ITANAGAR, 8 Jan: The state unit of the National People’s Party (NPP) on Saturday urged the state government to either scrap the new National Pension Scheme (NPS) or implement it with certain modifications.
Addressing reporters at the press club here, state NPP general secretary Paknga Bage suggested to the state government to implement the NPS with certain modifications “by adopting old pension system for the deceased or the premature existing employees on or before 15 years of service length.”
If such modifications cannot be made, the new NPS should be scrapped and replaced with the old pension scheme in the greater interest of the state government employees, he added.
“In this matter, the party had roundtable discussions with all possible state service federations, and has concluded that, if such modifications cannot be done, the new NPS should be scrapped and the old pension scheme brought back,” Bage said.
“The party is concerned regarding the implementation of the new NPS in the state because 10 percent of the state’s population depends on the government service sector and 15 years of government service is a mere amount to support one’s family,” said Bage.
“We want to spread awareness among the state government employees who are not aware of the issue with this press briefing,” he added.
The state NPP GS listed out some of the demerits of the new NPS: lesser benefits (for the government employees) than what the earlier pension scheme had offered; withdrawal limits; taxation at the time of withdrawal; account opening restrictions; investment restrictions, and no guaranteed returns.
“We believe that the state government will look into the matter for the welfare of the state government employees,” said Bage.
The central government introduced the new NPS in January 2004 for the government employees recruited after 31 December, 2003, replacing the old pension scheme.