Views of NC/JCM staff side to Committees on NPS

No.NC.JCM-2016/Pension (NPS)

February 10,2017

The Chairman,

Sub-Committee III on NPS

Dept of Pension & Pensioners Welfare

3rd Floor, Lok Nayak Bhawan, Khan Market,

New Delhi

Dear Sir,

Thank you very much for your letter No 57/2016-P&PW(B) dated 31st January 2017 and the decision to reschedule the meeting at our request.

We find from your letter cited that the Committee set up by the Government to streamline the NPS has delegated the task to different Sub-Committees and we are before the Sub-Committee No III. Since the identified task of each subcommittee is not made known, nor even as to how such many subcommittees are set up, we may not be able to make a comprehensive presentation on NPS. On 20th January 2017, we had made a written presentation of our views in the matter. We attach the said letter to this communication and reiterate the views conveyed therein.

1. The entire Central and State Govt Employees of the Country must be excluded from the purview of the NPS and consequently of PFRDA Act for the elaborate reasons mentioned in our Memorandum to 7 CPC. The National Pension Scheme which is based on defined mandatory contribution with the employee's organisations in the JCM forum and amounts as unilateral and arbitrary withdrawal of an existing benefit, which is clearly impermissible. We give hereunder our comments on each of the issues raised in the letter cited.

2.Without compromising on the above position,. We request that benefits defined under the CCS (Pension) Rules, 1972 as amended on a date must be the pension and other entitlements in the case of all Central And State Govt. employees. In other words, every employee who retires after completion of 20 years of service must be given-

Pension @50% of the last pay drawn or average emoluments of the last 10 months whichever is beneficial to the employee along with the appropriate Dearness Relief, subject to the minimum pension under the Rules as is amended from time to time.

On his death as Pensioner, family members shall be entitled to family Pension, subject to the specified minimum amount of family pension, stipulated by the Government from time to time along with appropriate Dearness Relief. Besides, all persons on retirement will be entitled to Gratuity as specified under extant Rules.

(A) The framing of rules on service matters of NPS employees including the following:

(i) Provision of an option for entitlements under old pension scheme on death, disability or invalidation during service

There cannot be a provision for the option. The stipulation of pensionary benefit afforded under the extant rules / CCS(Pension) Rules be extended to them. The provisional pension benefit orders issued by the Govt. is to be continued or made permanent.

(ii) Family for the purpose of payment of annuity

Family definition must be as is provided for the present CCS (Pension) Rules

(iii) Contribution during suspension, extraordinary leave (i.e.leave without pay), unauthorised absence

Contribution during suspension: 10% of the subsistence allowance and Govt.

Contributes 10% of the entitled full salary

Extra Ordinary leave-No contribution

Unauthorised absence-No contribution

(iv) Entitlements/deductions on dismissal / removal during service

Entitlement/deduction on dismissal/removal during service – Return of the Contributions made by the official and the Govt on his behalf. If the purchases an annuity by investing the funds so received, the said annuity must not be in any case less than 1/3rd of the last pay drawn by the dismissed/removed official.

(v) Withholding of NPS funds due to departmental/judicial proceedings pending at the time of retirement.

Neither the Pension fund be withheld nor the entitled defined benefit pension. In other words, the pension must be delinked from any disciplinary proceedings.

(vi) Departmental proceedings after retirement for the alleged misconduct during service.

It must not have any bearing on the Pension entitlements of an official who is subscriber to NPS

(vii) Withholding of annuity on account of future misconduct

Does not deserve any comment

(viii) Voluntary retirement of NPS employees

Voluntary retirement is presently afforded after 20 years of service. Therefore, the official will be entitled to full pension

(ix) Commercial employment of NPS employees after retirement.

Must not have any bearing on pension entitlement.

B. Provision of GPF for the NPS employees

May be provided as a voluntary option to all officials.

Thanking you,

Yours faithfully,

(Shiva Gopal Mishra)

Secretary