Abolish the New Pension Scheme from Indian Railway: Railway
Minister's DO letter to Finance Minister
MALLIKARJUN
KHARGE
MINISTER FOR RAILWAYS
GOVERNMENT OF INDIA
NEW DELHI
No. 2012/F(E)III/1/4-Part
29 March, 2014.
Dear
Shri P. Chidambaram ji,
Through
this letter, I wish to draw your attention to a long standing demand raised by
both Staff Federations of Railways on National Pension Scheme (NPS) for employees of Indian Railways. The
Federations have been expressing resentment over operation in the Railways of
the National Pension Scheme, which is perceived as a lower social security
cover for Railway employees. Their contention is that there are enough grounds
for Railway employees to be treated differently from other civil employees of
the Government, and that Indian Railways should operate the traditional defined
.benefit pension scheme available to pre-01-01-2004 appointee's.
You
will recall that a few organizations/categories of Government employees were
specifically exempted from the purview of NPS on consideration of special,
riskier and more onerous nature of duties. The Federations have been drawing
parallel with of nature of duties performed by most categories of Railway
employees with those in the Armed Forces. They contend that during British
period, Railways was conceived and operated as an auxiliary wing of the Army.
It was also realized that by virtue of its complex nature, Railways required a
high level of discipline and efficiency to be able to perform its role as the
prime transport mode. Railways is an operational organization required to be
run round the clock through the year. Railway employees have to work in
inhospitable conditions, braving extreme weather, unfriendly law and order
scenario, and inherent risks associated with the Railway operations itself. As
in the Armed Forces, many have
to stay away from their families for long periods while performing duties in
areas where adequate facilities are lacking.
I feel
that there is considerable merit in the
contention of the Staff Federations. Besides the critical and complex nature of
duties of Railway employees, the hazards involved are also high. Despite best
efforts for enhanced safety measures, a large number of Railway employees lose
their lives or meet with serious injuries in the course of performance of their
duties each year.
During
the period 2007-08 to October 2011, the number of Railway employees killed
during the course of their duty has been more than number of passengers/other
members of public killed in Rail related accidents including accidents at
unmanned level crossings. While the nature of duties of Railway employees is
inherently high risk during peace time, they also perform functions of critical
importance during war time and times of natural calamities, in moving men and
materials across the country to maintain supply of essential commodities and
safeguard integrity of the nation.
In my
view, there are adequate grounds for the Government to consider exemption for
Railway employees from the purview of NPS. The implications of this would be
that Government expenditure would reduce over the next few years through
discontinuance of Government Contribution under the NPS, but the long term
liabilities would increase, as financial commitments in the defined benefit pension scheme
would be higher. Since Railways are required to meet the pensionary outgo from
their internal resources, switch over to defined
benefit pension scheme
would call for a more systematic provisioning under the Pension Fund through
appropriate revenue generating measures. With Rail Tariff Authority on the
horizon, I believe that this would be possible.
In the
light of the above, I suggest that our request for exemption from operation of the NPS be considered
sympathetically and necessary approvals communicated.
A copy
of each demands raised by the two Federations is enclosed.
With
regards,
Yours
sincerely,
/sd/
(Mallikarjun
Khagre)
Shri P.
Chidambaram, Finance Minister,
Government
of India, North Block,
New Delhi-110001.
