8th Pay Commission pension update: Employee body seeks 50% assured pension for NPS subscribers
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Employee body demanding assured pension under NPS
With many National Pension System (NPS) subscribers expected to retire from 2033 onwards, the All India NPS Employees Federation (AINPSEF) has urged the 8th Pay Commission to introduce an assured pension system.
The employee body says market-linked returns and inflation risks could leave many retirees with inadequate post-retirement income.
The employee body says market-linked returns and inflation risks could leave many retirees with inadequate post-retirement income.
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AINPSEF proposes 50% guaranteed pension under NPS
In its memorandum to the 8th Pay Commission, AINPSEF has proposed a minimum guaranteed pension equal to 50% of the last drawn salary plus dearness allowance (DA). It has also recommended family pension benefits equivalent to around 60% of the pension amount after the pensioner’s death.
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How does the proposed NPS pension model work?
According to AINPSEF, the government should retain its own contribution made to employees’ NPS accounts and, in return, provide assured monthly pension benefits to retirees. Currently, employees contribute 10% of their basic pay and DA to NPS Tier-I accounts, while the government contributes 14%.
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Why employee body says current NPS pension system needs changes
The employee federation argues that long-term market fluctuations have slowed corpus growth for several subscribers, reducing the retirement income potential. It says the current framework works relatively better for employees completing 30–35 years of service, but lower-paid workers and employees with shorter regular service periods may receive very small pensions.
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Which employees according to AINPSEF are most affected under NPS?
AINPSEF says employees in lower pay levels, including teachers, Railway staff, contractual workers and daily wage employees, are more vulnerable because many spend years in non- regular service before regularisation. The federation claims pensions in some cases remain as low as Rs 300 to Rs 3,000 per month.
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What benefits does AINPSEF see in the proposed pension structure?
The federation says retaining the government’s contribution within the system can create a cyclical financial recovery mechanism and help sustain assured pension payments.
According to AINPSEF, the proposed model may offer a middle path between the Old Pension Scheme (OPS) and the existing NPS structure while improving social security for retirees.
According to AINPSEF, the proposed model may offer a middle path between the Old Pension Scheme (OPS) and the existing NPS structure while improving social security for retirees.