NPS: Central govt staff may get more investment flexibility | Business Line

NPS: Central govt staff may get more investment flexibility | Business Line

My VIEW:

Demystify NPS
This refers to the report “NPS: Central govt staff may get more
investment flexibility” (November 23). New Pension Scheme (later rechristened
as National Pension System was introduced in December 2003, prospectively for
central government employees (except those in defence services) joining service
from January 1, 2004. For those affected, it was ‘substitution of existing
defined benefit pension scheme by something very similar to contributory
provident fund with no guaranteed return’.
There is no evidence to show that the shift was after any study about
the social security aspect inherent in a pension scheme. The primary ground for
denial of pension benefits for ‘future’ employees was the unfunded pension
liability of central government which exceeded three lakh crore of rupees in
2003. The ‘Pay As You Go’ method of meeting pension liability was being
adversely commented. GOI refused to look at the suggestion to start funding
pension liabilities. NPS was consciously excluded from the terms of reference
of VI Pay Commission.
In 2006-07, ING
Group and Indian Institute of Management, Bangalore undertook a joint research
on pension systems in India at the instance of ING Global Retirement Services.
The findings are available in the form of a 588 page book “Facing the Future:
Indian Pension Systems”(By David J. W. Hatton, Naren N. Joshi, Fang Li, R.
Vaidyanathan, S. Jyothilakshmi, Shubhabrata Das and Sankarshan Basu. Publisher:
Tata McGraw Hill Rs625). This well-researched document did not find any takers
in PFRDA or the concerned ministries in GOI. The VII Pay Commission has gone
deep into the genesis and implementation of NPS, listed several concerns and
made recommendations including one for upward revision of employer’s
contribution. The following excerpt from Chapter 10.3 of the CPC report will
give an idea as to how deep the NPS mess is:
“The Commission notes that no department of Government of India is
taking ownership of the NPS. The
Commission recommends that a Committee consisting of Secretary, Department of
Financial Services, Secretary, Department of Pensions and Pensioners Welfare
and Secretary, Department of Administrative Reforms and Public Grievances may
be constituted to review the progress of implementation of NPS. The
Commission also recommends that steps should be taken for establishment of
an Ombudsman f or redressing individual grievances relating to NPS.”
M G Warrier, Mumbai



Comments

Post a Comment

Popular posts from this blog

NAVAGRAHA STOTRAM

NAVAGRAHA STOTRAM* According to astrology, the positions of the nine planets in the twelve constellations of the zodiac and their movements are considered to be quite significant. The nine planets ‘Navagraha’ affect every aspect of human life. They play an important role in the activities, physical and mental health and life of any individual. The unfavorable positioning of any of these planets can be the cause of problems, bad health, and stagnation for many people. However, there is a solution to avoid the ill effects of the position and movement of the ‘Navagraha’ in our lives. Navagraha mantras (or stotram) are simple mantras which work as powerful healing tools to reduce the negative effects of any of the nine planets. These mantras are Hindu holy hymn addressing the nine planets. Benefits Of Navagraha Stotram And The Way to Practice The Navagraha Stotram is written b y Rishi Vyasa and is considered to be the peace mantra for the nine planets. They are powerful m
Read more

THE SUNSET OF THE CENTURY

*SUNSET OF THE CENTURY: Rabindranath Tagore THE LAST SUN OF THE CENTURY SETS AMIDST THE BLOOD-RED COLOURS OF THE WEST AND THE WHIRLWIND OF HATRED. THE NAKED PASSION OF SELF-LOVE OF NATIONS IN ITS DRUNKEN DELIRIUM OF GREED IS DANCING TO THE CLASH OF STEEL AND THE HOWLING VERSES OF VENGEANCE. THE HUNGRY SELF OF THE NATION SHALL BURST IN A VIOLENCE OF FURY FROM ITS OWNSHAMELESS FEEDING FOR IT HAS MADE THE WORLDITS FOOD, AND LICKING IT, CRUNCHING IT AND SWALLOWING IT IN BIG MORSELS, IT SWELLS AND SWELLS TILL IN THE MIDST OF ITS UNHOLY FEAST DESCENDS THE SUDDEN HEAVEN PIERCING ITS HEART OF GROSSNESS…   *Note: “The Sunset of the Century”, translated by the poet, from Naivedya; The English Writings of   Rabindranathtagore, Volume II,Delhi 1996, page 466. Quoted in his article ‘Critiquing nationalism’ by K Satchidanandan (Frontline, November 14, 2014). The article takes you to a much broader spectrum. HAPPY READING(READ MORE STAN
Read more

The King of Ragas: Sankarabharanam

                       The King of Ragas                      --------------------------     Long ago  serpents were put to lot of hardships.They  were afraid of other animals. They had to seek refuge in the hermitage of sage Saraba.The sage was a true devotee of Lord Shiva.He used to pray Shiva with melodious songs. As he sang a particular raga the snakes were much inspired and they began to dance,. Slowly the serpents became friendly with the sage. They brought water in their mouths for the pooja.They secreted  a special fluid in which the flowers got stuck to their bodies.The sage was much astonished by the service of the snakes.As the sarpas became very close to the sage ,they requested him to help having Darsan of Lord Siva. As requested by the sage Shiva appeared in the form of  a  Kapalika and stayed in the ashram.The music and dance of the snakes continued. The snakes rendered service to the kapalika as they considered him  a Shiva bhakta.Shiva was much pleased with t
Read more