NPS CPS Abolish - Questions raised by Members in Parliament

NPS CPS Abolish - Questions raised by Members in Parliament. Here are the recent Questions and their answers raised by the Honble Members of Parliament in Loksabha and Rajya Sabha. The Answers given by the respective ministers on this issue are also given. Revision of NPS employees to old pension scheme.. Reversion to old Pension Scheme

NPS CPS Abolish - Questions raised by Members in Parliament

Honble members of parliament are questioning on various in Parliament and seeking information from the Government. Regarding National Pension Scheme and Contributory Pension Scheme, some of the questions are listed below asked by the Members of Parliament in Loksabha, Rajya Sabha. Answers given by the respective ministries are also given below for reference and information. The Important information sought by the Members are Revision of NPS Employees to Old Pension Scheme. See the Questions and Answers below.

Question raised by Shri Neeraj Shekhar on Revision of NPS employees to old Pension scheme

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-387
ANSWERED ON-06.02.2018
Revision of NPS employees to old pension scheme

387 . Shri Neeraj Shekhar
  • (a) whether Government has filed any petition before Kerala High Court against the orders of Central Administrative Tribunal, Ernakulam bench which had ordered the Central Government to revert the employees who had joind after 1st January, 2004 under NPS to old pension scheme and had observed that date of vacancy/advertisement should be the basis for inclusion under NPS instead of the date of joining;
  • (b) if so, the details thereof along with the details of petition number and date thereof; and
  • (c) if not, the reasons why Government has not implemented the orders of CAT and reverte d the employees?
ANSWER

The Minister of State in the Ministry of Finance
  • (a) to (c) Yes, Sir. Department of Posts has informed that OP (CAT) 304/2016 has been filed before the Hon’ble High Court of Kerala against the order of the Hon’ble Central Administrative Tribunal (CAT) dated 15.02.2016 in Original Application No. 20/2015, and the same is still pending before the Hon’ble High Court.
  • The OP (CAT) No. 304/2016 was admitted on 01.12.2016 and an interim order of stay on the operation of the order of the Hon’ble CAT dated 15.02.2016 was granted by the Hon’ble High Court of Kerala and the same was extended until further orders on 12.01.2017.

Question raised by Shri V Vijayasai Reddy on Reversion to old Pension Scheme

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
STARRED QUESTION NO-74
ANSWERED ON-24.07.2018
www.apteachers.in
Reversion to old Pension Scheme
74 . Shri V. Vijayasai Reddy
  • (a) the reasons for removing Pension Scheme from April 2003;
  • (b) whether the employees who had joined after 2003 are deman ding to revert back to the old Pension Scheme
  • since they virtually get nothing after their retirement in the new Pension Scheme;
  • (c) whether these employees, after retirement, do not get whatever they contribute d and the matching amount
  • of Government in the scheme, since 40 per cent of it has to be mandatorily invested in an annuity scheme of
  • authorised insurance company and the returns are dependent on market forces; and
  • (d) what constraints Government has to revert back to the old Pension Scheme?
ANSWER
The Minister of Finance
(a) to (d) A Statement is laid on the Table of the House.


STATEMENT OF RAJYA SABHA STARRED QUESTION NO.
*74 REGARDING “REVERSION TO OLD PENSION SCHEME” RAISED BY SHRI V. VIJAYASAI REDDY, TO BE ANSWERED ON 24.07.2018.
  • (a) to (d) Government has made a conscious move to shift from the defined benefit pension scheme to defined  contribution pension scheme i.e. National Pension System (NPS) due to rising and unsustainable pension bill.
  • Representations have been received which inter alia also include the demand that the Government may revert to old defined benefit pension system.
  • NPS is a well designed pension system . The pension wealth which includes both employee and Government contribution accumulates over a period of time till retirement. It grows with a compounding effect and is paid to the subscriber in the form of lump sum withdrawal and annuity. As per the provisions of Government notification dated 22.12.2003 and Section 20(2)(i) of the PFRDA Act, 2013, it is mandated that a subscriber is required to purchase an annuity of a specified percentage from a life insurance company, for provision of monthly pension, besides being permitted to withdraw certain part of accumulated pension wealth as lump sum withdrawal.
  • Due to rising and unsustainable pension bill and competing claims on the fiscal, there is no proposal to replace the NPS with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

Question raised by  Shri T.G. Venkatesh Withdrawal of Contributory Pension System

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
STARRED QUESTION NO-264
ANSWERED ON-20.03.2018
Withdrawal of Contributory Pension System
264 . Shri T.G. Venkatesh
  • a. whether Government has taken note of the demand across the country seeking withdrawal of Contributory Pension System which has become a detriment to the employees;
  • b. if so, the details thereof;
  • c. whether Government has made any study and taken the views of the State Governments in this regard, if so, the details thereof; and
  • d. the stand of Governm ent in this regard?
ANSWER
The Minister of Finance
(a) to (d) A Statement is laid on the Table of the House.


STATEMENT OF RAJYA SABHA STARRED QUESTION NO. *264 REGARDING “WITHDRAWAL OF CONTRIBUTORY PENSION SYSTEM” RAISED BY SHRI T.G. VENKATESH, TO BE ANSWERED ON 20.03.2018.
  • (a) Yes Sir
  • (b) Govern ment has made a conscious move to shift from the defined benefit, pay-as-you-go pension scheme to defined contribution pension scheme now called as National Pension System (NPS) after considering the rising and unsustainable pension bill. The transition also has the added benefit of freeing the limited resources of the Government for more productive and socio- economic sectoral development.  NPS was made applicable for all the new entrants who joined the Central Governme nt service on or after 01-01-2004, except the Armed Forces, in the first stage. Subsequently, most of the State Government excluding Tripura and West Bengal have also switched to NPS for their employees. Further, from 01-05-2009, NPS has been extended to the private sector, including the unorganised sector on voluntary basis.
  • (c) & (d) Pursuant to the recommendations of 7th CPC, a Committee of Secretaries to th e Government of India was constituted to suggest measures for streamlining the implementation of the NPS. The Committee has recommended certain measures to streamline the NPS, vide its report dated 28-02-2018.

Quesiton on Implementation of CPS in States by Dr KVP Ramachandra Rao 

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-2813
ANSWERED ON-20.03.2018
Implementation of CPS in States
2813 . Dr. K.V.P. Ramachandra Rao
  • (a) whether it was made mandatory to implement Contributory Pension Scheme (CPS) for States and its employees, if so, the details thereof; and 
  • (b) whether States can come out from this scheme, if so, the details thereof?
ANSWER
The Minister of State in the Ministry of Finance
  • (a) & (b) The Government of India vide notification dated 22.12.2003 has introduced the National Pension System (earlier known as New Pension Scheme) for its employees and made it mandatory for employees joining on or after 01.01.2004. The said notification is deemed to be NPS under Section 20 of the PFRDA Act, 2013, which has been passed by Parliament of India and notified w.e.f 01.02.2014.
  • Except the State Governments of Tripura and West Bengal, all other State Governments have notified NPS and made it mandatory for their employees joining on or after their adoption date, mentioned in their notifications. State Governments are empowered under Section 12(4) of the PFRDA Act, 2013, to notify NPS for its employees.
  • State Governments have made no provisions in their notifications for coming out of NPS

Question by Shri Dharmapuri Srinivas Abolition of Contributory Pension Scheme

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-710
ANSWERED ON-24.07.2018
Abolition of Contributory Pension Scheme

710 . Shri Dharmapuri Srinivas
  • (a) whether the attention of Government is drawn to the matter of Contributory Pension Scheme and problems being faced by the employees;
  • (b) if so, the details thereof; 
  • (c) whether a number of requests from State Governments and Government employees have been received by Government to withdraw the CPS System, the status of such requests; and 
  • (d) whether Government is planning to resolve the matter and abolish the CPS System in view of the problems being faced by the employees?

ANSWER
The Minister of State in the Ministry of Finance
  • (a) to (d) Yes Sir. Representations have been received from various Associations of Government Employees on the problems being faced and the demand to withdraw the National Pension System (NPS). The 7th Central Pay Commission (CPC) also in its report examined the issues related to NPS and made recommendations for addressing these issues. Pursuant thereto, it was decided to constitute a Committee of Secretaries to suggest measures for streamlining NPS. The Committee has submitted its report. Due to rising and unsustainable pension bill and keeping in view of fiscal imperatives, it is not possible for the government to revert back to old pension scheme.

Shri Ravi Prakash Verma & Shri Neeraj Shekhar Reversion to Old Pension Scheme

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL,PUBLIC GRIEVANCES AND PENSIONS
RAJYA SABHA
UNSTARRED QUESTION NO-268
ANSWERED ON-19.07.2018
Reversion to Old Pension Scheme

268 . Shri Ravi Prakash Verma & Shri Neeraj Shekhar
  • (a) whether the Ministry of Home Affairs had sought the advice from the Department of Pension and Pensioners'' Welfare regarding reverting the para-military personnel to Old Pension Scheme whose vacancies were advertised prior to 1/1/2004 and exams were conducted in 2003; 
  • (b) if so, the details thereof along with the guidelines framed by Government in this regard; 
  • (c) whether other similar personnel of other Departments/Ministries would also be reverted to Old Pension Scheme; 
  • (d) if so, the details thereof; and 
  • (e) if not, the reasons therefor?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE
(DR. JITENDRA SINGH)
  • (a) to (e) : In accordance with the scheme for National Pension System (NPS), as notified vide Ministry of Finance (Department of Economic Affairs)’s Notification No. 5/7/2003-ECB & PR dated 22.12.2003, the System is mandatory for all new recruits to the Central Government service (except armed forces) from 01.01.2004. Accordingly, as per Rule 2 of the Central Civil Services (Pension) Rules, 1972, as amended on 30.12.2003, these rules are applicable to Government servants appointed to civil posts on or before 31.12.2003. The date on which the vacancies arose or the date on which the examination was conducted for filling up the vacancies is not relevant for deciding the applicability of the Central Civil Services (Pension) rules, 1972.
  • Ministry of Home Affairs have not sought any advice from Department of Pension and Pensioners’ Welfare on the question of having a policy to cover the paramilitary personnel appointed after 01.01.2004 under the Old Pension Scheme on the ground that the vacancies arose, or the examination was conducted, in the year 2003. However, a reference was received from Ministry of Home Affairs in a specific case relating to appointments as Sub-Inspector in various Central Para Military Forces after selection in August, 2003 on the basis of an Examination conducted in 2002. Appointments on the basis of these selections were made in Central Reserve Police Force in 2003 and the candidates appointed were covered by the pension scheme under Central Civil Service (Pension) Rules, 1972. However, in the Border Security Force, offers of appointment on the basis of the same examination/selection were issued in January, 2004. On a petition filed by some personnel appointed in the Border Security Force on the basis of that examination, Hon’ble High Court of Delhi directed to cover the petitioners under the Central Civil Service (Pension) Rules, 1972 on the grounds of administrative delay on the part of Border Security Force in making appointments. The order of Hon’ble High Court of Delhi was implemented by the Ministry of Home Affairs/Border Security Force in view of the peculiar circumstances of that case. The decision taken in that case is, however, not relevant for deciding applicability of Central Civil Service (Pension) Rules to all appointments made on or after 01.01.2004 in the Central Para Military Forces or in any other Department/organization on the basis of year of examination/selection

Question by Shri Vishnu Dayal Ram on Gratuity Benefits under NPS

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
LOK SABHA
UNSTARRED QUESTION NO: 5421
ANSWERED ON: 28.03.2018
Gratuity Benefits under NPS
VISHNU DAYAL RAM
Will the Minister of PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS be pleased to state:-
  • (a) whether the persons appointed by the Central and State Governments under the New Pension
  • Scheme (NPS), 2004 are entitled to receive retirement gratuity and if so, the details thereof;
  • (b) whether the persons appointed under the said scheme after the decision of Courts or unde r special
  • circumstances by various State Governments, several of them who have since retired, have not
  • received the benefit of gratuity till date because various State Governments including Jharkhand have
  • not received the copy of the notification issued to this effect by the Union Government and if so, the
  • details thereof;
  • (c) whether the Union Government proposes to issue new pension manual to various States, giving
  • clear instructions to take immediate action on the pending cases in the light of the manual;
  • (d) if so, the time by which it is likely to be issued; and
  • (e) if not, the reasons therefor?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND
PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE
(DR. JITENDRA SINGH)
  • (a): The retirement gratuity and death gratuity in respect of Central Govt. employees appointed on or before 31st December, 2003, are regulated in accordance with the provisions of the Central Civil Services ( Pension) Rules, 1972, or corresponding rules applicable to All India Services, Railway employees and Defence personnel.
  • The benefit of Retirement Gratuity and Death Gratuity have been extended to Central Government civil employees covered under National Pension System(NPS) on the same terms and conditions as applicable in Old Pension Scheme under CCS(Pension) Rules, 1972 vide DoPPW O.M. No. 7/5/2012-P&PW(F/B) dated 26.08.2016.
  • (b): The service conditions and retirement benefits of the employees of State Governments are
  • regulated by the service rules notified by the respective State Governments.
  • (c) to (e): In view of reply to point (b), there is no proposal to issue any pension manual to the State Government

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