NEW PENSION SCHEME CHALLENGED
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New Pension Scheme for railway employees challenged | |
The new pension scheme introduced by the Union Government for railway employees has been challenged in the Madras Bench of the Central Administrative Tribunal. An employee of the southern railway and Dakshin Railway Employees Union (DREU) have challenged the scheme terming it unconstitutional and invalid. According to the new scheme, employees appointed on or after 01.01.2004 in the Railways would be governed by the new pension scheme which would be governed by 'Pension Fund Regulatory Development Authority' which would function under the overall control of Ministry of Finance. According to the new scheme, 10% of Pay and DA of an employee would be deducted and an equal amount would be contributed by the central government. The entire pension scheme is being authorized through various executive orders, which cannot be done to govern the retirement benefits of government employees which has to be in tune with Articles 41 to 43 of the Constitution, alleges the application. The notifications issued by the government constituting PFRDA dated 10.10.2003 and 14.11.2008 are unconstitutional, as they have not been issued by the President of India and authenticated as required under Article 77 of the Constitution and the ordnance sanctioning this also lapsed in 2005, which renders the entire process without authority of law alleges DREU in its application. The new pension scheme, which is mandatory to government employees curtails them from exercising any option said V. Daniel, a Helper in Southern Railway. According to the New Pension Scheme, any citizen of India can join the Scheme and they can choose their Fund Managers or opt for different schemes whereas no such option is available to government servants. The application also raised serious apprehension over the way in which their funds are being exposed to market risk and they cite the risk clause in the offer document of the NPS which says that "there are no guarantee on investments and investments involve risks such as trading volumes, settlement risk, liquidity risk, default risk, including possible loss of principal'. The application also cited the statement of PFRDA Chairman that pension fund managers regulated by PFRDA are not giving minimum guarantee on returns in their products. Besides seeking quashing of the notification and grant retiral benefits to all employees on par with those who joined prior to January 1994, the application sought an interim injunction against the notification and also to release family pension and gratuity to certain employees who died after the introduction of the new scheme. The matter came up before the Madras Bench of the CAT comprising Members K. Elango and R. Satapathy. Counsel R. Vaigai advanced arguments on behalf of the DREU and highlighted how the funds of the employees are being entrusted with private players and are subjected to undue risks. She also apprised the Bench that the government as an employer cannot transfer its funds to a private player and expect him to discharge government's obligation. After hearing the arguments on behalf of the applicant and of the central government, the Bench ordered interim relief directing the railway authorities to offer gratuity and family pension to all employees who joined after January 2004 within four weeks from the date of application and posted the matter for June 1. | |
OBSERVE MAY DAY
The Ist May this year falls on Sunday. In our country, perhaps the only offices which are open on May Day are the Central Government offices. This explains amply the attitude of the Indian ruling class towards the working class especially the Central Government employees being on Sunday, it gives us an opportunity to all our members to be participant in the common programmes organized by the working class jointly in all places in the country. We appeal to our affiliates and State COC to issue necessary instructions to our members to take part in large numbers in those functions.
The historic May Day - the international workers day, observed throughout the world by the working class to commemorate the hay market massacre and to rededicate themselves to the emancipation of the working class from the yokes of exploitation- this year in our country comes in the wake of the emboldened attempt on the part of the UPA II Government which was unfortunately elected back to power and rules sans the support of the left parties unlike the UPA I to reintroduce the enactments to amend the existing labour laws in consonance with the neo-liberal economic policies. In so far as the Central Government employees are concerned, this May Day would be observed in the background of this Government's renewed attempt to re-introduce the PFRDA Bill to withdraw the defined benefit statutory pension system which had been in existence even during the colonial days. The fact that this Government had no qualms in soliciting the support of the BJP and the other NDA constituents to get the necessary support for the re-introduction of the Bill in the floor of the Parliament in the last session in the wake of the objection raised by Com. Basudeb Acharya, the leader of the CPI (M) in the Lok Sabha speaks volume of its commitment to the neo-liberal economic policies, its anti worker attitude; the absence of any ideological or otherwise differences with the BJP and its overwhelming desire to support the big corporate houses in maximizing their profit at the expense and cost of common man. The one and only reason as to why they would like to have the PFRDA Bill in the statute book is to make available the hard earned income of workers for corporate investment and manipulation through the Stock Exchanges. The very fact that the extant executive instructions, which have not been issued in the name of the President is unconstitutional, illegal and immortal has not deterred it in imposing the contributory pension system on employees who are recruited after 2004. Most of the State Governments in the country, barring that are ruled by the Left Front Governments, Kerala, West Bengal and Tripura have chosen to abide by this illegal diktat of the Central Government. The Government has refused to make any guarantee in the proposed bill, which now stands introduced in the Lok Sabha to the workers for the loss of investment of the pension fund if in future the Corporate house which draw on the pension fund a becomes bankrupt, a provision available even in the Mecca of the Capitalist system, i.e the United States of America.
We, therefore appeal that while our members must be taking part in the common programmes organized jointly by the working class in each place on Ist May, 2011, the affiliates and COCs are requested to issue necessary instructions to all their branches and Units to organize meetings to observe MAY DAY on 2nd May, 2011 (Monday) in front of all offices so as to ensure that every member of the Branch does participate in the congregation.
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