Railway employees of Dhanbad division on fast demanding restoration of old pension scheme

Under the new pension scheme, an employee contributes 10 per cent of his/her basic salary plus dearness allowance with the government making a matching contribution.

Dhanbad: A section of railway employees in Jharkhand's Dhanbad went on fast on Monday morning, demanding that the old pension scheme (OPS) be brought back.

East Central Railway Karmachari Union (ECRKU) spokesperson NK Khawas claimed that over 22,000 employees of the Dhanbad railway division are observing the day-long fast.

A group of employees also sat on dharna at the office premises of the divisional railway manager, and other places within the division.

All India Railway Mens' Federation (AIRMF) zonal secretary OP Sharma said, "Even though the central government has set up a committee for giving suggestions to improve the benefits available under the New Pension Scheme (NPS), all employees' organisations have made it clear that we would accept nothing less than OPS."

He said that several states, including Jharkhand, have already gone back to the old pension scheme for their employees.

"So, we also demand OPS from the central government on the lines of the states," he said.

Under the OPS, a government employee gets a monthly pension equivalent to 50 per cent of their last drawn salary. There is no need for contribution by employees.

Under the NPS, an employee contributes 10 per cent of his/her basic salary plus dearness allowance with the government making a matching contribution. The money is then invested in one of the several pension funds approved by the Pension Fund Regulatory and Development Authority (PFRDA) and the subsequent returns are market-linked.