cabinet Approved 14% Contribution

CGWN - NPS To OPS : Cabinet Approved 14% Contribution

Abolition of Contributory Pension Scheme

Central Govt Rejects the Demand to Scrap NPS

Reversion to old pension scheme due to administrative delay

Reversion to old pension scheme due to administrative delay

Conference On Implementation Of NPS By Central Autonomous Bodies

Implementation of National Pension System by Central Autonomous Bodies

Rajya Sabha Q&A - Reversion To Old Pension Scheme For Personnel Of Ministries

Reversion to old pension scheme for personnel of Ministries

NPS Defined Contribution Pension Scheme - sailent Features

Defined Contribution Pension Scheme (NPS) – Salient Features)

BPMS - Minimum Guaranteed Pension Under NPS

Minimum Guaranteed Pension under National Pension System (NPS) – BPMSREF: BPMS/17th TC/NPS/Cir/33

Dated: 31.03.2018

To,

The Office Bearers and CEC Members

Bharatiya Pratiraksha Mazdoor Sangh

&

The President/ General Secretary

Unions affiliated to the federation

Subject: One day Agitational Programme on 24.04.2018 on Minimum Guaranteed Pension under National Pension System (NPS).

Dear Brothers and Sisters,

Sadar Namaskar

It is hoped that all of you are well and busy in accelerating trade union activities. As all of you know that the Central Executive Committee Meeting of this federation was held on 26, 27 and 28 March 2018 in Dehu Road, Pune where it was decided to hold one day agitational programme on 24.04.2018 on Minimum Guaranteed Pension under National Pension System (NPS).

A resolution to this effect was also passed in the CEC Meeting held at Hyderabad during September 2015 and subsequently several correspondence were made. However, in spite of lapse of such a large time, no tangible action has been seen from the Govt side on the issue.

Therefore, in absence of any concrete step from the Govt side on the issue it becomes necessary to register our displeasure over the lethargic attitude of the Government and register our protest to constrain the machinery to redress the Grievance.

Hence, you are requested to hold one day agitation programme on 24.04.2018 using all feasible and effective trade union instruments like Gate Meeting, Use of Black Badges, Slogan Shouting, publicizing of programme at humongous level through posters/ hoardings/ banners/ pamphlets/ social media so that the issue may be resolved at the earliest. Further, you are requested to submit a memorandum addressed to Prime Minister of India through proper channel on 24.04.2018.

With regards,

Brotherly yours

(M P SINGH)

General Secretary

Source: BPMS

NFIR - Exemption of Railways from New Pension Scheme (NPS)

Exemption of Railways from New Pension Scheme (NPS)

No.IV/NPS/PFRDA BILL/Part I

Dated: 19/03/2018

Shri Piyush Goyal,

Hon’ble Minister of Railways,

Rail Bhavan,

New Delhi

Dear Shri Goyalji,

Sub: Exemption of Railways from New Pension Scheme (NPS) –reg.

Ref: (i) Hon’ble MR’s D.O. No. 2012/F(E)III/1/4-Pt dated 29th March 2014 to Hon’ble Finance Minister, Government of India

(ii) Hon’ble MR’s D.O. No. 2012/F(E)III/1/1/4-Pt dated 20th Nov 2015 to the Hon’ble Finance Minister Shri Arun Jaitely.

(iii)NFIR’s letter No. IV/NPS/PFRDA BILL/Part I dated 13th Feb, 2017, 26th Oct, 2017 and 11/12/2017.

(iv) Railway Board’s letter No. 2012/F(E)/III/1(1)/4-Pt dated 13/02/2018 to GS/NFIR.

Kind attention is invited to the correspondence cited under reference, latest being Railway Board’s reply received vide letter dated 13/02/2018 wherein the Federation has been conveyed that the Hon’ble Minister of Finance and Corporate Affairs has communicated that the matter was re-considered in consultation with Pension Fund Regulatory and Development Authority (PFRDA) and the request for exempting Railway employees appointed on or after 01/01/2004 from the application of NPS does not seem to be a feasible proposition. While NFIR does not agree with the reply of Hon’ble Finance Minister, the Federation re-iterates the valid points placed below, urging upon the Railway Ministry to impress upon the Government, the need for exempting Railways from “National Pension System (NPS).

The Ministry of Finance and the Pension Fund Regulatory and Development Authority (PFRDA) have failed to appreciate the facts that the nature of duties performed by the Railway employees is un-comparable, unique, complex, hazardous and akin to the duties being performed by the Armed Forces, in whose case the NPS has not been made applicable.

The Finance Ministry has also failed to appreciate that even during the British rule the Indian Railways was conceived and operated as an auxilary wing of the Army by virtue of its complex nature of role and uniqueness of working of Railway employees which in turn requires a high degree of discipline, efficiency to run the services and carry passenger and freight traffic throughout the country including supplies to the borders of the nation.

The Finance Ministry has also failed to evaluate that it is the Indian Railways which works as supply line to the Armed Forces during crisis periods by transporting troops from one corner to the other including the nation’s borders besides transporting Military hardware and other war material. In no way the performance of Railway employees can be underestimated than that of the Defence Forces Personnel.

Like Armed Forces, many of the Railway Personnel do stay away from their families for longer durations in the course of performing duties at remote places where minimum basic amenities like suitable accommodation, schooling, drinking water, health care facilities have been missing. Comparing the structure and importance of Railways with that of the Army, it would not be out of place to state that just as the “Army requires a critical mass to fight battle/war, in similar way critical mass of trained employees is required to maintain Railway Tracks, Rolling Stock and ensure operation of services”. On an average over 700 Railway employees die per annum while performing their duties and nearly 3000 employees sustain injuries as reported by High Level Safety Review Committee (HLSRC) headed by Shri Anil Kakodkar. The sacrifices of Railway employees are unparallel.

Considering the strong merits in the demand of the Federation, Hon’ble MRs have written to the Minister of Finance to have a re-look into the case to be considered favourably to exempt Railways from the ambit of National Pension System (NPS)

Federation desires to mention that the Finance Ministry has erred and equally not considered the justified demand of the Railway employees projected by NFIR, perhaps applying different logic and ignoring the facts mentioned above. In this connection, NFIR reminds that the Federation leaders in the meeting held on 09th February, 2018 at Rail Bhavan, New Delhi had specifically requested the Hon’ble MR to kindly reach the Hon’ble Prime Minister for getting Railways exempted from the application of National Pension System (NPS). It is a known fact that the NPS has generated lot of anger and anguish among the younger generation of Railway employees appointed on or after 01/01/2004 due to the inherent disadvantages of the NPS which does not guarantee even minimum pension i.e. half of the last pay drawn by the Railway employees.

NFIR, therefore, once again urges upon the Hon’ble MR to kindly take steps for reaching the Hon’ble Prime Minister for getting exemption of Railways from NPS at an early date.

With regards,

Yours sincerely,

(Dr. M.Raghavaiah)

General Secretary.

Source: NFIR

3 Major Changes In NPS Including Withdrawal Norms

Major Changes in NPS including Withdrwal Norms

Three major changes in the National Pension Scheme (NPS) including withdrawal norms

Relaxation of Norms for NPS

The Government of India has recently made three changes in the National Pension Scheme (NPS) including withdrawal norms. The details are as under:

Partial withdrawal during the service: The Pension Fund Regulatory and Development Authority (PFRDA), with an objective to meet the subscriber’s sudden financial requirement enrolled under NPS, has liberalized norms for partial withdrawals which also include reduction of requirement of minimum years of being enrolled under NPS from 10 years to 3 years from the date of joining. Suitable amendments were made through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations, 2017 and the same has been notified on 10.08.2017.

Increase in the joining age under NPS: With an objective to allow individuals (under NPS-All Citizen Model and Corporate Sector Model) who are in the age bracket between 60 years and 65 years to join NPS system. Suitable amendments were made through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Second Amendment) Regulations, 2017 and the same has been notified on 06.10.2017.

Exit in case of disability and incapacitation of the subscriber: With an objective of facilitating easy exit & withdrawal in case of disability and incapacitation of the subscriber covered under NPS, PFRDA has made suitable amendments through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Third Amendment) Regulations, 2018 and the same has been notified on 02.02.2018.

This was stated by Shri Ship Pratap Shukla, Minister of State for Finance in a written reply to a question in Lok Sabha today.

Source: PIB

Partial Withdrawal under NPS

NPS subscribers can withdraw after three years

“The NPS subscribers can withdraw after three years from the date of joining the system and a maximum of three times during the entire tenure of subscription under NPS”

Partial Withdrawal under NPS

The Pension Fund Regulatory Development Authority (PFRDA) has relaxed the norms for partial withdrawal under the National Pension Scheme (NPS). In accordance with the PFRDA (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations 2017, the subscriber ought to be subscribed to the National Pension System, at least for a period of three years from the date of his or her joining to such system, to be eligible to make partial withdrawals, under specific circumstances as specified in such regulations.

The NPS subscribers can withdraw after three years from the date of joining the system and a maximum of three times during the entire tenure of subscription under NPS, but the partial withdrawal is linked with contributions made by the subscriber. The subscriber shall be permitted to withdraw accumulations not exceeding twenty-five per cent of the contributions made by him or her and standing to his or her credit in his or her individual pension account, as on the date of application for withdrawal.

Earlier the subscriber under NPS was permitted to withdraw accumulations not exceeding twenty-five per cent of the contributions made by him or her after 10 years from the date of his or her joining the system, and a maximum of three times during the entire tenure of subscription under NPS.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha today.

Exemption From National Pension System (NPS) – NFIR

Exemption from National Pension System (NPS) – NFIR

Exemption of Railway employees appointed on or after 1.1.2004 from the purview of National Pension System (NPS)

Government of India(BHARAT SARKAR)

Ministry of Railways (RAIL MANTRALAYA)

(RAILWAY BOARD)

No.2012/F(E)III/1(1)/4-Pt.

New Delhi, dated 13/02/2018

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi – 110055

Dear Sir,

Sub : Exemption of Railway employees appointed on or after 01.01.2004 from the purview of National Pension System (NPS) – regarding

The undersigned is directed to refer to NFIRs letter No. IV/NPS/PFRDA BILL/Part- I dated 13.02.2017, 26.10.2017 and 11.12.2017 on the above subject. 

2. In this regard it is informed that on the request of NFIR, Hon’ble former Minister of Railways, Sh.Suresh Prabhu had written a D.O letter dated 11.04.2017 to the Hon’ble Minister of Finance and Corporate Affairs, Sh.Arun Jaitley, to have a second look on the issue of exemption of Railway employees from the application of National Pension System (NPS). In reply, Hon’ble Minister of Finance and Corporate Affairs Sh. Arun Jaitley has communicated that the matter was reconsidered in consultation with pension Fund Regulatory and Development Authority (PFRDA) and that the request for exemption railway servants appointed on or after 01.01.2004 from the application of NPS does not seem to be feasible proposition.

Yours faithfully,

sd/-

for Secretary/Railway Board

Source: NFIR

NFIR : Exemption Of Railways From New Pension Scheme (NPS)

NFIR : Exemption of Railways from New Pension Scheme (NPS) 

No.IV/NPS/PFRDA BILL/Part I

Dated: 11-12-2017

Shri Piyush Goyal

Honbal Minister of Railways

Rail Bhavan

New Delhi

Respected Sir,

Sub: Exemption of Railways from New Pension Scheme (NPS) – reg.

Ref: (i) Hon’ble MR’s D.O./no.2012/F(E)III/I/4-pt dated 29th March 2014 to Hon’ble Finance Minister, Government of India.

(ii) Hon’ble MR’s D.O.No.2012/F(E)III/1/1/4-pt dated 20th Nov 2015 to the Hon’ble Finance Minister Shri Arun Jaitely.

(iii) NFIR’s letter No.IV/NPS/PFRDA BILL/Part I dated 13th Feb,2017 & 26th Oct, 2017.

While enclosing copy of NFIR’s letter sent to you vide dated 26th Oct,2017. I request you to kindly make special efforts at the level of the Government as well by reaching Hon’ble Prime Minister for the purpose of exempting Railways from the National Pension System (NPS). I also desire to bring to your kind notice that your predecessors shri Mallikarjum Kharge and Shri Suresh Prabhu have already sent proposals to the Government of India (Ministry of Finance) highlighting the uniqueness of Railways working and the necessity to exempt Railways from the NPS.

I trust that you would do the needful for obtaining favourable decision which would motivate all sections of Railway employees to work with grater determination and commitment for providing efficient services.

With regards,

Yours sincerely,

(Dr.M.Raghavaiah)

General Secretary

Source: NFIR

PFRDA Public Notice - Fraudulent activities in name of National Pension Scheme

Fraudulent activities in name of NPS – PFRDA Public Notice

Public Notice

It has corne to notice that some persons are demanding large sums of money by calling general public with a promise to release funds stated to be lying under NPS/ PFRDA It has also come to our notice that some persons. actually believing such claims. are willing to pay large sums (about Rs.29,999) to such elements. This is to inform general public that PFRDA is a Regulatory Body and does not ever call for any sum for release Of funds to any individual from their Permanent Retirement Account (PRAN) maintained with the Central Record keeping Agency. It is also informed that PFRDA has appointed entities such as Points Of Presence. Aggregators etc. which are banks and non banking financial companies which are authorized to interact With subscribers for a prescribed fee which is much less than what is being asked for by the fraudsters.

PLEASE BEWARE. PFRDA NEVER SENDS ANY EMAIL/ MESSAGE PROMISING LARGE SUMS FOR PAYMENT OF FEE/ CHARGE. ANY SUCH COMMUNICATION IS SENT WITH THE INTENTION TO DEFRAUD YOU. INFORM POLICE IMMEDIATELY.

In case any person/ entity calls you with the promise to pay large sums from PFRDA/NPS, you are advised to:

i. Not to believe any caller/email letter promising to release funds from PFRDA/NPS;

i. Not to pay any amount to any unauthorized person/ entity;

iii. Check the identity/credential of the caller}email;

iv.Inform local police immediately giving the callers: name, telephone number. email ID, address etc.

 PFRDA Public Notice

Revision Of Additional Relief On Death/Disability Of Government Servants

Revision of Additional Relief on death/disability of Government servants covered under New Pension Scheme (NPS) in pursuance of Government’s decision on the recommendations of the 7th CPC-reg.

PC-VII No.28/2017

R.B.E.No.:78/2017

GOVERNMENT OF INDIA (BHARAT SARKAR)

MINISTRY OF RAILWAYS (RAIL MANTRALAYA)

(RAILWAY BOARD)

No.2016/F(E)III/1(1)/7

New Delhi, Dated 31.07.2017

The GMs/FA&CAOs,

All Zonal Railways/Production Units,

(As per Mailing List)

Subject: Revision of Additional Relief on death/disability of Government servants covered under New Pension Scheme (NPS) in pursuance of Government’s decision on the recommendations of the 7th CPC – reg.

A copy of Department of Pension and Pensioners welfare (DOP&PW)’s O.M.No.28/03/2017-P&PW(B) dated 30th May 2017 on the above cited subject is enclosed for information and compliance. These instructions shall apply mutatis mutandis on the Railways also. Rules 38, 49, 50 and 54 of CCS (Pension) Rules, 1972 and CCS (Extraordinary Pension) Rules, mentioned DOP&PW’s O.M., correspond to Rules 55, 69, 70 and 75 of the Railway Services (Pension) Rules, 1993 and Railway Services (Extrordinary Pension) Rules, 1993 respectively. The DOP&PW’s O.M.No.38/41/06/P&PW(A) dated 05.05.2009, referred to in their aforesaid O.M. dated 30.05.2017 has been circulated on the Railways vide this office letter No.2008/AC-II/21/19 dated 29.05.2009.

2. Please acknowledge receipt.

(G.Priya Sudarsani)

Joint Director, Finance (Estt.)

Railway Board.

Authority: http://www.indianrailways.gov.in

Extension Of Benefits Of Retirement Gratuity And Death Gratuity To The Central Government employees - NPS

Extension of benefits of Retirement Gratuity and Death Gratuity to the Central Government employees covered by New Defined Contribution Pension System 

OFFICE OF THE PR.CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS)

DRAUPADI GHAT, ALLAHABAD – 211 014

Circular No C-170

No.G1/C/MISC/NPS-II/Tech

O/o the PCDA (P), Allahabad

Dated: 13-07-2017

Sub: – NPS: Extension of benefits of Retirement Gratuity and Death Gratuity to the Central Government employees covered by New Defined Contribution Pension System (National Pension System)-regarding.

Ref:- This office Circular No. 79 dated 29/10/2010 and No. 110 dated 12/08/2013

Benefits of Retirement Gratuity and Death Gratuity to the Central Government employees covered by New Defined Contribution Pension System (National Pension System) has been extended vide Govt. of India, Ministry of PPG & P, Deptt. of P&PW in their O.M. No. 7/5/2012-P&PW (F)/B dated 26.08.2016 (copy enclosed)on the same terms and conditions as are applicable to employees covered by Central Civil Service (Pension) Rules, 1972. The Ministry has further clarified vide O.M.No.28/03/2017-P&PW(B) dt. 18/05/2017, that CCS (Pension) Rules, 1972 are otherwise not applicable to the Central Government employees covered under NPS. Hence, they would obviously not be eligible for Service Gratuity or Pension under the CCS (Pension) Rules.

2. The phrase ‘terms and condition’ in the ibid O.M. dated 26.08.2016 refers to the requirement of qualifying service, the rates on which retirement gratuity is to be paid, the limit of amount of gratuity, nominations, disciplinary provisions, etc. in the CCS(Pension) Rules. All these condition would be equally applicable for grant of gratuity to employees covered under NPS. The decision to extend retirement gratuity and death gratuity vide the O.M. dated 26.08.2016 is absolute and not provisional. Separate rules on gratuity for Central Government employees under NPS would be framed in due course.

3. Now, it has been decided that to submit the claims of above beneficiaries for Retirment Gratuity and Death Gratuity, the following procedures shall be adopted by HOO and Pay Audit Controllers:-

i. H.O.O. will prepare a claim in case of NPS beneficiaries going to retire in accordance with the procedure as prescribed for Defence Civilian Personnel appointed before 01.01.2004 and will submit the same along with service boom and all the relevant documents (Which is required in case of pre 01.01.2004 Cases) to PAO concerned i.e.LAO/RAO. The Permanent Retirement account No. (PRAN) of the concerned Government Servant Allotted by National Security Depository limited (NSDL) will also be indicated. In cases where PRAN has not been allotted by NSDL to a NPS subscriber being non-effecting account as on 0104.2008, permanent pension account No.(PPAN) allotted to subscriber will be indicated.

ii. PAO will carry all necessary checks with reference to the entries in service book and as admissible under the OM No.38/41/06 P&PW (A) dated 05.05.2009 (already circulated under this office circular no.79 dt. 29-10-2010) to ensure that entries made in claim are in as per records in the service book of the individual. After signing and affixing the seal, the PAO concerned i.e.LAO/RAO will pass on the claim to the PCDA(P) Allahabad. The service book will be returned by PAO to HOO concerned.

iii.HOO will also maintain a separate register for recording entries for PRAN /PPAN No., Name of Government Servant, PPO No. and awards notified.

iv. On receipt of PPO from PCDA(P) Allahabad, HOO will check the same and after recording the entries in the register retransmit PDA’s copy to PDA, Pensioner copy to Pensioner and retain

HOO copy for their own record.

v. Other procedures prescribed for pre 01-01-2004 pensioner will also be followed by the HOO in case of NPS beneficiaries.

4. In view of the foregoing, you also are requested to issue suitable instructions (along with copy of this circular) to all the Head of Offices under your administrative control to ensure that claim on the subject matter henceforth are floated in accordance with instructions given in above Para.

(Rajeev Ranjan Kumar)

Dy.CDA (P)

Order Copy

RESTORATION OF OLD PENSION SYSTEM IN PLACE OF CONTRIBUTORY PENSION SYSTEM

RESTORATION OF OLD PENSION SYSTEM IN PLACE OF CONTRIBUTORY PENSION
SYSTEM

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF FINANCIAL SERVICES

RAJYA SABHA

UN STARRED QUESTION NO. 2130

TO BE ANSWERED ON MARCH 21, 2017/PHALGUNA 30, 1938 (SAKA)

RESTORATION OF OLD PENSION SYSTEM IN PLACE OF CONTRIBUTORY PENSION SYSTEM

2130. Shri T. G. Venkatesh

Will the Minister of FINANCE be pleased to state:

(a) whether it is a fact that the newly introduced Contributory Pension System is not beneficial to the employees and so the employees unions are requesting Government to re-introduce the old pension system in its place, if so, the details thereof; and

(b) whether any representation has been received in this regard by Government, if so, the details thereof and the stand of Government in this regard?

ANSWER

The Minister of State in the Ministry of Finance
(Shri Santosh Kumar Gangwar)

(a) & (b) National Pension System (NPS), which is a contributory pension system, has, inter alia, the following features which benefit the employees:

• NPS is a well designed pension system managed through an unbundled architecture involving intermediaries appointed by the Pension Fund Regulatory and Development Authority (PFRDA) viz. Pension Funds, Custodian, Central Recordkeeping and Accounting Agency, National Pension System Trust, Trustee Bank, Points of Presence and Annuity Service Providers. It is prudently regulated by PFRDA which is a statutory regulatory body established to promote old age income security and to protect the interests of subscribers of NPS.
• Dual benefit of Low Cost and Power of Compounding: The pension wealth which accumulates over a period of time till retirement grows with a compounding effect. The all-in-costs of the institutional architecture of NPS are among the lowest in the world.
•  Tax Benefits: Tax benefits are available to the NPS subscribers under various provisions of the Income- tax Act, 1961.
• Transparency and Portability is ensured through online access of the pension account by the NPS subscribers, across all geographical locations and portability of employments.
• Partial withdrawal: Subscribers can withdraw up to 25% of their own contributions towards their pension account, before attaining superannuation age for certain specified purposes subject to certain conditions.

Representations have been received from certain quarters regarding the implementation of NPS which, inter alia, include the demand that NPS may be scrapped and the Government may revert to old defined benefit pension system. However, there is no proposal to replace the NPS with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

Source: RAJYA SABHA

National Pension Scheme Allowes Multiple Choice To The Subscribers

NPS Subscribers are allowed multiple Choice to Change Investment Option

PENSION FUND REGULATORY

AND DEVELOPMENT AUTHORITY

g-14/A. Chhatrapati Shivaji Bhawan

Qutab Institutional Area.

Katwaria sarai. New Delhi-110016

01 March 2017

PFRDA/2017/8/PD/2

To

All Stakeholders in the National Pension System

Subiect: Allowing multiple choice to the subscribers/corporates to change Investment Option and Asset Allocation Ratio during the Financial Year

1. As per the extant guidelines, subscriber can change his/her existing Pension Fund the investment option(Active or Auto choice) as well as asset allocation ratio (allocation among asset class-Equity/Corporate Bonds/Government securities/ Alternative investment ) once in a financial year. This scheme preference is applicable to the existing pension corpus as well as to the prospective subscriptions. Similarly in the NPS-Corporate Model where the choice of Pension Fund and Investment Options is exercised at Corporate level. the Corporates also have the option to change the pension fund and investment option and also asset allocation ratio once in a financial year,

2.In order to provide more choices in terms of investment option and asset allocation, the following has been decided:

(i) The subscribers/corporates will have the choice for change of the investment option (Active or Auto choice) as well as asset allocation ratio (allocation among asset class-Equity/Corporate Bonds/Government Securities/ Alternative Investment) two times in a financial year.

This scheme preference will be applicable to the existing pension corpus as well as to the prospective subscriptions, The option will be available separately for Tier I and Tier accounts,

(ii) The choice Of change Of pension Fund shall remain once in a financial year.

4, The changes will come into effect from 01st April 2017.

Yours faithfully

(AkhleSh Kumar)

Deputy General Manager

Authority: http://www.pfrda.org.in/

Confederation - Withdrawal of NPS is not within the purview of NPS Committee

GOVT. MADE IT CLEAR THAT WITHDRAWL OF NPS IS NOT WITHIN THE PURVIEW OF NPS COMMITTEE.

YOUNGER GENERATION EMPLOYEES CHEATED:

Withdrawal of NPS or exemption from NPS was one of the most important demand of the NJCA in the 11th July 2016 deferred indefinite strike. In the statement issued by NJCA on 06-07-2016 after deferring the indefinite strike, it stated as follows:

“The NJCA particularly notes that the Government has set up a separate committee for reviewing the New Pension Scheme, which has been a matter of concern to all employees and workers who are recruited to Government service on or after 01-01-2004”.

It is true that Government has constituted an NPS Committee under the Chairmanship of Secretary (Pension). This created a lot of hope among the younger generation employees as they have been made to believe that the committee will consider the demand of NJCA to scrap the NPS or at least exempt Central Government employees from NPS. But to the dismay of all, in the agenda notified by NPS Committee for discussion with staff side (JCM) on 10- 02-2017, the main issues such as (1) Scrapping of NPS (2) Guaranteed minimum pension to NPS subscribers ie; 50% of the last pay drawn should be guaranteed by Government as minimum pension, even if the returns from the annuity insurance scheme is less than 50% and (3) exemption of Central Government employees from the purview of NPS, are not included as agenda for discussion in the meeting. During the discussion with staff side on 10-02-2017, Additional Secretary (Pension) informed the following:

(1) Withdrawal of NPS is not within the purview of NPS Committee.

(2) There are three sub committees constituted on NPS (i) Committee chaired by Joint Secretary, Department of Financial Services to look into investment, benefit and taxation, (ii) Committee chaired by Joint Secretary (Expenditure), Finance Ministry, with regard to finalising the accounting, implementation procedure and grievance redressal. (iii) Committee chaired by Additional Secretary (Pension) to formulate Rules and Regulations with regard to various benefits from NPS.

Thus it is made clear without any ambiguity that NPS Committee is constituted by the Government for further strengthening NPS and not for scrapping NPS or exempting from NPS as demanded by NJCA. Everybody knows that whether it is pay commission or NPS Committee, it cannot and will not make recommedations on any issue which are not included in the terms of reference of the Commission/Committee, specifically by the Government. Submitting memorandum to the NPS committee demanding scrapping of Page 2 of NPS or exemption from NPS may not serve any purpose, unless Government give clear mandate to the Committee to examine such a demand also. Thus, NDA Government has rejected the demand of NJCA either to scrap NPS or exempt from NPS. This is the real fact and there need not be any confusion in the mind of the employees. In order to compel the Government to accept the demand, there is no short-cut, other than reviving the indefinite strike.

Railway Federations demand also rejected: Railway Federations have demanded exemption of Railway employees from the purview of NPS. Railway Ministers of UPA and NDA Government had forwarded the demand to the Government with their recommendations stating that Railways is second line of defence and as Military Personnel are already exempted from NPS, Railway employees should also be exempted from NPS. Earlier in a letter dated 15th May 2015 addressed to Railway Board, the Ministry of Finance, Department of Financial Services has informed as follows:-

“It may kindly be noted that, earlier a proposal to exempt paramilitary forces (ie. CRPF, BSF etc.) from the ambit of NPS was referred to a Group of Ministers (GoM) and was finally not approved by the Government………… You will agree that moving away from the earlier defined benefit based pension system was a concious decision of the Government taken in view of the unsustainable pension liability of the Central Government……. In view of the above, request of the recognised Federations (AIRF & NFIR) for seeking exemption of the Railway Servants appointed on or after 01-01-2004 from the application of the NPS does not seem to be a feasible proposition.”

From the above reply, it is clear that Government is not going to exempt Railway employees or other Central Government employees from the purview of NPS, unless NJCA revive the indefinite strike and compell the Government to negotiate and settle the demand.

Source: http://confederationhq.blogspot.in/

Click Here To Read Complete Article By M.Krishnan, General Secretary, Confederation

Gratuity Pay Under New Pension System

Gratuity Benefits under National Pension System (NPS)

Press Information Bureau 

Government of India

Ministry of Finance

03-May-2013 16:54 IST

Gratuity Pay under New Pension System

Death-cum-Retirement Gratuity is paid to Central Government employees under New Pension System (NPS) as it is paid under the old pension scheme. The monthly annuity under the New Pension System (NPS) is only a replacement of pension on retirement and family pension of death after retirement. The benefits of Death cum Retirement Gratuity (DCRG) and pension/family pension have been provisionally allowed, vide the Office Memorandum of Department of Pension and Pensioners’ Welfare No. 38/41/06-P & PW(A) dated 5.5.2009 in respect of Central Government servants covered under NPS in cases where a Government Servant is retired on invalidation/disability and in the case of death of a Government servant in service on the same rates as are applicable under the old pension scheme Central Civil Service (Pension) Rules, 1972. The retirement gratuity is payable to the retiring Government servant. A minimum of 5 years’ qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a month’s Basic Pay plus Dearness Allowance drawn before retirement for each completed six monthly period of qualifying service. The maximum retirement gratuity payable is 16½ times the Basic Pay, subject to a maximum of Rs. 10 lakh. If the Government Servant dies while in service, the death gratuity shall be paid to his family at rates furnished in the table below:

Sl. No.	Length of Qualifying Service	Rate of Death Gratuity
1	Less than one year	2 times of emoluments
2	One year or more but less than 5 years	6 times of emoluments
3	5 years or more but less than 20 years	12 times of emoluments
4	20 years or more	Half of emoluments for every completed six monthly period of qualifying service subject to a maximum of 33 times of emoluments.

Maximum amount of Death Gratuity admissible is Rs, 10 lakh with effect from 1.1.2006.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.

Source: PIB News