Family Pension for NPS Employees
Family Pension for NPS Employees – A report states that between April 1994 and April 2004, more than 50 lakh youths joined Government Services. However, the same dropped to around 33 Lakhs after April 2004. Experts blame the Governments’ decision to abolish pension for this, which forced the youths to move towards the corporate sector.
The 33 lakh Central and State Government employees who have joined after 2004, may soon have a reason to rejoice. The Government is seriously considering to offer Family Pension for NPS Employees who have joined after 2004. Reliable sources have said that the 7th Pay Commission has recommended the same. The State Governments’ have been asked to submit their reports by the end of December, and after due approval it is expected that the Pension Scheme will come into effect by 1, January 2016.
We already know that the Employees who joined in Government Services after 2004 come under contributory pension scheme. Under which an employee will be deducted 10 per cent of his basic salary, and the same per cent would be contributed by the Government through out his/her service. After retirement, 70 per cent of the pension would be given in lump sum and the rest of the 30 per cent would be used for component to be paid every month till his/her life time.
However the employees who joined in service before 2004, are eligible for family pension, and they are not deducted any amount from the salary in the name of pension. Such employees after retirement, become eligible for 50 per cent of the last drawn salary as their pension.
Sources confirm, the 7th Pay Commission may include recommendations for NPS revisions, and it is expected to be converted to family pension. Mr.KKN Kutty, Secretary General, Confederation of CGEs and workers expressed his happiness and said, if the Central Government accepts the proposal, a large number of Government employees would be benefited.
Mr.K.S.Sharma, former Chief Secretary, Madha Pradesh said, “The family pension scheme was abolished from April 2004. It was a bad move by the Government. It is pension, that attracts the youths to join the Government Services, because their future is secured. If the Government accepts the recommendations of the 7th Pay Commission, the youths would be motivated to join the Government Services”.
A report states that between April 1994 and April 2004, more than 50 lakh youths joined Government Services. However, the same dropped to around 33 Lakhs after April 2004. Experts blame the Governments’ decision to abolish pension for this, which forced the youths to move towards the corporate sector.
Mr.Jayanth Malaiya, Finance Minister, Madhya Pradesh assured, “If the recommendations were accepted by the central government, he will definitely consider implementing the same in MP”.
Source: Dainik Bhaskar