Dear Friend. . I Have prepared a rough draft of the Representation which will be given to Honble Chief Minister Sir by the delegates who will be nominated/ Elected shortly... Request you to kindly go through it and suggest me changes / alterations/suggestions. Please check the draft below... Regards. . Danish Rasool Mir To, The Hon’ble Chief Minister, Government of Jammu& Kashmir, Civil Secretariat, Srinagar/ Jammu Subject: - Representation of Employees of Jammu & Kashmir Government under NPS requesting Revocation of New Pension Scheme. Sir, We the Employees of Jammu & Kashmir Government under NPS would like to bring the following facts for your kind consideration: 1. That, the New Pension Scheme subjects Employees to severe insecurity and uncertainty due to lack of well devised social security regulation. 2. That, both the introduction and implementation of NPS has been faulty and prone to blemishes and shortcomings. Moreover, NPS is not a defined benefit plan. The returns are market linked and there is no guarantee of getting good returns. 3. That, the scheme adopted for NPS is EET (Exempt, Exempt, Taxable) scheme i.e, the contribution made by the employee and the amount to be invested in annuity is exempted from tax but the 60% of the total accumulated wealth which is paid to the employee at the time of retirement is taxable. 4. That, there are two tiers of the schemes i.e. Tier I and Tier II. The Tier I is compulsory where in fixed amount (10% of B.P + DA) is deducted from the employee’s salary and matching share is contributed by the employer. On the other hand tier II is optional and just like normal banking where there is no restriction on investment / deduction. However unlike GPF/Tier I, amount deposited in Tier II is taxable. 5. That, the scheme is not so versatile in pre-closing and pre-mature withdrawals. The employee is forced to invest 80% of the wealth in the pension schemes and is left only with 20% which is not a fetching amount. 6. That, the scheme is also not versatile and handy in the sense that Tier I which is compulsory is totally locked and a person cannot draw even its own contribution when it is needed the most unlike GPF subscription, where the employee has the liberty to draw his money in the form of ordinary, special or non-refundable advance to meet the expenditure for special occasions / purposes. No such provision is present in the NPS 7. That, the important drawback of the NPS is that in almost all the state departments there is problem regarding the grant of matching share by the Government. Due to non-release of this grant both in Plan and Non Plan sectors salaries of the employees’ remains withheld for months together. Unlike GPF where there is no such problem as the amount is to be deducted from salary itself, in NPS employee’s salary remains in arrears for quite long time. 8. That, the contribution in the Tier I is fixed i.e, 10% of the total basic pay plus DA. However if an employee is interested for enhancing his savings there is no scope in Tier I. For this he has to go to Tier II but the amount invested in Tier II is taxable. On the other hand, there is no such restriction in GPF where an employee has to deduct a minimum of 8.33% of his basic salary without any upper limit. 9. That, there are restrictions on premature withdrawal from Tier I account making the Scheme very rigid. 10. That, under this scheme the Government doesn’t give whole money of contribution back to the retiring Employees putting unsolicited restriction. 11. That, there is no provision of gratuity which is clear violation of payment of Gratuity Act-1972 without passing the new bill in this regard. It is therefore respectfully prayed that keeping in view the submissions made herein above, your good self may very kindly be pleased to consider our claims as there are adequate grounds for the Government to consider the exemption of the employees from the purview of NPS. Thanking You Yours faithfully Employees of Jammu & Kashmir.
Posted on: Thu, 05 Jun 2014 09:23:11 +0000
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