NPS Is A Failed Pension Scheme And Government Should Maintain Its Commitment

Restore old Pension Scheme as AIDEF to launch joint movement with Railways and other Central Government Employees

After the Rajasthan Government has withdrawn the New Pension Scheme and restored old Pension Scheme to its Employees, the movement against NPS is gaining momentum throughout the Country.The AIDEF which represents 4 lakh Defence Civilian Employees out of which more than 50 % are NPS Employees has resolved in its recently held National Executive Meeting at Avadi a suburban of Chennai has passed a detailed Resolution insisting the Government of India to withdraw the NPS as Employees after 18 years of Service are getting only a paltry Pension which is even less than the old age Pension given by some of the state Governments.

AIDEF has decided to intensify the struggle by involving Railways and other Central Government Employees and have decided for a massive Procession and demonstration at Delhi during September. The context of the AIDEF Resolution is published here for the benefit of the viewers of

Resolution demanding scrapping of the no-guarantee National Pension System(NPS) and to restore the Defined Pension Scheme under CCS(Pension) Rules 1972

The National Executive Committee of the AIDEF has taken a serious note of the Government of India decisions to continue with the No-Guarantee National Pension System to the Central Government Employees recruited on or after 01/01/2004, even though the assurances given by the Government while introducing the NPS that, the NPS would be more beneficial than the Defined Pension under CCS (Pension) Rules 1972, is being blatantly violated and there is no guarantee for any assured and guaranteed pension in the NPS. The Staff side of the National Council(JCM) has rejected the NPS in the 44 th Ordinary Meeting of the National Council(JCM) Chaired by the then Cabinet Secretary in Item No.02/05/NC-44. The issue was further discussed in the 45th Meeting of the National Council(JCM) held on 14th Oct. 2006. The Staff side has reiterated its position that “the new scheme that has been imposed on the new entrants to Government service (recruited after 01/01/2004) is not acceptable as the same is subject to the vagaries of the stock market.” The Staff side once again demanded in the Standing Committee Meeting of the National Council (JCM) held under the Chairmanship of
Secretary/Personnel on 14th Dec. 2007, that the NPS should be disbanded and that the employees recruited after 01/01/2004 should be made entitled to the Pension under the CCS (Pension) Rules 1972. The AIDEF has noted with concern the assurance given by the Government side that “for employees who had entered w.e.f. 01/01/2004 are not likely to be worse off vis-a-vis – the current Pension system in force as the replacement rate would match to the present one. Thus the NPS is a win-win situation for the employees and the Government.”

It is evident from the fact that, the employees who were recruited on or after 01/01/2004 and who have started retiring from service are not getting neither the minimum Pension plus DA applicable to the employees covered under old Pension Scheme nor getting 50% of the last basic pay drawn by the employees. The AIDEF has noted with deep concern that the employees who are recruited on or after 01.01.2004 and are now retiring from service are getting only a paltry pension.

Therefore, it has become very amply clear that the NPS was introduced in a hasty manner without any application of mind and the decision has been taken purely on the basis of economic logic and since the Government has not maintained its commitment that the Pension from NPS would match the Pension under old Pension Scheme, the Government has got no moral and legal authority to continue with the NPS.

The National Executive Committee of AIDEF draws the attention of the Government of India that the Hon’ble Supreme Court has established the Law of the land that “pension is a right which is enforceable by law”. The Hon’ble Supreme Court in its famous Judgment delivered on 17/12/1981 by the 5 Member constitutional Bench has concluded and the ratio laid down the following :-

i) That Pension is neither a bounty, nor a matter of grace depending upon the sweet will of the employer and that it creates a vested right subject to 1972 Rules which are statutory in character, because they are enacted is exercise of powers conferred by the Proviso to Article 309 and Clause (5) of Article 148 of the Constitution

ii) That Pension is not an ex-gratia payment, but it is a payment for the past service rendered

iii) It is a social welfare measure rendering socio economic justice to those who in the heyday of their life ceaselessly toiled for the employer on an assurance that in their old age they would not be left in the lurch.

Having realized that the Contributory Pension Scheme NPS is anti employee and against the Judgment of the larger constitutional Bench of the Hon’ble Supreme Court, many State Governments who followed the Central Government and implemented the NPS have now started scrapping the NPS and restoring the old Pension Scheme for their employees.

Therefore, the AIDEF urges upon the Government of India to immediately scrap the NPS and to restore the Defined pension under CCS(Pension) Rules 1972 to the Central Government Employees who are recruited on or after 01/01/2004 in a time bound manner.

The National Executive Committee of the AIDEF calls upon the Defence Civilian Employees and the entire Central Government Employees including the Para Military Forces, to relentlessly fight back against the no-guarantee NPS and to continue the sustained struggle till the NPS is withdrawn. The National Executive Committee further authorizes the President and General Secretary of the Federation to take appropriate steps for convening a special meeting of the NJCA of the Central Government Employees and to impress upon the constituent Organizations of the NJCA to formulate the strategies and action programmes to force the Government of India to fall in line with the State Governments and to withdraw the NPS, thereby honouring its own commitments and also the historical judgment of the Hon’ble Supreme Court, which is the law of the land.

The National Executive Committee of the AIDEF has decided to hold a massive rally / demonstration at Jantar Mantar, New Delhi demanding to withdraw NPS and restore the Guaranteed Pension under the CCS(Pension) Rules, 1972 during the month of September, 2022. The National Executive Committee further decides to approach AIRF and Confederation of Central Government Employees and Workers so as to hold the rally / demonstration jointly. AIDEF calls upon the affiliated Unions to intensify the campaigning against NPS and ensure that maximum NPS employees are mobilized to the Delhi rally / demonstration subject to the condition that minimum 2 representatives from each small affiliated Unions should participate in the rally / demonstration.

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