KARNATAKA STATE GOVT EMPLOYEES TO PROTEST NEW PENSION SCHEME
‘New pension scheme against interests of staff’
Government to invest staff contribution in share market
Bengaluru. The Karnataka Employees Association has called upon employees of State and Central Government establishments to raise objection to certain clauses under the New Pension Scheme (NPS) so as to prevent the Government from investing the hard-earned savings of the employees in the share market.
Speaking at a seminar here on Sunday, retired principal Mr. Manje Gowda, President of Karnataka State Government Employees Association said the new pension scheme (NPS) introduced in April 2004 had made the hard-earned savings of the employees/prospective pensioners “unsafe” by way of investing it in share market. And, the scheme provides no guarantee of return of the savings and pension on retirement if the companies in which the money is invested go bankrupt.
The Government of India introduced a New Defined Contribution Pension Scheme also called the NPS has been accepted Karnataka, Kerala, Andhra Pradesh and Tamil Nadu.
The scheme will have two-tier system. Under Tier-1, withdrawal when in service is not allowed. Besides, contribution of 10 p.c. of the basic pay is mandatory.
Tier-2 has been made optional for government servants. The NPS account holder can withdraw his money at will. But, in such a case, the employee concerned will not be eligible for pension.
Also, if anybody takes voluntary retirement and resigns, the person concerned will not be eligible for pension scheme.
According to Mr. Manje Gowda, the scheme is exploitative and puts the savings of employees at high risk without guaranteed returns. Therefore, it has to be opposed.
The seminar was organised by the Democratic Government Organisation (DGO) with the objective of creating awareness about the new pension scheme among the teachers serving in government schools, particularly the young teachers who have become eligible for NPS.
• Contribution of 10 per cent of the basic pay towards pension scheme made mandatory
• Withdrawal of savings when in service is not allowed under the Tier-1 of the scheme