ES Reporter

ITANAGAR, Jan 8: National Peoples Party(NPP), Arunachal Pradesh has urged the state government to implement the National Pension Scheme (NPS)  by incorporating family pension if not to scrap it and reintroduce the old pension system.
Addressing the media persons here at the press club today, State General Secretary-NPP, Paknga Bage stated that the NPS has many demerits and it has no benefit for government employees but somehow, the state government had signed an MoU and passed an order to implement NPS in the state with retrospect year as 2008.
NPS is a Defined Contribution Pension System (DCPS) where government employees have to contribute 10% of their total salary and an equal amount will be contributed by the state government. The amount so contributed will be kept under Tier —I or Tier-II account. Moreover, the withdrawal system unlike that of GPF is complicated & withdrawal limit is at 25% of the employees contributed amount, the NPP said.
"The main setback in the NPS is that in case of premature death of all categories of government employees, his/her nominee of the family is not covered under any financial benefit as that of the old family pension.  No benefits on premature exit on medical or domestic grounds, no provision as volunteer retirement benefit as that of the old pension system. Moreover, during death case/pre-exit case, the withdrawal limit is fixed at 20% of its contributed amount & the rest 80 % amount cannot be withdrawn," Bage said. Also for group C & D employees, the 10% contribution amount under Tier —I and Tier-II on attaining superannuation of service will be very less amount to support his/ her family in old age, he added.
The NPP state unit has suggested that NPS should be adopted in the state with additional state policy as such. In case of death of the employee or premature exit on medical ground before 15 years of his/her service tenure than they or their nominee should be covered under family pension system of old pension system so that the deceased family can be extended minimum financial support to sustain the family.

"If the government fails to implement the NPS with certain modifications or additional policy, the state government should completely scrap the NPS in the state and should implement the old pension system for greater interest," General Secretary NPP said.

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Kenter Joya Riba

(Managing Editor)
      She is a graduate in Science with post graduation in Sociology from University of Pune. She has been in the media industry for nearly a decade. Before turning to print business, she has been associated with radio and television.
Email: kenterjoyaz@easternsentinel.in / editoreasternsentinel@gmail.com
Phone: 0360-2212313

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