INDIAN RAILWAYS TECHNICAL SUPERVISORS’ ASSOCIATION

No:IRTSA/Memo-32

Date:18.11.2024

Hon’ble Minister for Finance
Government of India

Hon’ble Minister for Railways
Government of India

Respected Madam/Sir,

Sub: Restoration on Old Pension Scheme (OPS) for all Central Government Employees.

1) IRTSA brings to your kind notice on the concerns of the Central Government Employees in getting stability, dignity and financial security after their retirement which should be equal for all pensioners and family pensioners in the form of Old Pension Scheme (OPS).

2) The Unified Pension Scheme (UPS) will be implemented from 1st April 2025 and is expected to cover 23 lakh Central Government employees. Government says UPS will provide stability, dignity and financial security for government employees and their family post-retirement, ensuring their well-being and a secure future. But all these objectives of UPS will not satisfy the basic principle of “Equal Pay for Equal Work” since pension is a deferred wage.

3) In the past on many occasions, judgements of the Hon’ble Supreme Court of India strongly recommended pension payment practice. The Supreme Court held that pension is a valuable right vested on Government employees. Refusal, reduction, forfeiture of pension not allowed unless on extreme conditions.

4) 5th Pay Commission in para 127.6 of its report said that, “It needs to be averted emphatically that pension is not in the nature of alms being doled out to beggars. The senior citizens need to be treated with dignity and courtesy benefited their age. Pension is statutory, inalienable, legally enforceable right and the sweet of their brow has earned it. As such it should be fixed, revised, modified and changed in ways not entirely dissimilar to the salaries granted to Government employees”.

5) UPS assures 50% pension after completing 25 years of service, minimum pension of Rs.10,000 for 10 years of service, 60% of pension as family pension and pension, family pension & minimum pension under UPS are made inflation proof. Still there are crucial short comings of UPS compared to OPS which are listed below,

• a) 50% Pension eligible on completion of 25 years, instead of 20 years in OPS. In OPS, rule 39 of CCS (Pension) Rules 2021 permits pension for Central Government employees retiring before completing 10 years of qualifying service.
• b) Employees continue to contribute monthly 10% of basic pay + DA. Employee will not get return proportionate to his contribution except lump sum equal to 1/10th of last drawn monthly pay for every six months of completed service.
• c) Inflation protection – Provides inflation protection by adjusting pensions based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW). It is doubted that proposed DR may start from zero on 01.04.2025.
• d) Commutation of pension and restoration of full pension not available in UPS.
• e) Additional pension/family pension 20%, 30%, 40%, 50% and 100% after attaining the age 80, 85, 90, 95 and 100 years respectively available in OPS is not available in UPS.
• f) Lump sum amount provided to employees in UPS upon superannuation, which is 1/10th of their last drawn monthly pay for every six months of completed service is very meagre compared with monthly contribution of 10% of basic pay + DA by employee.
• g) If an employee takes voluntary retirement after completion of 25 years of service, he will be eligible to receive his pension only at superannuation age.

6) There are three different types of pensions ie, OPS, NPS and UPS with different benefits extended to Central Government employees working in same post discharging same duties and responsibilities. Comparison of UPS, NPS and OPS is given in annexure.

7) This is in violation of Articles 14 & 16 of constitution of India. Article-14 on Equality before law says that “the State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India”. Article-16 on equality of opportunity in matters of public employment says that “there shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State”.

8) It is therefore requested that, all central Government employees may please be covered under OPS to maintain equality among employees and to provide stability, dignity and financial security after their retirement.

Thanking you, with regards,

Yours’ truly

K.V. RAMESH
General Secretary, IRTSA

Annexure

Comparison of UPS, NPS and OPS

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Implementation of Category S (Extraordinary Pension) and Category T (Extraordinary Family Pension) for OPS cases – CPAO O.M dated 18.05.2023

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI- 110066

CPAO/IT&T tech/ e-6462/OPS Category/ 105/2023-24

Dared: 18.05.2023

Office Memorandum

Subject: Implementation of Category S and Category T for OPS cases.

All the Authorised Banks are informed that following categories have been created under CCS Pension Rules-

• Category S – Extraordinary Pension
• Category T – Extraordinary Family Pension

2. These categories will be used for Extraordinary Pension cases and Extraordinary Family pension cases respectively for the cases processed under the Old Pension Scheme.  This office has made necessary changes in e-scroll Format ‘A’ to include these categories.

3. In view of the above, Heads of CPPCs/ GBDs of all Authorized banks are requested to update the changes in Format ‘A’ for future references. You are directed to upgrade/update the software/ system in order to consume new formats of SSAs/ e-SSAs for Category S and Category T and ensure reporting of e-scroll in the modified format ‘A’. The cut- off date for implementation of these categories is 01.06.2023.

4. In case of any technical advice, Sh. Dhiraj Kumar [Scientific Officer- SB, CPAO) at dhiraj.kumar8g [at] nic.in may be contacted.

This issues with the approval of Chief Controller (Pensions).

(Satish Kumar Garg)
(Sr. AO- IT & Technical)

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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
UNSTARRED QUESTION NO. 671

TO BE ANSWERED ON 6th FEBRUARY, 2023 (MONDAY)/ 17 MAGHA, 1944 (SAKA)

OLD PENSION SCHEME

671. Shri Bhartruhari Mahtab
Will the Minister of Finance be pleased to state:

(a) whether Old Pension Scheme (OPS) is being implemented in certain States of the country;

(b) if so, the details thereof and the reaction of the Government thereto;

(c) whether the impact of OPS is likely to have on the State Government’s exchequer;

(d) whether the additional financial burden due to OPS is likely to push the State Governments into the debt and if so, the details thereof and the reaction of the Government thereto; and

(e) the steps taken by Pension Fund Regulatory and Development Authority in this regard?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(DR. BHAGWAT KARAD)

(a) to (e) The State Governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh have informed the Central Government/Pension Fund Regulatory and Development Authority (PFRDA) about their decision to restart Old Pension Scheme (OPS) for their State Government employees.

There is no provision under Pension Fund Regulatory and Development Authority Act, 2013 read along with PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, and other relevant Regulations, vide which the accumulated corpus of the subscribers viz Government contribution, Employees’ contribution towards NPS along with accruals, can be refunded and deposited back to the State Government.

As per Reserve Bank of India’s report titled ‘State Finances: A Study of Budget of 2022-23’, the annual saving in fiscal resources that reversion to the old pension scheme entails, is short-lived. By postponing the current expenses to the future, States risk the accumulation of unfunded pension liabilities in the coming years.

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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
UNSTARRED QUESTION NO. 470
TO BE ANSWERED ON 6th FEBRUARY, 2023 (MONDAY)/ 17 MAGHA, 1944 (SAKA)

PENSION FOR PARAMILITARY FORCES

470. Shri Asaduddin Owaisi
Will the Minister of Finance be pleased to state:

(a) whether armed forces were marked as exception to New Pension Scheme (NPS) and if so, the details thereof;

(b) whether Article 246 of the Schedule VII of the Constitution says armed forces of the Union of India include Naval, Military and Air Force and any other armed forces of the Union;

(c) if so, whether Hon. High Court of Delhi has asked the Union Government to issue orders for Old Pension Scheme to Central Armed Police Forces like CRPF, ITBP, CISF etc.;

(d) if so, whether the Government has since issued orders in this regard; and

(e) if so, the details thereof and if not, the reasons therefor?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(DR. BHAGWAT KARAD)

(a) to (e) As per Gazette Notification No. 5/7/2003-ECB & PR dated 22.12.2003 issued by Department of Economic Affairs, Ministry of Finance, the Government introduced a new restructured defined contribution pension scheme for new entrants to Central Government service, except the armed forces, in the first stage, replacing the existing system of defined benefit pension system. The system is mandatory for all new recruits to the Central Government service from 01.01.2004.

The Hon’ble High Court of Delhi vide order dated 11.01.2023 in WP (C) No. 12712/2021 titled Pawan Kumar & Ors of CRPF Vs Uol & Ors and other connected matters, has directed for grant of Old Pension Scheme to the personnel of para-military forces. This is a policy matter under the domain of Ministry of Home Affairs.

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GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(DEPARTMENT OF PENSION & PENSIONERS’ WELFARE)
RAJYA SABHA
UNSTARRED QUESTION NO. 128

(TO BE ANSWERED ON 02.02.2023)

COMMENTS REGARDING OLD PENSION SCHEME

128 SHRI JAVED ALI KHAN:
SHRI NEERAJ SHEKHAR:

Will the PRIME MINISTER be pleased to state:

• (a) whether Department of Expenditure (DoE) has advised DoP&PW vide ID Note dated 05.12.2022 to consult DoPT and Department of Legal Affairs (DoLA) regarding cut off date for issuing general orders to revert those Central Government employees under OPS whose advertisements for recruitment were issued prior to 01.01.2004;
• (b) if so, whether DoP&PW has sent references to DoPT and DoLA;
• (c) if so, the details thereof along with the comments received there from, Department-wise; and
• (d) if not, the reasons for delay?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE (DR. JITENDRA SINGH)

(a) to (d): After dismissal of some of SLPs / Review Petitions by Hon’ble Supreme Court filed by Union of India against the orders of Hon’ble High Court of Delhi allowing benefit of old pension scheme to those Government servants whose selection process was completed after 01.01.2004, a reference was made to Department of Expenditure, Department of Personnel and Training and Department of Legal Affairs on the question of issue of general order in this regard. Department of Expenditure furnished their comments vide note dated 05/12/2022. Comments from Department of Personnel and Training and Department of Legal Affairs have also been received.

There is no decision to issue general instructions 1n this regard.

National Pension System (NPS) was introduced for Central Government employees by a Notification of Ministry of Finance (Department of Economic Affairs) dated 22nd December, 2003. NPS is mandatory for all new recruits to the Central Government service from 1st January, 2004 (except the armed forces).

In view of the specific provisions of the Notification dated 22.12.2003, the date of advertisement for the vacancies is not considered relevant for determining the eligibility for coverage under the Old Pension Scheme or the National Pension System

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(DEPARTMENT OF PENSION & PENSIONERS’ WELFARE)
RAJYA SABHA
UNSTARRED QUESTION NO. 126
(TO BE ANSWERED ON 02.02.2023)

EXCLUSION OF CENTRAL GOVERNMENT EMPLOYEES FROM NPS

126 SHRI NEERAJ SHEKHAR:
SHRI JAVED ALI KHAN:

Will the PRIME MINISTER be pleased to state:

(a) whether Department of Expenditure (DoE) vide its ID note dated 05/12/2022 has accorded its concurrence for issuing general orders for exclusion of Central Government employees from the purview of NPS and to cover them under OPS whose advertisements for recruitments were issued on or before 22/12/2003;

(b) if so, the details thereof along with the action taken thereon;

(c) whether OM to be issued in this regard has also been vetted by DoE and returned back to DoP&PW;

(d) if so, the reasons for delay in issuing orders; and

(e) by when DoP&PW would issue general orders for similarly placed officials?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE (DR. JITENDRA SINGH)

(a) to (e): After dismissal of some of SLPs / Review Petitions by Hon’ble Supreme Court filed by Union of India against the orders of Hon’ble High Court of Delhi allowing benefit of old pension scheme to those Government servants whose selection process was completed after 01.01.2004, a reference along with draft OM was made to Department of Expenditure on the question of issue of general order in this regard. Department of Expenditure furnished their comments vide note dated 05/12/2022.

There is no decision to issue general instructions in this regard.

National Pension System (NPS) was introduced for Central Government employees by a Notification of Ministry of Finance (Department of Economic Affairs) dated 22nd December, 2003. NPS is mandatory for all new recruits to the Central Government service from 1st January, 2004 (except the armed forces).

In view of the specific provisions of the Notification dated 22.12.2003, the date of advertisement for the vacancies is not considered relevant for determining the eligibility for coverage under the Old Pension Scheme or the National Pension System.

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Petitions from different forces – Old Pension Scheme is not implemented in accordance with the 1972 CCS Pension Rules in W.P.(C) 12712/2021 & connected petitions dated 11.01.2023.

* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Reserved on: December 01, 2022
Pronounced on: January 11, 2023

……. Petitioners

Through: Advocate (appearance not given)

Versus

UNION OF INDIA AND ORS. ….. Respondents

Through: (see pdf)

CORAM:

HON’BLE MR. JUSTICE SURESH KUMAR KAIT
HON’BLE MS. JUSTICE NEENA BANSAL KRISHNA

JUDGMENT
SURESH KUMAR KAIT, J

1. The petitioners in the above captioned petitions are employees of different forces i.e. Central Reserve Police Force (‘CRPF’), Sashtra Seema Bal (‘SSB’), Border Security Force (‘BSF’) and Central Industrial Security Force (‘CISF’) Indo Tibetan Border Police (‘ITBP’) etc., who have preferred these petitions under Article 226/227 of the Constitution of India seeking issuance of a writ of certiorari to the respondents for quashing of orders denying them the benefit of Old Pension Scheme (‘OPS’) in accordance with CCS (Pension) Rules, 1972 to them vide different Office Memorandums and Signals issued by the respondents. In addition, also sought quashing of OM dated 17.02.2020 issued by respondents to the extent it does not grant benefit of Old Pension Scheme to the personnel who have been appointed pursuant to notifications/ advertisements dated 01.01.2004.

2. The primary relief sought by the petitioners in these petitions is for grant of OPS to the personnel, who have though been appointed after 01.01.2004, but had applied for the posts prior to 01.01.2004. Since the relief sought in these petitions is similar, therefore, vide order dated 08.08.2022 [in W.P.(C) No. 3424/2022] this Court had directed that W.P.(C) No. 12712/2021 shall be treated as the lead matter and with the consent of learned counsel for the parties, Mr. Ankur Chibber, Advocate and Harish Vaidyanathan Shankar, learned Standing Counsel, were called upon to put-forth the case on behalf of the petitioners and respondents respectively.

3. Mr. Ankur Chibber, learned counsel appearing on behalf of petitioners submitted that The Special Selection Board (CPOs-2002) in June 2002 had issued an advertisement inviting applications from eligible candidates for filing up the Group ‘A’ post of Assistant Commandants in the Border Security Force, Central Reserve Police Force, Indo-Tibetan Border Police Force and Special Security Bureau (Now Sashastra Seema Bal). As per the said advertisement, the last date for applying under the said examination was 30.06.2002. The written examination was scheduled for 02.03.2003 and the successful candidates appeared for PET, Interview and Medical examination between October, 2003 till February, 2004. The final result was declared in July, 2004. The petitioners were offered appointment for the post of Assistant Commandant during the period October, 2004 till 2005. In the interregnum, vide Notification dated 22.12.2003, New Contributory Pension Scheme (‘NPS’) was implemented w.e.f. 01.01.2004, however, the said scheme was not applicable to Armed Forces, as the Forces shall be governed by the OPS already existing.

Judgement

51. There is no dispute to the position that at the time of publication of the advertisements, the OPS was in force. Also, when the advertisement itself states that the selected candidates shall be governed by the Act and Rules in force and thereafter, the Notification dated 22.12.2003 and OM dated 17.02.2020 specifically mention that the all the Central Government employees “except the armed forces”, shall be governed by the NPS, therefore, we do not find any reason for respondents to issue the appointment letters to the personnel of armed forces mentioning that “the appointee shall be governed by the new pension scheme introduced by the Government of India”. When vide Circular dated 6th August, 2004 issued by the Ministry of Home Affairs, Government of India has itself declared that the Central Forces under the administrative control of Ministry of Home Affairs are armed Forces of Union, the position cannot be disputed that the Armed Forces shall remain excluded from coverage under Notification dated 22.12.2003. We find that despite the fact that ‘armed forces’ are exception to Notification dated 22.12.2003 , however, without application of mind, have mentioned in the appointment letters of the candidates that the recruits shall be governed by NPS. Apparently, Article 246 read with List 1 Entry 2 of the VII Schedule of Constitution of India envisages Armed Forces of the Union of India includes “Naval, Military and Air Forces; any other armed forces of the Union”, so, the personnel of CAPFs deserve to get the benefit of OPS, as has been granted vide Notification dated 22.12.2003.

52. The Hon’ble Supreme Court and High Courts in various decisions have appreciated the role of armed forces in safeguarding our country. Having great respect for the personnel of forces, the Courts as well as Government of India, have always ensured that any policy decision should not be detrimental to their interest. The contents of Notification dated 22.12.2003 as well as OM dated 17.02.2020 clearly demonstrate that when policy decision to implement NPS was taken, the armed Forces of the country were kept out of its domain. Accordingly, we are of the considered opinion that the Notification dated 22.12.2003 as well as OM dated 17.02.2020 are required to be implemented in their true essence.

53. In the light of what we have observed above, we find that Notification dated 22.12.2003 as well as OM dated 17.02.2020 create a bar upon the respondents to not implement the Notification dated 22.12.2003, whereby New Contributory Pension Scheme (‘NPS’) has been executed w.e.f. 01.01.2004, upon the personnel of the paramilitary Forces i.e. Central Reserve Police Force (‘CRPF’), Sashtra Seema Bal (‘SSB’), Border Security Force (‘BSF’) and Central Industrial Security Force (‘CISF’) Indo Tibetan Border Police (‘ITBP’) (CAPFs) etc. Consequentially, the impugned Office Memorandums, Signals and Orders, to the extent it deny the benefit of Old Pension Scheme to the petitioners and similarly situated personnel of the armed forces, are hereby quashed.

54. A mandamus by way of direction is accordingly issued to the respondents to issue an Order to CAPFs mentioned above to implement the Notification dated 22.12.2003 as well as OM dated 17.02.2020 in essence noted above. It is made clear that the Notification dated 22.12.2003 as well as OM dated 17.02.2020 granting the benefit of Old Pension Scheme shall be applicable in rem. Meaning thereby, Old Pension Scheme shall not only be applicable in the case of petitioners herein but all the personnel of CAPFs at large. Accordingly, necessary orders be issued within eight weeks.

55. With aforesaid directions, these petitions and pending application, if any, are accordingly disposed of.

(SURESH KUMAR KAIT)
JUDGE

(NEENA BANSAL KRISHNA)
JUDGE
JANUARY 11, 2023

Neutral Citation Number: 2023/DHC/000201
W.P.(C) 12712/2021 & connected petitions

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No. 57/03/2022 – P&PW(B)/8361
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the 26th October, 2022

OFFICE MEMORANDUM

Subject: Options under Central Civil Services (Implementation of National Pension System) Rules, 2021 to avail benefits under old pension scheme on death of Government servant covered under National Pension System during service or his discharge from service on account of invalidation or disablement -reg.

The undersigned is directed to say that Department of Pension and Pensioners’ Welfare has notified the Central Civil Services (Implementation of National Pension System) Rules, 2021 to govern service related matters of Central Government civil employees covered under National Pension System. Rule 10 of these rules deals with option to be exercised by every Central Government employee covered under National Pension System for availing benefits under National Pension System or old pension scheme in the event of death of Government servant during service or his discharge on the ground of invalidation or disablement.

2. In accordance with rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021, every Government servant covered under the National Pension System shall, at the time of joining Government service, exercise an option in Form-1 for availing benefits under the National Pension System or under the Central Civil Service (Pension) Rules or the Central Civil Service (Extraordinary Pension) Rules in the event of his death or boarding out on account of disablement or retirement on invalidation. Government servants, who arc already in Government service and are covered by the National Pension System, shall also exercise such option.

3. The option shall be exercised to the Head of Office who will accept the same after verifying all the facts submitted therein and place it in the service book. A copy of the option shall be forwarded by the Head of Office to the Central Recordkeeping Agency through the Drawing and Disbursing Officer and the Pay and Accounts Officer for their record. The Pay and Accounts Officer shall also make suitable entry in the online system indicating the details regarding the option exercised by the Government servant.

4. Every Government servant shall, along with the option in Form 1, also submit details of family in Form 2 to the Head of Office. The Head of Office shall, on receipt of the Form 2, acknowledge receipt of the Fo1m 2 and all further communications received from the Government servant in this behalf, countersign it indicating the date of receipt and get it pasted on the service book of the Government servant concerned. The Head of Office on receipt of communication from the Government servant regarding any change in the size of family shall also incorporate such a change in Form 2.

5. The option exercised may be revised at any number of times by the Subscriber before his retirement by making a fresh option intimating his revised option to the Head of Office. On receipt of the revised option, the Head of Office and the Pay and Accounts Officer shall take further action as mentioned above.

6. A Subscriber who is discharged on invalidation or disability shall be given an opportunity to submit a fresh option at the time of such discharge. Where such Subscriber does not exercise a fresh option or is not in a position to exercise fresh option at the time of discharge, the option already exercised by the Subscriber shall become operative. Where no option was exercised by the Subscriber and the Subscriber is not ina position to exercise an option at the time of discharge, his case will be regulated in accordance with para 9 below.

7 In the case of death of a Subscriber while in service, the last option exercised by the deceased Subscriber before his death shall be treated as final and the family shall have no right to revise the option.

8. Where a Subscriber who did not exercise an option and dies before completion of service of fifteen years or within three years of the notification of Central Civil Services (Implementation of National Pension System) Rules, 2021, his family will be granted family pension in accordance with the provisions of the Central Civil Services (Pension) Rules or the Central Civil Services (Extraordinary Pension) Rules, as the case may be, as a default option.

9. Where a Subscriber is discharged from Government service on invalidation or disability before completion of service of fifteen years or within three years of the notification of these rules without exercising an option, and is also not in a position to exercise an option at the time of discharge, he will be granted invalid pens ion or disability pension in accordance with the provisions of the Central Civil Services (Pension) Rules or the Central Civil Services (Extraordinary Pension) Rules as the case may be, as default option;

10. In all other cases, where no option was exercised by the Subscriber, the claim of the Subscriber on discharge from the service and that of the family on death of the Subscriber, shall be regulated in accordance with the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System) Regulations, 2015, as default option .

11. In cases where the option exercised by the deceased Subscriber or the default option for benefit under the Central Civil Services (Pension) Rules or the Central Civil Services (Extraordinary Pension) Rules becomes infructuous on account of non¬ availability of an eligible member of the family for grant of family pension under the Central Civil Services (Pension) Rules or the Central Civil Services (Extraordinary Pension) Rules, such option would be deemed to have become invalid and the benefits admissible under the National Pension System shall be granted to the legal heir(s) of the employee in accordance with the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System) Regulations, 2015.

12. Copy of Form 1 and Form 2 are also enclosed.

13. All Ministries/Departments are requested that the above provisions regarding option to be exercised under Central Civil Services (Implementation of National Pension System ) Rules, 2021 may be brought to the notice of the Government employees covered under NPS, Head of Offices and personnel dealing .with the NPS matters in the Ministry/ Department and attached /subordinate offices thereunder, for strict implementation.

(S. Chakrabarti)
Under Secretary to the Govt. of India

Encl. as above.

To
All Ministries/ Departments/ Organisations, (As per standard list)

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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA

UNSTARRED QUESTION NO: 812
TO BE ANSWERED ON 7TH FEBRUARY 07, 2022

Restoration of Old Pension Scheme

812. Shri Rakesh Singh

Will the Minister of FINANCE be pleased to state:-

(a) whether the Central and State Government employees are opposing the New Pension Scheme;
(b) if so, the details thereof;
(c) whether the Government proposes restore the Old Pension Scheme keeping in view the benefits of the said scheme in interest of employees;
(d) if so, the reasons thereof; and
(e) if not, the reasons therefor?

ANSWER

The Minister of State (Finance) (Dr. Bhagwat Karad)

(a) to (e) Representations have been received from time to time which include the request for restoration of Old Pension Scheme. There is no proposal under consideration of Government of India for restoration of old pension scheme in respect of Central Government employees recruited on or after 01.01.2004. The National Pension System (NPS) was introduced by the Government of India to replace the defined benefit pension system by defined contribution pension scheme in order to provide old age income security in a fiscally sustainable manner and to channelize the small savings into productive sectors of the economy through prudential investments.

Loksabha

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NPS to OPS

Officials under the National Pension System (NPS) have been ordered to revert to the Old Pension Scheme (OPS).

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(DEPARTMENT OF PENSION & PENSIONERS’ WELFARE)
RAJYA SABHA

UNSTARRED QUESTION NO. 2673

(TO BE ANSWERED ON 18.03.2021)

LITIGATION FOR OLD PENSION SCHEME

SMT. CHHAYA VERMA:
SHRI VISHAMBHAR PRASAD NISHAD:
CH. SUKHRAM SINGH YADAV:

Will the PRIME MINISTER be pleased to refer to answer to Unstarred Question 428 given in the Rajya Sabha on 4th February, 2021 and state:

(a) whether High Court of Delhi on 15/01/2021 in W.P. (C) 8208/2020 and various other cases has ordered to revert officials under National Pension System (NPS) to Old Pension Scheme whose results for selection were declared after 31/12/2003 while advertisements for recruitment were issued before NPS coming into force;

(b) if so, the details thereof and action taken/proposed in this regard; and

(c) the rationale for not issuing general orders for all on above lines inspite of recent judgements of Apex/High Courts in similar cases and compelling own officials for undue litigation instead of attending office thereby causing wastage of public money?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES
AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE
(DR. JITENDRA SINGH)

(a) to (c): The new contributory pension scheme (now known as National Pension System) was introduced vide a notification dated 22.12.2003 issued by the Department of Economic Affairs.

As per this notification, the new system was mandatory for all new recruits to the Central Government from 1.1.2004.

The petitioners in the Writ Petition No. 8208 / 2020 and several other writ petitions filed in the High Court of Delhi were appointed to different posts in Central Armed Police Forces after their selection in June/July, 2004 pursuant to the advertisements issued in June, 2003 and September, 2003 and examinations conducted in January, 2004. The petitioners prayed for extension of the benefit of old pension scheme on the ground that the advertisements for the
posts were issued before 1.1.2004. In its common order dated 15.01.2021, Hon’ble High Court has allowed these Writ Petitions and has directed to extend the benefit of Old Pension Scheme to each of the Petitioners.

In view of the decisions of the Courts in some other cases and in order to redress the grievances of the employees who, on their selection before 1.1.2004, could join Government service only after 1.1.2004, instructions were issued by Department of Pension & Pensioners’ Welfare on 17.2.2020 that in all cases where results for recruitment were declared before 01.01.2004 against vacancies occurring on or before 31.12.2003, the candidates declared successful for recruitment would be eligible for coverage under the CCS(Pension) Rules, 1972.

NPS to OPS: Abolition of National Pension System and for restoration of Old Pension Scheme

The date of advertisement for the vacancies is, however, not considered relevant for determining the eligibility for coverage under the Old Pension Scheme, in terms of the Notification dated 22.12.2003 and O.M. dated 17.02.2020. It has, therefore, been decided to file a Special Leave Petition in the Hon’ble Supreme Court against the order dated 15.01.2021 of the Hon’ble High Court of Delhi in Writ Petition No. 8208/2020 and the other connected writ petitions.

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As per 15th Finance Commission Report, the MoD has been examining various possibilities of reforms in defence pension, as deliberated by relevant Parliamentary Committee.  The extract of Para 11.66 is reproduced below:-

11.66 The MoD has been examining various possibilities of reforms in defence pension, as deliberated by relevant Parliamentary Committees. These are:

• i. bringing service personnel currently under the old pension scheme into the New Pension Scheme (NPS) or a separate NPS for the armed forces;
• ii. increasing the retirement age of personnel below officer ranks to a reasonable level;
• iii. transfer of retired personnel to other services, like the paramilitary forces, after active service of a certain duration; and
• iv. resettlement of ex-servicemen through skill development courses.

We recommend that the MoD take appropriate reform measures, without losing much time, on these lines or any other innovative approach, in order to ensure the growth of defence pensions are at para with non-defence pensions.

Para 3.81 of 15th Finance Commission Report is stating about the Defence Expenditure

3.81 Expenditure on defence services, on both revenue (excluding defence services pension) and capital accounts, as a proportion of GDP, has steadily decreased from 2 per cent in 2011-12 to 1.5 per cent in 2018-19 (Table 3.11). In 2020-21 (BE), such expenditure on revenue and capital accounts, again as ratios of GDP, are estimated at 0.9 per cent and 0.5 per cent, respectively. The defence revenue expenditure in 2016-17 increased by 13.3 per cent and in 2017-18 by 12.5 per cent mainly on account of higher outgo on salaries with implementation of the revised pay scales of the three defence services. During 2018-19, it increased by a further 5.1 per cent. Between 2011-12 and 2018-19, defence revenue expenditure grew faster (10 per cent) than the increase in defence capital outlay (4.7 per cent), and resulted in a reduction of the share of defence capital outlay in total defence services expenditure (excluding defence pension) from 40 per cent in 2011-12 to 33 per cent in 2018-19.

3.82 The total defence services expenditure (including defence services pension), as a ratio of GDP, declined from 2.4 per cent in 2011-12 to 2.1 per cent in 2018-19. It is budgeted to go down to 2 per cent in 2020-21 (BE). This decline has taken place even as defence services pension, again as a ratio of GDP, increased from 0.43 per cent in 2011-12 to 0.48 per cent in 2014-15 and further to 0.57 per cent in 2016-17 due to the implementation of revised pay scales and one rank one pension (OROP). It is expected to be at the level of 0.6 per cent in 2020-21 (BE). In 2020-21 (BE), the defence services salary and pension constitute around 59 per cent of the total expenditure of the Ministry of Defence, followed by capital outlay (24 per cent) and stores, adminstration of the defence services, construction of roads and bridges and the Coast Guard organisation accounting for the balance.

3.83 The capital outlay on defence services increased at the rate of 4.7 per cent a year from 2011-12 to 2018-19. During this period, the highest annual growth of 12.2 per cent was registered in 2013-14 and the lowest (-) 2.4 per cent in 2015-16. Capital outlay as a proportion of GDP has decreased from 0.8 per cent in 2011-12 to 0.5 per cent in 2020-21 (BE). Similarly, capital outlay as a proportion of total defence services expenditure (including defence pension) has declined from 32.6 per cent to 24.9 per cent during the same period.

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