PENSIONARY BENEFITS UNDER NPS ON VOLUNTARY RETIREMENT

PENSIONARY BENEFITS UNDER NPS ON VOLUNTARY RETIREMENT

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
RAJYA SABHA

UNSTARRED QUESTION NO.3404
ANSWERED ON JULY 23, 2019/
SHRAVANA 1, 1941 (SAKA)

PENSIONARY BENEFITS UNDER NPS ON VOLUNTARY RETIREMENT

1. Shri Ravi Prakash Verma

Will the Minister of FINANCE be pleased to state:
(a) whether voluntary retirement is allowed to employees of Central Government covered under NPS after completion of 20 years of service on the lines of old pension scheme;
(b) if so, the details thereof;
(c) the details of pensionary benefits and other retirement benefits available/ allowed under NPS to employees who voluntarily retire;
(d) whether Government would increase its contribution to 20 per cent from 14 per cent under NPS in view of dismal returns on NPS fund to make it more attractive;
(e) if so, the details thereof; and
(f) if not, the reasons therefor?

ANSWER

The Minister of State (Finance) (Shri Anurag Singh Thakur)

(a) and (b) The features and benefits under National Pension System (NPS) and the old pension scheme are independent. Under NPS, there is a provision for voluntary retirement/exit prior to the age of superannuation, without linking it with the minimum number of 20 years of service.
(c) As per Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, and amendments there under, the provisions for voluntary retirement/exit and the benefits available/ allowed under NPS to employees of Central Government who voluntary retires are as follows:

"3(b) where the subscriber who, before attaining the age of superannuation prescribed by the service rules applicable to him or her, voluntarily retires or exits, then at least eighty per cent out of the accumulated pension wealth of the subscriber shall mandatorily be utilized for purchase of annuity and the balance of the accumulated pension wealth, after such utilization, shall be paid to the subscriber in lump sum or he shall have a choice to collect such remaining pension wealth in accordance with the other options specified by the Authority from time to time, in the interest of the subscribers”

Further, as informed by the Department of Pension and Pensioners’ Welfare, the benefit of retirement gratuity and death gratuity has been extended to Government employees covered under NPS on the same terms and conditions as are applicable under CCS (Pension) Rules, 1972.

(d) to (f) Recently, vide Gazette Notification dated 31.01.2019, the mandatory contribution by the Central Government for its employees covered under NPS Tier-I has been enhanced from the existing 10% of basic pay +DA to 14% of basic pay + DA. The employees’ contribution rate would remain at the existing 10% of basic pay + DA. There is no proposal to increase the contribution to 20 per cent from 14 per cent under NPS.

Source: Rajya Sabha

Request for reckoning the Additional Allowance granted to Loco Pilot (Mail), Loco Pilot (Passenger) and Mail Guard for the purpose of computation of retirement benefits to Running Staff

Request for reckoning the Additional Allowance granted to Loco Pilot (Mail), Loco Pilot (Passenger) and Mail Guard for the purpose of computation of retirement benefits to Running Staff.

NFIR

National Federation of Indian Railwaymen

No. IV/RSAC/2018

Dated: 18/04/2019

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,
Sub: Request for reckoning the Additional Allowance granted to Loco Pilot (Mail), Loco Pilot (Passenger) and Mail Guard for the purpose of computation of retirement benefits to Running Staff.

Ref:
(i) NFIR's PNM ItemNo. 08/2011.
(ii) NFIR's letter No. IV/RSAC/Con./Part VIII dated 13/10/2017.
(iii) Railway Board's letter No-E(P&A)II-2011/FE2/2 dated 11/12/20l7.

Kind attention of Railway Board is invited to NFIR's PNM Agenda Item No. 08/2011, Federation's letter and Railway Board's reply thereon, iited under reference.

The Railway Board through Action Taken Statement during NFIR's PNM meeting held on 10th/11th May, 2018 conveyed that the issue has been referred to the Ministry of Finance vide Board's letter dated 14/09/2016 and reminders vide dated 22/11/2016, 16/02/2017 and 17/05/2017 have also been sent to the Ministry of Finance (DoE), but however reply was still awaited. Railway Board may kindly appreciate that this is more than eight years old PNM Item without finality.

NFIR, therefore requests the Railway Board to kindly make special effons for obtaining approval of Ministry of Finance in order to finalize this long pending PNM Item.

Yours faithfully,
(Dr. M.Raghavaiah)
General Secretary

Copy to the Executive Director, PC-I, Railway Board, DFCC Building, Tilak Bridge, Pragati
Maidan, Metro Bhavan, New Delhi.
Copy to the Executive Director (IR), Railway Board, New Delhi.
Copy to the General Secretaries of Zonal Unions of NFIR.
File No.8/2011 (PNM).
File No. IV/NFIR/RSAC-JC.

Source: NFIR

NFIR: Agenda Points for Next NC JCM Standing Committee Meeting

NFIR: Agenda Points for Next NC JCM Standing Committee Meeting

No.IV/NFIR/SCM/Pt.VI

Dated: 05/03/2017

The Secretary,
JCM (Staff Side),
13-C, Ferozshah Road,
New Delhi

Dear Brother.
Sub: Agenda Items for next meeting of Standing Committee of NC (JCM)-reg.
Ref: Ministry of Personnel, Public Grievances & Pensions, DoP&T’s letter No.F.No.3/3/2016-JCA dated 1st March 2017.

Please find enclosed the items to be included in the agenda for meeting.

Yours faithfully,
sd/-
(Dr.M.Raghavaiah)
General Secretary

Sub: Counting full service of Temporary causal labourers for pensionary and retirement benefits in Railways-reg.

The Staff Side had discussed its demand for counting fulI service of temporary status of casual labourers for pensionary and retirement benefits at the level of Railway Ministry. Consequently, the Railway Ministry had agreed and accordingly proposal was sent to the Ministry of Finance and DoP&T seeking clearance. Unfortunately, the MoF/DoP&T have not accorded approval:-

In this connection, the Staff Side brings following key points for consideration.

(a) The Casual Labourers in Railways had attained temporary status on completion of prescribed days of continuous working and got the benefits admissible to temporary Railway/Government employees such as regular Pay Scale, Medical facility etc.,
(b) The Railway Administrations have however taken abnormally long periods to absorb them as regular staff although regular posts were vacant.
(c) The status of casual labourers in railways after acquiring temporary status (termed as Temporary employee) is exactly similar to the substitutes in whose case, the total service from the date of attainment of temporary status is counted for reckoning qualifying service for pensionary benefits.
(d) Various CATs, High Courts and even the Apex Court have given decisions against the differential treatment between the casual labour and substitutes particularly when both attained temporary status and directed to treat them at par so far as reckoning the service from the date of temporary status till the date of regularization for pensionary benefits etc.,
(e) The SLPs filed by the Union of India before the Apex Court in a few cases of casual labourers were dismissed and the Hon'ble Supreme Court had directed the Union of India to calculate Pension and other retiral benefits payable to the retiring/retired employees, taking into account the 100% temporary status service.

The Staff Side, therefore, requests to consider the above valid points and accord approval for counting total temporary status service of Casual Labourers for pensionary benefits in Railways.

Sub: Modified Assured Career Progression Scheme (MACPS) for the Central Government Employees - Arbitrary revision of benchmark from Good to Very Good-reg.

The Staff Side brings to the notice of the Government that after introduction of the Modified Assured Career Progression Scheme (MACPS) w.e.f. 01st June 2009, the JCM (Staff Side) took up the issue relating to the benchmark laid down for granting financial upgradation under the schemd at the level of DoP&T and discussed in the Joint Committee Meetings and National Advisory Committee Meetings held on 17/0712012 ad 2710712012, urging to reconsider the benchmark concept taking into consideration the norms laid down for promotion of staff. After discussions, the DoP&T vide O.M. No. 35034/3/2008-Estt. (D) (Vol. II) dated 1st November 2010 & 4th October 2012 had issued instructions that the benchmark maintained for filling the vacancy through promotion by selection/non-selection/fitness be adopted for granting financial upgradation.

The Staff Side however, expresses its disappointment over the decision (Resolution No.1-2/2016-IC dated 25th July 2016) of the Ministry of Finance (Department of Expenditure) introducing the benchmark "Very Good" for granting financial upgradation. The Government could have taken into consideration the bilateral agreement reached with the JCM (Staff Side) and the decision communicated vide DoP&T O.M. dated lst November 2010 and 4th October 2012 for continuance of the standard prescribed already for granting MACP. Ignoring the said decision and introducing the benchmark concept of "Very Good" is an unjustified action when bilateral agreement had already been reached with the JCM (Staff Side).

The Staff Side therefore urges to review for cancellation of upgraded bench mark decision.

Source: NFIR

Pay element in the case of Loco Inspectors - 30% addition to 7th CPC pay matrix for retirement benefits

Pay element in the case of Loco Inspectors - 30% addition to 7th CPC pay matrix for retirement benefits

NFIR

National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI - 110 055

Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers Federation (ITF)

No-IV/RSAC/Conf./Pt. VII

Dated: 08/02/2017

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,
Sub: Pay element in the case of Loco Inspectors - 30% addition to 7th CPC pay matrix for retirement benefits - reg.

Ref: (i) NFIR's demand in the Board PNM meeting held on 22nd & 23rd December, 2016 for continuance of 55% & 30% pay element on 7th CPC pay matrix levels.

(ii)Railway Board' s letter No.E(P&A)II-2015/RS-25 dated 24/01/2017.

Pursuant to NFIR's references and discussions held in the Railway Board PNM meeting on 22nd and 23rd December, 2016, the Railway Board vide letter dated 24/01/2017 has issued instructions to the GMs of Zonal Railways to reckon add-on pay element of 55% on 7th CPC pay matrix levels for calculation of emoluments for the purpose of retirement benefits and 30% for other purposes to the running staff as per IREM provisions and extant instructions.

In the above context, NFIR brings to the notice of the Railway Board that in terms of the extant instructions (Railway Board's letter No.E(P&A)II/83/RS-10(IV) dated 25/11/1992) contained in para 5.5 of Board's letter dated 25/11/1992, the running staff deployed as Loco Inspectors are entitled for 30% addition to their basic pay for the purpose of pensionary benefits. Those Loco Inspectors retired/retiring w.e.f. January 2016 are required to be granted retirement benefits with 30% add on to their pay in the 7th CPC pay matrix level, but, however in the absence of Railway Board's instructions, some Zonal Railways are entertaining doubts and denying benefit of 30%o on revised pay matrix.

NFIR, therefore, requests the Railway Board to issue suitable clarification to the Zonal Railways to ensure 30% addition to the 7th CPC pay matrix of Loco Inspectors for payment of retiral benefits similar to running staff for whom 55% addition is allowed. A copy of the instruction issued may be endorsed to the Federation.

Yours faithfully,
(Dr M.Raghavaiah)
General Secretary

Source: NFIR

Centre Extends Retirement Benefits to all Central Government Employees

Centre Extends Retirement Benefits to all Central Govt Employees – Under the existing system the pension of the Government servants appointed on or after January 1, 2004 is regulated by the new Defined Contribution Pension System.

In a measure that would benefit thousands of Central government employees, the central government on Friday extended the Retirement Benefits and death gratuity to all, irrespective of the date on which they had entered government service.

Under the existing system the pension of the Government servants appointed on or after January 1, 2004 is regulated by the new Defined Contribution Pension System (known as National Pension System) whereas those who were in service earlier were covered under the Central Service (Pension) Rules, 1972.

According to a notification by the Department of Personnel, the issue of grant of gratuity in respect of government employees covered by the National Pension System has been under consideration and it has now been decided that they shall be eligible for Retirement Benefits, gratuity and Death gratuity’ on the same terms and conditions, as are applicable to other employees covered by the Central Service (Pension) Rules, 1972.

It said these orders will be applicable to those Central Civil Government employees ‘who joined Government service on or after January 1,2004 and are covered by the National Pension System and will take effect from the same date.’

Source: The Hindu