NPS has been carried out for all central authorities workers becoming a member of on or after January 1, 2004.
Finance Ministry on Thursday arrange a committee beneath Finance Secretary T V Somanathan to evaluation the pension system for presidency workers.
The committee would counsel whether or not within the mild of the present framework and construction of the Nationwide Pension System (NPS), as relevant to authorities workers, any modifications therein are warranted.
As per its phrases of reference, the committee would counsel measures to change the identical with a view to enhancing upon the pensionary advantages of presidency workers lined beneath the NPS, preserving in view the fiscal implications and affect on total budgetary area, in order that fiscal prudence is maintained to guard the widespread residents.
The committee, to be chaired by Somanathan, would have Secretary within the Division of Personnel and Coaching (DoPT), Particular Secretary within the Division of Expenditure and Chairman of Pension Fund Regulatory and Improvement Authority (PFRDA) as members.
Final month, Finance Minister Nirmala Sitharaman mentioned {that a} Finance Secretary-chaired Committee would look into the difficulty of pensions beneath the NPS for presidency workers and evolve an method which addresses the wants of workers whereas sustaining fiscal prudence.
The announcement got here within the backdrop of a number of non-BJP states deciding to revert to the DA-linked Previous Pension Scheme (OPS) and likewise worker organisations in another states elevating demand for a similar.
The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have knowledgeable the Centre about their choice to revert to the outdated pension scheme and have requested a refund of the corpus amassed beneath the NPS.
Final month, Finance Ministry knowledgeable Parliament that it’s not contemplating any proposal to revive the OPS in respect of the central authorities workers recruited after January 1, 2004.
Below the OPS, retired authorities workers obtained 50 per cent of their final drawn wage as month-to-month pensions. The quantity retains growing with the hike within the DA charges. OPS will not be fiscally sustainable as it’s not contributory and the burden on the exchequer retains on mounting.
NPS has been carried out for all authorities workers besides these within the armed forces becoming a member of the central authorities on or after January 1, 2004. Many of the state/ Union Territory governments have additionally notified the NPS of their new workers.
In response to the PFRDA (Pension Fund Regulatory and Improvement Authority), 26 state governments, except for Tamil Nadu and West Bengal, have notified and carried out NPS for his or her workers.
The workplace memorandum issued by the ministry relating to organising of the committee doesn’t present a timeline for finalising the report.
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