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

Pay element relating to Running Staff/Loco Inspectors after the recommendations of Seventh CPC

Pay element relating to Running Staff/Loco Inspectors after the recommendations of Seventh CPC

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No.E(P&A)II-2015/RS-25

New Delhi,
dated:13.11.2017

The General Manager,
Metro Railway,
Kolkata.

Sub : Pay element relating to Running Staff/Loco Inspectors after the recommendations of Seventh CPC.

Please refer to your letter no. MRTS/E.345/0/12/Pt.IV/Misc dt. 05.05.2017 requesting a clarification about the percentage of pay element to be reckoned for the purpose of computation of pensionary benefits in respect of Loco Inspectors. This issue has also been raised by GS/NFIR in his letter no. IV/RSAC/Conf/Pt. VIII dt. 15.09.2017.

2. Loco Inspectors are entitled to 30% add-on pay element for retirement benefits as per paragraph no. 5.5 of Board’s letter no. E(P&A)II/83/RS-10(iv) dt. 25.11.1992 which has not been amended as yet. It is clarified that the pay element (presently 30% until further orders) has to be reckoned in the revised pay structure of Seventh CPC for calculation of pensionary benefits of Loco Inspectors.

3. In this connection it is noted that many retired Loco Inspectors, even after getting the benefit of 30% add-on pay element at the time of pay fixation as Loco Inspectors, have gone to Courts of Law claiming 55% pay element for pensionary benefits equating themselves to the running staff. It is reiterated that Loco Inspectors are not classified as running staff and therefore are not entitled to 55% pay element for pensionary benefits. This fact may be conveyed to such Loco Inspectors while calculating their pensionary benefits.

4.This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

S/d,
(Salim Md. Ahmed)
Deputy Director/E(P&A)II,
Railway Board