PENSION IS MY RIGHT- SCRAP NPS

IMPORTANT JUDGMENT -- OFFICIAL RETIRED ON 30th JUNE IS ELIGIBLE FOR INCREMENT DUE ON 1st JULY NOTIONALLY FOR PENSIONARY BENEFITS

CLICK HERE FOR THE COPY OF THE JUDGMENT

SUPREME COURT DISMISSED THE SLP FILED BY GOVT AGAINST MADRAS HIGH COURT JUDGMENT GRANTING PENSIONARY BENEFITS OF INCREMENT DUE ON 01.07 TO THOSE WHO RETIRED ON 30.06..

SCRAP NPS. RESTORE OPS

Pension system was in vogue in India for a century or more and the British Government during the pre-independence era introduced Pension Rules for Government employees and thus made it statutory.  In the year 1982 Supreme Court in its landmark judgment in Nakara’s case declared that - “as per India’s constitution, Government is obliged to provide social and economic security to pensioners and that Government retirees had the fundamental right to pension.....  Pension is not a bounty nor a matter of grace depending upon the sweet will of the employer.  It is not an ex-gratia payment, but a payment for past service rendered.  It is a social welfare measure, rendering socio-economic justice to those who in the hey days of their life, ceaselessly toiled for their employers on the assurance that in their old age, they would not be left in lurch.”

                   During the advent of globalisation policies in 1980’s the pension reforms also started simultaneously. IMF & World Bank started publishing so many reports and documents emphasizing the need for pension reforms.  They also started studying about the reforms to be undertaken in the pension sector in India.  In 2001, “IMF work paper on pension reforms in India” and World Bank India specific report “India - the challenge of old age income security” were published.  Their work reports emphasized that “Pension obligations or promises made by the Governments which have potential of exerting pressure on Govt. finances, have been a subject of increased focus in assessing medium to long term fiscal sustainability.”  In tune with the dictates of IMF and World Bank, NDA Government appointed Bhattacharjee Committee in 2001 headed by Ex-Chief Secretary of Karnataka, to study and recommend pension reforms.  Thus after creating ground for pension reforms, under the pretext of implementing recommendations of Bhattacharjee Committee, the NDA Government introduced New Pension System called Defined Contributory pension system for all employees who join service on or after 01-01-2004.  The UPA Government which came to power in 2004 continued with the reforms and promulgated an ordinance to legalise NPS.  But UPA-I Govt. could not pass the Pension Bill in Parliament due to stiff opposition of Left Parties supporting it.  Later when UPA-II Government came to power the Pension Regulatory and Development Authority (PFRDA) Bill was passed in the Parliament with the support of BJP, the then opposition party.  Many State Governments governed by political parties other than Left Parties, introduced Contributory Pension System for their employees from various dates after 2004.  Left Front Governments of Kerala, West Bengal and Tripura refused to introduce the New Pension Scheme and they continued with the old defined benefit pension scheme.  Congress-led UDF Government introduced NPS in Kerala. After BJP coming to power in Tripura also Contributory Pension Scheme is introduced recently.  In West Bengal old Pension Scheme continues even now.  Not only newly appointed Central and State Government employees, almost all new entrants of public sector and Autonomous bodies are also brought under the purview of NPS.

                   As per New Contributory Pension Scheme an amount of 10% of pay plus Dearness Allowance will be deducted each month from the salary of the employees covered under NPS and credited to their pension account.  Equal amount is to be credited by the Government (Employer) also.  Total amount will go to the Pension Funds constituted under the PFRDA Act.  From the pension fund the amount will go to the share market.  As per the PFRDA Act - “there shall not be any implicit or explicit assurance of benefit except (share) market based guarantee mechanism to be purchased by the subscribers”.  Thus the amount deposited in Pension Fund may or may not grow depending on the fluctuations in the share market.  After attaining 60 years of age i.e., at the time of retirement, 60% of the accumulated amount in the Pension Account of the employee will be refunded and the balance 40% will be deposited in an Insurance Annuity Scheme.  Monthly amount received from the Insurance Annuity Scheme is the monthly pension i.e., Pension is not paid by Government, but by the Insurance Company and hence NPS is nothing but Pension Privatisation.

                   Thus it can be seen that the growth of the accumulated amount in the Pension fund depends upon the vagaries of share market.  If the share markets collapse, as happened during the 2008 world financial crisis, then the entire amount in the pension fund may vanish.  In that case employee will not get any pension.  Every fluctuation in the share market will affect the future of pension of those employees who are covered under NPS.  Uncertainty about pension and retirement life looms large over their heads. Even if there is a stabilised share market the 40% amount in the annuity scheme is not enough to get 50% of the last pay drawn as pension, which is the minimum pension as per old pension scheme. Many employees who entered in service after 01-01-2004 has retired in 2017 and 2018 after completing 12 & 13 years of service. They are getting Rs.1400 to Rs.1700 only as monthly pension from Insurance Annuity Scheme. If they have entered service in 2003 i.e., in the old pension scheme, they would have got 50% of the last pay drawn as pension subject to a minimum of Rs.9000 as minimum pension, that too without giving any monthly contribution towards pension from their salary. In short, NPS is nothing but NO PENSION SYSTEM.

                   As per clause 12(5) of the PFRDA Act even the employees and pensioners who are not covered under NPS, can be brought under the Act by a Gazette notification by the Government.  Thus NPS is a Damocles’ sword hanging over the head of all employees and pensioners.     

                   Who is the beneficiary of this pension reforms?  As in the case of every neo-liberal reforms, the ultimate beneficiary is the Corporates.  The huge amount collected from the Officers and employees through pension fund is invested in share market by the Pension Fund Managers and this amount in turn can be utilised by the multi-national Corporates for multiplying their profit.  Amount deducted and credited to the Pension fund from each newly recruited employee plus the employer’s share amount will remain with the pension fund and share market for a period of minimum 30 to 35 years i.e., till the age of 60 years.  During this long period of 35 years crores and crores of rupees will be at the disposal of share market controlled by multinational corporate giants.  Ultimate casualty will be the poor helpless employee/pensioner.

                   The campaign and struggle against NPS is continuing and as of now the subjective and objective conditions for a bigger struggle against NPS has emerged as almost 50% of the total employees in Central, State, Public sector and Autonomous bodies are now covered under NPS and are becoming more and more restive and agitated.  7th Central Pay Commission Chairman Retired Supreme court Judge Sri Ashok Kumar Mathur has correctly pointed out that “Almost a whole lot of Government employees appointed on or after 01-01-2004, were unhappy with New Pension Scheme.  Govt. should take a call to look into their complaint”. 

As per the recommendations of 7^th CPC, Central Government appointed a Committee called “NPS Committee” for streamlining the functioning of NPS. The Staff-side has demanded before this Committee to scrap NPS and guarantee for 50% of the last pay drawn as minimum pension subject to a minimum of Rs.9000. Even though, the Committee has submitted its report 18 months back, the Government has not yet disclosed the recommendations of the Committee.          

Defined Contributory Pension Scheme (New Pension Scheme - NPS) imposed on new entrants must be scrapped and the Government should reintroduce the Defined Benefit Pension Scheme (Old Pension Scheme - OPS) that was in vogue for a century or more.

Improvements sought in VII CPC recommendations

Variable Increments

Let's unify/ organise all the DRDO Scientists.

DRDO Scientists Association (DSA) is striving for

Ø Continuation of Two Additional Increments

Ø Continuation of Variable Increments

Ø NFU for DRDS Scientists

Ø PRIS for DRDO

 Other demands of DSA include

Ø DRDS should be declared as Organised Central Group ‘A’ Service.

Ø DRDS cadre review should be completed at the earliest.

Ø DRDO Scientists should be exempted from NPS and ensure defined pension to all including those joined after 1^st January 2004.

Ø Count the Special Pay of Rs.4000 granted to Scientists ‘G’ for the purposes of pensionary benefits. Implement the recommendations of Raksha Mantri’s Committee of Experts Report.

Ø Deferred Promotion system should be extended in promotions from Scientist ‘F’ to Sc ‘G’ and from Scientist ‘G’ to Sc ‘H’(OS) as implemented in promotions from Scientist ‘H’(OS) to DS.

The Constitution and Memorandum of Association of DRDO Scientists Association (DSA) submitted to DRDO Hqrs were prepared by professionals with the help of Advocates fulfilling recognition conditions as per CCS (RSA) Rules, 1993. If still any amendments are required, you are welcome to propose.

From a mere ‘petitioning organisation’, our Association should grow into a vibrant leading force amongst the Central Govt. Officers for which whole hearted support of entire DRDS fraternity is required.

We should raise demands, pursue them organisationally, and on the strength of programme of action carried out, we persuade and negotiate with Govt. It is a time consuming process, but we are convinced that there is no alternative to programme of action which demonstrates the backing for the demands raised.

To sell dreams, no Association is required. Association is required to change the unchangeable, to fight for getting just treatment, to fight against injustice.

We know that mere rising of queries under RTI Act, submission of memorandum to any committee or Govt, filing of court cases etc. will not bring about desired results. To achieve demands, we will have to educate and mobilise Scientists, prepare them for programme of actions in a sustained manner.

We don’t want to give false promises, we prepare our Scientists to live with dignity and security and fight for it.

 On behalf of the present body, we invite you all to take over the leadership of the Association for effective resolution of grievances of Scientists. DSA is ready to merge unconditionally with any other Association working for the redressal of the grievances of DRDS anywhere in DRDO as per recognition rules.

 Confederation of Central Government Gazetted Officers' Organisations (CCGGOO) etc. will be always with us in all our endeavours for improvement of service conditions.

Instead of reinventing the wheel, you are requested to take over the DSA and continue to function as per recognition rules for the betterment of service conditions of DRDS fraternity.

Pay Authorisation Format

LETTER OF AUTHORISATION

To

The Director

DMRL

Kanchanbagh

Hyderabad – 500 058.

I, …………………………………………………………..Scientist……..being a member of DRDO Scientists’ Association hereby authorise deduction of monthly subscription of Rs.30/- (Rupees Thirty only) per month from my salary starting from this month itself, payable on pay day and authorise its payment to the  DRDO Scientists’ Association.

I hereby certify that I have not submitted authorisation in favour of any other Association.  If the above information is found incorrect, I fully understand that my authorisation for the Association becomes invalid.

			Signature  :
			Name          :
			Designation:PC No. ID No. (Pay): Group           :                          Division:
TO BE FILLED BY THE ASSOCIATION
It is certified that Mr. / Ms…………………………………………………………………… is a member of the DRDO Scientists’Association.          It is further certified that the above authorisation has been signed by Mr. / Ms ………………………………………………………………. in my presence.
Signature of authorised Office Bearer Name (in capitals)
Signatureof Member Name (in capitals)

FORMAT OF MEMBERSHIP FORM

DRDO SCIENTISTS’ ASSOCIATION

Head Office: #14-86, Sri Sai Nagar, Badangpet, Hyderabad- 500 058

Unit: DMRL, Hyderabad

MEMBERSHIP FORM
1.	Name, Designation        Punch Card No. Dossier No.	:
2.	Name of father / Spouse	:
3.	Date of Birth	:
4.	Group / Division	:
5.	I D No. (Pay)	:
6.	Office Phone No.	:
7.	Mobile No. / Residence Phone No.	:
8.	Email ID	:
9.	Address for correspondence	:
10.	Educational Qualifications	:
			Signature
			Name
			Designation
			PIS No.
__________________________________________________________________________ TO BE FILLED BY THE ASSOCIATION
It is certified that Mr. / Ms…………………………………………………. is a member of the DRDO  Scientists’ Association – DMRL Branch
Date :                                                                        Signature of the Office Bearer                                                                                  (Name:                                       )

Treat two additional increments granted to Scientists 'C' to 'F' as pay for all intents and purposes. Count the 'Special Pay' of Rs.4000 as granted to Scientists 'G' for the purposes of pensionary benefits.

CONSTITUTION & MEMORANDUM OF ASSOCIATION OF DRDO SCIENTISTS ASSOCIATION

DRDO SCIENTISTS’ ASSOCIATION

CONSTITUTION

(Bye laws / Rules Adopted in the General Body Meeting held at Hyderabad)

1.      Name: The Name of the Association shall be ‘DRDO SCIENTISTS’ ASSOCIATION’ in short “DSA”.

2.      Regd. Office and Head Quarters: The Registered office of the Association shall be at Hyderabad and the Central Head Quarters of the Association will be at the place where the General Secretary of the Association works or any other place as decided by the Biennial conference from time to time on need based and functional requirements.

3.      Aims and Objectives: The Aims and Objectives of the Association would be as follows:

a.      To promote  and safeguard the interests of Scientists working in Defence Research and Development Organisation (DRDO), Dept. of Defence Research,  Ministry of Defence,  Govt. of India.

b.      To secure, protect and preserve the rights and privileges of DRDS Scientists.

c.      To strive for better Service Conditions of its members and ensure efficient service to the DRDO and the Nation.

d.      To deal with all matters pertaining to the welfare of its members and their families.

e.      To abide by the conditions for grant of recognition to the Association as stipulated in the relevant provisions of CCS (RSA) Rules 1993, as may be amended from time to time and / or laid down in orders issued from time to time by the concerned Ministry / Dept. of Government of India.

f.       To coordinate with, to make a common cause and to federate or affiliate with other Central Government Officers Associations having similar aims and objectives to ventilate and seek redressal of the common grievances arising out of and related to service conditions, career advancement, protection and promotion of common interest and safeguarding rights and privileges of all Central Government officers.

g.      To publish bulletin(s) to promote awareness among its members about their role in the Association.

h.      To improve social, cultural, educational, economic and civic conditions as well as professional excellence of members.

i.        To popularise science and to promote scientific temper among people, to encourage  quest for knowledge and to strive for national integrity, communal harmony, patriotism, sovereignty, self reliance, social justice, world peace, social progress, cultural vibrancy, indigenous technology development, faster conservation of natural resources by ecological balance, biodiversity, environmental upkeep towards sustainable development, to facilitate the fruits of science reach the under privileged, to encourage research in divergent areas with people’s welfare as the prime motto by associating with All India People’s Science Network (AIPSN) and NCSTC (National Council for Science & Technology Communication, DST, Govt. of India) Network and other fraternal organisations whose operational domains are Education, Health, Women empowerment, Literacy, Sustainable Agriculture and industrial development, Science & Technology Communication, Humanism, spirit of inquiry etc. prescribed as Fundamental duties of citizens in the Constitution of India.

4.      Membership: The Association shall have its membership among Scientists working /  employed in various DRDO Labs / Estts. / Cell(s) and allied Estts. like ADA etc. working under the control of Chairman, DRDO, Ministry of Defence, Dept. of Defence Research, DRDO Bhawan, New Delhi.

5.      Membership Subscription:

a.      Any DRDO Scientist can become member of the Association provided he/she accepts the aims and objectives of the Association and by paying Rs.100/- as admission fee and Rs.30/- as monthly membership subscription.

b. Out of membership subscription, the branch Association shall retain 50% of the subscription so collected during the official year to meet their expenses. The main Association as well as branch can raise donations / funds from its members when ever need arises.

6.      Branches:  The Association shall have its branches Lab/ Estt. wise to promote or carryout the activities of the Main Association.

7.      Membership Register:  The main Association as well as branch shall maintain the Membership Register for the official year and same is open for inspection by its members.

       8. Management:

a.      To manage the affairs of the Association, the Association shall have the following

      Office Bearers:

President - 1(one)                                  Vice President -3 (three)

General Secretary - 1(one)                   Joint Secretaries - 5 (five)

Zonal Secretaries – 5 (five)                  Organising Secretaries -5 (five)

Treasurer – 1(one) and 25 Executive Committee Members

and they shall be elected by the delegates of the Conference which will be held once in two years giving at least one month clear notice to its delegates who are elected prior to one month from the issuance of the notice for the All India Conference.

b.      The branch Association shall have a President, 3 (Three)  Vice Presidents,

a General secretary, 3 (Three) Joint / Zonal / Organising Secretaries, a Treasurer and (15) Fifteen Executive Committee Members elected in the biennial branch Conference one month prior to All India Conference.

c.      The All India Association Office Bearers and Executive Members shall be elected by the Delegates drawn from various branches of the Association at the ratio of 1:10 among its members.

d.      Similarly the branch office Bearers and Executive Members shall be elected by the General Members of the Branch Association.

e.      To elect the delegates for all India Conference a Three member Election Committee shall be constituted by the All India body and they are responsible for the Election of the delegates. One among them shall act as Election Officer and others as Members of the Committee.

f.       Any dispute in the election of the Branch Committee shall be referred to the All India Body and the decision so taken by the All India Body, shall be binding on the branch committee.

8.   Accounting year of the Association:  The accounting year of the Association shall be the financial year i.e. from 1^st April to 31^st March of next calendar year and the Conferences whether it is All India or Branch level shall be held once in two years in the month of October / November as the case may be.

9.   Periodicity and Quorum:   Normally the All India Association Executive Committee shall meet at least two times in a year at all India level and branch committee once in a month to transact the Agenda circulated among the Executive Committee Members. If need arises the Executive Committee can meet any number of times as deemed fit. Normally 1/3^rd of its members present in the meeting constitute the quorum.  No quorum is required / necessary for an adjourned meeting.

10. Disqualification of Office Bearers / EC Members and Members of Association:  Any office Bearer / EC Member or Member of Association if acts against the interest of the Association, he / she can be removed as an office bearer / EC member / Primary member, after giving a proper notice and giving an opportunity to explain the reasons. Such decision has to be ratified by 2/3^rd of its members present in the meeting.

11. Filling up of Vacant posts:  In case of any vacancy arises due to retirement, resignation, expulsion, unable to continue due to illness and death or for any other reasons, the same will be filled up by co-option  by the Executive Committee with simple majority at all India as well as branch level whichever is applicable.

12. Function and duties of the Office Bearers:

President / Vice President:  The President shall be head of the Association.  He / She shall preside over all the meetings at All India and at Branch level. In the absence of President senior most vice president shall preside over the meeting.

General Secretary: The General Secretary is chief spokesman and executive of the Association. He / She in consultation with the President shall call for Executive Committee Meeting and also All India Conference by giving sufficient notice to its members. He shall make correspondence with officials concerned and also represent in legal matters if any. The General Secretary shall record the Minutes of all the meetings.  The General Secretary in cooperation with Treasurer of the Association shall be responsible for the proper maintenance of the Association accounts / funds.

Joint Secretary: The Joint Secretary shall assist the General Secretary in all day to day functioning of the Association. In the absence of General Secretary the senior most Joint Secretary shall act as General Secretary.

Zonal Secretary: The Zonal Secretary shall be responsible to carry forward the activities of the branches of the zone concerned, the jurisdiction and operation of the zone shall be decided by the All India Conference on functional requirements.

Organising Secretary: Organising Secretary shall be responsible for the growth of the Association and also acts as propaganda Secretary to carry out the message of the Association at All India / Branch level.

Treasurer:  The Treasurer shall be responsible for the upkeep of the Funds / Accounts of the Association and is also responsible for preparation of the documents for audit and maintenance of the Accounts books and submission of the same to the conference approval.

(Note: The above functioning and duties shall also be applicable to the Branch Association.)

13. Advisors: The Association shall have two Advisors to advise the Association from time to time and they shall be nominated by the All India Conference held once in two years.

14. General Funds of the Association: 

a.      The General Funds of Association shall include Admission fee, Membership Subscriptions and donations etc.

b.      The General funds of Association can be spent for the purpose of running the Association Central Office, Branch Office, travelling allowance for office bearers, EC Members, publication of bulletin / circulars, conducting EC Meeting, Conferences, Seminars, Symposiums etc. and for the purpose of Legal Assistance if required.

c.      The general funds of Association can also be spent as decided by the General Conference for any other purpose in the interest of the Association.

d.      The General funds of Association shall be deposited in the Nationalised Bank and same can be operated by the General Secretary and Treasurer jointly and in the absence of any one of the above, the President is also authorised to operate the Bank Account.

e.      At any point of time the General Secretary / Treasurer cannot keep more than Rs.1500/- as cash in hand.

15. Official Bulletin:  The Association shall publish Official Bulletin to educate its members regarding its activities and Aims and Objectives. It will be published in the name of the General Secretary of the Association at All India level. The biennial conference shall decide and fix the price for the bulletin.

16. Audit:  At the biennial conference the auditors shall be appointed and they shall audit at All India / Branch Level for the preceding official year.

17. Amendment to the rules:  Any Amendment to the Constitution can be made only by All India Conference by the 2/3^rd majority of the delegates present with the prior approval of the concerned Dept. / Govt.

18. Dissolution:  The Association can be dissolved for non-functioning and the liabilities of the Assets of the Association shall be distributed among its members proportionately if 3/4^th of the majority delegates present in the meeting approve the same for dissolution.

DRDO SCIENTISTS’ ASSOCIATION

MEMORANDUM OF ASSOCIATION

·        To  unify all the Scientists of Defence Research and Development Organisation (DRDO), Dept. of Defence Research, Ministry of Defence,   Govt. of India,  under the  Association.

·        To safeguard and promote interests, which are common to the cadre of DRDS Scientists of Defence Research and Development Organisation (DRDO), Dept. of Defence Research, Ministry of Defence, Govt. of India who are members of the Association.

·        To work for the improvement in efficiency and output of the Scientists thus render effective service to the Defence Research and Development Organisation (DRDO), Dept. of Defence Research, Ministry of Defence, Govt. of India thereby to the Nation.

·        To do all such things as are incidental or conducive to the attainment of the above objectives or any one of them within the purview of the rules and regulations prescribed by the Govt. of India, Ministry of Defence, Dept. of  Defence Research, New Delhi.