New Delhi: A power sector engineers' association on Tuesday urged the Finance Ministry to restore the old pension scheme for employees working in power corporations of different states and Union Territories.
All India Power Engineers Federation (AIPEF) in a letter to Finance Minister Nirmala Sitharaman has demanded a uniform old pension system be implemented for all employees and engineers working in power corporations in the states and the union territories.
A copy of the letter has also been submitted to chief ministers of all states, AIPEF said in a statement.
AIPEF Chairman Shailendra Dubey said, "Under NPS (New Pension System), 10 per cent of the salary of an employee is deducted and 14 per cent is contributed by the government or the employer.
"This amount is invested in the market through LIC and some other institutions. Whatever happens in the market at the time of the employee's retirement, the amount will be returned and a pension will be given according to the market value. The amount is very less."
On the other hand, in the old pension scheme, the pension is 50 per cent of the last salary drawn and whenever there is a pay revision, the pension is also revised, he said.
Further on the death of a pensioner, his wife gets the family pension. In old pension scheme, it is the responsibility of the government to provide pension. No contribution is deducted from employees, he said.
The AIPEF in the letter said that in order to bring uniformity in all the power corporations of the country, it is necessary that the central government should issue instructions to all the states that for the power employees and engineers working in the power corporations in all the states, the same old pension system should be implemented.
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