Is Government thinking to Abolish New Pension System (NPS) ?

Around 50 Lakhs employee from Organised and Unorganised sectors from India are subscriber to New Pension System (NPS). New Pension System came into an existence on 01.01.2004. Every employee joined Government services after 01.01.2004 is covered under this scheme.

headlines_06.02.2014Trade Unions and Employee’s Federation has time and again has protested against this scheme. They are demanding implementation of Old Pension Scheme. Government sources have confirmed to that either government may abolish this scheme altogether or may assure some “Minimum Guaranteed Return” on the amount invested by the subscriber on this scheme.

On an experimental basis and to judge the reaction of employees, Government has asked Railway Ministry to hold the meeting with employee’s federation on 07.02.2014 and take their views on this scheme. Thereafter Ministry for Railways is expected to send the recommendations to Prime Minister of India. PM may refer these recommendations to Group of Ministers. GOM will take last call on the matter. It is expected that matter will then be discussed in the cabinet meeting.

Government of India may bring ordinance on the Abolition of New Pension System or bring some formula about “Minimum Guaranteed Return” on the amount invested by subscribers, before code of conduct is applied for General Election.