Main Draw Backs of Contributory Pension Scheme

Number of CPS Employees: 2042 in I & CAD Department

No.of AEE/AE/DEE expired and affected due to this scheme: 19

Total employees expired and affected due to this scheme: 80

COMPARISION OF BENEFITS ASSURED TO EMPLOYEES UNDER DIFFERENT

PENSION SCHEMES

S.No. PROVISION OLD NEW PENSION EPF/EPS FOR

PENSION SCHEME PRIVATE SECTOR
SCHEME EMPLOYEES
1 FAMILY PENSION PROVIDED NOT PROVIDED
PROVIDED
2 Employee Health Scheme PROVIDED NOT IN THE FORM OF
AFTER RETIREMENT PROVIDED AROGYASRI
3 MINIMUM PENSION PROVIDED NOT PROVIDED
GUARANTEE PROVIDED
4 PENSION INCREMENT PROVIDED NOT BASED ON FUND
WITH INFLATION PROVIDED RETURNS
INDEX

1. Returns from market are subject to stock market variations leading to zero pension i.e. No

pension or bare low pension at sometimes. Even a private pension scheme EPS & EPF have

minimum guarantee.

2. Amount of Corpus accumulated is not enough to provide a respectable pension, making the

survival at age old, very much questionable. The spirit of the PFRDA act i.e. providing old age

Indian citizens with respectable pension itself is deviated.

3. The annuities provided are not questionable by Government as they are not statutory even

though government is directly spending money for welfare of employees.

4. Unlike old pension scheme there is no security provided for the families of employees who

died while in service. Even the private Organization sectors are having family pension under

the scheme EPS.

5. Directly 40 % of Government money is going to Market as investment without any guarantee

of returns.
 Contributory Pension scheme Central v/s State employees

Central Government State Government

1. Average age of recruitment is fair due to 1. Average age of recruitment is high due

regular recruitments. to no regular recruitments.

2. Maximum age of recruitment is 44 years 2. Maximum age of recruitment is about 38

(for reserved category) leading to low years.

pension fund accumulation.

3. Implementation of DA and PRC’s are 3. Implementation of DA and PRC’s are

regular and periodical. not regular leading to loss in investment.

4. Both the above factors leads to low 4. Pension fund accumulated is fair

pension fund accumulation, thus leading enough.

to vary minimum pension.