Old Pension Scheme to Railway Employees

Grant of Old Pension Scheme to Young Employees Working in Railways

The Railway Board replied to the President of Akhil Bhartiya Railway Mazdoor Sangathan on 6th September, 2018

Government of India

 (Bharat Sarkar) 

Ministry of Railways 

(Rail Mantralaya) 

(Railway Board)

No.D-43/19/2017-F(E)III

Dated: 06.09.2018

Sh.Mangat Ram Saini, 

National President, 

Akhil Bharitya Railway 

Mazdoor Sangathan, 

125/R, Ram Nagar, 

Pathankot – 145001, 

Mob: 9464000303

Dear Sir,

Sub: Grant of Old Pension to the Young Employees Working in the Railway

Please refer to your letter dated 12.07.2018 on the above cited subject.

Check also various news about National Pension System

2. In this regard it is stated that the decision to implement the National Pension System (NPS) w.e.f.01.01.2014 for all recruits, is of the Government of India. The Ministry of Railways being an administrative Ministry in respect of Pensionery matters is bound to adhere to the decision taken by the Nodal Department, i.e., Department of Financial Services (Ministry of Finance).

The Ministry of Railways is not empowered to take any unilateral decision.

sd/- 

(G.Priya Sudarsani) 

Diector, 

Finance (Estt.) 

Railway Board

Source: Confederation

Read More »

Reversion to Old Pension Scheme for Personnel of Ministries

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/

Read More »

New Pension Scheme(NPS) Vs Old Pension Scheme(OPS)

New Pension Scheme(NPS) Vs Old Pension Scheme(OPS)

Various questions asked in Parliament regarding Old and New Pension Schemes on 10th August 2018 and the Minister replied for the questions are given below…

GOVERNMENT OF INDIA MINISTRY OF FINANCE LOK SABHA

UNSTARRED QUESTION NO: 4075 ANSWERED ON: 10.08.2018

Reintroduction of Old Pension Scheme

RAKESH SINGH 

Will the Minister of FINANCE be pleased to state:-

(a) the details of drawbacks of the New Pension Scheme (NPS) introduced for the Government officials; (b) whether the NPS is not as beneficial monetarily as the Old Pension Scheme (OPS) and if so, the details thereof; (c) whether the Government employees are disgruntled with the NPS and if so, the details thereof; and (d) whether the Government proposes to reintroduce the OPS replacing the NPS, if so, the details thereof and the action taken by the Government in this regard?

Also read: New Pension System (NPS) – NC JCM Staff Side

ANSWER

 The Minister of State in the

 Ministry of Finance

(a) & (b) National Pension System (NPS) has been designed giving utmost importance to the welfare of the subscribers. Government has made a conscious move to shift from the defined benefit pension scheme to defined contribution pension scheme i.e. NPS, due to rising and unsustainable pension bill. 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.

• 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.

• 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 (1B) of the Income Tax Act, 1961.

• Subscribers can withdraw up to 25% of their own contributions before attaining age of superannuation, subject to certain conditions. Further, PFRDA vide “PFRDA (Exits and Withdrawals under the NPS) (First Amendment) Regulations, 2017” dated 10.08.2017 has liberalized norms for partial withdrawals which also include reduction of requirement of minimum years of being enrolled under NPS from 10 years to 3 years from the date of joining. • PFRDA has increased the maximum age limit from 60 years to 65 years for joining NPS-All Citizen Model and Corporate Sector Model, vide “PFRDA (Exits and Withdrawals under the NPS) (Second Amendment) Regulations, 2017” dated 06.10.2017.

• PFRDA vide “PFRDA (Exits and Withdrawals under the NPS) (Third Amendment) Regulations, 2018” dated 02.02.2018 has facilitated easy exit & withdrawal in case of disability and incapacitation of the subscriber covered under NPS. • Transparency and Portability is ensured through online access of the pension account by the NPS subscribers, across all geographical locations and portability of employments.

Also read: Defined Contribution Pension Scheme (NPS) – Salient Features)

(c) & (d) Representations have been received which inter alia also include the demand that the Government may revert to old defined benefit pension system. However, due to rising and unsustainable pension bill and competing claims on the fiscal, 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.

Authority: https://loksabha.nic.in/

Read More »

Not Possible to Revert Back to Old Pension Scheme

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.

Read More »

Reversion to Old Pension Scheme

Reversion to old pension scheme

Ministry of Personnel, Public Grievances & Pensions Reversion to old pension scheme

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 date on which the vacancies arose or the date on which the examination was conducted for filling up the vacancies is not relevant for deciding the applicability of the Central Civil Services (Pension) rules, 1972.

Ministry of Home Affairs have not sought any advice from Department of Pension and Pensioners’ Welfare on the question of having a policy to cover the paramilitary personnel appointed after 01.01.2004 under the Old Pension Scheme on the ground that the vacancies arose, or the examination was conducted, in the year 2003. However, a reference was received from Ministry of Home Affairs in a specific case 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 on the basis of these selections 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. The decision taken in that case is, however, not relevant for deciding applicability of Central Civil Service (Pension) Rules to all appointments made on or after 01.01.2004 in the Central Para Military Forces or in any other Department/organization on the basis of year of examination/selection.

This information was provided by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, DrJitendra Singh in written reply to a question in Rajya Sabha today.

Source: PIB

Read More »

Old Pension Scheme to Casual Workers Regularized on or after Jan 2004 – CPAO

Old Pension Scheme to Casual Workers Regularized on or after Jan 2004 – CPAO

Procedure for extending the benefits of Old GPF / Pension Scheme to those casual workers covered under the Scheme of 1993 and regularized on or after 01.01.2004 CPAO/IT&Tech/Clarification/P&PW/13 (Vol-III)/2018-19/68

13.07.2018

Office Memorandum

Subject :- Procedure for extending the benefits of Old GPF / Pension Scheme to those casual workers covered under the Scheme of 1993 and regularized on or after 01.01.2004.

It has been observed that the pension cases of casual labour who were regularized on or after 01.01.2004 and eligible for old GPF/Pension Scheme vide DOPT OM No.49014/2/2014-Estt(C) dated 28.07.2016 have not been processed by the concerned Ministries/Departments. In order to avoid the hardship to the pensioners all the Ministries/Departments/PAOs have been requested to finalise the pension cases of the pensioners after following the procedure below:

1) Deptt. may issue the order that the old GPF Scheme/ Pension Scheme is applicable to the concerned official.

2) CPAO may be requested through concerned Pay & Accounts Office to stop Provisional Pension after cancellation of PPO, if issued.

3) NSDL may be requested by the concerned PAO to deposit the NPS subscription, Govt. Contribution plus interest thereon into the Govt. Account through ERM of NSDL.

4) On receipt of the amount it may be classified by the concerned PAO as below:

Sl.No	Component	Head of Account
i)	Adjustment of employee’s contribution in Accounts	Amount may be credited to the individual,s GPF Account and the account may be recast permitting upto date interest as applicable from time to time (FR-16 & Rule 11 of GPF Rule)
ii)	Adjustment of Government contribution under NPS in Accounts	To be accounted for as [-) Dr.to object Head “70 Deduct Recoveries under major Head 2071 – Pension and Other Retirement Benefits” and Minor Head “911 Deduct Recoveries of Overpayment” (Para 3.10 of List of Major Minor Heads)
iii)	Adjustment of increased value of subscription account of appreciation of investment	May be accounted for by crediting the amount to Govt. Account under Major Head “0071- Contribution and Recoveries towards pension and Other Retirement Benefits” and Minor Head “800-Other Receipts”. (Note under the above Major Head in List of Major Minor Heads)

5) GPF and Pension case of the concerned official may be processed as per the GPF Rules and CCS (Pension) Rules, 1972 after adjusting the Provisional Pension paid to the pensioner, if paid.

This issues with the approval of the Chief Controller (Pensions).

sd/- 

(Praful Dabral) 

Sr. Accounts Officer (IT & Tech)

Click to view order

Source: http://cpao.nic.in/

Read More »

Applicability of Old Pension Scheme to the substitutes who attained temporary status prior to 01.01.2004 and regularized after 01.01.2004— clarification regarding.

GOVERNMENT OF INDIA (BHARAT SARKAR)

MINISTRY OF RAILWAYS (RAIL MANTRALAYA)

(RAILWAY BOARD)

No.2012/F(E)III/1(1)/2

New Delhi, dated 14.11.2014

The General secretary,

NFIR,

3, Chelmsford Road,

New Delhi-110055.

Sub: Applicability of Old Pension Scheme to the substitutes who attained temporary status prior to 01.01.2004 and regularized after 01.01.2004— clarification regarding.

The undersigned is directed to refer to NFIR’S letter No. II/-16 dated 21.10.2014 on the above subject and to state that necessary instructions have been issued in this regard vide this office letter of even No. dated 29.10.2014 (copy enclosed).

Read More »