No Proposal For Replacing NPS With Regular Pension Scheme

NATIONAL

There is no proposal to replace the National Pension System (NPS) with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004  due to rising and unsustainable pension bill and competing claims on the fiscal and  There is also  no proposal to stop the pension scheme for Government employees.
This  was stated by union minister of state for finance Sh Shiv Pratap Shukla in a reply to unstarred question raised by Shimla Member Parliament Sh Virender Kashyap alongiwith other MPs in Lok Sabha .The minister told that  Grand Total 156641.29 crore rupees was spent on  paying pension to pensioner during the year  the year 2017-18 .

The Minister told  Shimla Member Parliament Sh Virender Kashyap that
the mandatory contribution by the Central Government for Tier I accounts of its employees covered under NPS has been enhanced from the existing 10% to 14%. He  told that  the impact on Government exchequer on account of enhancing the mandatory contribution by the Government for its employees covered under NPS from 10% to 14% is estimated to entail an additional financial impact of Rs. 2840 crores on Central Government in the next immediate financial year (2019-2020).

He told that  the Number of Family Pensioners getting pension through Central Pension Accounting Office (CPAO) by authorised Bank under National Pension System-as on 30.11.2018 is 4,779.

The Minister told  Shimla Member Parliament Sh Virender Kashyap that Representations have been received which inter alia also include the demand that the Government may revert to old defined benefit pension system. However, due to rising and unsustainable pension bill and competing claims on the fiscal, there is no proposal to replace the National Pension System (NPS) with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.