Govt asked to go ahead with NPS / Dec 21, 2005 / The Financial Express

From Indiapensions

Govt asked to go ahead with NPS

MAHUA VENKATESH

NEW DELHI: With the Left's dogged resolve to stymie the new pension scheme (NPS) without guaranteed return to Central government employees, the government has now been advised by various other stakeholders to skirt the contentious issue, and just go ahead with NPS, for its other substantive aspects.

This follows the CPI-M politbureau decision last week that the party would not support NPS, unless it incorporated the option of guaranteed return to subscribers.

The agencies that try to push NPS note that the new scheme is primarily targeted at the unorganised sector. However, talks between the Left and the Centre have revolved only around whether or not to include central government employees, who have joined the services from January 1, 2004 in NPS.

The new system envisages a shift from the defined benefit scheme to the defined contribution one.

"The new scheme is actually for a much wider section of the society and the government should focus on the core issues of the new Bill. Unfortunately, the focus here is whether the new central government employees should come under the ambit of the new pension system," an official source said.

Meanwhile, the Left parties, in their recent talks with the finance ministry have reiterated that there should be a guaranteed rate of interest on pension funds.