New pension scheme
k r purushothama rao
(Querist) 21 October 2013
This query is : Resolved
Iam a retired central Govt officer, retired on 31st January 2012.Iwas covered under new pension scheme(NPS) introduced by govt of India effective for employees joined service on or after 1st April 2004.AS per the scheme, i got my 60% of my accumulation from my pension fund account during jan-feb 2013, after constant follow up over an year.Now for balance 40% amount i was asked to opt and choose from any of the 6-7 identified annuity service providers viz LIC,SBI,ICICI LOMBARD, BAJAJ ALIANZ, ETC. ON enquiry with LIC & SBI,i was informed that the balance 40% amount if invested with any one of them, i will be paid annuity @ 7-7.5% only.I really dont understand the logic behind this. presently banks are paying upto 9.75% on FD'S for sr. citizens and i can get back my money whenever i need without any hurdles and in very few mimutes. but here i have no choice of getting my money back during my life time and it will be paid only to nominee.
is there any way out to get back my money and use as i wish, how can Govt force us to invest in such scheme which is in no way benificial to sr. citizens.pl. provide suitable remedy/solution to my problem.
k.r.purushothama.rao
P. Venu
(Expert) 22 October 2013
Facts are incomplete. How can a person who joined Central Government service after 2004 retire in 2012?
Raj Kumar Makkad
(Expert) 22 October 2013
* Venu! I do not agree with you. A person can even join at the age of 50 years of age if the service conditions permit.
Raj Kumar Makkad
(Expert) 22 October 2013
An employee cannot be forced to adopt a particular scheme prescribed by department/Govt. rather the money can be got deposited in the more beneficial scheme as per whims and wishes.
Serve a legal notice to the department.
Anirudh
(Expert) 22 October 2013
Dear Mr. Purushothama Rao,
You have to clarify the point raised by Mr. Venu, before any answer could be provided to your query.
Isaac Gabriel
(Expert) 22 October 2013
Perhaps this is the first query on the new pension scheme,and the facts put forth is shocking and to the detriment of the pensioner.This is a pertinent query for which experts need to throw light. Mr. Raj Kumar Makkad has given proper advise.Yet, something should be done to nip in the bud.
k r purushothama rao
(Querist) 22 October 2013
I am indeed very happy many experts have responded to my quiry and i sincerely thank each one of u and look forward to get necessary support and help to get this long pending issue resolved. ofcourse my case is very unique and specific and not a general one. after serving for about 22 years in NPCIL, a constituent unit of DEPT OF ATOMIC ENERGY, I took VRS and got all my service benifits from NPCIL. Subsequently through the Dept only i was offered appointment in BARC,GOVT ORGANISATION IN THE SAME CAPACITY WITH ALL PAY PROTECTION AND SERVICE CONDITIONS AS APPLICABLE TO CENTRAL GOVT EMPLOYEES.I served BARC just for 2 years and 10 months.As per my terms of my appointment i was covered under new pension scheme of 2004.consequent to attaining 60 years i was retired from BARC on 31st january 2012. since then i have been desperately fighting to get my dues without any success. though my past service in NPCIL was cosidered in BARC and i was promoted to next higher grade,i have been denied payment of gratuity stating that Govt rules reg gratuity for employees covered under new pension scheme are yet to be issued. i have all most left that issue now. i will be very happy atleast if this pension issue is settled.hope i have clarified the matter.it will be my pleasure to furnish any further information in this regard.as regards pension i think issue stands as explained in my earlier quiry.looking forward for support and help to settle stray cases like mine.
Thanking you.
k.r.purushothama.rao
Anirudh
(Expert) 22 October 2013
Dear Mr. Purushothama Rao,
As per the New Pension Scheme, it mandatory to use 40% of pension wealth to purchase the annuity at the time of the exit (i.e. after the age of 60 years) from NPS.
This mandatory provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.
Therefore, you have to necessarily opt and choose from any of the 6-7 identified annuity service providers viz LIC,SBI,ICICI LOMBARD, BAJAJ ALIANZ, ETC.
k r purushothama rao
(Querist) 23 October 2013
Dear Mr.Anirudh,
I fully agree that the NPS policy of Govt of India is mandatory.But i fail to understand the logic of paying Annuity @ 7%, while prevailing market rate is 9.75% for sr.citizens.why i should be forced to invest in such schemes of low returns when i can safely invest in any of the nationalised banks and earn 9.75% interest. how my interests are safeguarded here. i was given to understand that the rate of 7% Annuity is based on apprehension that globaly interest rates will be in the range of 3-3.5% by 2020 and 7% will deffinitely be benifitial to sr.citizens in that scnerio.considering the fact that persons who join service in 2004 will retire by 2064, and if that apprehension of global interests falling to 3-3,5%,happens persons retiring then will be benifited,but not a stray case like mine.I think this is great injustice to me for no fault of mine and only because of wrong policy of Govt of India.perhaps while framing these guidelines,Govt had not envisaged such case like mine. Even now Govt should rectify and issue new guidelines to tackle stray cases like mine. but who has to represent to Govt . my representation to NSDL,requesting for refund of bal 40% amount,is turned down stating there is no provision for refund.pl. advise me the course of action. perhaps to serve a notice to Govt as suggested by Mr.RajKumar Makad expert.
krprao
k r purushothama rao
(Querist) 23 October 2013
Dear Mr.P.Venu,
I had furnished full details of my case.pl. let me have ur expert advise on the issue.
krprao
Anirudh
(Expert) 23 October 2013
Wish you all the bests.
P. Venu
(Expert) 24 October 2013
Dear Shri Rao,
It is the requirement of the New Pension Scheme that 40% of the the pension wealth to purchase the specified annuities. However, this cannot be termed mandatory because the scheme is based on an administrative OM, not a Notification under article 309 of the Constitution.
The New Pension Scheme as well the discontinuance of those appointed after 1/1/2004 from the CCS(Pension) Rules appears to be devoid of statutory basis.
k r purushothama rao
(Querist) 13 April 2014
my efforts to get back 40% money with held for investing in annuity service provider is not successful till date i feel legal action is the only option left for me i will be much obliged if any advocate from bangalore and handling central govt service matters cases comes forward and helps me in getting my case settled which is pending for the past two years NSDL have made it clear that i have to approach PFRDA but they are not responding to my request gratuity issue is also hanging and no one is telling clearly whether i am eligible or not if appointment is given i can discuss in detail along with documents
