As the UT administration of Jammu and Kashmir has so far not taken any decision on New Pension Scheme of Union Finance Ministry, around 35,000 employees of the UT couldn’t benefit from revised monthly contribution from the government.
On the other hand, Ladakh UT has already taken a decision for their employees regarding the same. The union government replaced benefit pension system with a new restructured defined contribution pension system for new entrants to the Central Government in 2004.
This new pension scheme was implemented in Jammu and Kashmir from January 01, 2010 and all the fresh recruits in state government were made to be benefitted by this contributory pension scheme. Earlier, pensions given to government services employees were based on number of years of their services and their basic pay at time of retirement. These all rules were obliterated for new employees from 2010.
Under this new scheme, both the employee and employer have to equally contribute to the Pension Scheme and it was a maximum of 10 per cent of the Basic Pay Plus Dearness Allowance. When Central Government services employees demanded then a committee was constituted to suggest ways to streamline the implementation of NPS. The Union Finance Ministry made amendments on January 31, 2019 and the monthly contribution of the Government in the Pension Scheme was increased to 14% from 10% of the Basic Pay Plus Dearness Allowance.
Ladakh UT has implemented notification of Union Finance Ministry through an order on January 20, 2021.
Sources said that other than thousands of employees of the J&K Government, many All India Service officers (IAS, IPS and IFS), who started working for the Central Government after 2004 and are presently posted in J&K Union Territory, don’t get an additional 4% contribution of the employer even though they are entitled to it.
Sources said that this is happening because the J&K UT administration has not yet introduced revised rate of monthly contribution of NPS and as a result, even All India Service officers are also not being able to get benefits.
Many employees are furious as government is not listening to their repeated pleas of implementing revised rate as other States and UTs in the nation.
