The Indian National Defence Workers Federation (INDWF), affiliated with the Indian National Trade Union Congress (INTUC), has made significant strides in advocating for reforms in the National Pension System (NPS). On July 15, 2024, INDWF announced that the Pension Review Committee is expected to recommend a guaranteed pension at 50% of the last pay drawn for NPS beneficiaries. This development has sparked considerable interest among central and state government employees who have been advocating for a more equitable pension system.
Background and Efforts by INDWF:
Established in 1959 and recognized by the Government of India, INDWF has consistently opposed the NPS, which replaced the Old Pension Scheme (OPS) on January 1, 2004. The organization argues that NPS fails to provide adequate financial security for retirees, particularly those with shorter service periods. To address these concerns, the National Council Joint Consultative Machinery (NCJCM) constituents, including INDWF, formed the Joint Forum for Restoration of OPS (JFROPS). Under the leadership of Shri Shiv Gopal Mishra and Dr. M. Ragaiviah, JFROPS has been organizing nationwide protests and advocating for the reinstatement of OPS.
Key Events and Advocacy:
In 2023, JFROPS organized monthly protest programs across the country, urging the government to scrap NPS and restore OPS. A notable event was the massive rally at Ram Leela Maidan in New Delhi on August 10, 2023, where lakhs of employees demonstrated their discontent with the current pension system. On the same day, JFROPS representatives met with the Honorable Minister concerned and submitted a memorandum advocating for the restoration of OPS. These efforts led to the announcement of the formation of a committee to review the NPS by the Honorable Finance Minister during the winter session of Parliament in 2023.
Pension Review Committee and Meetings:
Chaired by the Finance Secretary of the Government of India, the Pension Review Committee includes the Secretary of Personnel, Secretary of Expenditure, and Chairman of the Pension Fund Regulatory and Development Authority (PFRDA). The committee is tasked with recommending improvements to the NPS to bring it on par with the OPS. It has held three meetings with the staff side members of the National Council JCM (Standing Committee) to discuss potential reforms.
During these meetings, the NC JCM Standing Committee submitted a detailed memorandum highlighting the inadequacies of the current NPS. The memorandum emphasized the need for a minimum guaranteed pension of 50% of the last pay drawn and the provision of Dearness Relief similar to that offered under OPS. The committee acknowledged the concerns and assured that it would incorporate the staff side’s claims into its recommendations. This led to the deferral of the indefinite strike planned for May 1, 2024.
Anticipated Recommendations and Impact
The expected recommendation of a guaranteed pension at 50% of the last pay drawn under NPS marks a significant step forward. If implemented, this reform would align the NPS with the benefits provided under OPS, offering better financial security to retirees. This proposed change is expected to address the grievances of central and state government employees advocating for a fairer pension system.
Conclusion:
The anticipated recommendation by the Pension Review Committee to guarantee a pension at 50% of the last pay drawn under NPS is a welcome development. This reform is poised to bring much-needed relief to government employees and align the NPS more closely with the benefits of the OPS. INDWF, through its persistent efforts and advocacy, has played a crucial role in bringing this issue to the forefront and working towards a fairer pension system.
For the latest updates and more information, stay tuned to Gservants News and follow the developments on the Pension Review Committee’s recommendations.
