NCCPA CIRCULAR and STAFF SIDE ON OPTION No.1 and NPS & other issues:
NCCPA Circular with the copy of letter written by the Staff Side Secretary JCM National Council to the Secretary Pension is placed hereunder for the information of all. Comrades are requested to take copy of the same and circulate to our members - KR GS AIPRPA
NATIONAL CO-ORDINATION COMMITTEE OF PENSIONERS.
Website:
nccpahq.blogspot.in.
13C,
Feroze Shah Road,
New Delhi. 110 001
20.02.2017
President: Com. Shiv Gopal
Misra.
Secretary General: Com. K.KN. Kutty.
Dear Comrade,
On 10th
February 2017, the Sub Committee 3 met the Staff Side JCM. As you are aware,
the Government had set up a committee to streamline the NPS on the
recommendations of the 7th
CPC. On a plain reading of the 7th CPC comments on NPS. It
would be evident that the commission wanted the Govt to go into various
grievances/ complaints raised by the stake-holders. The Commission had
pointedly referred to the pension(Contributory) System prevalent in various
other countries and the need for a minimum guarantee on the investments. The
Staff Side had therefore nursed the hope that though the contributory system
may not be scrapped the Govt. might bring about necessary changes so that the
subscribers would be able to have a minimum guaranteed pension. In fact the
official side had assured the S/s in an
earlier meeting that the benefit of annuity would not be less than the earlier
defined pension benefit.. In other words they had expressed that the annuity
would be more than 50% of the last Pay drawn. The Parliamentary Committee,
which considered the PFRDA bill had opined that the subscribers must be
provided with such a guarantee. The committee was headed by Shri. Yeswant Sinha
, former Finance Minister and BJP MP. The UPA II Govt. rejected this demand
while passing the Bill for which BJP voted in favour. Despite all these
happenings one still nurses the
hope. That is what optimism is all about.
In the
first meeting of the committee chaired
by the secondary Pension, Staff Side was given an opportunity along with
many others to present their case. There had been many who had gate crashed
into that meeting, mostly the Associations representing all India and organised
Group A services. Every one of the spoke and spoke elaborately of the various
facets and defects of the Scheme, but not suggesting any
remedial measures. To a specific
quarry, the spokesperson of the Finance Ministry categorically stated that no
guaranteed minimum pension could be stipulated and quoted the provisions to
that effect in the Act itself. In our last circular we had enclosed the copy of
the submissionsmade by the Staff Side.
During the deliberations of the Sub Committee 3 also Staff side has
presented its views on various queries raised by the official side. A copy of
the Staff Side letter is enclosed. The official side has made it categorically
clear that it was not in their province
to make any changes in the basic features of NPS and therefore no guaranteed
pension or annuity could be offered.
The
significant feature of the discussion was as to how to import the punitive
provisions of the CCS(pension) Rules 1972, when an individual employee is
proceeded against under the CCS(CCA) Rules. The Staff Side has categorically
and emphatically pointed out that the contributory Pension Scheme is a
financial transaction between the
employer and the employee and the money
so collected stands transferred to the
investment company, with clear
instructions on the pattern of
investment. In that situation, it
would not be possible for any party to amend or rescind any of the instructions
issued to the investment company or withhold the proceeds thereof. The sub-committee will now make over its
report in all probability without giving any cognizance of the staff side view
as they have done in the case of Option No. 1
As we had
indicated in our earlier communication, in the case of option No. 1 which has
been rejected by the pension Department stating the most untenable argument of
infeasibility, we are left with no option but to knock at the doors of courts.
As a preliminary measure we must now collect the names of those persons who
would stand to benefit if option No.1 is implemented. Before we decide to file
the Secretariat of NCCPA will discuss
the matter and will take appropriate decision.
In the
meantime as you are aware the CGEs under the banner of Confederation will be on
Strike on 16.03.2017 inter alia
raising the issue of Option No.1
and NPS. We must express our solidarity and support to the striking workers. We
may suggest that in all state capitals the affiliates of NCCPA may jointly
organise demonstrate in front of an identified Central Government office by
wearing badges with the following inscription on it.
Allow Option 1. For Pension Fixation
Exclude CGEs from NPS
With greetings,
Yours fraternally,
Sd/-
K.K.N.Kutty
Copy of letter from the Secretary staff Side to the Chairman,
Sub-Committee III of NPS Committee.
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 sub committees 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 from the employees was
introduced without causing any consultation with the employees organizations in
the JCM forum and amounts to 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 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)
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 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.
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,
extra ordinary leave (i.e. leave without pay),
unauthorized absence
Contribution
during suspension : 10% of the subsistence allowance and Govt. contributes 10%
of the entitled full salary
Extra
Ordinary leave – No contribution
Unauthorized
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 he
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, 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 for 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,
Sd/-
(Shiva
Gopal Mishra)
Secretary
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