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Thousands of J&K employees remain deprived of revised monthly contribution under NPS :Ladakh UT takes lead in implementing MoF decision

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Several All India Service officers too fail to obtain benefit

JAMMU, March 14:- Around 35,000 employees of the Union Territory of Jammu and Kashmir have remained deprived of revised monthly contribution from the Government under New Pension Scheme (NPS) as no step has so far been taken to implement the decision taken by the Union Finance Ministry in the month of January 2019.

On the other side, the Union Territory of Ladakh, which was created along with the Union Territory of Jammu and Kashmir, has already taken a decision in this regard that too with retrospective effect—April 1, 2019.

In the year 2004, the Government of India introduced a new restructured defined contribution pension system for new entrants to the Central Government service replacing the system of defined benefit pension system.

However, in Jammu and Kashmir the New Pension Scheme was implemented with effect from January 01, 2010 and all the fresh recruits appointed in the State Service were brought under the ambit of this contributory pension scheme. From the year 2010 the applicability and coverage of the employees in the Government Service under the old pension scheme based primarily upon the number of years of the service rendered and the basic pay at the time of superannuation was obliterated for the fresh recruits.

Accordingly, the employee and employer were made equal contributors to the Pension Scheme which was fixed at the maximum of 10 per cent of the Basic Pay Plus Dearness Allowance.

On the persistent demand of the employees of the Central Government service, a committee was set up to suggest measures for streamlining the implementation of NPS and based on its recommendations the Union Finance Ministry vide Notification dated January 31, 2019 carried out amendments and accordingly the monthly contribution of the Government in the Pension Scheme was increased to 14% of the Basic Pay Plus Dearness Allowance from 10%.

Following this amendments, several States and Union Territories of the country issued orders for adoption of this amendment of the Central Government in respect of their employees. However, no such decision was taken by the then Government of Jammu and Kashmir much to the disappointment of around
35,000 employees.

The bifurcation of the then State of Jammu and Kashmir into two Union Territories and applicability of all the Central Laws in both the UTs generated a ray of hope among such a large number of employees about getting benefit of revised rate of monthly contribution of Government under NPS.

However, even nearly one and half year after the creation of Union Territory of Jammu and Kashmir, all these employees have remained deprived of the additional benefit as a result of which strong resentment is brewing among them. This is due to non-serious approach of the Government towards them.

On the other side, the Union Territory of Ladakh has taken a lead over Union Territory of Jammu and Kashmir in providing benefit of revised rate of monthly contribution of NPS to the employees.

The Ladakh UT had ordered implementation of notification of Union Finance Ministry vide Order No.251-F dated January 20, 2021. Moreover, it had gone to the extent of giving effect to the revised rate of monthly contribution of Pension Scheme from April 1, 2019.

According to the sources, not only thousands of employees of the J&K Government even several All India Service officers (IAS, IPS and IFS), who were recruited in the Central Government service after 2004 and are presently posted in this Union Territory, have remained deprived of additional 4% contribution of the employer although they are entitled for the same in view of the notification of Union Finance Ministry dated January 31, 2019
“This is mainly because the Government of J&K UT has not introduced the format based on revised rate of monthly contribution of NPS as such All India Service officers are also being denied the benefit”, sources informed.

They disclosed that strong resentment is prevailing among thousands of employees as their repeated pleas to the Government of J&K in implementing revised rate on the line of other States and UTs in the country have not been taken seriously till date. They have now pinned hopes on the Lieutenant Governor.(By Daily Excelsior -)

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