NPS employees Rally and Meeting held on 21st March 2023 at Bengaluru

 Under the banner of  Joint Forum of Restoration of Old Pension Scheme  a rally and meeting was organized in the premises of City Railway station opposite to City RMS office Bengaluru. In which thousands of employees participated in it.

  

A Paper on NPS issues

           .

National Pension System (NPS)

Now this NPS scheme has about 625 lakhs NPS subscribers as on March 2023 with accumulated wealth of about 8.8 lakh crores in the share market which includes about 40 lakhs  Central Government  employees , several state government employees etc. Today in Government departments about 60 to 70 percentage of employees are from NPS category .  Hence it is an important demand of  Government  employees and  we should address it. 

 

The main demand of NPS employees today is the implementation of Old pension Scheme to the NPS subscribers. Is the important demand of NPS employees? Let us study about this scheme and our demands fulfilled and demands not resolved yet how can we achieve this demand. The actual impact of this scheme will be felt after 2025 when the retirement process starts , the full impact of NPS scheme will be felt in 2034 onwards . However the impact of NPS scheme is already being observed for  GDS employees.

 

History and Scheme Details:

  A New Pension Scheme (Contribution based Pension Scheme) now called National Pension System (NPS), was introduced  By NDA Government for Central Government employees vide Ministry of Finance (Department of Economic Affairs) Notification No. 5/7/2003- ECB & PR dated 22nd December, 2003. NPS was made mandatory for all new recruits to the Central Government service (except the armed forces) from 1st January, 2004. After the enactment of the PFRDA Act, 2013, as per Section 20 of the Act, the pension scheme notified on 22.12.2003 has become the National Pension System under the Act. NPS is now regulated under PFRDA Act, 2013 and regulation framed thereunder by Department of Financial Services and PFRDA With the introduction of NPS w.e.f. 01.01.2004.

Later on many State Governments have adopted this scheme at different stages . expect Kerala and West Bengal State Governments.  This NPS scheme is also applied to Bank & LIC employees also.  Hence a united fight against this NPS scheme by all.

How this NPS scheme works after retirement:

On exit from NPS on superannuation, an individual is mandatorily required to invest at least 40% of the accumulated pension corpus in Tier-I to purchase an annuity from an Annuity Service Provider an Insurance Regulatory and Development Authority (IRDA) regulated Insurance Company registered with PFRDA and a maximum of 60% of the accumulated corpus in the Tier –I account is given to the individual in lump- 4  sum. If the Government servant exits from NPS before superannuation (i.e. before 60 years of age), he/ she has to invest at least 80% of the accumulated corpus to purchase an annuity and the remaining 20% can be withdrawn as lump sum. • Department of Financial Services notification dated 31.01.2019 – In implementation of the recommendations of the committee constituted for suggesting measures for streamlining implementation of NPS, Department of Financial Services vide their notification dated 31.01.2019 extended following benefits to Government employees covered under NPS: (i) Employee contribution 10% of the salary and DA with matching contribution @ 14% by the Government w.e.f. 01.04.2019. (ii) Investment of NPS wealth upto 95% in infrastructure/Debt funds and 5-15% in equity for Government employees. Life Cycle based funds viz. LC-50 and LC-25 also available w.e.f. 01.04.2019. (iii) Option for investment choices and Pension Fund made available to Government servants w.e.f. 01.04.2019.

    Under the NPS, every Government servant is registered and allotted a Permanent Retirement Account Number (PRAN). Before 1.4.2019, a Government employee had to mandatorily contribute 10% of pay and Dearness Allowance (DA) and an equal amount of 10% was contributed by the Government to the employee’s pension fund. Now 14% • The contribution made by the employees and contribution from the Government were invested by Pension Fund Managers in accordance with the investment pattern prescribed by the PFRDA for Central Government employees. There were three PSU Pension Fund Managers for Government employees. Government employees had no choice for Pension Fund Managers or investment pattern. •

Improvement in NPS scheme after our struggles :

1)      Benefit of retirement gratuity and death gratuity: Department of Pension and Pensioners’ Welfare O.M. No. 7/5/2012- P&PW(F/B) dated 26.08.2016- The benefit of retirement gratuity and death gratuity have been extended to the Central Government employees covered under NPS vide DoPPW O.M. dated 26.08.2016 on the same terms and conditions as are applicable under CCS(Pension) Rules, 1972.

 

2)      Counting of service :   Instructions were issued by DoPPW vide OM dated 26.07.2005 for counting of past service rendered in a Government service or service of an autonomous body having CCS(Pension) Rules and appointed on or before 31.12.2003

 

3)      Instructions have been issued vide DoPPW OM dated 01.01.2021 that if a Government employee appointed on or after 01.01.2004 and covered under NPS is disabled, he shall also be eligible to receive a lump sum compensation computed in terms of rule 9(3) of CCS(Extraordinary Pension) Rules, if the disablement is attributable to Government service and the Government employee is retained in service in spite of such disablement.

 

4)      DoPPW OM No. 57/4/2019-P&PW(B) dated 17.02.2020 - An OM dated 17.02.2020 has been issued by Department of Pension and Pensioners’ Welfare providing that in all cases where the results for recruitment were  declared before 01.01.2004 against vacancies occurring on or before 31.12.2003, the candidates declared successful for recruitment shall be eligible for coverage under the Central Civil Services (Pension) Rules, 1972. Accordingly, such Government servants who were declared successful for recruitment in the results declared on or before 31.12.2003 against vacancies occurring before 01.01.2004 and covered under the National Pension System on joining service on or after 01.01.2004, may be given a one-time option to be covered under the Central Civil Services (Pension) Rules, 1972. •

 

5)      Extending benefit of CGHS to Government employees covered under NPS Initiatives by Ministry of Health and Family Welfare • Ministry of Health and Family Welfare OM No. S.11011/10/2012-CGHS (P)/EHS dated 28.03.2017 – Ministry of Health and Family Welfare issues instruction on extending benefit of CGHS to Government employees covered under NPS, subject to conditions that: i. Minimum years of qualifying service for eligibility of CGHS membership after retirement- 10 years. ii. No minimum qualifying years of service for availing CGHS facilities in case of. Death / disability. iii. Other conditions such as definition of family, CGHS contributions, conditions of dependency etc will be applicable as per existing rules.

 

6)      Government contribution has increased to 14% : Government employee had to mandatorily contribute 10% of pay and Dearness Allowance (DA) and  from  1/4/2019  the government contribution has increased to  14%  from 10%  was contributed by the Government to the employee’s pension fund. Vide Office Memorandum dated 31^st Jan 2019. Issued by Finance Ministry. This results in higher pension than before.

 

7)      Investment in NPS Tier II has been brought under Section 80 C for tax exemption w.e.f. 01.04.2019. and Rs 50,000/ under section 80CCD (1B) and Lump sum withdrawal for specified reasons upto 25 % is allowed now and tax exemption under Section 10(12B) of the IT act 1961. On Employee’s contribution: Employee’s own contribution is eligible for tax deduction under sec 80 CCD (1) of Income Tax Act up to 10% of salary (Basic + DA). This is within the overall ceiling of Rs. 1.50 Lakhs under Sec. 80 CCE of the Income Tax Act. (ii) On Employer’s contribution: Up to 10% of Basic & DA (no monetary ceiling) under 80CCD (2). This rebate is over and above 80 CCE limits of Rs 1.50 lakhs

 

8)      The Government has notified CCS(Pension) 2021 in August 2021.

Now our further struggles on this issue of restoration of OPS:

 The employees should get guaranteed minimum pension,  Since it is a contributory  pension unlike the OPS scheme where the employees contribution is not there , here in this NPS scheme the employees contribute 10% of their Basic pay  plus DA .The Government contribution is about 14% of basic pay together about 24% amount  hence we should get more pension amount than the OPS.  

 As on today we are getting in the New Pension scheme today the returns we are getting is about 2 % to 8% depending upon the share market on an average of 4 % returns. If we invest in fixed deposits we get about 8% annual returns without any risks , but we deposit our hard earned money into the share market we are bound to take the share market risk , the share market is volatile market not only dependent on Indian conditions and also foreign markets .   Investment of contribution in NPS  scheme (it is estimated that Government securities give real returns of 1.6% per annum, corporate bonds give real rate of returns of 5% per annum and Equity give a real rate of returns of 8% Per annum over a long period).

Today our employees after serving government for many years are only given paltry pension from Rs 2000 to Rs 15,000/ per month depending upon length of service, compared to Rs 20,000/ for an MTS in old pension scheme .

Our challenges are that in India we have about 625 lakhs NPS subscribers as on March 2023 with accumulated wealth of about 8.8 lakh crores in the share market. With state government employees alone contributing about 4.4 lakhs crores.  It is not that easy to convince the central government to withdraw Rs 8.8 lakhs crores from share market investment without proper struggle.  The central government always maintained there is no provision in the PFRDA Act for a refund of the accumulated NPS corpus . The Rajasthan state Government order on Old Pension scheme restoration clearly indicates that the date of effect is from 1/4/2022. The Central Governments and State governments should ensure   a proper minimum pension is provided to the employees after retirement.    

The PFRDA has published   an article for Minimum Assured Return Scheme (MARS) to the NPS subscribers under section 20 2 (b) should be provided.

REPORT OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA (C&AG) DATED 4th AUGUST 2020 

 

Audit noticed that PFRDA initiated (February 2019), the process to design the Minimum Assured Returns Scheme (MARS) by issuing an Expression of Interest for design and development of MARS under NPS.

 C & AG report (Para 3.7) recommends for providing Minimum Assured Return Scheme (MARS) to the NPS subscribers.

 

C & AG report (Para 3.8) quotes the strike notice of Confederation of Central Government Employees & Workers served to the Central Government demanding 50% of the last pay drawn as Minimum Pension and the reply of the Government.

 

The Pension Fund Regulatory and Development Authority is expected to launch its first minimum assured return scheme (MARS) under the National Pension System (NPS) this year. There are very few products like this currently in India or abroad.  But returns should be minimum of 8.33% then only we can expect good amount pension, the PFRDA is working out at  3% to 5% returns which is very less. So we should demand minimum pension as per Old Pension Scheme.    

 

  Even after lapse of nearly 20 years since the introduction of the NPS, the subscribers were not yet to receive such minimum assurance.  Immediate steps need to be taken for providing MARS in compliance to the provisions of the PFRDA Act, to the subscriber for ensuring their social security post retirement.

The Governments all along are informing public that there is huge expenditure on the pension portion , the actual figures works out to just around 8% of the total revenue  receipts spent on the pensions which is a welfare measure as the government is a model employer .

Education of all the NPS employees and bringing them on the path of struggle is very important to get the minimum pension scheme for the NPS employees. If we put more pressure on the Government through our struggles we can achieve the desired results, as we have achieved improvements in NPS scheme we can achieve this also our main demand of minimum pension scheme. Due to our struggles a few state governments  like Himachal Pradesh , Rajasthan , Chhattisgarh  have withdrawn from NPS scheme and provided its employees the Old Pension Scheme , a few state governments like Kerala and West Bengal from the beginning newer adopted this NPS scheme . Many other state governments have constituted committees to study reverting back to old pension scheme such as Karnataka & Maharashtra.  

Hence we should take the fight to the governments by participating in movements such as dharna , rallies etc. So that the pressure is built on governments to invest our hard earned money into government schemes including SBI and LIC pension funds where we get 12 % returns on the investment made by us instead of share market which is volatile and not recommended for government employees. Today after the study we made the mutual funds are only providing us between 4 to 8% returns only. It is not the matter where the government invest our money it is matter how much returns we get on our contribution and Government contributions, we NPS employees should get more than the Old Pension Scheme employees as we are contribution is there The .   

Hence our main demand of restoration of Old Pension scheme instead of Present NPS scheme or providing Minimum Assured Return Scheme (MARS) to the NPS subscribers.

 

Please circulate amongst all the NPS holders.

Participate in Dharna / Rally programs , don’t be whatsapp heroes, struggle path only fetch you pension .

Issued by COC Karnataka in the interest of NPS employees.                                                                                                                         

 

 

 

    

 

 

               

 

            

All India CPI & DA Jan 2023

 The All-India CPI-IW for January, 2023 increased by 0.5 points and stood at 132.8 (one hundred thirty two point eight). This increase in CPI-IW is opening the account of Expected DA/DR from July, 2023 i.r.o. Central Govt Employees and Pensioners with score of 1% increase in 1st month.  Rest of 5 months’ CPI-IW index will confirm the exact figure of DA/DR of Jul, 2023.

DA as on 1st Feb 2023 is 43.08 % 

CGHS PANCHAYAT on 23rd February 2023

The  Directorate of CGHS is holding CGHS PANCHAYAT on 23rd February 2023 @ 3 PM in Shruti Auditorium Kendriya Sadan Bengaluru.  PANCHAYAT is open to all Stakeholders Viz beneficiaries  HCOs and others. All can participate in PANCHAYAT 

S Radhakrishna 

 President COC

Parliament Dharna program to be held at New Delhi on 14th March 2023

 To

All Affiliates 

COC Karnataka

Respected Comrades,

The joint convention  of Central Government employees represented by the Confederation of Central Government Employees and Workers along with State Government employees represented by AISGEF, which was held on 8th December 2022 at New Delhi had decided to have a joint  Parliament Dharna program of  Central Government employees and State Government employees on 14th March 2023 from 10 a.m. to 4 p.m. on the issue of scrapping of New Pension Scheme (NPS) and restoration of OPS for those employees, who have joined the Government service after 2004. 

In this connection, it is requested to give directions to NPS employees to join in the Parliament Dharna program to be held at New Delhi  on 14th March 2023 from 10 am to 4 pm in large numbers, so that, unity of NPS employees is achieved and their strength is shown to the Government. The COC Karnataka affiliates are requested to send the list of employees participating in the Parliament Dharna program for forwarding the same to CHQ .

Wide publicity may be given by the affiliates to the Parliament Dharna program of Government employees on 14th March 2023 to be held at New Delhi.

                                                                Comradely yours,

                                                                       (Vinod)                                                           

                                                          General Secretary

Parliament Dharna on 14th March 2023 @ New Delhi

 

COM. S. K. VYAS JI REMEMBRANCE DAY ON 13th FEBRUARY 2023

 

Com. S.K.Vyas, the legendary leader of the central government employees and pensioners and long time Secretary General of Confederation of Central Govt. employees and Workers as also that of National Co-ordination Committee of Pensioners’ Association (NCCPA) left us on 13th February 2015. In uniting the central government employees, bargaining with the government on the issues of CG employees and leading the struggles – there is no parallel for him.

Comrade N.J.Iyer, former President of NFPTE, long time time General Secretary of R.III. union and a respected leader of the central government employees passed away on 13th February 2000. He was a militant leader.

We miss both the leaders . Red salute to them

Joint State level "NPS Convention" of Central Government Employees and Karnataka State Government Employees on 7th Feb 2023

 

Joint State level "NPS Convention" of Central Government Employees and Karnataka State Government Employees

 TO  ALL THE AFFILIATES OF COC KARNATAKA

Respected Comrades,

As per the directions of Confederation,

a Joint State level "NPS Convention" of Central Government Employees and Karnataka State Government Employees would be convened on 7th Feb 2023 from 10.30 a.m. to 12 Noon.

The State Government employees from all over the Karnataka State will be participating in the NPS Convention at Freedom Park, Bengaluru. 

In this connection,  all the affiliates are requested to give wide publicity among all its Members and request them, esp. NPS Employees, to participate in large numbers, in the said Joint NPS Convention, to carry on the fight against New Pension Scheme and also with regard to other issues faced by the Government employees 

All are requested to attend the aforesaid "NPS Convention" in time, without fail. 

Thank you,

Comradely Yours,

Vinod

General Secretary,

DA and CPI December 2022

 The All-India CPI-IW for December, 2022 decreased by 0.2 points and stood at 132.3 (one thirty two point three) points.

DA as on 1st Jan 2023 is 42.04 % Hence  4% DA confirmed 

CPI and DA November 2022

 The All-India CPI-IW for November, 2022 remained stationary at 132.5 (one hundred thirty two point five). On 1-month percentage change, it remained static between October, 2022 and November, 2022.

DA as on 1st December 2022 is 41.74% 

Expected DA as on 1st January 2023 is 42%(4% increase )

Condolence meeting of Com KKN Kutty at Bengaluru

 

Brief of the meeting held with the Spl. Secty.(Pers.)

 National Council (Staff Side)

Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001

No.NC/JCM/2022/DA

                                                                                        Dated: December 5, 2022

All Constituents of the NC/JCM
Dear Comrades,

Sub: Brief of the meeting held with the Spl. Secty.(Pers.), Deptt. of Exp., Govt. of India

A meeting was held today with the Special Secretary(Pers.), Deptt. of Exp., Government of India, on Agenda Item No.27/SC/22(D/o Exp.) of the Standing Committee of the NC/JCM regarding payment of the arrears of Dearness Allowance.

View: Payment of Dearness Allowance/Dearness Relief w.e.f. 01.01.2020, 01.07.2020 and 01.01.2021 with the arrears: Secretary, NC (Staff Side) JCM writes to Cabinet Secretary and stated that Staff Side is ready to discuss about the mode of arrears payment.

After prolonged discussions it has been agreed by the DoE that they will examine the issue once again and will consult the MoF on the subject.

Staff Side also discussed the issue of commutation of pension as per our agenda item. Staff Side demanded that, restoration of full pension after deduction of commuted value of the pension should be done after completion of 12 years instead of 15 years. It has been informed by the Ministry of Pension that the case been sent to the DoE after the last meeting of the Standing Committee of National Council(JCM). Special Secretary, (Pers.), Deptt. of Exp.. agreed to examine the issue and do the needful.

In the said meeting, apart from the undersigned, Leader Staff Side was also present.

This is for your information.

Comradely yours,

(Shiva Gopal Mishra)
Secretary

Convention of State Govt. Employees and Central Govt. Employees

A Convention of State Govt. Employees and Central Govt. Employees has been held today at Talkatora Stadium, New Delhi. It has been convened by All India State Govt. Employees Federation and Confederation Federation and Confederation of Central Govt. Employees and Workers. The comrades from Karnataka state led by Com Ganesh participated in the said convention.

 

 

Remembering Com. K K Narayanan Kutty

 Com. K K Narayanan Kutty (10.12.1947 - 8.12.2022)

Com.KKN Kutty was born on 10.12.1947 in Tirur Malappuram District Kerala in a Agriculture Family. After his school education he joined in a private company at Coimbatore. Subsequently he joined Income tax Department as Stenographer at Pollachi in the year 1966. Later he got appointed as Direct Recruit Inspector and posted in Chennai. He was elected as General Secretary of Tamilnadu Income tax Union which was affiliated to ITEF. He was elected as Joint Secretary of ITEF CHQ in the year 1979 in Cochin Conference and opted for foreign service in CHQ. He was nominated as member of JCM staff side and Department Council also. He was elected Secretary General of ITEF in Kolkata Conference in the year 1981 and served in that position for 3 decades until 2009. He retired from Govt service 31.12.2007. He also held the post of Finance Secretary and Secretary of Confederation of Central Government Employees and Workers CHQ. Com. Kutty was elected as Secretary General and President of Confederation also. He was instrumental to form JCA in the year 1987 in Income Tax Department. He formed the Pensioners Association in IT Department and he was founder General Secretary of ITPF. He also held the post of Secretary General of National Coordinating Committee of Pensioners Assembly (NCCPA) which is one of the largest pensioners forum having membership of all Central Government Pensioners including Railway Pensioners Association. He has also held the post of Vice President of World Federation of Trade Unions (WFTU). He has visited many foreign countries and participated in international labour conventions like Cuba, Brazil, South Africa, France, Germany, Australia, Bangladesh, Nepal and Srilanka representing India. He involved himself in all most all the Central Pay Commissions except first and second Pay Commissions. He is good narrator, speaker, negotiator, writer, organiser and a strong trade union leader. He has organised and led many struggles in favour of CG Employees Demands. Always having smiling face, convincing capacity and never get angry. He was the disciple of Com.Sanjeeban Banerjee, Com.Pushpendra Sen, Com.Nayagam, Com.Pathik Bannerjee, Com.SK Vyas, Com. M K Pande, Com.C.Subramaniam etc.    

He is good friend of many trade union leaders in our country particularly Com.Umesh Mehta, Com.K.Raghavender, Com.Sivagopal Mishra. He has introduced and brought in many new leaders into the trade union movement including the current leadership of ITEF and Confederation. He has sacrificed his entire life to Central Govt Employees. 

The Great leader has passed away on 8.12.2022 at 9.30 AM at Meitra Hospital Calicut after prolonged illness of Pulmonary infections. The Indian labour movement has lost one of a finest Trade Union Leader particularly Central Government Employees and Workers. 

Com. KKN Kutty addressed many conventions and conferences in Karnataka state , his contributions to building Central Government employees movement is immense.    

Let’s pay our sincere homage to our beloved leader Com. KKN Kutty.  And our Deepest Heartfelt Condolences to the family members of Com.Kutty and his friends and comrades.

Red Salutes to Com.Kuttji COC Karnataka dips it flag. 

All-India CPI-IW for October, 2022 and DA as on 1st November

 The All-India CPI-IW for October , 2022 increased by 1.2 points & stood at 132.5 (one hundred thirty  two point five ) for Base Year 2016 = 100,  base year 2001 it is 382 points. 

DA as on 1st November , 2022 is 41.13 % .

Expected DA as on 1st Jan 2023 is 42%.

Minutes of Meeting

 The meeting of the COC Karnataka was held on 23/11/2022 in ITEF Room, C.R.Building Annexe, Ground Floor, Queen's Road, Bengaluru  under the chairmanship of Com P.S.Prasad to discuss the following agenda:

1) To discuss and finalise the date for convening COC Karnataka State level conference. Also venue and other arrangements.

2) Convention @ Delhi by Confederation

3) Review of Organisation functioning

4) Remittance of Subscription to COC

5) CGHS issues and other issues 

Com Vinod General Secretary briefed about the above issues. The meeting  decided the following 

1) To hold the COC Karnataka State level conference on 22nd Jan 2023 (Sunday) subject to availability of CHQ leadership .

2) It was decided to hold the COC Karnataka State level conference on Sundays as Postal employees can participate in large numbers.

3) It was decided to hold in LIC union office hall. 

4) It was decided to send the NPS employees, delegation of   leaders of the various associations to the Joint National Convention of state and central Government employees on NPS issue, DA arrears payment , inflation , privatisation of Government services etc  to be held in New Delhi on 8th December 2022 at Talkatora stadium  New Delhi from 9.30 am onwards at their own costs.

a) NFPE -30 delegates 

b) ITEF -10 delegates 

c) AG’s – 10 delegates  

d) Survey of India : 5 delegates 

e) Other Associations-  15 delegate 

            Total : 70 delegates 

5) It was decided to print the materials on common issues of Central Government employees in bi -language both Kannada & English on issues like NPS, commutation of Pension, inflation  etc. and circulate amongst the employees at  State level conference on 22nd Jan 2023  

6) An appeal has been made to affiliates for requesting them to remit the subscription of COC Karnataka in in view of State level conference on 22nd Jan 2023. An estimated estimate of  Rs 70,000/ is estimated for the State level conference on 22nd Jan 2023 and the COC Karnataka has also remit the CHQ Confederation subscription also hence we require about one lakh funds. Hence all affiliates of COC Karnataka are requested all the dues to COC Karnataka and special contributions may also be made in this regard.  

7) The issue of CGHS was taken up with the Additional Director CGHS Bengaluru and additional wellness centres and additional emplaned hospitals in Karnataka state hope in next year this issue is resolved.     

8) The COC Karnataka has taken up with Confederation CHQ regarding the issues of commutation of pension and the same is now pending at Finance Ministry.    

9) An appeal has been made by COC Karnataka more youngsters should join the leadership of COC Karnataka .      . 

10) The next meeting of COC Karnataka will be held at GPO to chalk out the program of action for State level conference on 22nd Jan 2023.

                               (P.S.Prasad)                           (Vinod)

                            Working President             General Secretary

CPI and DA

The All-India CPI-IW for September, 2022 increased by 1.1 points and stood at 131.3 (one hundred thirty-one point three). On 1-month percentage change, it increased by 0.84 per cent with respect to previous month compared to an increase of 0.24 per cent recorded between corresponding months a year ago.

DA as on 1st October is 40.02