Latest 7th Pay Commission News

Implementation of National Pension System by Central Autonomous Bodies

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PRESS RELEASE

Conference on Implementation of National Pension System by Central Autonomous Bodies

A conference on implementation of National Pension System by Central Autonomous Bodies (CABs) was organized by PFRDA on 13th June 2018 at New Delhi. The prime objective was to provide a forum to all Central Autonomous Bodies (CABs), where the progress in the implementation of NPS with respect to compliance of timelines in various NPS related activities could be brought to the fore and a way forward could be provided. Officials from most of the Central Autonomous Bodies (CABs) attended the conference.

Dr. Badri Singh Bhandari, Whole Time Member (Economics) in his opening remarks mentioned that currently there are 557 CABs which have about 1.73 lacs subscribers and about Rs.11800 crores of Asset Under Management (AUM). He further emphasised the need for discipline in submission of subscriber registration forms and remittance of the subscribers’ contributions. He also highlighted the responsibility of nodal officers handling NPS and advised that they should be aware of the NPS and its related process in detail for addressing the queries/grievances of the subscribers.

Chairman, PFRDA, Sh. Hemant Contractor, in his address emphasized the fact that NPS, being a Contributory scheme, was different from the earlier pension system and discussed various determinants of pension such as promptness of the Nodal offices in performing various NPS related activities mainly subscriber registration, upload/remittance of NPS contributions and also period of stay in the scheme, contribution level, returns on investments, annuity schemes chosen, annuity service providers chosen etc. In this regard, he stressed upon the need to work in tandem to ensure that NPS works efficiently and pensions are served effectively. He also highlighted endeavour of PFRDA in educating subscribers in handling their pension accounts, through a dedicated website, Pension Sanchay.

Secretary, Department of Expenditure, Govt. of India Sh. Ajay Narayan Jha, in his key-note address appreciated the initiative of PFRDA for holding this conference exclusively for Central Autonomous Bodies as it provided two-way communications between stakeholders for the ultimate benefit of the subscribers. He stressed to all participants on the need of becoming sensitive and responsible towards employee-subscribers currently covered under NPS in order to protect their interest, while monitoring various NPS related activities. He also stressed upon the role which can be played by the Head of Institutions and PrAOs of the respective CABs in streamlining NPS operations.

A presentation was also made by the NSDL e-Governance Infrastructure Ltd, the Central Recordkeeping Agency for NPS about the operational issues and new functionalities released for the convenience of the nodal officers-PAOs/DDOs and the subscribers. A presentation was also made by Jamia Millia Islamia University about the best practices they have adopted to administer the subscribers’ interface effectively. While presenting the Vote of Thanks Shri Ashish Kumar, GM mentioned that PFRDA is periodically holding Review meetings/ Video conferences also with the CABs on important parameters having financial implications and expects significant improvement from the present state of affairs.

Also check: Exemption from National Pension System (NPS) – NFIR

NJCA – Abolition Of National Pension System

Revision of Minimum Wage, Improvement of Fitment Formula and abolition of National Pension System (NPS) – NJCA

No.IV/NJCA(N)2014-Pt.III

Dated: 01/09/2018

The General Secretaries

of Affiliated Unions of NFIR

Dear Brother,

Sub: Resolution No. NJCA/2018 dated 18/08/2018 against Government’s Failure to fulfill its assurances – Reg.

A copy of Resolution dated 18/08/2018 passed by NJCA is enclosed [Click to view the Resolution].

As decided by NJCA in its meeting held on 18/08/2018 at New Delhi, the affiliates are directed to hold mass rallies/demonstrations etc., protesting against Government failure to implement its assurances on revision of minimum wage, improvement of fitment formula and abolition of National Pension System (NPS). Other pending issues related to railway employees may also be highlighted during protest actions. Affiliates may take note that “September 2018” should be treated as PROTEST MONTH by organizing different forms of protest actions at all levels i.e. Depots, Establishments, Workshops, Major Stations etc.,

Read also: NJCA Letter with Resolution dated 3.7.2018

“All India Protest Day” should be observed on 19th September 2018 and on the said date the affiliates should mobilize employees in large number along with those of Central Government Employees Organizations and hold massive rallies/demonstrations. The members of INDWF and FNPO should also be made part of agitation wherever possible.

A report on protest actions conducted by the affiliates may be sent to the Federation promptly.

Yours faithfully,

sd/-

(Dr. M.Raghavaiah)

General Secretary

Click to view Resolution

Source: NFIR

NJCA Resolution dated 3.7.2018

An Overview of New Contributory Pension System (NPS) – Confederation

NEW CONTRIBUTORY PENSION SYSTEM (NPS)

M.krishnan

Secretary General

Confederation of Central Govt. Employees & Workers

Pension system was in vogue in India for a century or more and the British Government during the pre-independence era introduced Pension Rules for Government employees and thus made it statutory. In the year 1982 Supreme Court in its landmark judgement in Nakara’s case declared that – “as per India’s constitution, Government is obliged to provide social and economic security to pensioners and that Government retirees had the fundamental right to pension….. Pension is not a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment, but a payment for past service rendered. It is a social welfare measure, rendering socio-economic justice to those who in the hey days of their life, ceaselessly toiled for their employers on the assurance that in their old age, they would not be left in lurch.”

During the advent of globalisation policies in 1980’s the pension reforms also started simultaneously. IMF & World Bank started publishing so many reports and documents emphasizing the need for pension reforms. They also started studying about the reforms to be undertaken in the pension sector in India. In 2001, “IMF work paper on pension reforms in India” and World Bank India specific report “India – the challenge of old age income security” were published. Their work reports emphasized that “Pension obligations or promises made by the Governments which have potential of exerting pressure on Govt. finances, have been a subject of increased focus in assessing medium to long term fiscal sustainability.” In tune with the dictates of IMF and World Bank BJP-led NDA Government appointed Bhattacharjee Committee in 2001 headed by Ex-Chief Secretary of Karnataka, to study and recommend pension reforms. Thus after creating ground for pension reforms, under the pretext of implementing recommendations of Bhattacharyya Committee, the NDA Government introduced New Pension System called Defined Contributory pension system for all employees who join service on or after 01-01-2004. The Congress-led UPA Government which came to power in 2004 continued with the reforms and promulgated an ordinance to legalise NPS. But UPA-I Govt. could not pass the Pension Bill in Parliament due to stiff opposition of Left Parties supporting it. Later when UPA-II Government came to power the Pension Regulatory and Development Authority (PFRDA) Bill was passed in the Parliament with the support of BJP, the then opposition party. Many State Governments governed by political parties other than Left Parties, introduced Contributory Pension System for their employees from various dates after 2004. Left Front Governments of Kerala, West Bengal and Tripura refused to introduce the New Pension Scheme and they continued with the old defined benefit pension scheme. Congress-led UDF Government introduced NPS in Kerala. After BJP coming to power in Tripura also Contributory Pension Scheme is introduced recently. In West Bengal old Pension Scheme continues even now. Not only newly appointed Central and State Government employees, almost all new entrants of public sector and Autonomous bodies are also brought under the purview of NPS.

As per New Contributory Pension Scheme an amount of 10% of pay plus Dearness Allowance will be deducted each month from the salary of the employees covered under NPS and credited to their pension account. Equal amount is to be credited by the Government (employer) also. Total amount will go to the Pension Funds constituted under the PFRDA Act. From the pension fund the amount will go to the share market. As per the PFRDA Act – “there shall not be any implicit or explicit assurance of benefit except (share) market based guarantee mechanism to be purchased by the subscribers”. Thus the amount deposited in Pension Fund may or may not grow depending on the fluctuations in the share market. After attaining 60 years of age i.e., at the time of retirement, 60% of the accumulated amount in the Pension Account of the employee will be refunded and the balance 40% will be deposited in an Insurance Annuity Scheme. Monthly amount received from the Insurance Annuity Scheme is the monthly pension i.e., Pension is not paid by Government, but by the Insurance Company and hence NPS is nothing but Pension Privatization..

Thus it can be seen that the growth of the accumulated amount in the Pension fund depends upon the vagaries of share market. If the share markets collapse, as happened during the 2008 world financial crisis, then the entire amount in the pension fund may vanish. In that case employee will not get any pension. Every fluctuation in the share market will affect the future of pension of those employees who are covered under NPS. Uncertainty about pension and retirement life looms large over their heads. Even if there is a stabilized share market the 40% amount in the annuity scheme is not enough to get 50% of the last pay drawn as pension, which is the minimum pension as per old pension scheme. Many employees who entered in service after 01-01-2004 has retired in 2017 and 2018 after completing 12 & 13 years of service. They are getting Rs.1400- to Rs.1700- only as monthly pension from Insurance Annuity Scheme. If they have entered service in 2003 i.e., in the old pension scheme, they would have got 50% of the last pay drawn as pension subject to a minimum of Rs.9000- as minimum pension, that too without giving any monthly contribution towards pension from their salary. In short, NPS is nothing but NO PENSION SYSTEM.

As per clause 12(5) of the PFRDA Act even the employees and pensioners who are not covered under NPS, can be brought under the Act by a Gazette notification by the Government. Thus NPS is a Damocles’ sword hanging over the head of all employees and pensioners.

Who is the beneficiary of this pension reforms? As in the case of every neo-liberal reforms, the ultimate beneficiary is the Corporates. The huge amount collected from the workers through pension fund is invested in share market by the Pension Fund Managers and this amount in turn can be utilied by the multi-national Corporates for multiplying their profit. Amount deducted and credited to the Pension fund from each newly recruited employees plus the employer’s share amount will remain with the pension fund and share market for a period of minimum 30 to 35 years i.e., till the age of 60 years. During this long period of 35 years crores and crores of rupees will be at the disposal of share market controlled by multinational corporate giants. Ultimate causality will be the poor helpless employee/pensioner.

Confederation of Central Government Employees and Workers and All India State Government Employees Federation (AISGEF) has been opposing the NPS from the very beginning and a one day strike was conducted on 30th October 2007. It was one of the main demand in all other strikes during these period. The campaign and struggle against NPS continued and as of now the subjective and objective conditions for a bigger struggle against NPS has emerged as almost 50% of the total employees in Central, State, Public sector and Autonomous bodies are now covered under NPS and are becoming more and more restive and agitated. 7th Central Pay Commission Chairman Retired Supreme court Judge Sri. Asok Kumar Mathur has correctly pointed out that “Almost a whole lot of Government employees appointed on or after 01-01-2004, were unhappy with New Pension Scheme. Govt. should take a call to look into their complaint”.

As per the recommendations of 7th CPC, Central Government appointed a Committee called “NPS Committee” for streamlining the functioning of NPS. The Staff-side has demanded before this Committee to scrap NPS and guarantee for 50% of the last pay drawn as minimum pension subject to a minimum of Rs.9000-. Even though, the Committee has submitted its report 18 months back, the Government has not yet disclosed the recommendations of the Committee.

Confederation and AISGEF has decided countrywide intensive campaign culminating in one day strike on 15th November 2018 demanding that the Defined Contributory Pension Scheme (New Pension Scheme – NPS) imposed on new entrants must be scrapped and the Government should reintroduce the Defined Benefit Pension Scheme (Old Pension Scheme – OPS) that was in vogue for a century or more. We are also exploring the possibility of organizing an indefinite strike in the coming days exclusively on one demand i.e., SCRAP NPS, RESTORE OPS for which wider consultations are being made with all like-minded organizations.

Mob & whatsapp: 09447068125

e-mail: mkrishnan6854@gmail.com

Source: Confederation

Reversion to old pension scheme for personnel of Ministries

Rajya Sabha Unstarred Question No.2665 – Answered on 9.8.2018

Shri K. Bhabananda Singh

(a) whether a decision has been taken for hundreds of paramilitary forces whose recruitment process commenced/done before 2004 but joined in 2004 or after due to administrative delays, to revert to the old pension scheme as per a Delhi HC order and if so, the details thereof;

(b) whether the Ministry, on similar lines of CAPFs, would identify such personnel in all the Ministries and extend the benefit of old pension scheme; and

(c) if so, the details thereof and if not, the reasons therefor?

(a) to (c): In accordance with the scheme for National Pension System (NPS), as notified vide Ministry of Finance (Department of Economic Affairs)’s Notification No. 5/7/2003-ECB & PR dated 22.12.2003, the System is mandatory for all new recruits to the Central Government service (except armed forces) from 01.01.2004. Accordingly, as per Rule 2 of the Central Civil Services (Pension) Rules, 1972, as amended on 30.12.2003, these rules are applicable to Government servants appointed to civil posts on or before 31.12.2003. The year of commencement/completion of the recruitment process is not relevant for deciding the applicability of the Central Civil Services (Pension) Rules, 1972.

Read also: New Pension Scheme(NPS) Vs Old Pension Scheme(OPS)

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE

(DR. JITENDRA SINGH)

In the specific cases relating to appointments as Sub-Inspector in various Central Para Military Forces after selection in August, 2003 on the basis of an Examination conducted in 2002, appointments were made in Central Reserve Police Force in 2003 and the candidates appointed were covered by the pension scheme under Central Civil Service (Pension) Rules, 1972. However, in the Border Security Force, offers of appointment on the basis of the same examination/selection were issued in January, 2004. On a petition filed by some personnel appointed in the Border Security Force on the basis of that examination, Hon’ble High Court of Delhi directed to cover the petitioners under the Central Civil Service (Pension) Rules, 1972 on the grounds of administrative delay on the part of Border Security Force in making appointments. The order of Hon’ble High Court of Delhi was implemented by the Ministry of Home Affairs/Border Security Force in view of the peculiar circumstances of that case and the administrative delay in making appointments in that case. The decision taken in the aforesaid case is not relevant for deciding applicability of Central Civil Service (Pension) Rules in other cases where recruitment process was commenced or completed before 01.01.2004.

Authority: https://rajyasabha.nic.in/

Not Possible to Revert Back to Old Pension Scheme

It is not possible for the government to revert back to old pension scheme – Minister replied in Parliament on 24.7.2018

Abolition of Contributory Pension Scheme

Representations have been received from various Associations of Government Employees on the problems being faced and the demand to withdraw the National Pension System (NPS).

The 7th Central Pay Commission (CPC) also in its report examined the issues related to NPS and made recommendations for addressing these issues. Pursuant thereto, it was decided to constitute a Committee of Secretaries to suggest measures for streamlining NPS. The Committee has submitted its report.

Due to rising and unsustainable pension bill and keeping in view of fiscal imperatives, it is not possible for the government to revert back to old pension scheme.

Important Announcements and Approvals in Board Meeting of PFRDA

“Modification in Partial Withdrawal rules under NPS & Increasing cap on equity investment in active choice to 75% from current 50% for Private Sector Subscribers”

Ministry of Finance

Important Announcements and Approvals in Board Meeting of PFRDA

Pension Fund Regulatory and Development Authority (PFRDA) is established by the Government of India for regulation and development of Pension Sector in order to protect the old age income security of subscribers. PFRDA takes various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS) like new functionality development under NPS architecture, simplification of account opening, withdrawal, grievance management etc.

In this regard, during the recently held Board Meeting some important decisions were taken to improve the operational and regulation issues in National Pension System (NPS). Some of the decisions taken in the Board Meeting are as follows:

Budget announcement- Rating criteria for investments– Proposal on changing the investment grade rating from ‘AA’ to ‘A’ for corporate bonds was approved. The change is subject to a cap on investments in ‘A’ rated bonds to be not more than 10% of the overall Corporate Bond portfolio of the Pension Funds. This initiative will enlarge the scope of investment for the Fund Managers while ensuring credit quality.

Introduction of a Common Stewardship Code: The proposal on adoption of Common Stewardship Code, as a measure of good Corporate Governance, was approved. Further, it was also approved that the Principles enumerated in such code shall be circulated to all Pension Funds for compliance and implementation. Adoption of these Principles by Pension Funds will improve their engagement with investee companies and benefit subscribers.

Modification in Partial Withdrawal rules under NPS: Partial withdrawals will now be allowed to NPS subscribers who wish to improve their employability or acquire new skills by pursuing higher education/ acquiring professional and technical qualifications. Further, individual NPS subscribers who wish to set up a new business/ acquire new business will also be allowed to make partial withdrawals from his contributions. Other terms applicable to partial withdrawals will remain unchanged.

Increasing cap on equity investment in active choice to 75% from current 50% for Private Sector Subscribers: Presently there is a cap of 50% on equity investment under active choice in NPS. The proposal on increasing cap on equity investment in active choice to 75% from currently 50% has been approved by the Board. However, it comes with a clause of tapering of the equity allocation after the age of 50 years.

Currently, NPS and APY have a cumulative subscriber base of over 2.13 crore with total Asset Under Management (AUM) of more than Rs. 2.38 lakh crore.

Source: PIB

NPS Subscribers: Submit FATCA Self-Certification through Online

Foreign Account Tax Compliance Act (FATCA) and Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI)

Ministry of Finance

Pension Fund Regulatory and Development Authority prescribes New NPS Subscriber Registration Form – Additional Mandatory Requirements

Pension Fund Regulatory and Development Authority (PFRDA) has been established by the Government of India for regulation and development of Pension Sector in order to protect the old age income security of subscribers. PFRDA takes various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS) like new functionality development under NPS architecture, simplification of account opening, withdrawal, grievance management etc. In this regard, it has been decided by the Authority to make bank account details and mobile no. mandatory to provide ease of operation for the benefit of subscribers and make the process of Exit from NPS hassle free.

Further, in compliance with the Prevention of Money Laundering Act guidelines issued by the Government of India, Foreign Account Tax Compliance Act (FATCA) and Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) have been made mandatory for new as well as existing subscribers. These have been made mandatory in the new Common Subscriber Registration Form (CSRF) forms that are required to be filled in by the new subscribers. The existing subscribers have been provided the facility to submit online FATCA Self-Certification in their login (www.cra-nsdl.com or https://enps.karvy.com/Login/Login ). The information regarding the said functionality is also made available on Central Record-keeping Agency (CRA) websites. The steps to be followed by the subscriber to submit online FATCA self-certification are also mentioned on the website.

It is to be ensured by the subscribers to fill the mandatory fields correctly and not leave them blank in order to avoid rejection of their forms.

How to know your FATCA Compliant Status – Click here

FATCA Self Declaration Format – Click here

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

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

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

Government of India(BHARAT SARKAR)

Ministry of Railways (RAIL MANTRALAYA)

(RAILWAY BOARD)

New Delhi, dated 13/02/2018

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

NPS Committee Report Finalised and Submitted to Govt – NC JCM Staff Side

Ph: 23382286

National Council (Staff Side)

Joint Consultation, Machinery

For Central Government Employees

13-C, Ferozshah Road, New Delhi – 110001

E.Mail : nc.jcm.np@gmail.com.

January 16,2018

Sub: New Contributory Pension Scheme setting up of the Committee – report reg.

Dear Sir,

As per the 7th CPC recommendations, Govt had set up a committee under the Chairmanship of the Secretary, to look into the various complaints received by the commission on the new contributory Pension Scheme. As the stake holders, we had interacted with the Committee. We have now come to know that the committee, having finalised its report, submitted the same to you.

We request that the Staff Side–JCM may be provided with a copy of the report and our views are heard and presented, before the Government takes a final view on the matter.

Thanking you,

sd/-

Yours faithfully,

Shiva Gopal Mishra

NATIONAL CONVENTION OF CENTRAL AND STATE GOVERNMENT EMPLOYEES – 10.06.2016 – DELHI

Decided to intensify joint struggle against NPS and outsourcing by organizing nationwide intensive campaign and mobilization leading to a bigger trade Union action including strike demanding “withdraw contributory Pension System and stop outsourcing of Government functions”.

About 1000 delegates, mostly NPS employees, participated in the National Convention held at MPCU shah Auditorium, Delhi on 10.06.2017. The National Convention was presided over by Com. K. K. N. Kutty, National President, Confederation of Central Government Employees & Workers and Com. Subhash Lamba Senior leader of All India State Government Employees Federation.

Com. Tapan Sen, MP, Rajya Sabha and General Secretary, CITU, who inaugurated the National Convention called upon the Central and State Government employees to launch sustained struggle for compelling the Government to withdraw NPS and stop outsourcing of Government functions. He explained in detail the impact of the neo-liberal policy offensives unleashed by the BJP-led NDA Government on the common people and working class of our country and also divisive politics of the ruling class to weaken the unity of the working class.

Com. A Sreekumar, General Secretary, AISGEF, presented the draft declaration for adoption in the convention.

Com. M. Krishnan, Secretary General, Confederation of Central Government Employees & Workers addressed the house supporting the declaration. Com. M. S. Raja, Com. R. N. Parashar (Confederation) Com. Ashok Thool, Com. Ved Prakash Sharma, Com. Gade Srinivasalu Naidu (AISGEF) also addressed the Convention. The house adopted the declaration and the proposed programme of action unanimously. Com. Mangul Kumar Das (AISGEF) Welcomed the leaders and delegates and Com. Vrigu Bhattacharjee (Confederation) proposed vote of thanks.

Extracts from the declaration adopted by the National Convention on 10.06.2017

“Defined Contributory Pension Scheme does not guarantee returns. Benefits depends upon as to how the investment has fared in the stock market. The stock markets have never remained strong over a long period of time. It is not only volatile but susceptible to manipulation and machinations. The global financial crisis in 2008 has been the product of investment derivative manipulations. It wiped out the earnings of lakhs of workers, employees, teachers and many others. No Government came to render help to those unfortunate losers, whereas bail-out packages of millions of dollars was roled out to rescue culprits. On one “fine” morning, the workers lost everything including hope.”

“Large number of employees have joined the Central Services since 2004 and so is the case with the various state Governments, who have adopted the Defined Contributory Pension Scheme in replacement of Defined Benefit Pension Scheme. It is estimated that they presently constitute almost one-third of the total employees in Government departments in the country. The deeper study of the functioning of the Contributory Pension Scheme has proved that the promised better returns in the form of Annuity is nothing but an ever eluding mirage.”

“It is satisfying to note that the employees due to the consistent efforts undertaken by the Confederation and State Government Employees Federation have begun to observe the dimension of the problem and the support and solidarity provided by the democratically elected Government to the corporate houses. It is also equally gratifying that the young comrades have also begun to realize that this has to be resisted and defeated.”

“The Government employees has to emphatically demand that the Defined Contributory Pension Scheme imposed in replacement of the Defined Benefit Pension Scheme must be scrapped to end the untenable discrimination of the Pre-2004 and post 2004 entrants to Government service and reintroduce the Defined Benefit Pension Scheme that was in vogue for a century and more. In other words the Government must come forward to amend PFRD Act to exclude the Central and State Government employees from its ambit and operation.”

“This National Convention being held under the auspices of the Joint platform of Confederation of Central Government Employees Workers and All India State Government Employees Federation calls upon all the Central and State Government employees to rally behind the charter of issues and demands included in the declaration adopted by the Convention, hold sustained and continuous programme of action and organize strike action to compel the Government to repeal the Defined Contributory Pension Scheme and halt all sorts of contractorisation, casualization and outsourcing of Government functions.”

“This convention also appeals, especially to the younger generation employees to realize that their hard earned savings are being channelized into the hands of the monopoly capital to subserve their efforts in maximization of profit. This convention also appeals to them to understand the politics behind the policies and the pernicious impact of the neo-liberal economic policies on the life and livelihood of the multitude of their countrymen and be part and parcel of the global and national resistance being built against the globalization policies for the intensification of which pension reform process and informalisation of employment was ushered in by the World bank and IMF.”

PROGRAMME OF ACTION

1. State level Joint Conventions before 31.08.2017 and formation of state level Joint Action Committees.

2. District/ Taluk level conventions before 31.10.2017.

3. Mass Dharna of Central and State Government Employees at all important centres on 21st November 2017 (21.11.2017, Tuesday).

4. Raj Bhawan March (date will be finalized later).

5. Nationwide campaign Jathas covering all districts of all states (dates will be finalized later).

6. Massive Parliament March (date will be finalized later)

Next Phase of action will be declared by the Joint Acton Committee before the Parliament March.

National Level Joint Action Committee

The following are the members of the National Level Joint Action Committee.

CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES & WORKERS

1. Com. K. K. N. Kutty 2. Com. M. Krishnan, 3. Com. M. S. Raja

4. Com. R. N. Parashar 5. Com. Rupak Sarkar 6. Com. Vrigu Bhattacharjee

7. Com. R. Seeethalakshmi

ALL INDIA STATE GOVERNMENT EMPLOYEES FEDERATION

1. Com. A. Sreekumar 2. Com. Subhash Lamba 3. Com. Mangul Kumas Das

4. Com. Himanshu Sarkar 5. Com. Vedprakash Sharma 6. Com. Ashok Thool

7. Com. Ashim Kumar Pal

TAKE A LEAD ROLE IN IMPLEMENTING THE PROGRAMMES

To,

1. All Affiliates of Confederation

2. All C-O-Cs

3. All National Secretariat Members

Dear Comrades,

You are requested to give wide publicity to the decision of the National Convention among employees and take a lead role in implementing the programme of action adopted by the Convention (as given above) in consultation and jointly with the All India state Government Employees Federation.

Fraternally yours,

(M. Krishnan)

Secretary General

Confederation

Mob & WhatsAPP – 09447068125

Email: mrksihnan6854@gmail.com

PENSION FUND REGULATORY

AND DEVELOPMENT AUTHORITY

g-14/A. Chhatrapati Shivaji Bhawan

Qutab Institutional Area.

Katwaria sarai. New Delhi-110016

01 March 2017

Yours faithfully

(AkhleSh Kumar)

Deputy General Manager

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.