Panel to review pension system for govt employees

New Delhi, April 6

The Finance Ministry on Thursday set up a committee under Finance Secretary TV Somanathan to review the pension system for government employees.

Will suggest changes

• The committee would suggest whether in the light of the existing framework and structure of the National Pension System (NPS), as applicable to government employees, any changes therein are warranted

The committee would suggest whether in the light of the existing framework and structure of the National Pension System (NPS), as applicable to government employees, any changes therein are warranted.

As per its terms of reference, the committee would suggest measures to modify the same with a view to improving upon the pensionary benefits of government employees covered under the NPS, keeping in view the fiscal implications and impact on overall budgetary space, so that fiscal prudence is maintained to protect the common citizens.

The committee, to be chaired by Somanathan, would have Secretary in the Department of Personnel and Training (DoPT), Special Secretary in the Department of Expenditure and Chairman of Pension Fund Regulatory and Development Authority (PFRDA) as members.

Last month, Finance Minister Nirmala Sitharaman said a Finance Secretary-chaired Committee would look into the issue of pensions under the NPS for government employees and evolve an approach which addresses the needs of employees while maintaining fiscal prudence. The announcement came in the backdrop of several non-BJP states deciding to revert to the DA-linked Old Pension Scheme (OPS).