Memorandum to PM: Scrap NPS restore OPS
REF: BPMS/ PMO/ Memorandum/ 117(7/4/R)
The Prime Minister,
Govt of India,
South Block, Raisina Hills
New Delhi – 110 011
Subject:- Submission of Memorandum.
Through this memorandum, your kind attention is invited to the discontentment, resentment,
displeasure and woe of employees left to their ill fate on depriving of guaranteed minimum pension under
NPS or any other pension scheme equal to half of their last Pay and delinking of the same from Inflation.
It has always been expected from a Govt to play a role of ideal employer for its employees and
protector for the citizens of India who are contributing continuously for the progress of the country and
assure social security to its employees as well as citizens.
Every employee whether he belongs to Govt Industry of any Private Industry dedicates his skill,
power and energy to his employer till superannuation or until he lost his capacity to do so and gets
remuneration to fulfil his requirements. After superannuation or being incapacitated by whatsoever reasons he becomes unable to serve to get remuneration but his requirement does not end.
Then the onus is on the employer to mitigate the hardships faced by the employee. This social
security cannot be measured by solely market related factors. Under Central Govt Sectors, this responsibility was borne by the Govt. as it compiled the CCS (Pension) Rules-1972. Later, Govt. introduced Employees’Pension Scheme- 1995 for change over from contributory provident fund to pension scheme.
Now market related factors have compelled the Govt. to deviate to bear its responsibility of social
security as an employer. Govt. succumbed to this pressure and introduced New Pension Scheme (Defined Contributory Pension Scheme) applicable to Central Govt Servants who join on or after 01.01.2004.
As per this New Pension Scheme 10% of Basic Pay+ DA is being recovered from the employees as
a compulsory deduction and government is also contributing 14% of Basic Pay + DA of the employees. A
government servant can exit at or after the age of 60 years and it would be mandatory for him to invest 40 per cent of pension wealth to purchase an annuity which will provide for pension for life time of the employee and his dependent parents/ spouse.
But the above mentioned method lacks of the following benefits required to the employees for their
- This new system has no minimum guaranteed Pension.
- There is no safeguard from price hike in absence of dearness allowance on pension.
- No benefit of additional pension on attaining age of 80 years, 85 years, 90 years, 95 years, 100
- No safeguard, in case of missing employees.
- Compulsory retirement pension.
- Compensation Pension
From above it is established that the new entrants will not be eligible for Superannuation Pension,
Compensation Pension, Compulsory Retirement pension, Compassionate Allowance etc. Any scheme not containing the above benefits is not accepted to the employees.
Introduction of New Pension Scheme/ National Pension Scheme (NPS) for Central Government
Employees w.e.f 01.01.2004 has adversely affected the concept of social security provided by the
Government and it has put the future as well as retirement security (social security) of the employees at
stake in lack of guarantee of minimum pension under the scheme. In place of adopting progressive and
dynamic approach for the assets of the society viz retired employees, Govt adopted a retrograde policy with no guaranteed pension, no safeguard from erosion caused by inflation etc. Likewise, other pension schemes also have the many anomalies.
Sir, on the occasion of the election of five states, many political parties has assured the employees
in their manifesto that if they come into power, they will implement the old pension scheme. These
announcements have also aroused the feeling among the central government employees that the central
government should also bring its employees under the old pension scheme.
This agitation programme from 3rd May to 6th May has been conducted by the employees to draw
your attention towards the deprived employees for assurance of safe old age.
Therefore, you are requested to look into the following demand and do the needful for earliest
redressal of them-
Scraping of NPS and restoring of CCS (Pension) rules, 1972.
Guaranteed Minimum Pension equal to half of last drawn salary in NPS and Linked with Dearness / inflation.
General Secretary/ BPMS &
Member JCM II Level Council (MoD)