The Joint Forum’s Plea for the Restoration of the Old Pension Scheme-DoE Letter dated 5.9.2023

Ministry of Finance requested JFROPS to give their Suggestions on Restoration of the Old Pension Scheme

JFROPS Plea for Restoration of the Old Pension Scheme

In a significant development, the Joint Forum For Restoration of Old Pension Scheme (NJCA) recently made a representation to the Prime Minister of India, urging the government to scrap the New Pension Scheme (NPS) and restore the Old Pension Scheme (OPS). The NJCA, a collective body representing various employee unions across the country, highlighted the concerns and grievances of employees regarding the NPS.

The Ministry of Finance has taken cognizance of this representation and has requested the Joint Forum For Restoration of Old Pension Scheme to provide their suggestions in writing. These suggestions will be placed before the Committee to review the Pension System, a committee entrusted with the task of evaluating the current pension system and proposing necessary reforms.

The Old Pension Scheme, which was in place prior to the introduction of NPS, provided a defined pension benefit to employees upon retirement. However, with the implementation of NPS, employees now contribute to a pension fund managed by Pension Fund Regulatory and Development Authority (PFRDA), and the retirement benefit is dependent on the returns generated by the fund.

The NJCA has raised several concerns regarding the NPS, including the lack of a guaranteed pension amount, the volatility of returns, and the absence of a safety net for employees. They argue that the NPS puts the retirement security of employees at risk and fails to provide the same level of financial stability as the Old Pension Scheme.

Joint Forum For Restoration of Old Pension Scheme has been given a valuable opportunity

The Joint Forum For Restoration of Old Pension Scheme has been given a valuable opportunity to present their suggestions to the Committee. This presents a ray of hope for the thousands of employees who have been advocating for the restoration of the Old Pension Scheme. The Forum is expected to provide concrete suggestions and recommendations to address the shortcomings of the NPS and restore the old system, which had been a reliable and secure option for employees.

Finance Ministry’s Letter to JFROPS regrading Restoration of the Old Pension Scheme

F.No.1(4)/E-V/2023
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 05th September, 2023

To,

Joint Forum For Restoration of Old Pension Scheme (NJCA),
4, State Entry Road,
New Delhi- 110055

Sub: Committee to review the Pension System for Central Government Employees-rcg.

Sir,

Please refer to your letter No. JFROPS/NJCA/2023 dated 10.08.2023 addressed to the Prime Minister along with a copy to Finance Minister, Government of India.

2.You are requested to give your suggestions in writing for placement before the Committee.

Yours faithfully
(Ranjeet Kumar)
Under Secretary to the Govt. of India
Tel: 011-2309-5633