Saturday, August 31, 2024
Friday, August 30, 2024
The odyssey of two decades from NPS to UPS
The odyssey of two decades from NPS to UPS
Bruhaspati Samal
General Secretary
Confederation of Central Govt. Employees and Workers
Odisha State Coordination Committee, Bhubaneswar
eMail: samalbruhaspati@gmail.com
Mobile / WhatsApp No. 9437022669
Without
honouring and giving proper justice to the long pending demands of crores of
Govt. employees and pensioners across the Nation to restore the Old Pension
Scheme (OPS) and to scrap out the National Pension Scheme (NPS) introduced
since 1st January, 2004, the Union Cabinet, chaired by the Prime
Minister Shri Narendra Modi approved a new pension system in the name of Unified
Pension Scheme (UPS) on 24th August, 2024 guarantying an Assured Pension equivalent to
50% of the average basic pay drawn over the last 12 months prior to
superannuation for a minimum qualifying service of 25 years which will be proportionate for lesser service period up to
a minimum of 10 years of service, Assured Family Pension equivalent to 60% of
pension of the employee immediately before her/his demise and Assured Minimum
Pension of Rs.10,000 per month on superannuation after minimum 10 years of
service. On Assured Pension, Assured Family Pension and Assured Minimum Pension,
Dearness Relief based on All India Consumer Price Index for Industrial Workers
(AICPI-IW) as in case of service employees will be there. Lump sum payment
at superannuation in addition to gratuity will be given equivalent to 1/10th of
monthly emoluments (Pay + DA) as on the date of superannuation for
every completed six months of service which will not reduce the
quantum of assured pension. Soon after the Press Release of UPS while
negligible positive responses are there from those supporting the BJP led NDA
Govt., all the Central Trade Unions, Service Unions / Associations /
Federations / Confederations involved in the pension movement for last 20 years
have condemned the arbitrary action of the Govt. and released Press Notes
demanding restoration of OPS.
The movement
to restore OPS started from the very moment of introduction of the NPS through
an Executive Order by the BJP led NDA Govt. on 23rd December, 2003.
The Confederation of Central Govt. Employees and Workers with the support of as
many as 126 Unions / Associations / Federations under its affiliation having
more than 1.5 crores workers, employees and pensioners across the Nation vehemently
opposed it. Subsequently, many other
independent federations and Central Trade Unions extended their solidarity to
the movement. Several new organizations formed with the support of NPS
beneficiaries later jumped to the movement. The matter was severally discussed
in the National Council JCM. Being pressurized continuously, though the Govt.
brought some changes in NPS like Family Pension, DCRG, partial withdrawal
including increasing its own contribution from 10% to 14%, the same couldn’t
appease the employees who only demanded restoration of OPS in toto. Subsequently,
the National Council of Joint Action (NJCA) was formed comprising the Railway
Federations, Confederation of Central Govt. Employees and Workers, All India
State Govt. Employees Federation, All India Teachers Federation and
Para-military Pensioners Association etc and the Pension Movement was
accelerated from December 2022 which compelled the Central Govt. to constitute
a Pension Committee under the Chairmanship of the Finance Secretary to
improvise the NPS. When no positive solution did come out after several
discussions with the Pension Committee, the Joint Forum of Restoration of OPS
under the banner of NJCA submitted memorandum to the President, Prime Minister,
Finance Minister and the Cabinet Secretary of India to go on indefinite Strike
from 1st May, 2024. With the intervention of the Prime Minister of
India, it was assured to the Staff Side to consider their suggestions in favour
of the employees. The proposed strike was postponed.
The most
unfortunate thing during the last two decades of uncompromising struggle of the
employees is that the BJP led NDA Govt. arbitrarily introduced the NPS in the
absence of any Act clearly violating the constitutional provisions guaranteed
under CCS (Pension) Rules, 1972, now 2021 and the historic judgement dated 17th
December, 1982 of the Hon’ble Supreme Court of India in D S Nakra versus Union
of India which categorically states, inter alia, "Pension is
neither a bounty, nor a matter of grace depending upon the sweet will of the
employer, nor an ex-gratia payment”. Going one step ahead, the Congress led
UPA-I Govt. after coming to power in May 2004 brought the Pension Fund
Regulatory Development Authority (PFRDA) Bill in 2005 which couldn’t be
materialized due to strong opposition by the left party MPs supporting the
Govt. at that point of time. After withdrawal of their support from the UPA-I
Govt., the UPA-II Govt. reintroduced the above Bill in 2011 and could be able
to pass the same with the support of NDA MPs on 19th September 2013
and implemented PFRDA Act 2013 on 1st February, 2014. Again when BJP led NDA Govt. came to power in
May 2014, it continued to run the NPS accusing the Congress led UPA Govt.
During the 20 years of continuous struggle for restoration of OPS both the UPA
Govt. and NDA Govt. were / are in power for 10 years each. Had the UPA Govt.
shown little interest for employees’ welfare in protecting the social security
of the pensioners, it could have been refrained from bringing the PFRDA Bill /
Act and thus, there would have not been any possibility of UPS. So both
Congress (UPA) and BJP (NDA) are equally responsible to snatch away the
constitutional rights of the employees and pensioners.
Under the
circumstances, the above decision of introducing UPS is just a bolt from the
blue for the employees and pensioners since except restoration of OPS, nothing
such as UPS was there in the agenda. Witnessing the result of the relentless
struggle for last 20 years in vain, the entirety of workers, employees and
pensioners of both the Central and State Govt. are getting annoyed. Now all the
Service Unions / Associations / Federations / Confederations including Central
Trade Unions are determined to accelerate the Pension Movement once again till
OPS is restored. We have given a Table of Comparison which aptly speaks the
positive aspects of OPS and negative aspects of both the NPS and UPS so far as
social security to a pensioner is concerned. India, with its vast and diverse
population, has always faced the challenge of ensuring social security for its
workforce. One of the most contentious issues in this domain has been the
transition from the OPS to the NPS, now more commonly referred to as the UPS, a
hybrid model of OPS and NPS. This shift has led to significant unrest among
government employees, sparking numerous protests and struggle movements across
the country.
The struggle
movements of employees in India against the shift OPS to UPS reflect the
deep-seated concerns about social security and financial stability
post-retirement. The success of the proposed UPS depends on its implementation
and acceptance by the workforce. The government will need to strike a delicate
balance between fiscal responsibility and social security to ensure that the
interests of both the state and its employees are protected. As India continues
to evolve, the debate over pension schemes is likely to remain a contentious
issue, with employees and their unions continuing to fight for what they
perceive as their rightful dues. The outcome of this struggle will have
significant implications not just for the future of pension schemes in India,
but also for the broader relationship between the state and its employees.
A Comparison between OPS, NPS and UPS
|
Parameter |
Old Pension Scheme (OPS) |
National Pension Scheme (NPS) |
Unified Pension Scheme (UPS) (Proposed) |
|
Type
of Scheme |
Defined Benefit Scheme (Non-contributory) |
Defined Contributory Scheme |
Hybrid Scheme (OPS+OPS) |
|
Minimum service for full pension |
20 years |
Not Applicable |
25 years |
|
Minimum
service to get pension |
10 years |
Not Applicable |
10 years |
|
Minimum
Pension |
9000 |
Not Applicable |
10000 |
|
Pension
Calculation |
50% of the last pay drawn or average of last 10
months salary whichever is higher |
Based on contributions and market returns |
Guaranteed minimum pension (50% of last 12 months
average salary) + market-linked returns |
|
Government
Contribution |
100% (Government-funded) |
14% of basic salary + dearness allowance |
18.5% of basic salary + dearness allowance |
|
Employee
Contribution |
No contribution required |
10% of basic salary + dearness allowance |
Same as NPS (10% of basic salary + dearness
allowance) |
|
Inflation
Adjustment |
Yes, pension is adjusted for inflation (Dearness
Allowance - DA) |
No automatic adjustment for inflation |
Likely to include inflation-linked adjustments as
OPS |
|
Family
Pension |
Yes. Normal pension continues up to 67 years if
the Pensioner dies before 67 and thereafter 30% of the normal pension. |
No guaranteed family pension |
Proposed to include a guaranteed family pension. 60% of the 50% of last basic pay drawn as normal
pension, i.e. 30% from the beginning |
|
GPF |
Yes |
No |
No |
|
Gratuity |
Yes |
No |
Yes |
|
DCRG |
Yes |
Yes |
Yes |
|
Increase
in Pension |
Additional pension of 20% at the age of 80, 30%
at 85, 40% at 90, 50% at 95 and 100% at the age of 100 i.e Pension will be
doubled at the age of 100 |
No such provision |
No such provision |
|
Market
Risk |
No market risk, as pension amount is fixed |
High market risk, as pension depends on market
performance |
Reduced market risk due to guaranteed minimum
pension |
|
Withdrawal
and Vesting |
Pension starts immediately upon retirement, no
withdrawal before retirement |
Limited withdrawal (60% of the corpus) allowed
before retirement; |
No withdrawal proposed. Entire corpus (10% of the
employees + 18.5% of Govt.) may be retained. |
|
Portability |
Not portable between jobs |
Portable between jobs |
Expected to be portable like NPS |
|
Financial
Burden on Government |
High, due to long-term liabilities |
Reduced, as the burden is shared with the
employee |
Balanced approach, reducing burden while ensuring
minimum security |
|
Coverage |
Central and state government employees who joined
before 2004 |
All central and state government employees
joining after January 1, 2004 |
Likely to cover all NPS members with additional
benefits from1st April 2025. |
|
Security
and Assurance |
High security, guaranteed pension |
Low security, uncertain pension based on market
performance |
Moderate security, with a guaranteed minimum
pension and market-linked benefits |
|
Cost
of Living Adjustments |
Yes, adjusted to cost of living (through DA) |
No automatic adjustments |
Proposed to include cost of living adjustments |
|
Legacy
Issues |
High government liability over time |
Lower liability due to shared risk |
Aims to balance legacy issues with employee
satisfaction |
****
NB: Published in Kalinga Chronicle on 31.08.2024
Wednesday, August 28, 2024
Centre agrees to further discussions with trade unions on Labour Codes
Ten Central Trade
Unions demand restoration of old pension scheme, want government to convene
Indian Labour Conference; Labour Minister seeks unions’ inputs on ELI schemes;
BMS says informal sector needs help
Union Labour and Employment Minister Mansukh Mandaviya holds a meeting with trade union members on the proposed employment-linked incentive (ELI) scheme, on Wednesday (August 28, 2024). | Photo Credit: ANI
Union Labour Minister Mansukh Mandaviya has agreed to hold
further discussions on the implementation of the four Labour Codes with the
Central Trade Unions, union leaders said on Wednesday. The Minister’s assurance
came during a round table meeting with the CTUs, where ten unions alleged that
the Codes are in favour of big corporations.
The meeting reflected differing priorities – while the
meeting’s agenda was to discuss the Employment Linked Incentive (ELI) schemes
recently announced in the Union Budget, the ten CTUs said they had raised
concerns about the four Codes and submitted a detailed memorandum to Mr.
Mandaviya on the new Unified Pension Scheme, their demand to restore the
non-contributory Old Pension Scheme, and to convene the Indian Labour
Conference, and other issues. The meeting was also attended by Minister of
State for Labour Shobha Karandlaje.
Talking
to reporters after the meeting, Mr. Mandaviya said that detailed discussions
were held on the ELI schemes, which are projected to create two crore jobs in
the country. “We are going to implement this scheme. We need inputs and
suggestions from the CTUs on this scheme. We will use their suggestions while
implementing the scheme,” he said, noting that unions are the voice of the
workers and their insights are invaluable to shaping policies that are not only
effective but also fair and inclusive.
However, even the Sangh
Parivar-backed union, the Bharatiya Mazdoor Sangh, sought clarifications on the
ELI. BMS vice president Raj Behari Sharma, who represented the organisation in
the meeting, said that the ELI scheme is for the formal sector and asked the
Centre to do something for the informal sector, which is in trouble. “There is
huge spending for the formal sector, but the informal sector and workers in
informal sector are suffering,” he said, though he added that the ELI will be a
foolproof scheme as the subsidy will go directly to the worker and to the
Employees Provident Fund. He also complained that the discussion points were
not shared with the CTUs ahead of the meeting.
The trade unions said
the discussion was not just on ELI. “We have raised a host of issues including
the implementation of Labour Codes. The Minister said he is ready for further
discussions on Labour Codes,” All India Trade Union Congress general secretary
Amarjeet Kaur said.
“On
the issues of holding the Indian Labour Conference, non-implementation of
existing labour laws, absence of inspections to ensure decent work conditions
and guaranteeing occupational safety and health of workers, the Minister assured
that he would have regular meetings on the issues raised by the unions
including the Labour Codes for resolutions with mutual discussions,” Ms. Kaur
added.
The ten CTUs also
demanded that the Centre scrap the National Monetisation Pipeline and role back
the corporatisation of ordnance factories. “The creation of new jobs should be
priority of Government to address the unprecedented unemployment. Agnipath
scheme should be scrapped and regular recruitment to be started at the
earliest,” they said in their memorandum to the Minister.
Union Minister for Labour & Employment holds round table Meeting with Central Trade Union Organisations on 28.08.2024
Ministry of Labour & Employment
Dr. Mansukh Mandaviya Chairs Round table Meeting with Central Trade Union Organisations (CTUOs)
Government Committed for Welfare of Labour and Boosting Employment Generation in Country
Posted On: 28 AUG 2024 7:20PM by PIB Delhi
A round table meeting was held under the chairmanship of Dr. Mansukh Mandaviya, Union Minister for Labour & Employment and Youth Affairs & Sports, with representatives from Central Trade Union Organisations (CTUOs) in New Delhi today. Union Minister of State for Labour & Employment, Smt. Shobha Karandlaje along with senior officials of Ministry were also present on the occasion.
The focus of the discussion in this introductory meeting with trade unions, was the newly proposed Employment Linked Incentive (ELI) scheme, announced in the recent Union Budget besides other labour welfare-oriented measures.
Addressing the CTUOs, Dr. Mandaviya reiterated the Government’s unwavering commitment to the welfare of the labour force, recognizing it as the backbone of the nation’s economic growth and development. He added that the trade unions are the voice of our workers, and their insights are invaluable to shaping policies that are not only effective but also fair and inclusive.
A presentation on proposed ELI scheme also was made during the meeting.
Dr. Mansukh Mandaviya invited suggestions from the trade unions regarding the formulation of the ELI scheme. He emphasized that the ELI scheme has been designed to encourage businesses to generate more employment as well as to provide meaningful and sustainable jobs for the youth of our country.
During the meeting, Dr. Mandaviya stressed that the input of the trade unions is valuable to ensure that it serves the interests of all stakeholders.
Representatives from various CTUOs shared their perspectives on the scheme as well as other labour welfare measures being taken by the government. Dr Mandaviya assured the trade unions that such meetings will be a continuous process and the government looks forward to seeking valuable inputs of trade unions to ensure that policies and schemes are formulated in a manner that promote fairness, inclusivity and equitable growth.
******
Tuesday, August 27, 2024
Sunday, August 25, 2024
Statement by Confederation of Central Government Employees & Workers, Central Headquarters, New Delhi
The Union Cabinet yesterday (24.08.2024) approved a Unified Pension Scheme (UPS) for the Central Government Employees.
The 20 year of sustained struggle by Confederation has yielded some result.
For the first time in 20 years since inception of NPS, the Government at Centre has announced a significant improvement in Pension scheme for its employees who have joined service on or after 01.01. 2004. So far it was reluctant to speak about the Pension.
But because of the sustained struggle by the Confederation along with other organisations, Govt came down and was compelled to grant _assured_ Pension , family Pension and minimum Pension to its employees.
The Confederation still has reservation on some of
the features viz.,
1.Withdrawal from Pension corpus, lum sum payment at the time of retirement
2. Contribution of the employee
3 .12 month's average basic pay to calculate the Pension instead of last pay drawn
4.Minimum Service of 25 years and other features....
Further, it is to bring to the notice of the members that the PFRDA act did not had provisions of any benefit to NPS subscribers, except lum sum payment and Pension based on annuity plan . But our struggle forced the Government to concede the following benefits
a. Enhance its contribution to 14% in NPS and now 18.5_
b. Allowed Gratuity
c. Allowed Family Pension as has been in OPS (while death in service)
d. Withdrawals in contribution etc.,
These above are the benefits achieved during our struggles for restoration of the OPS.
Therefore, the day is not far from achieving our declared goal. The struggle will continue till then.
The Confederation will appropriately take its decision on all provisions after going through the Notification once it is issued.
S B Yadav
SG Confederation
25 .8.24
CITU denounces Unified Pension Scheme (UPS)
 |
PRESS RELEASE
25TH August 2024
CITU DENOUNCES UNIFIED PENSION SCHEME
ANOTHER DUBIOUS DESPERATE EFFORT DECEIVING EMPLOYEES
URGES FOR RESTORATION OF OLD PENSION SCHEME
Centre of Indian Trade Unions (CITU) denounces the Unified Pension Scheme (UPS) approved by Union Cabinet on 24.8.2024 as another dubious desperate effort to deceive the Govt employees of their due full right to Old Pension Scheme known as OPS. CITU urges for restoration of old Pension Scheme.
The Old Pension Scheme was non-contributory and with assured pension existing as per Central Civil Service Rules 1972 now 2021. A. B. Vajpayee led NDA Govt had introduced the National Pension Scheme (NPS) in 2004 surreptitiously through an Executive Order for those recruited from 1.1.20O4. The central and state Govt employees and central trade unions opposed it from that day and were on path of struggles against it urging for restoration of OPS. The Pension Fund Regulatory & Development Authority Act 2013 notified in February 2014 enabled statutory basis for the NPS.
The unprecedented struggles by the Govt Employees for restoration of Old Pension Scheme(OPS) and the whole hearted support rendered to such struggles by the Joint Platform of Central Trade Unions and Federations could compel the arrogant BJP regime to shift from its arrogant stance of sticking to NPS, but the package offered by it in the name of so called UPS reflects the same deceptive ploy of depriving the Govt employees of their legitimate dues on account of pension. Several State Govts also reverted back to the OPS and were urging for their share of state govt Employees contribution to PFRDA to be refunded to their State Govts. Modi Govt had rejected all of such requests of State Govts which reverted back to OPS. It was countered by the relentless struggles of employees and trade Unions. Hence this dubious attempt of deceptive UPS is made by Modi led ND Alliance Govt. The Finance Secretary T. V. Somanathan Committee recommendations to study modifications in NPS, which was also boycotted by several Employees federations, are used for this desperate attempt of UPS - a cocktail of NPS and truncated OPS is approved by the Union cabinet.
The Modi led ND Govt with its neo liberal pursuit of safeguarding the interests of speculative crony capital has come with this UPS with some modification of benefits with additional contribution of 4.5% from the Govt only to further its investment of pension funds of Rs. 10,53,850 crores called Asset under Management (AUM) of total 99,77,165 employees under NPS as on by 31.7.2024 in the share market.
The previous Andhra Pradesh State Govt had proposed similar or somewhat better than UPS in place of NPS in the name of Guaranteed Pension Scheme (GPS) with 50% of last drawn pay as pension for minimum 10 years of service with defined contribution and purchase of 40% annuity, which was correctly rejected by all the State Govt employees of AP urging for nothing short of OPS. Now the Union Govt has come with similar rather less beneficial scheme with some modifications in NPS which should are also aptly rejected by vast majority of the employees urging for nothing less than OPS.
UPS is based on the continuity of 10% contributions by the employees with the Government contribution increased to 18.5% from present 14%. While in NPS the subscriber can take 60% and has to invest 40% in an annuity and get pension, under UPS entire pension wealth will have to be foregone to the government. In lieu of which government will give 10% of the employee emoluments i.e., basic pay plus DA for every completed six months of service. For 25 years of completed service the employee will get 5 months emoluments and for 10 years of service will get 2 months of pay on retirement as benefit in addition to gratuity.
In UPS, employee will get 50% of 12 months average basic pay as pension on normal retirement at the age of 60 with the completion of 25 years of service, effective from 1-4-2025 that is for those retiring on 31-3-2025 but not applicable to those retired before it. In OPS for 10 years of service 50% of last month's pay is pension and for voluntary retirement after 20 years of service employee gets 50% of pay as pension.
Employees with service less than 25 years will get proportionately lesser pension in UPS. Employee with 20 years of service will get only 40% of 12 months average basic pay as pension. For 10 years of service employees will get only 20% of average basic pay as pension. In case of proportionate pension for less than 25 years up to 10 years a minimum pension of Rs 10,000 is proposed by government. While Minimum pension in OPS is Rs 9000 plus DA (which as on 1-4-2025 will be 57% that is Rs. 5130) so minimum pension as on 1-4-2025 will be Rs.14,130. Hence the proposed Rs.10000 pension is half of that of OPS. For less than 10 years of service at the time of superannuation employee is not eligible for any pension
Under UPS family pension is 60% of pension i.e., 60% of 50%. It means 30% of last pay for 25 years of service at the time of superannuation. For employee with minimum pension of rupees 10,000 it will be 60% of it, i.e., Rs 6000. Minimum pension of rupees Rs 10000 applies only to superannuation and not for family pension. But under OPS family pension is 50% of last pay if the pensioner dies before 7 years after retirement or before 67 years of age. There after family pension will be 30% of last pay. Minimum pension as on 1-4-2025 will be Rs.14130. But in UPS minimum family pension will be only Rs 6000.
DA/DR will be given to assured pension or minimum pension or family pension based on the Consumer price index as in the case of serving employees. Whether they will start a new base index from 1-4-2025 or they will grant the same percentage of DA/DR as for serving and OPS pensioners are not yet spelt out. In OPS if the pensioner or family pensioner completed 80 years of age additional pension of 20%, for 85 years 30%, for 90 years 40%, 95 years 50% and 100 years 100% is given with Same DA for additional pension also. In UPS this additional pension is not available. In OPS pension/family pension/minimum pension is revised whenever pay commission is implemented while there is no such assurance under UPS. Commutation of pension i.e., withdrawal of 40% pension in advance available in OPS is not available in UPS. For those employees who die or become invalid becoming all class unfit in NPS, OPS is applicable to them already. Employees can opt to UPS or NPS, once opted will be final.
There may be many more shortcomings in UPS which may be known after the full text of UPS is notified.
Hence the CITU denounces the UPS and urges the Union Govt to restore the non-contributory defined assured Old Pension Scheme. CITU calls for extending full support to the Govt employees struggle for restoration of OPS.
Issued by,
Tapan Sen
General Secretary
Subscribe to:
Posts (Atom)