The Pension Movement from NPS to UPS
(A comparative study between OPS, NPS & 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
Finally, the two decades of Pension Movement by all Central and State Govt. employees including teachers and pensioners across the Nation demanding to restore the Old Pension Scheme (OPS) and to scrap out the National Pension Scheme (NPS) introduced since 1st January, 2004 took another shape when 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 22nd 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. UPS is not the exact substitute of OPS as demanded. Though it has guaranteed Assured Pension, Assured Minimum Pension and Assured Family Pension, it is still contributory. 10% of the Basic Pay plus DA of the employee will be deducted per month as is being done under NPS. However, the Govt.’s share is likely to rise from present 14% to 18.5% of the Basic Pay plus DA of the employee.
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 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
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