No.NC-JCM-2020/CS/PM/NPS
March 2,2020
The Cabinet Secretary
&
Chairman
National Council (KM)
Cabinet Secretariat, Rashtrapati Bhawan,
New Delhi
Subject: Withdrawal of NPS and reintroduction of Old Pension Scheme under CCS (Pension) Rules, 1972 to the Central Government Employees recruited on or after 01.01.2004.
Reference : Department of Pension and Pensioners Welfare OM 57/04/2019-P&PW(B) dated 17th February, 2020.
Dear Sir,
Your kind and immediate attention is
drawn to the above mentioned subject, You are aware that the entire
Central Government Employees are opposing the National Pension System
((NPS) imposed arbitrarily by the Government on the Central Government
Employees who are recruited on or after 01′ January, 2004. The Staff
Side of the National Council (JeM) is repeatedly representing to the
Government to withdraw the NPS and reintroduce the Old Pension Scheme
under CCS (Pension) Rules, 1972 to the Central Government Employees
recruited on or after 01.01.2004,
This issue was discussed as an Agenda
Item (2. [tern No. 02/051NC-44) in the 44th Ordinary Meeting of National
Council (JCM) held on 28th May, 2005 under the Chairmanship of Cabinet
Secretary. In this meeting the Staff Side have specifically stated that
“they ould not accept the new to disagree.” The Official Side
reiterated that the new Scheme was a Defined Contribution Scheme which
is fundamentally different from a Defined benefit Scheme. Financial
compulsions have necessitated to shift to the New Scheme,
The Official Side, however, stated that the views and concerns of the Staff Side have been noted.
Staff Side requested that action taken on the views noted may be reported and further discussed.
The issue was again discussed in the
45th Meeting of the National Council (JCM) held on 14’s October, 2006,
as Agenda Item (Item No, 03106INC-45). In this meeting the Staff Side
has stated “The new Scheme that has been imposed on the new entrants to
Government service (recruited after 01.01.2004) is not acceptable, as
the same is subject to the vagaries of the stock market “
Further again the issue was discussed in
the meeting of the Standing Committee of the National Council (JCM)
held on l4th November, 2006, the Staff Side once again oppose the NPS
and reiterated their demand for withdrawing the NPS.
The Staff Side again raised the issue in
the Standing Committee Meeting of the National Council (JCM) held on
14th December, 2007, wherein the Official side gave the following
assurance, “For employees who had entered w.e.f 01.01.2004 are not
likely to be worse off vis-a-vis the current Pension system in force, as
the replacement rate would match to the present one Thus, NPS is a
win-win situation for employees and the Government”
However, the above assurance given by
the Government has proved to be false since at present the employees who
are appointed after 01.01.2004 and governed under the NPS have now
started retiring from service and they are getting a very meagre Pension
of Rs. 2,000/- to 3,500/- per month, whereas the minimum Pension under
the Government of India to the Central Government Employees is now Rs.
9,000/- + DR.
Considering the above situation we once
again represented the matter before the 7th CPC and based on the 7th
CPCs recommendation, Government constituted a Committee on NPS. The
Staff Side submitted its detailed Memorandum to the Committee and also
appeared in person before the Committee and have reiterated our position
that the Central Government Employees as a whole must be fully excluded
from the ambit of the Defined Contributory Pension Scheme, since it has
taken away the benefit of defined and guaranteed Pension to the Central
Government Employees.
The issue was once again raised by the Staff Side in the meeting of
the Standing Committee of National Council (JCM) held under the
Chairmanship of Secretary DOP&T. The extract of the Minutes is given
below for your ready reference.
“Item No. 7 : Scrap PFRDA Act and re-introduce the Defined Benefit Statutory Pension Scheme
Staff Side told that they reiterate
their stand in that, the NPS should be scraped and the Defined
Guaranteed Pension under the CCS (Pension) Rules, 1972 should be
restored to the employees. who were recruited on or after 01.01.2004.
They also demanded that GPF facility may be provided to the NPS governed
employees on an optional bask
Chairman desired that the Department of Pension mar consider the demand in reference to GPF of the Staff Side.”
The Staff Side again raised the issue in
the presence of the then Cabinet Secretary in the National Council (KM)
Meeting held on 13,04.2009. The relevant portion of the Minutes of the
Meeting is given below :-
“4.3 Withdrawal of NPS and
re-introduction of Defined pension under CCS (Pension) Rules, 1972/ he
emphasized the Government to recommend at least 50% of the last pay
drawn as minimum Pension to the retired / retiring central Government
Employees.”
“5.14 Secretary, Staff Side stated that
they were opposed to APS and demanded that the Old Pension Scheme be
restored. He further stated that the Government should guarantee Pension
of 50% of the last pay drawn to the employees recruited on nor after
01..01.2004. He further demanded facility of GPF and Family Pension to
all employees.”
From all the above deliberations which
have taken place in the National Council (JCM) you will appreciate that
how serious the issue is.
In this situation the Department of
Pension and PW vide OM No. 57/04/2019-P&PW (B) dated 17th February,
2020 have issued an instructions extending the benefit of the Old
Pension Scheme to a particular section of employees. The relevant
portion of the DOP&T OM dated 17th February, 2020 is given below for
your kind ready reference.
“4. ……..in all cases where the results for recruitment were declared
before 01.01.2004 against vacancies occurring on or before 31.12.2003,
the candidates declared successful for recruitment shall be eligible for
coverage under CCS (Pension) Rules, 1972. Accordingly, such Government
servants who were declared successful for recruitment in the results
declared on nor before 31.12.2003 against vacancies occurring before
01.01.2004 and are covered wider the National Pension System on joining
on or after 01.01.2904, may be given a onetime option to be covered
under the CCS (Pension) Rules, 1972.”
Already the Government employees are
divided into two classes, one making subscription and another making no
subscription but receiving 50% of the last Basic Pay as Guaranteed
Pension. Now by the above mentioned DOP&T OM again another class of
employees within the NPS Scheme has been introduced. This has resulted
in lot of discontentment amongst the Central Government Employees.
Therefore, without prejudice to our right to continue to represent to
the Government to withdraw the NPS and to reintroduce the Old Pension
Scheme under CCS (Pension) Rules, 1972 to all the Central Government
Employees especially those who are recruited on or after 01.01.2004, we
suggest the following as an immediate redressal of the grievance.
1) All the Central Government Employees
who were recruited against the available sanctioned vacancies in
different categories during the Year 2003, irrespective of the fact that
whether selection process was completed on or before 31,12.2003, or the
Notification Call Letter I Interview I Selection process was completed
on any year after 31.12.2003, but vacancies on the particular post were
available on 31.12.2003, all such cases should be brought under the
coverage of the Old Pension Scheme, since the recruitment process was
delayed by the concerned Departments even though vacancies were
available on 31,12.2003. In a nutshell all those employees irrespective
of their date of recruitment / selection who were recruited against the
available vacancies as on 31.12,2003 should all be brought under the Old
Pension Scheme under CCS (Pension) Rules, 1972.
2) As assured in the National Council
(.1CM) Meeting, GPF Scheme may be introduced to the employees governed
under NPS at present.
3) As demanded by the Staff Side 50% of
the last pay drawn should be guaranteed as Pension under the NPS Scheme
till the Government withdraws the NPS for Central Government Employees.
Conclusion
We request you to convene a meeting of
the Standing Committee of the National Council (JCM) under your
Chairmanship to discuss the entire issue and to reach an amicable
settlement.
Thanking you,
Yours Sincerely,
(SHIVA COPAL M1SHRA)
Secretary
Secretary
