REINTRODUCTION OF OLD PENSION SCHEME

Reintroduction Of Old Pension Scheme

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
UNSTARRED QUESTION NO. 4075
TO BE ANSWERED ON AUGUST 10, 2018/SHRAVANA 19, 1940 (SAKA)
REINTRODUCTION OF OLD PENSION SCHEME

Shri Rakesh Singh

Will the Minister of FINANCE be pleased to state

• the details of drawbacks of the New Pension Scheme (NPS) introduced for the Government officials;
• whether the NPS is not as beneficial monetarily as the Old Pension Scheme (OPS) and if so, the details thereof;
•  whether the Government employees are disgruntled with the NPS and if so, the details thereof; and
• whether the Government proposes to reintroduce the OPS replacing the NPS, if so, the details thereof and the action taken by the Government in this regard?

ANSWER

The Minister of State in the Ministry of Finance
(Shri Shiv Pratap Shulda)

(a) & (b) National Pension System (NPS) has been designed giving utmost importance to the welfare of the subscribers. Government has made a conscious move to shift from the defined benefit pension scheme to defined contribution pension scheme i.e. NPS, due to rising and unsustainable pension bill. There are a number of benefits available to the employees under NPS. Some of the benefits are enlisted below:

• NPS is a well designed pension system managed through an unbundled architecture involving intermediaries appointed by the Pension Fund Regulatory and Development Authority (PFRDA) viz. pension funds, custodian, central record keeping and accounting agency, National Pension System Trust, trustee bank, points of presence and Annuity service providers. It is prudently regulated by PFRDA which is a statutory regulatory body established to promote old age income security and to protect the interest of subscribers of NPS.
• The pension wealth which accumulates over a period of time till retirement grows with a compounding effect. The all-in-costs of the institutional architecture of NPS are among the lowest in the world.
• Contribution made to the NPS Tier-I account is eligible for tax deduction under the Income Tax Act, 1961. An additional tax rebate of Rs.50000 is also allowed for contributions made to NPS Tier-I under Section 80CCD (1B) of the Income Tax Act, 1961.
• Subscribers can withdraw up to 25% of their own contributions before attaining age of superannuation, subject to certain conditions. Further, PFRDA vide "PFRDA (Exits and Withdrawals under the NPS) (First Amendment) Regulations, 2017" dated 10.08.2017 has liberalized norms for partial withdrawals which also include reduction of requirement of minimum years of being enrolled under NPS from 10 years to 3 years from the date of joining.
• PFRDA has increased the maximum age limit from 60 years to 65 years for joining NPS-All Citizen Model and Corporate Sector Model, vide “PFRDA (Exits and Withdrawals under the NPS) (Second Amendment) Regulations, 2017” dated 06.10.2017.
• PFRDA vide "PFRDA (Exits and Withdrawals under the NPS) (Third Amendment) Regulations, 2018" dated 02.2018 has facilitated easy exit & withdrawal in case of disability and incapacitation of the subscriber covered under NPS.
• Transparency and Portability is ensured through online access of the pension account by the NPS subscribers, across all geographical locations and portability of employments.

(c) & (d) Representations have been received which inter alia also include the demand that the Government may revert to old defined benefit pension system. However, due to rising and unsustainable pension bill and competing claims on the fiscal, there is no proposal to replace the NPS with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

Alternative Arrangement in Place of Employees on Child Care Leave

Alternative Arrangement in Place of Employees on Child Care Leave

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
LOK SABHA

UNSTARRED QUESTION NO: 3587
ANSWERED ON: 08.08.2018

Alternative Arrangement in Place of Employees on Child Care Leave

NAGARAJAN P.  Will the Minister of
PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS be pleased to state:-

(a) whether the Union Government is aware of the fact that the office work is being totally disrupted due to absence of women employees on account of the long paid maternity leave and child care leave;

(b) if so, the details thereof;

(c) whether the Government has calculated days and assessed working during maternity/child care leave for making provisions of staff to overcome the shortage or cope up with the work in the absence of women employees who are on maternity and child care leave;
(d) if so, the details thereof; and

(e) if not, the reasons therefor?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE
(DR. JITENDRA SINGH)

(a) to (e) : Disruption in the office work due to absence of women employees on account of the long paid Maternity Leave and Child Care Leave has not come to the notice of the Government. Ministries/Departments are authorized to make suitable leave arrangements to cope up the loss of work hours when an employee proceeds on any kind of leave including Maternity and Child Care Leave. There is also provision for creation of leave reserve posts to cover the leave vacancies. No centralized data is maintained in this regard.

Source : LokSabha

DoPT: Cadre Review proposals processed in DoPT upto 31st July 2018

DoPT: Cadre Review proposals processed in DoPT upto 31st July 2018
A. Approved by Cabinet - 28
B. Pending Proposals - 17
1. With Concerned Ministry - CRC meeting held and Cabinet approval pending - 9
2. With Cabinet Secretariat - Nil
3. With Department of Personnel & Training - 5
4. With Department of Expenditure - Nil
5. With Ministry concerned for clarifications - 3

Status of Cadre Review proposals processed in DoPT from 1st January, 2011 to 31st July, 2018

A. Approved by Cabinet

S.No.	Name of the Service	CRC* Meeting	Cabinet Approval
1	CPWD Central Engineering Service, Central Electrical & Mechanical Engineering Service and Central Architecture Service	27/06/2011	03/01/2012
2	Military Engineering Services (Indian Defence Service of Engineers, Architect Cadre and Surveyor Cadre)	22/09/2011 and 23/01/2012	18/04/2013
3	Indian Revenue Service	19/02/2013 and GoM** on 29/04/2013	23/05/2013
4	Indian Radio Regulatory Service	19/02/2013	03/07/2013
5	Central Labour Service	19/02/2013	17/07/2013
6	Indian Customs & Central Excise	27/08/2013	05/12/2013
7	Indian Cost Accounts Service	29/10/2013	02/01/2014
8	Central Power Engineering Service	11/12/2013	13/05/2014
9	Indian Ordnance Factory Service	19/03/2014	29/10/2014
10	Indian Civil Accounts Service	17/07/2013	16/01/2015
11	Border Road Engineering Service	26/02/2015	07/04/2015
12	Defence Aeronautical Quality Assurance Service	08/01/2015	06/05/2015
13	Indian Trade Service	06/05/2014	01/07/2015
14	Indian Statistical Service	24/06/2014	29/07/2015
15	Indian Skill Development Service	10/04/2015	07/10/2015
16	Indian Postal Service	28/12/2015	25/05/2016
17	Central Reserve Police Force	15/12/2015	29/06/2016
18	Indian Information Service	05/05/2016	24/08/2016
19	Border Security Force	29/06/2016	12/09/2016
20	Indian P & T Accounts and Finance Service	17/09/2015	27/10/2016
21	Ministry of Micro, Small and Medium Enterprises (MSME) Indian Enterprise Development Service (IEDS)	28/12/2015	21/12/2016
22	Indian Telecom Service	06/10/2016	21/12/2016
23	Central Engineering Service (Roads)	25/04/2016	06/03/2017
24	Indian Naval Material Management Service	24/10/2013	22/06/2017
25	Indian Defence Accounts Service	09/09/2016	19/07/2017
26	Sashastra Seema Bal (SSB) (Group 'A' Combatised)	19.7.2017	20.12.2017
27	Central Industrial Security Force (CISF)	15.05.2017	10.01.2018
28	Indian Petroleum and Explosive Safety Service (IPESS)	09.01.2017	02.05.2018

* CRC - Cadre Review Committee ** GoM - Group of Ministers
B. Pending Proposals

SI. No.	Name of the Service	Status
1. With Concerned Ministry - CRC meeting held and Cabinet approval pending (9)
1	Indian Railways Personnel Service	Meeting of CRC was held on 19.04.2018. Approvals of MoS (PP) and FM have been obtained. MoR now has to take the approval of the Cabinet. Draft Cabinet Note has been moved by MoR
2	Indian Railways Traffic	-do-
3	Indian Indian Railways Stores Stores	-do-
4	Indian Railways Accounts Service	-do-
5	Indian Railways Service of Mechanical Engineers	-do-
6	Indian Railways Service of Electrical Engineers	-do-
7	Indian Railways Service of Engineers	-do-
8	Indian Railways Service of Signal Engineers	-do-
9	Railway Protection Force	The request of MoR to submit a revised proposal has been acceded to by DoPT. They have been advised to submit the revised proposal within a month.
2. With Cabinet Secretariat (0)
3. With Department of Personnel & Training (5)
10	Indian Defence Estate Service (IDES)	MoD was requested for certain clarifications. The same have been received. The proposal is under examination.
11	Indian P&T Building Works	Approval of Secretary (Exp) has been obtained. Note for CRC is being sent.
12	Indian Naval Armament Service (INAS)	DoE has raised certain clarifications. Reply of MoD has been received which is under examination.
13	Indian Ordnance Factories Health Services (IOFHS)	The approval of Secretary (Exp) obtained. Note for CRC is being prepared.
14	Indo Tibetan Border Police (ITBP)	The proposal is under consideration.
4. With Department of Expenditure (0)
5. With Ministry concerned for clarifications (3)
15	Indian Economic Service	DEA has been requested for certain clarifications vide this Division's OM dated 10.07.2017. A DO reminder has been sent to DoEA on 15.05.2018. A subsequent DO reminder (at JS level) has been sent on 05.07.2018. The clarifications are yet to be received.
16	Indian Railway Medical Service (IRMS)	Proposal was found incomplete. MoR has been requested to send the complete proposal.
17	Central Health Service (CHS)	Proposal was found incomplete. MoFHW has been requested to send the complete proposal.

Note: A calender of cadre review has been issued vide OM No.I-11019/9/2018-CRD dated 25.05.2018. The name of the Service/Cadre along with the month by which cadre review proposal is required to be submitted to DoPT is mentioned in the Annexure. The aforesaid OM dated 25.05.2018 is available on the official website of DoPT i.e. www.dopt.gov.in (Link: Notifications - OMs & Orders - Cadre Review - Division - General Circulars) . The Cadre Controlling Authority may take immediate action for compliance.


Source: DoPT

Revision of hourly rates of Incentive Bonus and Bonus Factors of Workshops/PUs staff under CRJ Pattern & GIS

Revision of hourly rates of Incentive Bonus and Bonus Factors of Workshops/PUs staff under CRJ Pattern & GIS

INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION
(Estd. 1965, Regd. No.1329 under ITU Act, Websitehttp://www.irtsa.net)

No. IRTSA/Memo RB/Incentive/2018-7

Date: 26.07.2018

Mrs. KALYANICHADDA, Executive Director/ME(W),
Convener, Committee for revision of hourly rate of Incentive Bonus,
Railway Board, Rail Bhawan, New Delhi - 110001.
CC by Email - edmew@rb.railnet.gov.in

Sub: Revision of hourly rates of Incentive Bonus and Bonus Factors of Workshops/PUs staff under CRJ Pattern & GIS - Regarding Financial implications thereof.

Ref: 1. Railway Board's Order No. RBE-I/201/23/39, dated 06.07.2017& 18.05.2018.
2. Our memorandum dated 02.07.2018 & meeting with you on 04.07.2018. Respected Madam,
With reference to our earlier memorandum and our meeting with you on 04.07.2018, we submit this memorandum for the kind consideration of the Committee for revision of hourly rates of Incentive Bonus on estimated additional expenditure on account of revision of incentive rates based on minimum pay of respective Pay Level in 7th CPC Pay Matrix divided by 208 (standard working hours per month) - as per formula followed after 5th Pay Commissions.

Proposed revision of Incentive Rates is estimated to cost additionally only 1.28 percent in terms of cost of man power.

There are 2,38,546 workshop Group 'C' & 'D' staff (2,19,682 Group 'C' & 18,864 in Group 'D') of Mechanical, Electrical and S&T covered under incentive scheme as on 03.2017. (Strength of workshop artisan & helper as on 31.03.2017 is given in Table-1)

Average annual wage per employee for Group 'C' in Workshop staff including pay, all allowances, PLB, pension & gratuity (Senior Technician, Supervisor (Ministry), Technician Grade-I, II & Ill) is Rs. 7,09,494. (Ref. Statement 40 (II) (b) of Indian Railways Annual Statistical Statement 2016-17)
Average annual wage per employee for Group 'D' Workshop staff including pay, all allowances, PLB, pension & gratuity (semi-skilled & unskilled) is Rs. 5,66,147. (Ref. Statement 40 (II) (e) of Indian Railways Annual Statistical Statement 2016-17)

If incentive rates are revised based on minimum of respective Pay Level divided by 208, additional expenditure is estimated to be Rs.214.09 crore.

In terms of equivalent man power it will be 3,061 Group 'C' & 'D' workshop staff (2,847 men in Group 'C' and 213 in group 'D').

This will be only 1.28% of 2,19,682 strength of Group 'C'&'D' workshop staff available in Indian Railways as on 31.03.2017. Details of the calculation is attached in Table-2.

It is therefore requested that, no reduction in allowed time / man power may please be proposed for implementation of revised incentive rates, since the estimated additional cost equal to only 1.28% man power which will be compensated by additional work load due to the addition of rolling stocks & new trains.

Hoping for a favourable consideration & thank you in anticipation,

Yours faithfully,
Harchandan Singh General Secretary, IRTSA

Table - 1

	Workshop artisan & Helper strength as on 31.03.2017
	Workshop & Artisan staff *				Helper **
	Sr.Tech	Tech Gr-I	Tech Gr-II	Tech Gr-III	Helper	Total
Mechanical	20023	48035	31435	36221	11646	147360
Electrical	7651	22074	14917	16968	4479	66089
S&T	4185	7038	5283	5852	2739	25097
Total	31859	77147	51635	59041	18864	238546

*Statement 40 (IV) (i) of Indian Railways Annual Statistical Statement 2016-17,
** Statement 40 (III) (f) of Indian Railways Annual Statistical Statement 2016-17

Table - 2
Estimated additional expenditure on account of revision of Incentive Rates based on minimum Pay in Pay Matrix divided by 208, standard working hours per month

Design	Pay Level	* Mean Pay	Mean Pay + 7% DA	Existing incentiverates Rs.	Pro- posed incentive rates Rs.	ExistingBP+DA+ Incentive Rs.	Pro- posed BP+DA+ Incentive	Difference between existing and pro- posed BP+DA+ Incentive	Staff Strength as on 31.07.2017	Additional Expense due to pro- posed revised Inc. Rates Rs. in Cr
Sr. Technician	Pay level- 6	62200	66554	49.65	170	71718	84234	12516	31859	39.88
Technician Gr-I	Pay Level-5	51100	54677	43.3	140	59180	69237	10057	77147	77.59
Technician Gr-II	Pay Level-4	44800	47936	38.5	123	51940	60728	8788	51635	45.38
Technician GM II	Pay Level-2	35000	37450	32.2	96	40799	47434	6635	59041	39.17
Sub total									219682	202.01
Helpers	Pay Level-1	31500	33705	25.45	87	36352	42753	6401	18864	12.08
Total									238546	214.09

* Basic Pay at 20th cell of respective Pay Level in the Pay Matrix

1. Estimated additional expenditure on account of revision of Incentive Rates based on minimum Pay in Pay Matrix divided by 208 (standard working hours per month) will be Rs.214.09 crores.
2. In terms of equal man power it will be 3061 (2847 men in Group 'C' & 213 in Group 'D') @ average per Capita staff cost for Group 'C' work shop staff Rs. 7,09,474 and average per capita staff cost for Group 'D' work shop staff Rs. 5,66,147.
3. This will be 1.28% of 2,38,546 strength of Group 'C' & 'D' workshop staff available in Indian Railways as on 31.03.2017.

Defined Contribution Pension Scheme (National Pension System) - Salient Features

Defined Contribution Pension Scheme (National Pension System)
(Salient Features)

---

• The National Pension System works on defined contribution basis and will have two tiers - Tier-I and II. Contribution to Tier-I is mandatory for all Government servants joining Government service on or after 1-1-2004 (except the armed forces in the first stage), whereas Tier-II will be optional and at the discretion of Government servants.
• In Tier-I, a Government servant will have to make a contribution of 10% of his basic pay plus DA, which will be deducted from his salary bill every month by the PAO concerned. The Government will make an equal matching contribution. However, there will be no contribution from the Government in respect of individuals who are not Government employees.
• Tier-I contributions (and the investment returns) will be kept in a limited partial withdrawable Pension Tier-I Account. Tier-II contributions will be kept in a separate account that will be withdrawable at the option of the Government servant. Government will not make any contribution to Tier-II account.
• The existing provisions of Defined Benefit Pension and GPF would not be available to the new recruits in the central Government service, i.e. to the Government servants joining Government service on or after 1-1-2004. However, retirement gratuity and death gratuity would be extended to the central government employees covered under NPS on the same terms and conditions as applicable under CCS(Pension) Rules, 1972.
• In order to implement the Scheme, there will be a Central Record Keeping Agency (CRA) and several Pension Fund Managers (PFM) to offer three categories of Schemes to Government servants, viz., options A,B and C based on the ratio of investment in fixed income instruments and equities. The participating entities (PFMs and CRA) would give out easily understable information about past performance, so that the individual would be able to make informed choices about which scheme to choose.
• An independent Pension Fund Regulatory and Development Authority (PFRDA) will regulate and develop the NPS.
• A Government servant can exit at or after the age of 60 years from the Tier-I of the Scheme. At exit, it would be mandatory for him to invest 40 per cent of pension wealth to purchase an annuity (from an IRDA-regulated Life Insurance Company) which will provide for annuity for the lifetime of the employee and his dependent parents/spouse. He would receive a lump-sum of the remaining pension wealth which he would be free to utilize in any manner. In the case of Government servants who leave the Scheme before attaining the age of 60, the mandatory annuitization would be 80% of the pension wealth.
• Provisionally, central government employees covered under NPS has option to choose benefits under old pension scheme or NPS in the event of their death or discharge from service on invalidation.

2. FAQs about the National Pension System

Frequently Asked Questions (FAQs)
(National Pension  System)

Last updated/Reviewed:  18.12.2017

NPS.1 The  CCS(P)  Rules are applicable to govt. servants appointed on  or  before 31.12.2003. Are the employees who joined pensionable establishments  of  Govt. of India after 31/12/2003 eligible for any benefits under these rules?

In  accordance with DoP&PW O.M. No.  38/41/06 - P&PW(A) dated 5.5.2009 such  employees  who  joined  after  31/12/2003  and/or  their families may be given the benefit of disability pension  or  family  pension  provisionally  till  the finalization of rules under the National Pension System   (NPS) on death/injury.
Further,  the  benefit of Retirement Gratuity and Death Gratuity have  been extended to the Central Government civil employees covered under NPS in the  same  terms  and conditions  as applicable under CCS Pension Rules, 1972 vide this OM no. 7/5/2012 - P&PW(F)/B dated 26/08/2017.

NPS.2 What are the guidelines/orders in regard to settlement of dues of the deceased Government employees covered under NPS?
As per the Department of Pension & PW O.M. No.38/41/06 - P&PW(A) dated 5.5.2009 (available on website) the benefits under the CCS(Pension) Rules has  been  provisionally  extended to the families of deceased employees covered under NPS. Family Pension/gratuity in terms of O.M. dated 5.5.2009 shall  be  payable  to  the  family of the deceased employee if the deceased  employee was  covered  under  NPS  and fulfils the conditions. These payments are provisional and  will  be  adjusted  as  per the final provisions. As per Para 7 of the O.M., the accumulations in pension wealth of deceased employee under NPS  will not be paid during the period provisional benefits under the aforementioned O.M. are payable. The Head of Office will prepare the pension papers as per provisions of the relevant rules and proceed as per the procedure for making the provisional payments to  eligible  Government  servants families explained in Ministry  of  Finance O.M. No.1(7)/DCPS(NPS)/2009/TA/221 dated 2.7.2009 read with corrigendum dated 29.9.2009.

Source: pensionersportal.gov.in