State unit of NMOPS Demands to Convert NPS to the previous format of GPF

ITANAGAR: On the 22nd of December 2021, the state unit of the National Movement for Old Pension Scheme (NMOPS) addressed the media on the restoration of the old-age pension system. The unit expressed despondence over the NPS  & placed their grievances to the state government and urged them to have a revisit towards the  New Pension Scheme and have it converted to the old format of the General Provident Fund scheme (GPF).

In-Depth

Addressing the press  NMOPS president Dakme Abo expressed that in the year 2004 the government of India had issued an order to convert the GPF into the NPS(New Pension Scheme), but the state unit of NMOPS had always deferred the government's  initiative to conversion of the aforesaid issue.

Further addressing to the Media Abo added ," we have given an ultimatum of 15 days to the government to atleast give a reply to us ,but we have never  received any"

The NPS had no benifit for the employees , as per the State NMOPS.

"Sabhi niyem same honahe , humara government of India 2004 me NPS ko lagu karne bolai ,par humara Arunachal  me 2008 se lagu kia, aur 2005 ,2006,2007 ko GPF me include kardia , lekin humlogo ka 2008 wala ko GPF me lagu nahi kia"___added Abo.

He further bellowed that if the government wants to implement the rule , it should be for over all.

NMOPS state unit General secretary Doba Ete said that the state government should submit a written representation to the government of India, stating that the state government employees are demanding enrollment in the old GPF scheme and withdrawal from the NPS.

"Many state has adopted but the state like Tripura and West Bengal has not yet adopted because they know the lacunae of the NPS" added Ete.

He further urged the government employees to be aware of such scheme which might be bane rather than a boon.

Ete further read out the extended order of 2019, 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.

"2019 me humko yeh order dia magar state government humko koi order nahi he, treasury me jake bolnese boltai humara 10% apka 10%, jabki government yeh saabka update rehna chaiye" stressed  Ete

(ii) Investment of NPS wealth upto 95% in infrastructure/Debt funds and 5-15% in equity for Government employees.

"Ek admi MLA bantai , ek pension hotai, Mantri bantai , ek pension, Rajya sabha MP bangya ek pension, matlab ek admi char char pension leke bettai, toh humlog ko bhi GPF me dalona" bellowed Abo.

He slammed the state government to have  ignored the state government employee from being benifited from the Pension. The NPS implemented after 2008 has been further slammed by Abo.

"Sab new employee jo ayega, yeh New Pension Scheme sabko problem dega, so old pension scheme ko wapas lanahe" added Ete while clarfiying the facts of why NPS is harmful.

RECAPITULATION

What is NPS?

National Pension Schemeor NPS is a compelling investment option. You make regular investments throughout your working years till you retire. On maturity, this scheme gives you lump sum returns as well as steady pension income. You can enjoy tax benefits when you make contributions towards this scheme and when you start receiving the returns.

A New Pension Scheme (Contribution based Pension Scheme) now called National Pension System (NPS), was introduced 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, amendments were made on 30.12.2003 to Central Civil Services (Pension) Rules, 1972, Central Civil Service (Commutation of Pension) Rules, Central Civil Services (Extraordinary Pension) Rules, General Provident Fund Rules and Contributory Provident Fund Rules to the effect that the benefits under these rules would not be applicable to the Government employees appointed on or after 1.1.2004 and covered by NPS

How does NPS work?

Any citizen (resident and non-resident) between 18-65 years can invest in this scheme. The funds you invest in this scheme are allotted towards four market-linked assets classes - Equity, Government Bonds and Securities, Corporate Debt, and Alternative Investment Funds. Depending on how aggressive or conservative your investment approach is, you can decide the proportion of funds you want to be allocated towards each asset class. The returns are market-linked, and the scheme is designed to give you maximum growth from the start and protect you from short-term market volatility towards the end of your scheme.

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Jon Pebi Tato, Managing Editor, The SPACE