The NPS has not generated enough interest among the masses

Despite government initiatives, the NPS has not generated enough interest among the masses. What needs to be done to prop up this excellent scheme?

Investors have not responded with much enthusiasm to the ‘Swavalamban’ initiative extended by the government under which it will contribute Rs1,000 per year (for a period of four years) to every New Pension Scheme (NPS) account opened this year with at least a matching contribution from the subscriber. Citizens in the non-government segment continue to abstain from investing in the NPS. The number of non-government subscribers to NPS registered as of 30 April 2010 has touched 5,532. Although the figure is more than double that of October 2009 when non-government subscribers were 2,321, the absolute numbers are still small.

The total central government employees registered under the NPS have gone up to 6,09,376 from 5,38,276 in October last year. However, there has been a large increase in numbers from among the state government employees during the same period. The number of subscribers under this category rose to 2,55,903 from the earlier 1,10,024.

An officer from one of the point of presence service providers (PoP-SP) pointed out that there have been no significant additions since the budget announcement. He said, “The momentum has not picked up much despite various initiatives from the government and banks. We have been told that this product should be bought and not sold. So we are not expected to advise customers in any way. The policy is that we wait for the customers to approach us. We are fully equipped and ready to accept subscriptions in the NPS.”

Incidentally, this PoP-SP has commissioned more than 300 of its branches to provide NPS registration facilities to the subscribers. Several other banks have also mobilised a chunk of personnel and designated a part of their infrastructure for catering to the NPS subscriptions. Another PoP service provider confirmed, “Although there is an improvement in the NPS accounts, it is not as much as what was expected.”

Commenting on what needs to be done to popularise the scheme, the official stated, “We need to approach private sector companies and talk to employees about the benefits of the scheme. The government could also probably offer a minimum dividend or guarantee as people may be worried about what they will end up with after so many years. Things will change if the scheme assures a minimum return.”
Speaking about the possible actions being considered to promote the scheme, an official from the Pension Regulatory and Development Authority (PFRDA) said, “The Swavalamban initiative has seen a slow and steady rise from the earlier rate of enrolment. The first phase of implementation is almost over. We are now looking at various promotional and monetary incentives for enrolment. We are considering media campaigns and strengthening the regulatory mechanism through monitoring the PoPs more closely and how to make them promote the scheme better.”

The still lukewarm response to the NPS is unfortunate considering that it is a product that is actually tailor-made for the requirements of the masses. It is among the least expensive balanced investment products in the market and the cheapest pension product in the offing, which would make a huge difference to long-term wealth.

Lack of confidence in the product is also a mitigating factor. Investors are wary about how much they will end up with after the contribution period. Investors should be advised by the PoPs regarding the portfolio allocation to debt and equity before investing. Awareness among the masses still remains a concern for the pension regulator and hence, its plans to promote the scheme need to take shape for the NPS to achieve its true potential.

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Model Recruitment Rules for Group 'C' posts in Pay

No.AB-140171612009-Estl (RR)
Government of India
Ministry of Personnel, Public Grievances 8 Pensions
Department of Personnel 8 Training
New Delhi, dated the 301h April 2010
OFFICE MEMORANDUM
Subject:- Model Recruitment Rules for Group ’C’ posts in Pay
Band-I, with Grade Pay of Rs.1800/- (pre-revised Group
’D’ posts)

The 6th CPC recommended that all Group ’D’ posts in the
Government will stand upgraded to Group ’C’, Pay Band-I with Grade Pay of Rs.1800, along with the incumbents (after suitable training , wherever required). The other recommendations of the Commission, in this regard
include:
(i) There will be no further recruitment in Group ’D’.
(ii) The existing Group ’D’ posts will be placed in Group
’C’ Pay Band-I with Grade Pay of Rs.1800.
(iii) The minimum qualification for appointment to this
level will be either loth pass or IT1 equivalent
(iv) Multi- skilling, with one employee performing jobs
hitherto performed by different Group ’D’
employees.
(v) Common Designation for these posts,
2. Model Recruitment Rules (Annex-I) have been framed keeping in
view the recommendations of the Pay Commission.
All the Ministriesl
Departments are requested to amend the Recruitment Rules for the
erstwhile Group’ D’ posts as per the Model RRs and the recommendations
of the Pay Commission.
3. Powers for framing1 amendment of RRs for Group ’C’ posts have ,
already been delegated to Ministriesl Departments. Therefore the RRs
may be framed accordingly, in consultation with Ministry of Law without
further reference to this Department. This Department needs to be
consulted only if any deviations from the model RRs are proposed.
4. Ministries1 Departments may adopt the designation of MULTITASKING
STAFF for some common categories of posts in the secretariat
offices. Annex-ll indicates the categories of erstwhile Group ’D’ posts
which may be given this designation and illustrative list of duties attached
to these posts. For other categories of posts, Ministries1 Departments may
adopt single designation for posts whose duties are similar in nature and
where the officials can easily be switched from one task to another. In all
cases it may be ensured that:
a) The posts are classified as Group ’C’
b) The posts are placed in Pay Band-I with Grade Pay
of Rs.1800.
c) The minimum qualification for appointment is
prescribed as loth passs. Where technical
qualifications are considered necessary, IT1 in the
relevant subject may be prescribed as the minimum
qualification.
5. Ministry of Home affairs etc. are requested to bring the contents of
this 0.M to the notice of all their Attached1 Subordinate Offices. The
autonomous1 statutory bodies may adopt the same with the approval of
the competent authority as per their rules1 statutes.
6. Hindi version follows.
Deputy Secretary

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Assam Cabinet cleared the way for revision of the pay scales of the teachers

The State Cabinet cleared the way for revision of the pay scales of the teachers of universities, colleges, engineering colleges and polytechnics, while, the issue of revision of the pay scales of the teaching staff of the medical colleges will be finalized in the next meeting of the Cabinet.

Official sources said that the State Cabinet, which met under the chairmanship of Chief Minister Tarun Gogoi this evening, cleared the proposal for payment of the new UGC and AICTE pay scales to the teachers of the universities, colleges, engineering colleges and polytechnics. Sources said that provisions have been made in the State Budget for the current year for revision of pay scales.

Sources said that the Cabinet discussed the need for revision of the pay scales of the employees of the state public sector undertakings and directed the Personnel Department to examine the issue. Sources said that the Government has decided to divide the state PSUs into three categories - profit making, marginal and loss making. The employees of the profit making PSUs would get revised pay as per the sixth pay commission recommendations, while, the Personnel Department would examine the matter of pay revision of the employees of the other two categories of the PSUs.

Sources said that the Cabinet decided to bifurcate the Public Works Department and it would now have two commissioners. The PWD will now be bifurcated into PWD (Roads) and PWD (National Highway and Building). The Cabinet further decided to form a high power monitoring committee to ensure speedy implementation of the schemes announced in the State budget. Sources said that the Cabinet further said that the heads of the departments would be given special powers to ensure speedy implementation of the schemes.

Source : The Assam Tribune.

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Suburban train services in Mumbai limped back to normalcy

Suburban train services in Mumbai limped back to normalcy this evening after motormen of both the Western and Central Railways called off a hunger strike that they began yesterday morning to press their demand for higher pay and allowances.
The agitation had crippled the suburban railway system in the metropolis that carries about 6.9 million passengers a day. The Railways were forced to cancel most of their 3300-odd suburban services today.

The strike was called off by the motormen after talks between their leaders and Maharashtra Home Minister R R Patil, who assured them that the State Government would take up their demands with the Ministry of Railways and the Central Government.

He told them that he would also request the Railways to withdraw the disciplinary action agaist the striking employees and assured them that the State Government would withdraw action initiated against them.

Mr Patil told mediapersons later he had also impressed upon them the need to withdraw their agitation immediately in view of the great incovenience caused to the travelling public.

Earlier in the day, Chief Minister Ashok Chavan had held a meeting with some of his colleagues and top officials of the Railways, the police and the transport department on ways of handling the situation and minimising the difficulties caused to commuters.

There was a move to use the Essential Services Maintenance Act (ESMA) against the striking employees, but the Chief Minister had said that it would be done only as a last resort. Mr Patil said ESMA was not used because the State Government was in talks with the representatives of the motormen.

Mr Chavan told journalists that 4200 buses were pressed into service in the city to provide some relief to commuters. He said traffic on the suburban system had fallen to 20 per cent of normal numbers and attendance in the State Government Secretariat was in the range of 10-15 per cent today.

"Generally, life in the city was paralysed," Mr Chavan said. He said he had taken up the matter with Prime Minister Manmohan Singh while in Delhi yesterday and had also discussed the issue with Railways Minister Mamta Banerjee, who was away in West Bengal.

The issue was raised in the Lok Sabha by members of the Bharatiya Janata Party (BJP), the Left parties and many others, including Mr Sanjay Nirupam of the Congress. The Opposition said Ms Banerjee must make a statement on the issue.
In Delhi, Cabinet Secretary K M Chandrashekhar reviewed the situation at a meeting with Railway Board Chairman S S Khurana and other senior officials.

The Western Railway said it had made special arrangements to keep the local trains running though the number of services would be fewer and the travel time would be more than usual.

The Railway appealed to people in Mumbai to plan to travel by the suburban trains only if it is absolutely necessary. It said about 250 local services would run today, about 20 per cent of the normal number.

A statement from the Western Railway said that every 20 minutes there would be a train from Churchgate to Borivali and Virar, alternatively, stopping at all stations.

Similarly, every 40 minutes there will be a train from Virar and Borivali, alternatively, for Churchgate which will stop at all stations. There will be a few services originating from Andheri to Vasai Road and Bandra to Bhayander. These trains will be run from 05.00 hrs to 23.00 hrs and will take additional travel time.

On the fast corridor, about 110 additional train services will be run with 10 coaches each of long distance trains. These trains will be run between Churchgate- Virar, Mumbai Central - Virar and Dadar- Virar. These trains will halt at Dadar, Bandra, Andheri and Borivali and at all stations between Borivali and Virar. All suburban tickets and passes will be valid in these trains.

The authorities have also made arrangements for running additional buses from various stations like Churchgate, Dadar, Bandra, Andheri, Borivali and so on.
The Western Railway has set up a special helpline 10721 to provide information about the situation to members of the public.

The statement also appealed to the motormen to not resort to the hunger protest in the interest of the commuters.In Delhi, the Ministry of Railways said the motormen were demanding higher pay than recommended by the 6th Central Pay Commission and additional allowances which were not part of the recommendations of the Pay Commission.

An official press release said that some of their demands regarding national holidays and night duty allowances had already been met.

It pointed out that the Indian Railways had 1.4 million employees on their rolls and, traditionally, the grievances of all sections of staff are resolved through consultation with their recognised federations. The release said the agitation by the motormen was not supported by any of the recognised federations, unions and associations of the Railways.

According to the release, Railways Minister Mamata Banerjee had also met the representatives of the agitating motormen and it had been explained to them that their genuine grievances were being looked into.

It said the grievances of the motormen were also before the Regional Labour Commissioner, Mumbai and a conciliation meting between the management and the employees was held on April 29. The Regional Labour Commissioner has advised the motormen not to resort to their protest action and fixed the next conciliation meeting on May 12, it said.

The release said any precipitative action taken during the conciliatory proceedings was unlawful under the Industrial Disputes Act.

The release said that, despite appropriate action by the Railways, the motormen had resorted to unlawful action, which had resulted in the cancellation of many suburban trains and caused a lot of problems for commuters.

It said the General Managers of the Central and Western Railways had been asked to take all necessary steps to ensure that appropriate alternative arrangements were put in place in coordination with the State Government to cause minimum inconvenience to the travelling public. The Central Government was also being kept fully informed in the matter, the release added.

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