CITU round table opposes New Pension Scheme

Noted litterateur K Marulasiddappa set the ball rolling at the conference by pointing out that the government could have plugged loopholes in the old scheme and made it more effective, instead of coming out with a totally new scheme. “The NPS has the potential to create more problems than solve,” he argued.

The scheme was not beneficial for workers as it was market-linked, he said. NPS was compulsory for new government employees (who joined after 2006) and voluntarily for other sections.

“The government cannot gamble with poor people’s money. The Centre should at least now realise its mistake and withdraw the scheme,” Marulasiddappa said.

CITU General Secretary S Prasanna Kumar said returns under the scheme were uncertain as it depended on investments made in the stock market. The workers would not get an assured amount after retirement.

Under NPS, also called contribution scheme, the employees would have to give at least 10 per cent of their monthly salary, while the government would contribute an equal amount.

The money is deposited with the Centre’s Pension Endowment Fund, which in turn invests it in the stock market.