(TO BE PUBLISHED IN PART I SECTION 1 OF GAZETTE OF INDIA) F. NO. 5(4)-B(PD)/2021 Government of India Ministry of Finance Department of Economic Affairs (Budget Division)
New Delhi, the 01 April, 2022
RESOLUTION
It is announced for general information that during the year 2022-2023, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one percent) w.e.f. 1st April, 2022 to 30th June, 2022. This rate will be in force w.e.f.1st April, 2022. The funds concerned are:
1. The General Provident Fund (Central Services). 2. The Contributory Provident Fund (India). 3. The All India Services Provident Fund. 4. The State Railway Provident Fund. 5. The General Provident Fund (Defence Services). 6. The Indian Ordnance Department Provident Fund. 7. The Indian Ordnance Factories Workmen’s Provident Fund. 8. The Indian Naval Dockyard Workmen’s Provident Fund. 9. The Defence Services Officers Provident Fund. 10. The Armed Forces Personnel Provident Fund.
2. Ordered that the Resolution be published in Gazette of India.
(Ashish Vachhani) Joint Secretary to the Govt. of India
To, The Manager, (Technical Branch) Government of India Press, Minto Road, Delhi.
Copy forwarded to all Ministries/Departments of Government of India, President’s Secretariat, Vice-President’s Secretariat, Prime Minister’s Office, Lok Sabha Secretariat, Rajya Sabha Secretariat, Cabinet Secretariat, Union Public Service Commission, Supreme Court, Election Commission and NITI Aayog.
Copy also forwarded to :-
1. Comptroller & Auditor General of India and all offices under his control. 2. Chairman, Pension Fund Regulatory and Development Authority. 3. Controller General of Accounts (10 copies). 4. Ministry of Personnel Public Grievances and Pension (Pension Unit/All India Services Division). 5. Financial Adviser of Ministries/Departments (6 copies). 6. Chief Controller of Accounts/Controller of Accounts of Ministries/Departments. 7. Controller General of Defence Accounts. 8. Finance Secretary of all State Governments and Union Territories. 9. Secretary to Governors/Lt. Governors of all States/Union Territories. 10. Secretary Staff Side, National Council of JCM. 11. All Members, Staff Side, National Council of JCM. 12. NIC – For uploading on webhost.
Small Savings Schemes Interest Rate from April 2022 to June 2022
F.No.1/4/2019-NS Government of India Ministry of Finance Department of Economic Affairs (Budget Division)
North Block, New Delhi Dated: 31.03.2022
OFFICE MEMORANDUM
Subject: Revision of interest rates for Small Savings Schemes โ reg.
The rate of interest on various Small Savings Schemes for the first quarter of financial year 2022-23 starting from 1 April 2022 and ending on 30th June, 2022 shall remain unchanged from the current rates applicable for the fourth quarter (1st January, 2022 to 31st March, 2022) of FY 2021-22.
Consumer Price Index for Industrial Workers (2016=100) – February, 2022
The Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. The index is compiled for 88 centres and All-India and is released on the last working day of succeeding month. The index for the month of February, 2022 is being released in this press release.
The All-India CPI-IW for February, 2022 decreased by 0.1 points and stood at 125.0 (one hundred twenty five). On 1-month percentage change, it decreased by 0.08 per cent with respect to previous month compared to increase of 0.68 per cent recorded between corresponding months a year ago.
The maximum downward pressure in current index came from Food & Beverages group contributing 0.30 percentage points to the total change. At item level, Rice, beetroot, Cabbage, Carrot, Drumstick, French-been, Lady’s finger, Onion, Potato and Tomato, etc. are responsible for the fall in index. However, this decrease was checked by Goat meat/Mutton, Poultry Chicken, Apple, Chili Green, Parwal, Kerosene Oil, Doctor’s/Surgeon Fess, Medicines Allopathic, Bus fare and Private Tuition/Coaching etc. putting upward pressure on the index.
At centre level, Salem recorded a maximum decrease of 4.7 points followed by Tirunelveli with 3.7 points. Among others, 5 centres recorded decrease between 2 to 2.9 points, 4 centres between 1 to 1.9 points and 28 centres between 0.1 to 0.9 points. On the contrary, Thane recorded a maximum increase of 2.9 points followed by Bhilwara with 2.1 points. Among others, 9 centres recorded increase between 1 to 1.9 points and 35 centres between 0.1 to 0.9 points. Rest of 3 centres’ indices remained stationary.
Year-on-year inflation for the month stood at 5.04 per cent compared to 5.84 per cent for the previous month and 4.48 per cent during the corresponding month a year before. Similarly, Food inflation stood at 5.09 per cent against 6.22 per cent of the previous month and 4.64 per cent during the corresponding month a year ago.
What is the value AICPIN for Feb 2022?
The AICPIN for Feb 2022 decreased by 0.1 points and stood at 125.0
What is the value AICPIN for Jan 2022?
Theย All-India CPI-IW for January, 2022ย decreased by 0.3 points and stood at 125.1
FinMin released DA Order from Jan 2022 for Central Govt Employees
No.112/2022-E-II (B) Government of India Ministry of Finance Department of Expenditure
North Block, New Delhi Dated the 31st March, 2022.
OFFICE MEMORANDUM
Subject: Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 01.01.2022.
The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/4/2021-E-II (B) dated 25th October, 2021 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 31% to 34% of the Basic Pay with effect from 1st January, 2022.
2. The term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.
3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.
5. The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March, 2022.
6. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.
7. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.
(Nirmala Dev) Director
To, All Ministries/Departments of the Government of India (as per standard distribution list) Copy to: C&AG, UPSC, etc. as per standard endorsement list.
What is the current Dearness Allowance for Central Government Employees?
The Current DA percentage is 34% for Central Government Employees. DA from Jan 2022 is 34%
Whether Finmin released DA Order from Jan 2022?
Finmin released DA Order from Jan 2022 on 31st March 2022
How to calculate the 7th CPC Salary?
The 7th CPC salary is calculated from your basic pay (including grade pay) as of 31.12.2015, then multiplied with a Fitment factor of 2.57. The next step is to go toย Pay Matrixย Table and select the Level corresponding to Grade Pay. Check the calculator above
Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 31% to 34% of the basic pay with effect from 1st Jan 2022
Transport Allowance, Dearness Allowance, and Total Salary will also change based on the 34 percent dearness allowance.
7th CPC Transport Allowance
As per the 7th CPC recommendation, Transport Allowance will also change based on the latest Dearness Allowance percentage.
7th Pay Commission Recommendation for Transport Allowance
The central government implemented the 7th Pay Commission Transport Allowance and released Office Memorandum No.21/5/2017-E.II (B) dated 7th July 2017, in addition to this OM, FinMin also released another Office Memorandum on 2nd August 2017 O.M No.21/5/2017-E.II(B) with partial modification on Transport Allowance to CG Employees for the pay of Rs.24200/- & above in Pay Level 1 & 2
Cabinet approved 3% DA hike from Jan 2022 for Central Government Employees
DA hike from Jan 2022
Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.01.2022
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2022 representing an increase of 3% over the existing rate of 31% of the Basic Pay/Pension, to compensate for price rise.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,544.50 crore per annum. This will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners.
SCOVA Meeting April 2022: 32nd Meeting of Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Honโble MOS(PP)
SCOVA Meeting April 2022
F. No. 42/05/2022-P&P W(D) เคญเคพเคฐเคค เคธเคฐเคเคพเคฐ/Government of India Ministry of Personnel, Public Grievances & Pensions Department of Pension & Pensionersโ Welfare
3rd Floor, Lok Nayak Bhawan Khan Market, New Delhi:110003 Dated โ 24th Mar, 2022
All Pensionersโ Association included in SCOVA vide this Departmentโs Resolution dated 25.01.2021
Sub:- 32nd Meeting of Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Honโble MOS(PP) on 12.04.2022 from 11 am onwards-reg
The 32nd Meeting of SCOVA under theย Chairmanship of Honโble MOS (PP) is scheduled to be held on 12.04.2022 from 11 am onwards.ย The meeting will be held viaย Video Conferencing (VC).
2. Only one representative may attend the meeting in the Active Mode during the Video Conferencing.
3. It is requested to send the name, telephone, and email-id of the member who may attend the meeting. VC Link of the meeting will be sent to the nominated member in due course.
Scheme for compassionate appointment โ Review of Relative Merit Points and Procedure for selection – Dept of Posts Order
No.17-1/2022-SPG-II Government of India Ministry of Communications Department of Posts Dak Bhavan. Parliament Street New Delhi-110001
Dated the 23 March, 2022
To 1. All Chief Postmasters General / Postmasters General : 2. Chief General Manager. BD Directorate / Parcel Directorate / PL] Directorate 3. Director. RAKNPA / CGM. CEPT / Directors of all PTCs 4 Addl. Director General, Army Postal Service, New Delhi 5. All General Managers (Finance) / Directors Postal Accounts / DDAP
Subject: Scheme for compassionate appointment โ Review of Relative Merit Points and Procedure for selection.
Madam/Sir,
Letter No.17-4/2018-SPG-II dated 28.09.2020 providing for Revised Relative Merit Points System (RMPS) and procedure for compassionate appointments in the Department of Posts may please be referred to. The matter has been reviewed keeping in view the references received from various stakeholders including Circles and instructions contained in DOP&T OM No.43019/9/2019-Estt.(D) dated 23.08.2021.
2. The Relative Merit Points for assigning weightage to various attributes of the applicants for compassionate appointment have been reviewed. The revised RMP is based on 100 points of 10 variables with provision of additional 15 maximum bonus points for the applicant if she is the widow of the deceased employee/wife of an employee who has retired on medical grounds. The new RMPS is given in Annexure.
3. Cutoff date for working out the indigency of the dependent family of the deceased employee: Date of death or date of retirement on medical grounds will be considered as cutoff date for the purpose of assessing the indigent condition of the applicant under RMPS for compassionate appointment.
4. Cases to be considered by CRC: All the cases of death/retirement on medical grounds which occur till 31st December will be considered alongwith cases โreferred by previous CRC for consideration by next CRCโ. For example. CRC scheduled in 2022 (for vacancy year 2021), will consider all cases of death/retirement on medical grounds till 31st Dec 2021 along with โreferred cases of previous CRC of vacancy year 2020โ.
The CRC for vacancies of different years will be conducted separately in a manner that CRC for earliest year is conducted first and CRC for latest year is conducted last.
5. Rejection of case: Each case should be considered three times continuously in a row and if a case is not recommended in third consideration depending upon RMPS of the case, the CRC which is considering the case third time, shall reject the case. Past applications which were not categorically rejected by previous CRCs and have not been considered 3 times by CRCs, shall be considered again (till completion of 3 times consideration) where CRC shall categorically recommend any of the remarks:
(a) Recommended for appointment on compassionate grounds (b) Not recommended for appointment due to paucity of vacancies in current year. To be considered by next CRC (c) Rejected
Once an application has been recommended for rejection by the CRC and recommendation accepted by the competent authority which, after due consideration of all facts and circumstances of the case, did not find merit in the case, the candidature of the applicant shall not be considered again except under explicit direction of the court or discovery of new facts or material which was either not in the knowledge of the applicant or the applicant was prevented to produce the same on account of some sufficient cause.
6. Recommendations as โTraineeโ: The recommendations related to โTraineeโ should be restricted to Multi Tasking Staff cadre only.
7. Age of case: The time gap between date of death/retirement on medical grounds and date of application shall be taken as โage of the caseโ. In case, there is no dependent family members eligible to apply for compassionate appointment solely on the grounds of age (all dependents being minor), time gap between the date on which any dependent becomes major (irrespective of fact whether the same dependent is the applicant or not) and date of application shall be taken as โage of the caseโ. This will have no link with date of meeting of CRC or vacancy years against which the application is being considered. This formula shall be applied only for calculation of RMP for immediate relief.
8. Belated cases: Currently, cases which are more than 5 years old, are termed as belated case. The time gap of 5 years will be continued to categorize a case as belated case. This 5 year period will be counted strictly from the date of death/retirement on medical grounds upto the date of application irrespective of all dependents being minor at the time of death/retirement on medical grounds of the employee.
9. Missing person cases: In case of missing person, application will be accepted only after two years of date of report of missing of official as mentioned in FIR. All the condition related to compassionate appointment to dependent of missing official as prescribed by DOP&T should be ensured.
10. Circle specific vacancy: The vacancies to be utilized by a Circle for compassionate appointment in a year should not be more than 5% of the vacancies in Direct Recruitment Quota in Group C Posts in a year. The Circles will utilize 100% quota earmarked for appointment on compassionate grounds of a vacancy year. In case no eligible candidate is available, the left over vacancies will be added to DR vacancies of next year. The vacancies arising in PAOs, Civil/Electrical wing shall also be taken into consideration.
11. Crucial date of eligibility: Crucial date for age limit and educational qualification shall be the date of application. In case, any applicant upgrades his/her educational qualification, he/she will be free to continue with old educational qualification or to withdraw old application and submit application afresh with revised educational qualification. If the applicant withdraws old application and submit application afresh with revised educational qualification, the various parameters applicable with regard to date of application for considering compassionate appointment will be applied as on date of fresh application. If an applicant has crossed maximum age limit prescribed for a post to which he is being considered for appointment on compassionate grounds, as on the date of application, age relaxation will be required in the case. The lower age limit should, however, in no case be relaxed below 18 years of age as on the date of application.
12. Place of Posting: As far as administratively feasible, applicant appointed on compassionate grounds will be posted at a place as per preference indicated or near his/her home town or in same division in which the applicant is residing, subject to availability of vacancies.
13. CRC meeting schedule: In all cases of death/retirement on medical grounds upto 31st December, cutoff date for receipt of application shall be 31st January of the following year for consideration of application for the CRC meeting scheduled during April of the following year. For example, for deaths/retirements on medical grounds upto 31st December, 2021 and receipt of application upto 31st January 2022, CRC should consider such cases against vacancy year of 2021 in its meeting which shall be scheduled during April, 2022. In case no application is submitted by dependents of the deceased/retired on medical grounds employee, a letter from the dependent family members stating reasons for non-submission of application or report from Divisional Head (in case family refuse to give such letter) shall be placed before the CRC.
14. Date of effect of these guidelines: These revised guidelines will be applicable with immediate effect and all the CRC meets after issue of this OM shall follow the revised guidelines.
15. Instructions issued by DoPT from time to time related to compassionate appointment will continue to be guiding factor while deciding the cases.
16. This issues with the approval of Competent Authority.
The pensioners or family pensioners can change the option from Fixed Medical Allowance FMA to CGHS (OPD) facility under CGHS or vice versa once during their lifetime
Sub: Procedure for implementation of change of option by a Pensioner/Family Pensioner from FMA to CGHS (OPD) facility and vice-versa-reg
The undersigned is directed to say that the Central Government Civil Pensioners/Family Pensioners residing in areas not covered under Central Government Health Scheme administered by the Ministry of Health & Family Welfare and corresponding health schemes administered by other Ministries/Departments for their retired employees for meeting expenditure on their day-toยญ-day medical expenses that do not require hospitalization, are entitled to receive a monthly Fixed Medical Allowance (FMA). The amount of FMA was revised from time to time and was last revised to Rs.1000/- p.m. w.e.f. 01.07.2017 vide this Departmentโs OM No. 4/34/2017-P&PW(D) dated 19.07.2017.
2. Only those Pensioners/Family Pensioners who are residing i n an area not covered by CGHS, and specifically opt for not availing of OPD facilities in the nearest CGHS dispensary, are entitled medical allowance. An option is required to be exercised by a retiree at the time of retirement for availing OPD medical facility or FMA. Only one change in option in the life-time of a Pensioner/ Family Pensioner is allowed.
3. The Department-related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, in its 110th report on โPensionerโs Grievances-Impact of Pension Adalats and Centralized Pensioners Grievance Redress and Monitoring System (CPENGRAMS)โ has made following recommendation :
(3.22) The Committee takes note of the difficulties faced by pensioners in surrendering their Fixed Medical Allowance (FMA) and getting FMA Surrender Certificate to avail CGHS indoor & outdoor (OPD) facilities, and, accordingly, recommends DoPPW and CGA that the procedural loopholes coming in this way should be plugged and ensure that all such pensioners should get FMA Surrender Certificates in a hassle free manner through online mode under intimation to the bank concerned and a timeline should be fixed in this regard.
4. If a Pensioner/Family Pensioner who is residing in a non-CGHS areas and is in receipt of FMA, intends to avail the OPD facility under CGHS, etc. he has to forego FMA to become eligible for OPD facility under CGHS. However. in the absence of any guidelines for discontinuance of FMA by the Bank and issue of CGHS card for OPD facility, Pensioners/Family Pensioners are often facing difficulty in exercising revised option in this regard. The matter has been examined in consultation with Ministry of Health and Family Welfare and Central Pension Accounting Office and the following procedure is laid down in this regard:-
(i) If a Pensioner/ Family Pensioner residing in non-CGHS area shifts his/her residence to a CGHS covered area, he/she no longer remains eligible for FMA irrespective whether he/she avails the CGHS facility or not. It will, therefore, be the responsibility of the Pensioner / Family Pensioner that on shifting from a non-CGHS area to a CGHS covered area and while requesting for change of address from a non-CGHS area to a CGHS covered area, he/she will apply to the Bank in Form 2 for discontinuation of his/her FMA. The pension disbursing banks will also make a provision in their system so that whenever a Pensioner/Family Pensioner gives an intimation regarding change of residence from a non-CGHS area to a CGHS covered area, the FMA being paid to the Pensioner/Family Pensioner would automatically be stopped, irrespective whether or not the Pensioner/ Family Pensioner has requested in Form-2 for stoppage of his/her FMA.
On receipt of an application in Form-2 from the Pensioner/Family Pensioner, who has shifted from a non-CGHS area to a CGHS covered area, the Bank will issue a certificate in Form-3 regarding discontinuation of FMA to the Pensioner/Family Pensioner within three working days from the date of receipt of the application for the said certificate. Thereafter, it will be open to the Pensioner /Family Pensioner to apply to the CGHS authorities for issue of a CGHS card for both OPD and IPD facility, by payment of requisite CGHS contributions.
In case the Pensioner/Family Pensioner applies for issue of a CGHS card, the same will be issued to him/her by the CGHS authorities as per their laid down procedure, if the Pensioner/Family Pensioner otherwise fulfils the eligibility conditions for issue of CGHS Card. The CGHS authorities will, however, issue a provisional CGHS card to the Pensioner/Family Pensioner within four working days from the date of completion of all formalities and deposit of contributions by the Pensioner/Family Pensioner and such provisional Card will remain valid till issue of a final CGHS Card.
(ii) If a Pensioner/Family Pensioner, residing in a non-CGHS area and availing FMA in lieu of OPD facility, intends to avail CGHS facility for both OPD and IPD, he/she may apply to the concerned branch of the pension disbursing bank in Form-2 for discontinuation of FMA, to enable him/her to apply to the CGHS authorities for the CGHS facility. The Pensioner/Family Pensioner will also give an undertaking in Form-2 to the Bank that the option being exercised by him/her to avail medical facility under CGHS or other similar Health Scheme of their respective Ministry/Department, is a oneยญ time option and that he/she has not availed the facility of change of option from CGHS to FMA in the past. The pension disbursing bank shall, thereafter, stop the payment of FMA in respect of such Pensioner/Family Pensioner and issue a certificate in Form-3 to him/her regarding discontinuance of FMA, within three working days from the date of receipt of application.
Thereafter. the Pensioner/Family Pensioner may apply to the concerned CGHS authorities for issue of CGHS card for both OPD as well as IPD facility after paying requisite CGHS contribution, if not already paid. The CGHS authorities will, issue the CGHS Card (including OPD facility) to him/her as per their procedure, if the Pensioner/Family Pensioner otherwise fulfils the eligibility conditions for issue of CG !I S Card. The CGHS authorities will, however, issue a provisional CGHS card to the Pensioner/Family Pensioner within four working days from the date of completion of all formalities and deposit of contributions by the Pensioner/Family Pensioner and such provisional Card will remain valid till issue of a final CGHS Card.
(iii) After discontinuing the FMA, the bank will make necessary changes in both halves of PPO in regard to discontinuance of FMA. The CPPC of the concerned bank, shall send an intimation to the Central Pension Accounting Office (CPAO) in the proforma at Form-4 for updating the record. CPAO will thereafter forward the intimation to the concerned Pay & Account Office (PAO) after updating the data in the PARAS (i.e. CPAOโs database). On receipt of intimation from CPAO, PAO will inform the change in status to the concerned Head of Office for record.
5. If a Pensioner/Family Pensioner, who is availing CGHS/medical facility for both IPD and OPD, intends to avail FMA while residing in a non-CGHS area or on shifting of residence from a CGHS area to a non-CGHS area. he/she may apply to the CGHS authorities for surrender of OPD facility under CGHS. On receipt of an application to this effect, the CGHS authorities will make necessary endorsement on the CGHS card and issue a certificate within four working days from the date of receipt of application, that the Pensioner/Family Pensioner is not availing OPD facility and is availing only IPD facility under CGHS. Thereafter, the Pensioner/Family Pensioner will submit an application to the Head of Office along with copy of the surrender certificate for issue of a revised pension payment authority for payment of FMA. The case for issue of the revised pension payment authority will then be processed in the usual manner through PAO and CPAO and sent to the Pension Disbursing Bank for payment of FMA along with monthly pension. The revised Pension Payment Authority will be issued within two months from the date of submission of application by the Pensioner/Family pensioner in this regard. The payment of FMA in such cases will however, be made from the date of issue of the surrender certificate by the CGHS authorities.
Encl: FMA Forms
(Charanjit Taneja) Under Secretary to the Government of India
The pensioner or family pensioner in receipt of FMA can opt for CGHS ‘Out Patient Department (OPD)’ facility and vice-versa. ย
Can pensioners / family pensioners change FMA to CGHS Facility?
Yes, DOPPW released the office memorandum on 23rd March 2022 for Procedure for implementation of change of option by a Pensioner/Family Pensioner from FMA to CGHS (OPD) facility and vice-versa
How people availing FMA may opt for CGHS (OPD) facility?
A person, willing to take the OPD facility, may apply to the concerned pension disbursing bank for discontinuation of FMA.
NPS to OPS: There is no proposal to reintroduce old pension scheme to Central Government civil employees joined on or after 01.01.2004. This information was given by Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Ministerโs Office, Dr. JItendra Singh in a written reply in Rajya Sabha today
NPS to OPS
GOVERNMENT OF INDIA MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS (DEPARTMENT OF PENSION & PENSIONERSโ WELFARE)
RAJYA SABHA UNSTARRED QUESTION NO. 2518 (TO BE ANSWERED ON 24.03.2022)
(a) whether Government propose to reintroduce the Old Pension Scheme (OPS) following the demands for same that has risen from various quartersอพ
(b) if so, the details thereof and if not, the reasons thereforอพ
(c) whether Government is aware that experts have pointed out that under the National Pension System(NPS), economic downturns can affect pensions as it is market-linkedอพ
(d) whether Government is aware that under NPS, there is no proper safety net for retired employees as under the OPSอพ
(e) whether Government propose to adopt any measure to address these issuesอพ and
(f) if so, the details including timeline regarding the same?
ANSWER MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTERโS OFFICE (DR. JITENDRA SINGH)
(a) & (b): The National Pension System (NPS) was introduced for Central Government employees w.e.f. 01.01.2004 vide Ministry of Finance (Department of Economic Affairs) Notification No. 5/7/2003-ECB & PR dated 22.12.2003 for all new recruits joining the Central Government service (except armed forces) from 01.01.2004.
On introduction of the National Pension System, the Central Civil Services (Pension) Rules, 1972 were amended. Accordingly, the benefits of old pension scheme under the Central Civil Services (Pension) Rules, 1972 are not admissible to the Central Government civil servants appointed on or after 01.01.2004, under the amended rules.
There is no proposal to reintroduce old pension scheme to Central Government civil employees joined on or after 01.01.2004 under consideration of Government of India.
(c) to (f): NPS is now regulated under PFRDA Act, 2013 and regulations framed there under by PFRDA and Department of Financial Services. As per information furnished by Department of Financial Services:
The returns being market linked is a basic design feature of the National Pension System (NPS), however, pension being a long term product also enables the investments to grow with decent returns, despite short term volatility. Further, the prudential guidelines stipulated by the Pension Fund Regulatory and Development Authority (PFRDA), the skills of the professional Fund Managers chosen through a rigorous process, and choice of asset allocation across various asset classes (Equity, Corporate Bond, Government Securities) enable the subscriberโs accumulations to grow over the long term, riding over the short term volatility.
To safeguard the interest of the subscribers against any possible erosion of the pension wealth in times of an economic downturn, the exposure of equity/ equity linked instruments have been limited to only 15 % in the default scheme, which is made available to the Government subscribers in a default mode. Equity exposure exceeding this limit of 15% is only available for the subscribers who choose to exercise individual investment choice while moving out of the default scheme. Further, risk averse subscribers can also choose to invest their entire contribution (100%) in Government bonds.
