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New Delhi: A federation of Union government employees’ unions has written to the cabinet secretary asking for the Old Pension Scheme (OPS) to be restored. They have argued that the National Pension System (NPS) is a disaster for retired employees, The Hindu reported.
“It is amply clear that the NPS employees despite their contribution of 10% of their wages every month for their entire service is getting only a very meager pension and are worse off vis-à-vis the OPS. The pension under NPS remain static and there is no Dearness Relief to compensate the price rise /inflation as available in the OPS,” the letter signed by the Joint Consultative Machinery, an umbrella of various unions comprising Group B and Group C employees, reads.
The letter, according to The Hindu, also cited examples of officials who were not receiving their promised pension amounts because of the switch to the NPS. For instance, a defence establishment official who recently retired after more than 13 years of service received only 15% of the assured pension he would have got under the OPS. “Under the NPS, the official with a basic pay of ₹30,500 received ₹2,417 as monthly pension as against the ₹15,250 pension he would have been given under the OPS,” according to The Hindu.
“It is now 18 years after the implementation of NPS. Employees who were recruited on or after 01/01/2004 have now started retiring from service. From the paltry amount they are now getting as pension from NPS it is proved that it is a disaster for the retiring employees in their old age and not a win-win situation,” the letter continues.