New Pension Scheme for Workers without benefit of Formal Pension.

   There are 6.92 crores members under Employees’ Pension Scheme, 1995 as on 31.03.2012. However, to ensure the welfare of the workers who are not benefited by any formal pension scheme, the Government has announced a co-contributory pension scheme the ‘Swalalamban’ whereby the Central Government would contribute a sum of Rs.1,000 per annum in each New Pension System (NPS) account opened having a savings of Rs.1,000 – Rs.12,000 per annum. The Scheme commenced in 2010-11. The Government will provide contribution for 5 years to the beneficiaries who register in the year 2010-11, 2011-12 and 2012-13 and therefore, the scheme has been extended up to the year 2016-17.

Kerala to introduce contributory pension scheme for government staff.

   The employees would be required to contribute 10 per cent of their pay and dearness allowance to the pension fund. The government would also make a contribution to the fund.

   The government has issued orders approving, in principle, the proposed contributory pension plan for government employees. The plan is proposed to apply to new recruits joining service from next year.

   The employees would be required to contribute 10 per cent of their pay and dearness allowance to the pension fund. The government would also make a contribution to the fund.

   Pensions would be available to employees who contribute to the fund for a specified number of years. Payment of full pension by government would be discontinued.

New Pension Schemes

   The Government has implemented the New Pension System (NPS) for Government employees who join Central Government (except armed forces) on or after 1st January, 2004.

   The NPS and the old defined benefit (DB) pension system are two different pension systems. Therefore, there can not be any comparison between the two in so far as the benefits to employees are concerned. The Pension benefits under the DB system are defined, however, under NPS the amount of pension would depend on the investment returns, the accumulation upto the age of retirement and level of annuitisation and type of annuity chosen.

   Some representations of Employees’ Associations have been received by the Government. The major reasons for its opposition by the Employees’ Associations are minimum pension, safety and returns on investment. Many measures have been taken to protect the interests of the NPS subscribers, like prescribing a flexible investment pattern, establishing a regulator in the form of the Interim Pension Fund Regulatory and Development Authority and creating the modern institutional architecture of NPS, which is low cost.

  There is no proposal from the Government to reconsider the NPS.

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

PIB

Pension to Retired Employees.

   The Government had introduced the New Pension System (NPS) from 1st January, 2004 through a Notification dated 22nd December, 2003 for new entrants to Central Government service, on mandatory basis, except to Armed Forces, joining service on or after 01.01.2004 replacing the existing system of defined benefit pension system. NPS has also been extended to autonomous bodies, State Governments and un-organised sector. The employees working in Central Public Sector Enterprises (CPSEs) are not covered mandatorily under NPS. However, three CPSEs, viz Konkan Railway Corporation Ltd. Manganese Ore (India Ltd. ) and NALCO have adopted NPS on voluntarily basis with effect from 01.01.2004, 01.07.2011 and 01.01.2007 respectively.

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

PIB

Pension Scheme in Ordnance Factories.

   The new pension scheme has been implemented in all the ordnance factories including Jabalpur based ordnance factories.

   HVF NPS Reformation Association, Avadi filed an OA before CAT Madras Bench challenging the implementation of New Pension Scheme introduced by the Government of India as unconstitutional and violative of Article 14, 16 & 21 of the Constitution of India contending, inter alia, that new pension scheme does not guarantee any minimum return on investment of employees. A strike had been called on 28.2.2012 by All India Defence Employees Federation, Indian National Defence Workers Federation and BharatiyaPratirakshaMazdoorSangh jointly demanding to scrap the new pension scheme.

   No proposal for considering the implementation of old pension scheme in ordnance factories is under consideration

   This information was given by Minister of State for Defence Shri MM PallamRaju in a written reply to Shri Rakesh Singh in Lok Sabha today.

Source: PIB