The Finance Ministry has set up a four-member committee under the chairmanship of Finance Secretary TV Somanathan to suggest measures to improve the pensionary benefits of government employees covered under the National Pension System (NPS).
This move comes in the wake of Finance Minister Nirmala Sitharaman’s announcement in Lok Sabha on March 24 that a committee under the Finance Secretary would be set up to look into the issue of pensions under the NPS with respect to government employees and evolve an approach that addresses the needs of the employees while maintaining fiscal prudence to protect the common citizen.
The other members of this committee, now constituted by the Department of Expenditure in the Finance Ministry, are the Secretary, Department of Personnel & Training, Ministry of Personnel, Public Grievances &Pensions; Special Secretary (Pers), Department of Expenditure, Ministry of Finance; and Chairman,Pension Fund Regulatory & Development Authority (PFRDA).
The terms of reference of this panel are:
(i) Whether in the light of the existing framework and structure of the National Pension System, as applicable to Government employees, any changes therein are warranted;
(II) If so, to suggest such measures as are appropriate to modify the same with a view to improving upon the pensionary benefits of government employees covered under the National Pension System, keeping in view the fiscal implications and impact on overall budgetary space, so that fiscal prudence is maintained to protect the common citizen.
The Committee may also co-opt any officer of the Central Government as part of its deliberations whenever such a need is felt by the Panel, the Finance Ministry has said.
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However, no timeline has been specified for when the panel report needs to be submitted, a pension industry observer pointed out.