New Pension Scheme : Family Pension under NPS
The Government might again start the Family Pension closed since 2004 – Dainik Bhaskar website has published an article about the National Pension System in Hindi and the same given below as translated in English…
Bhopal: There is a good news for the 33 lakh employees of the Central Government and states. The Government is thinking to provide Family Pension to them from next year onwards. This was discussed during the recommendation of the 7th Pay Commission. The State Government need to submit its report to the Government by the month of December, by which after its approval, the employees can avail its benefits from 1st January 2016.
Now, after April 2004, starting from the officers to the workers who have been into Government service are getting Contributory Pension, but the employees before that were getting Family Pension. In this, under New Pension Scheme (NPS), the problem of the newly recruited employees is that they are not sure whether they will get pension or not after their retirement.
Under this, 10% of their salary is reserved by the Government. Until their retirement, this amount will be deducted out of which 70% of it will be paid in cash and the rest 30% is reserved for the Pension Fund from which they will get a part as pension until death.
The present provision: Now, the employees recruited before April, 2004 have been getting Family Pension. In this, no amount is being deducted from their salary in the name of Pension. During retirement, 50% of the salary to be paid in the last month is being fixed as pension. This amount is being paid until death and after that this is being transferred to the dependent.
More than 13 lakh recruitments
From April 2004 till today, 13 lakh 46 thousand 862 recruitments have been done in the Central Government, and in the same time 19 lakh 58 thousand 378 have been done in State. These employees have a provision of Contributory Pension. After deducting 10% from their monthly salary, the same amount is being added by the Government. In this fund, till today, a total a 42 thousand crores have already been deposited in the NSDL.
It is being considered that the New Pension Scheme will be revised in the 7th Pay Commission report, which is being expected to be converted to Family Pension. This has also been our continued demand. If the Central Government approves this recommendation, this will benefit a lot of employees. – KKN Kutti, Chairman, Central Government Employees Confederation, New Delhi.
-Family Pension was removed since April 2004 from the Government Services. This action by the Government was not a correct one. Pension is the only attraction that brings in people to join Government Services. This is being recommended in the 7th Pay Commission and if the Central Government accepts this, this is going to benefit the employees a lot. – KS Sharma, Former Chief Secretary, Madhya Pradesh
Reason of necessity
Since the last 11 years, the employees who are joining Government Services have no provision of the Pension that they are going to receive in the form of Social Security on retirement. This is the reason the interests of the youth declined. From this, it is clear that in the period from 1 April 1994 to 1 April 2004, where more than 50 lakh people joined Government services, whereas after the end of the Pension, only 33 lakh people came into service.
If the Central Government approves the provision of Family Pension, we will think of applying the same in the State – Jayant Malaiya, Finance Minister.