Employees union demands to modify NPS to make it ‘one nation, one pension’ scheme
New Delhi: Demanding ‘one nation, one pension’ scheme, an employees’ organisation has asked the Centre to consider changes in the National Pension System (NPS) to ensure socio-economic security of lakhs of employees.
The National Movement for Old Pension Scheme (NMOPS), an umbrella body of more than 14 lakh central and state government employees, has written to Union Finance Minister Nirmala Sitharam and Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh in support of their demands.
In the NPS, after retirement there is no guarantee of half of the last basic salary drawn and dearness allowance as pension, said the letter written by president of NMOPS Delhi unit, Manjeet Singh Patel.
So in case of less years of service, retirees are getting very little pension like Rs 500 to Rs 5,000, said the letter, adding that the old pension scheme provides guaranteed minimum pension of Rs 9,000 at retirement.
The NMOPS urged the ministers to make the NPS system a universal platform of pension for different types of employees serving under central autonomous bodies and public sector units among others, close on the lines of ‘one nation one ration card’ scheme.
“We want NPS to be modified as per our demands and also made a single scheme for all category of employees so that it can act like ‘one nation, one pension’ scheme,” Patel told PTI.
He said the Centre and state governments have implemented a share-market based pension system for their employees, including the ones in autonomous organisations since January, 2004.
NMOPS, formed to oppose the NPS system, is a federation of central and state government employees and their associations.
Patel in his letter demanded minimum interest or return guarantee on the employee’s contribution in NPS and a minimum pension guarantee of Rs 9,000 in addition to dearness relief.
“The NPS employee should be allowed to enhance his contribution up to 50 per cent of basic salary and DA from 10 per cent. This will also strengthen market investment,” he suggested in the letter dated January 19.
The right to full withdrawal of employee contribution and its return should be provided in NPS in place of 25 per cent fund withdrawal capacity at present, Patel said.
“Therefore, we on behalf of NPS employees organisation, request you to take kind steps to protect the old age socio-economic security of more than 75 lakh NPS employees’ families,” he added.