HC seeks Centre’s response to plea on New Pension Scheme

 HC seeks Centre’s response to plea on New Pension Scheme

The Madurai Bench of the Madras High Court on Thursday ordered notice to the Centre on a public interest litigation petition that sought direction to the government to ensure an assured monthly pension under the New Pension Scheme to retired Central government employees, which was not less than 50% of the last drawn pay on retirement.

The petitioner, a retired government employee, G. Chinnadurai of Tirunelveli district, said that under the New Pension Scheme, there was no minimum assured pension for the pensioners. As per the scheme, 10 % of the pay and dearness allowance was recovered from employees and an equal amount of contribution was made by the government.

In 2019, the government’s contribution was increased to 14 % of the pay and dearness allowance. After superannuation, 60% of the accumulations will be paid to the employee and the balance 40 % will be utilised for the purchase of annuities and amount that accrues out of the annuities would be paid to the applicant as monthly pension, he said.

He said that the contributions are invested in markets through fund managers and the fund is managed by the Pension Fund Regulatory and Development Authority. It was mandatory for the employees. It was left to the market to decide the monthly pension that will accrue to the employee. This was affecting the retired life of the employees, the petitioner said.

The petitioner said that he filed the petition as he was suffering financially due to the adverse implications of the scheme. Steps must be taken to ensure minimum financial security for the retired government employees, he said.

A Division Bench of Justices T. S. Sivagnanam and S. Ananthi ordered notice to the Centre and sought response. The court granted time to the Centre to file the counter affidavit and adjourned the case till April 28.