NewDelhi: With many National Pension System (NPS) subscribers expected to retire in the coming years, the All India NPS Employees Federation (AINPSEF) has called for the implementation of a secured pension mechanism for retirees. In a memorandum submitted to the 8th Pay Commission, the AINPSEF has urged that pensioners should be entitled to 50 percent of their final salary plus Dearness Allowance (DA).
The AINPSEF has urged the 8th CPC to implement an assured pension system to protect employees from market fluctuations and offer stable post-retirement income. It has been proposed that pensioners should be entitled to 50 percent of their final salary plus dearness allowance to ensure financial security against market volatility.
AINPSEF has proposed that the state continue to hold its share of the NPS contribution while also committing to a fixed minimum pension for employees upon retirement. Currently, employees contribute 10 percent of their basic pay and DA to NPS Tier-I accounts while the government contributes 14 percent.
The AINPSEF maintains that the growth of the NPS retirement corpus for many employees has been affected by the ongoing market volatility. The federation claims that the returns have failed to keep up with inflationary pressures which may have a negative impact on future pension income.
The AINPSEF has recommended family pension benefits equivalent to around 60 percent of the pension amount after the pensioner’s demise. This will ensure financial sustainability and social security for dependents.
AINPSEF has said that employees on lower pay grades and with shorter service duration often retire with minimal pension support. The federation noted that sectors such as teaching and the railways rely heavily on work-charge, contractual and daily wage staff and many of these employees spend years in irregular service before eventual regularisation. These employees are more vulnerable. The federation claims pensions in some cases remain as low as Rs 300 to Rs 3,000 per month.
The federation maintained that in cases involving voluntary retirement, premature exit from service or compulsory retirement, pension support for employees on lower pay scales becomes extremely limited making it difficult for retirees to sustain themselves. Employees with lower pay levels generally accumulate a comparatively lower pension corpus which creates serious insecurity among them.
As part of its operational procedure, the 8th Pay Commission sought inputs from employees, pensioners and stakeholders through a structured questionnaire. The 8th CPC has also held meetings with stakeholders which focused on basic pay, minimum pay, pension, annual increment and pay levels. These meetings are part of the structured and comprehensive consultation process of the Commission which aims to collect inputs and feedback before formulating and deliberating recommendations on salary, allowances and service conditions for central government employees and pensioners.
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