Javaid Ahmad Dar
Government is represented by its employees and at the top of this hierarchy are the elected members (public representatives) for a short duration of 5 or 6 years. Government employee dedicates its whole life for the welfare of the nation from the date of appointment till the date of retirement. After retirement only source of income for old age dependence is the money which he/she gets as gratuity called pension for living a dignified post retirement life. This money to be given to an employee is considered as a liability by the public representatives at the top. In order to get rid of this liability Pension Fund Regulatory and Development Authority (PFRDA) was established in India on October 10, 2003 in the name of development and regulation of pension sector by which New Pension Scheme or National Pension System gets its birth for central Officers/Employees/ Teachers appointed after January 01, 2004.The total number of employees in our country which are under the purview of NPS was 70,66,549 which includes Central Staff 21,36,614 and all State employees 49,29,935 on October 31,2020 and the total money deposited or Asset Under Management (AUM) is 4,25,243.10 crore rupees. The number of employees is increasing on daily basis.
Under the influence of Central Government different States in India implemented NPS at different dates according to their wishes and in erstwhile Jammu and Kashmir State the implementation date was January 01, 2010.West Bengal is the only State throughout India which has not brought its employees under the purview of NPS. Now some basic questions arise in the minds of employees that, Is West Bengal only State in India which is employee friendly? If NPS is in the interest of Nation, Why are our law makers (Members of Legislative Assemblies, Members of Parliament)which are elected for 5 or 6 years only still getting benefit of Old Pension Scheme? Does it mean that our Law makers are not bound by the same rules and regulations as other employees?
About NPS and NSDL (National Securities Depository Limited:-
The Central Government has introduced the New Pension System (NPS)with effect from January 01,2004 .PFRDA has appointed NSDL as Central Recordkeeping Agency(CRA)for New Pension System.CRA was the first of its kind venture in India which has to carry out the functions of record Keeping, Administration and Customer Service for all its subscribers under NPS.CRA issues a Permanent Retirement Account Number (PRAN)to each subscriber .In NPS 10%of basic pay of employee salary along with a matching share by the employer is invested in earmarked investment schemes notified by PFRDA. The accumulated amount will be reflected in PRAN while the employee is in service and shall be used at retirement to procure pension.
Comparison between New Pension System and Old Pension Scheme:-
Old Pension System (OPS) is one of the most secured solutions for the post retirement life of an employee while as NPS depends on Share market and is highly volatile. After retirement in OPS an employee has provision of Dearness Allowance, Medical facility, revision of pension, no such benefits occur in NPS. In OPS if by an eventuality employee dies there is 30% of family pension provision and 40% computed amount facility, no such provision exists in NPS. The employee can withdraw only 25% of self contribution four times during his service career and that too for specific purposes like construction of house, marriage, life consuming diseases and higher education of children in other words the employee’s self contributing amount is also locked but no withdrawal bar exists in OPS and an employee has a refund option with 0% interest rate as well. At the time of retirement NPS employee gets lump sum amount of 60% that too taxable of the accumulated amount in PRAN account of the subscriber and rest 40% is invested in buying a pension plan from LIC pension fund, UTI Retirement Solutions or SBI Pension Scheme for the pension of the employee throughout the rest of his life.
Case Study:-
Let me start with the example of a recently retired employee Ghulam Ahmad Dar of Zinpanchal Charar-e-Sharief who got parmanently appointed as Library Bearer in School Education Department Jammu and Kashmir on November 22, 2013 at the age of 54 years 09 months and 07 days, only after rendering 19 years 08 months and 21 days of service as contingent paid employee (CPE).
The total amount accumulated in the PRAN of the employee was 2.62 lakh and at the time of retirement the employee got 1.62 lakh rupees in lump sum and rest 1 lakh invested in buying the pension policy of UTI Pension fund. Now a days he is getting mere 425 rupees as pension. The father of four daughters and a son besides his wife one does not know how can they survive. Forget about the Ujwala gas cylinder such a meagre amount cannot even buy kerosene oil for cooking purposes of the family for a single month.
Tail Piece:-
This was the first step in the ladder of privatization that was introduced way back in 2004 and Government Sector employees were the first causality. Throughout India there are a number of families like that of Ahmads Kaks? Collectively we should think and ponder over it because during the service period, a Government employee is bound by a number of Civil Service Rules for neither initiating a profitable business nor holding an office of profit. This may be one of the reasons of increasing enrolment in old age homes. When employees are not satisfied, it becomes a matter of concern and need rethinking with vigour and vitality.
(The author is Lecturer Botany at Government Higher Secondary School Pakhar Pora)
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