GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
LOK SABHA

UNSTARRED QUESTION NO: 5486
ANSWERED ON: 28.03.2018

Scrapping of New Pension Scheme

Raghu Sharma
BHAIRON PRASAD MISHRA
SUKHBIR SINGH JAUNPURIA
MOHANBHAI KALYANJIBHAI KUNDARIYA

Will the Minister of PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS be pleased to state:-

(a) whether the Government has received requests for scrapping the New Pension Scheme;
(b) if so, the details thereof and the response of the Government thereto;
(c) whether the Government proposes to re-introduce old pension scheme in place of New Pension Scheme (NPS);
(d) if so, the details thereof and whether the Government has received request for the same, if so, the details thereof; and
(e) whether the NPS is more beneficial to the employees than the old pension scheme and if so, the details thereof?

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)

(a) to (d): Representations have been received regarding the implementation of National Pension System (NPS) which, inter alia, include demand that NPS may be scrapped and the Government may re-introduce old defined benefit pension system.

Government has made a conscious move to shift from the defined benefit pay-as-you-go pension scheme to defined contribution pension scheme, now called as National Pension System (NPS), after considering the rising and unsustainable pension bill. The transition also has the added benefit of freeing the limited resources of the Government for more productive and socio-economic sectoral development.

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.

(e): National Pension System (NPS) had been designed giving utmost importance to the welfare of the subscribers. There are a number of benefits available to the employees under NPS. Some of the benefits are enlisted below:

• 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 record keeping 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 interest of subscribers of NPS.

• Dual benefits 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– Contribution made to the NPS Tier-I account is eligible for tax deduction under the Income Tax Act, 1961. An additional tax rebate of Rs.50000 is also allowed for contributions made to NPS Tier-I under Section 80CCD (IB) 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 before attaining age of superannuation, subject to certain conditions.

The amount of monthly annuity payable to a Government servant on exit from NPS depends upon various factors such as accumulated pension wealth of the Government servant, portion of accumulated pension wealth utilized for the purchase of annuity and the type of annuity purchased.

Under the defined benefit pension system applicable to Government servants appointed before 01.01.2004, pension is calculated based on qualifying service and the last pay drawn by the Government servant.

According to the Consumer Price Index (CPI) released by the Labour Bureau, the IDA will be 127.2% from 01-04-2018, an increase of 0.3%. 126.9 + 0.3 = 127.2%.

The orders may be issued in due course.

The circular detailing the decisions of the meeting is reproduced below; 

ALL UNIONS AND ASSOCIATIONS OF BSNL

No: UA/2017/14 27.03.2018

To All the General Secretaries

. Comrade,

After today’s demonstration programme, that was held in front of the Sanchar Bhawan, an emergency meeting of the AUAB was held in FNTO’s office. The meeting was presided over by Com.Chandeshwar Singh, GS, NFTE BSNL. Representatives of BSNLEU, NFTE, SNEA, AIBSNLEA and FNTO attended this meeting. The following decisions are taken:-

(1) The meeting thanked and congratulated all the comrades who participated in today’s demonstration in front of Sanchar Bhawan, defying the prohibitory orders of the police, and making the demonstration a resounding success.

(2) The meeting decided that the AUAB should intensify it’s struggle, demanding the rolling back of the Subsidiary Tower Company. To achieve this, it is decided that massive dharnas should be conducted at the Corporate Office, circle and district levels on 12.04.2018. It is also decided that the AUAB should inform the BSNL Management that, the employees will go on indefinite strike, if the BSNL Board gives it’s approval to the direction of DoT, for making the Subsidiary Tower Company operational.

(3) The meeting reviewed the progress in the wage revision matter. As agreed upon in the meeting held with the Hon’ble MoS(C) on 24.02.2018, the DoT has sent the file for the approval of the DPE. It is decided that the leaders of AUAB shall meet the Secretary, DPE, tomorrow the 28.03.2018, to press for an early approval by the DPE.

(4) It is decided that “March to Governor’s Residence” programme should be conducted in all circle head quarters on 19.04.2018, and memorandum should be submitted to the Governor’s. This “March to Governor’s Residence” should be effectively utilised to make a campaign among the general public, against the Subsidiary Tower Company.

(5) The meeting decided that a National Convention should be organised in the Mavalankar Hall at New Delhi, on 09th or 10th May, 2018, demanding the rolling back of the Subsidiary Tower Company. It is also decided that prominent MPs should be invited to address this Convention. –

Comrades,

It is a do or die battle, involving the very survival of BSNL. So nobody ,who wants BSNL to continue as a viable PSU extending telecom services to the people of all parts of the country at affordable rates, could be a mere on looker , when an agitation for protecting it takes place. So as in the past, AIBDPA also should be part of this struggle. CHQ office bearers, Circle Secretaries and District Secretaries are requested to take the initiative to ensure maximum participation of pensioners in the Mass Dharna on 12-04-2018 and the March to Governor’s Residence (Raj Bhawan) on 19-04-2018.

, Third biennial conference of AIBDPA Tirupati district was held on 26.03.2018 at Youth Hostel, Tirupati, under the presidentship of Com.Y.N.Murthy. Com. Raja Reddy, District Secretary welcomed and presented secretary’s report and accounts.More than 100 delegates attended. Com. K.S.C.Bose CS AP Circle, Com. Ramachandrudu CS Telangana Circle addressed the house and explained the position of pension revision and other organisational matters and advised the members to further strengthen the organisation. 7 pensioners who completed 80 years of age were felicitated in the conference.

The Delhi police tried all forms tactics to avoid the demonstration at the Sanchar Bhawan and its vicinity. They even locked all the gates of BSNL corporate office and prevented the employees to come out and join the demonstration. Inspite of all these the leaders were determined to hold the demonstration. Thus,defying the prohibitory orders, a powerful demonstration was held before theSanchar Bhawan on 27-03-2018 and all 150 comrades participated were arrested and removed to the Parliament street police station. However all were allowed to go later, after collecting the details of the general secretaries. Coms. P.Abhimanyu, General Secretary, BSNLEU, C.Singh, General Secretary, NFTE-BSNL, Prahlad Rai, General Secretary, AIBSNLEA, G.L.Jogi, Chairman, SNEA, Suresh Kumar, General Secretary, MSNLMS, K.Jayaprakash, General Secretary, FNTO etc led the demonstration.

Similar demonstrations were conducted all over the country in which thousands of employees participated. Pensioners also participated in almost all circles as per the call of CHQ,AIBDPA.

CHQ heartily congratulates all the participants.

HUBLI- AIBDPA comrades under the leadership of Coms.G.G.Patil, AGS and A.D.Kulkarni, DS also participated.

THIRUVANANTHAPURAM CGMT OFFICE- Com.C.Santhoshkumar, Circle Secretary, BSNLEU addressing.

VISAKHAPATNAM.

The 3rd biennial conference of Tirunelveli District branch has been held befittingly at Navajeevan Building on 25-03-2018. Com.S.Muthuswamy, District President controlled the proceedings. Com.D.Gopalan , District Secretary welcomed all. Com.S.Mohandoss, CHQ Vice President inaugurated the conference with an educative and encouraging speech covering the issues of the pensioners , present position of pay revision and pension revision and the importance of struggles to achieve the demands and to resist the onslaught of the BJP government.

Coms.C.K.Narasimhan, Circle Secretary delivered the keynote address and explained the organisational issues. Com.K.Kaliprasad, CHQ Organising Secreatry made a special address. A host of leaders greeted the conference.

Office bearers were elected unanimously with Coms. S.Muthusamy (President) D.Gopalan (District Secretary) and V.Seethalakshmi (Treasurer)

Despite stiff opposition by the entire employees against separate tower company, the government is going ahead to operationalise its functioning from 01-04-2018. The sinister move is to eliminate BSNL and give complete monopoly of telecom services to the private telecom companies. This has to be resisted tooth and nail and All unions and Associations have rightly decided to oppose it and has called for  Lunch Hour Protest Demonstration on 27-03-2018 at Corporate Office, Circle Offices and SSAs.

AIBDPA fully endorses the decision and requests all its units to participate in the program at all levels.

A new branch was formed at Phulera under Jaipur District . The meeting in this connection was held on 22-03-2018. Com.K.P.Sharma, CHQ Vice President and Circle President inaugurated the meeting. Com.Kabool Singh, District President presided over the meeting. Coms.M.K.Nagpal, Circle Secretary, and Harinarion, Asst. Circle Secretary also addressed the meeting.

Coms. Moolchand Prjapat, B.L.Verma and Suraj Mal were elected unanimously as President, Secretary and Treasurer , respectively.

Department of Pensioners and Pensioner welfare has issued DR Order to increase the rate of Dearness Relief from 1.1.2018.

No.42/06/2018-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003

Dated the 22nd March,2018

OFFICE MEMORANDUM

Sub: Grant of Dearness Relief to Central Government pensioners/family pensioners – Revised rate effective from 01.01.2018.

The undersigned is directed to refer to this Department’s OM No. 42/15/2016-P&PW(G) dated 28.09.2017 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Relief admissible to Central Government pensioners/family pensioners shall be enhanced from the existing rate of 5% to 7% w.e.f 01.01.2018.

2. These rates of DR will be applicable to (i) Civilian Central Government Pensioners/Family Pensioners including Central Govt. absorbee pensioners in PSU/Autonomous Bodies in respect of whom orders have been issued vide this Department’s OM No.4/34/2002-P&PW(D) Vol.II dated 23.06.2017 for restoration of full pension after expiry of commutation period of 15 years (ii) The Armed Forces Pensioners, Civilian Pensioners paid out of the Defence Service Estimates, (iii) All India Service Pensioners (iv) Railway Pensioners/family pensioners (v) Pensioners who are in receipt of provisional pension (vi) The Burma Civilian pensioners/family pensioners and pensioners/families of displaced Government Pensioners from Burma/ Pakistan, in respect of whom orders have been issued vide this Department’s OM No.23/3/2008-P&PW(B) dated 11.09.2017.

3. These orders shall not be applicable on CPF beneficiaries, their widows and eligible children who are in receipt of ex-gratia payment in terms of this Department’s OM No.45/52/97-P&PW(E) dated 16.12.1997 and revised vide this Department’s OM 1/10/2012-P&PW(E) dtd 27.06.2013.

Separate orders will be issued in respect of above category.

4. The payment of Dearness Relief involving a fraction of a rupee shall be rounded off to the next higher rupee.

5. The payment of arrears of Dearness Relief shall not be made before the date of disbursement of pension/family pension of March, 2018.

6. Other provisions governing grant of DR in respect of employed family pensioners and re-employed Central Government Pensioners will be regulated in accordance with the provisions contained in this Department’s OM No. 45173/97-P&PW (G) dated 2.7.1999 as amended vide this Department’s OM No. F.No. 38/88/2008-P&PW(G) dated 9th July, 2009. The provisions relating to regulation of DR where a pensioner is in receipt of more than one pension will remain unchanged.

7. In the case of retired Judges of the Supreme Court and High Courts, necessary orders will be issued by the Department of Justice separately.

8. It will be the responsibility of the pension disbursing authorities, including the nationalized banks, etc. to calculate the quantum of DR payable in each individual case.

9. The offices of Accountant General and authorised Pension Disbursing Banks are requested to arrange payment of relief to pensioners etc. on the basis of these instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India in view of letter No. 528-TA, II/34-80-U dated 23/0411981 of the Comptroller and Auditor General of India addressed to all Accountant Generals and Reserve Bank of India Circular No. GANB No. 2958/GA-64 (ii) (CGL)/81 dated the 21st May, 1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.

10. In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue after consultation with thc C&AG.

11. This issues in accordance with Ministry of Finance, Department of Expenditure’s OM No. 11/2018-E.U(B) dated 15th March,2018.

12. Hindi version will follow.

sd/-
(Charanjit Taneja)
Under Secretary to the Government of India