Justification to Scrap New Pension Scheme – AIRF submitted to Finance Minister

No.AIRF/24/(C)

The Executive Director, Estt.(IR),

Railway Board,

New Delhi

Dear Madam,

Sub: Justification to Scrap New Pension Scheme

It was agreed in the Joint Meeting, held on 7th February, 2014 with Full Board that, necessary material/justification may also be furnished by the Federations for proposed refernce to be sent to Hon’ble Finance Minister from the Hon’ble Minister for Railways. Accordingly, we are sending herewith a detailed justification for taking necessary action in the matter.

1. Discriminatory treatment between two sets of Railway employees viz – one appointed before 01.01.04 and the others appointed on 01.01.2004 and thereafter.

2. Although the contribution is defined, the benefit has not been defined.

3. Extract from Railway Safety Review Committee, 1998-vide para 2.1.1 and para 2.1.2 the Committee has recommended that the working in the Railways is more closely allied to the armed forces than the sometimes lacks civilian forms. As such railwaymen cannot be bracketed with other Central Govt. Employees for the purpose of Social benefit.

Para 2.1.1 During the colonial period, the Railways was conceived and operated as an auxiliary wing of the Army, primarily because it provided the transport muscle that enabled rapid movement of troops across the Indian subcontinent. There was, however, another less visible but important reason for the close linkage with the Army. The colonisers realized that the Railways, by virtue of its complex nature, required a high degree of discipline and efficiency to be able to perform its role as the prime transport mode. This, in turn, meant a system of working more closely allied to the Armed Forces than the sometimes lax civilian forms. Thus ,historically, Indian Railways (IR) has functioned differently from other Government institutions. 

Para 2.1.2 “…………. It is not only unrealistic but also dangerous to treat the Railways and its problems on par with other Government departments which has unfortunately been the case during the last five decades “.

4. Committee on railway safety was appointed by the Ministry of Railway under the Chairmanship of Dr. Anil Kakodkar. Vide para 2.3 of the report is cited below:

It would be seen that number of Railwaymen killed and injured while on duty during the period 2007 – 08 to October, 2011 was much more than passenger and public killed during the year.

5. Railwaymen are the second line of Defence. During Chinese aggression in the year 1962 there was massive exodus of civil population near in Arunachal Pradesh and North Bank of Brahmaputra, currency notes were burnt at the order of Dy. Commissioner, Tezpur (Sonitpur), the jail birds were freed but the Railwaymen did not leave their duty post. In this connection extract from Special Gazette published by the Railway Board during Railway Week, 1963 is given below.

“On the night of 20/21 November, 1962 following the exodous of Civil Population from Rangapara North in the Wake of reported Chinese advance Shri Rakhal Das Banerjee bravely struck to this post in the Station, displaying an extra ordinary sense of duty and great courage, he ensured safe custody of Railway Cash amounting to Rs. 26 lakhs”.

Similarly when Pakistan attacked India during 1965, the Railwaymen at the Western Sector saved lives of thousands and thousands of people by sacrificing their own lives while Bomb was exploded on Oil Tankers (Raway Wagon Tanker) (This News was appeared in the Railwaymen of 1965, may be 1966), they parted the effected wagons from the rest, but in the effort an good number of Railwaymen burnt alive.

Braving insurgency, Railwaymen continued to maintained the services in North Eastern Region, Naxual infested areas in Jharkhand, Madhya Pradesh, Crissa, Andhra Pradesh etc.

In May 2008, Loco Pilot of Lumding N. F. Railway saved lives of many persons at the cost of his own life and he was awarded ‘KIRT1 CHAKRA’. The incident is as under.

“On 15th May, 2008, ShrI N. N. Bora, Loco Pilot, Lumding was booked to work Security Special from Lumding. When the Special reached nearTunnel No. 3 at KM 57/12 between Lumding — Badarpur section terrorist pumped bullets injuring Shri N. N. Bora critically. Despite critical injury Shri Bora’s devotion to duty and presence of mind worked, the train was pushed back to a safer place and Shri Bora succumbed to the u/njury. He could save lives of all his colleagues in the train, sacrificing his life”.

6. NPS is an additional financial burden in the Railways Exchequer.

Indian Railway is paying pension and family pension and in addition to that the Indian Railway is to contributing 10% of pay and 10% of Dearness Allowance to the Pension Fund (NPS). At present the number of New Pension Holders are 4.5 Lakhs taking the average salary of such newly recruited persons as Rs. 20,000, at present the Railway is paying Rs. 2160 Crores annually towards Pension Fund. This will go on increasing with more and more persons to be recruited vice retirement and the amount will also be compounded because of annual increment, increase in the rates of Dearness allowance, MACP & Promotional benefits. This is the additional burden which the railway will have to bear with its compound effect from coming years to years on the Railway’s Finance.

7. Effect on Industrial relation

Gradually the number of new recruitees on or after 01.01.2004 will take over the number of persons appointed prior to 01.01.2004 and they will compel their pre 01.01.2004 counterparts to join precipitateve action to secure their (NPS Holders) rightful daim of social security i.e. Pension and Family Pension and this will leads to serious industrial unrest in the Railway Industry.

Taking all these factors into consideration all Railwaymen irrespective of date of appointment should be covered under Pension and Family Pension Scheme.

Source: AIRF