IS PENSION UNDER CCS (PENSION) RULES 1972 TO THE NPS SUBSCRIBERS POSSIBLE?

“YES”

An analysis

About the feasibility

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BY

K.SHANMUGASUNDARARAJ

POSTAL PENSIONER

&

SECRETARY

ALL INDIA POSTAL AND RMS PENSIONERS’ ASSOCIATION

ORGANISING SECRETARY, CHQ,

CONVENOR, CENTRAL, STATE, LOCAL BODIES AND PUBLIC SECTOR PENSIONERS’ FEDERATION, TIRUNELVELI

TAMILNADU

627002

Dear Comrade,

            I am a postal pensioner. I have put in 33 years of service as Lab Technician, Postal Dispensary, Tirunelveli 627001, in Tirunelveli postal division of Tamilnadu circle. Presently I am the secretary of the All India Postal And RMS pensioners Association, Tirunelveli and organizing secretary, CHQ. Also, I am the Convenor, Central, State, Local bodies and Public sector pensioners’ Federation, Tirunelveli.

            Everybody fights against this NPS within their ability. The Trade Unions, Pensioner’s associations took it seriously and continue their battle against the government. In this Herculean task, I wish to share the following for your consideration and to take the case at appropriate forum.

            The 7th Central Pay Commission has not made any specific recommendations with regard to NPS, but let it to be decided by the government. The government, in turn formulated a committee to consider this issue. Under these circumstances, I took this opportunity to submit my ideas.

            I took this opportunity of submitting this article about the feasibility of extending the CCS (Pension) Rules 1972 to the government servants who are covered under New Pension Scheme, with effect from 1.1.2004. You may be more informative about the aspects and dangers of the introduction of the NPS .

            The details of the NPS and its impact on the future pensioners have already been discussed and written elsewhere and almost nothing left. In this article I want to submit the negative aspects of the NPS and I try to make an alternative study about the investment of the contributions. The government shows its intentions to provide a social security in the form of a monthly pension to all the Indian Citizens, by introducing the Atal Pension Yojana scheme. At the same time it turns a blind eye to the claim of the NPS subscribers, especially the government servants joined service on or after 1.1.2004 for the benefits under CCS (Pension) Rules 1972. It is noteworthy that the reasons for the social security of the citizens in the words of the government are squarely applicable to these government servants also.

            The government introduced this NPS, citing pension, especially the pension under CCS (Pension) Rules 1972 as a financial burden to the government and also stating it widens the fiscal deficit. On the contrary it introduces pension schemes to the citizens of India and conducts intensive mobilization towards it. The scheme, Atal Pension Yojana, introduced by our Honorable Prime Minister is a fitting example. From this it is clear that the government is committed to provide a social security to the population, especially to the unorganized sector, by way of a assured monthly pension. At the same time it is not ready to consider the request of its employees for a defined pension under the old pension scheme.

            The government has the duty and responsibility to assure its pensioners a decent and dignified retired life. The government cannot escape its responsibility by stating it is a financial burden or fiscal deficit. The Supreme Court in its landmark judgment in D.S.Nakara & others vs. union of India, 1982 categorically stated that pension is a right. The government wants to discharge its duty and responsibility for pension just by introducing this NPS, offering a contribution on its behalf and left all other things to be decided by the market. I wish to stress that the government is prepared to pay 10% contribution to this NPS as matching.

            This article is about the study of this 10% government contribution into well- established schemes and to see its growth. From this study I came to the conclusion that the growth of this government contribution alone is more than enough to extend the benefits under CCS (Pension) Rules 1972. In fact, the extension of old pension rules is cheaper than this contribution.

            Let us start my study with the following question.

“For the government, 10% contribution to NPS is possible.

Is it possible to extend the CCS (Pension) Rules 1972 instead of NPS ?

The answer is “possible”.

            I request you to kindly go through this, and continue your endeavor to bring back all the government servants covered under NPS to the CCS (Pension) Rules, 1972.

                                                                                                /K.SHANMUGASUNDARARAJ/

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Thanks to

Shri.  K.SHANMUGASUNDARARAJ, POSTAL PENSIONER & SECRETARY

ALL INDIA POSTAL AND RMS PENSIONERS’ ASSOCIATION

ORGANISING SECRETARY, CHQ,

CONVENOR, CENTRAL, STATE, LOCAL BODIES AND PUBLIC SECTOR PENSIONERS’ FEDERATION, TIRUNELVELI , TAMILNADU - 627002