Implementation of Pension Scheme

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From

The Employees of All Autonomous Institutions,

(Appointed on or after 01/04/2006),

Under the Administrative Jurisdiction of Department of Medical Education,

Government of Karnataka.

 

To

Shri Dr Ashwath Narayan CN,

Hon’ble Deputy Chief Minster & Minister of Medical Education,

Government of Karnataka,

Vidhana Soudha,

Bengaluru-560001

 

Sub:  1) Government Approval and Implementation of The New Pension Scheme for the Regular

                Employees of Autonomous Institutions Under the Administrative Jurisdiction of Department  

                of Health and Family Welfare (Medical Education), Government of Karnataka.

            2) Request for payment of Employer Contribution through the State Budget.

Ref:  1) G.O. No. FD (SPL) 04 PET 2005 Bangalore, Dt: 31.3.2006

          2) G.O. No. FD (SPL) 28 PEN 2009 Bangalore, Dt: 29.3.2010

          3) G.O. No. FD (SPL) 01 PEN 2010 Bangalore, Dt: 20.10.2010

          4) Government of Karnataka Notification No: HFW 21 MMC 2011 Dt:  29/05/2013

          5) Government Circular No FD (Spl) 209 PEN 2012 Bangalore Dt: 21/02/2015

          6) Government Circular No FD (Spl) 209 PEN 2012 Bangalore, Dt: 27/04/2016

          7) G.O No: HFW 229 MME 2017, Bengaluru, Dt: 22/09/2017

          8)  Letter No KAGMINTA/19/2017-18 Dtd 21/08/2017 Addressed to The Secretary, 6Th Pay 

               Commission, Karnataka.

          9) Report of the Sixth State Pay Commission, Karnataka. (Volume 1)

        10) G.O No FD 34 PEN 2018, Bengaluru, Dt: 23/06/2018

        11) Letter No KAGMINTEA/NPS/AT/2019-20 Dt: 14/08/2019 Addressed to The Chief Secretary, 

              Government of Karnataka

         12) G.O No FD 37 PEN 2019 Bengaluru Dtd 31/08/2019

 

The Department of Medical Education of the Government of Karnataka was bifurcated from the Department of Health & Family Welfare Services, in the year 1978 and is functioning independently since then. The vision of the department is to attain excellence in medical education with emphasis on medical research

To augment the need of the community, the institutions, under the Administrative control of the department are striving to develop human resources in all spheres. These Institutes are aiming to curtail the gap which is existing between the growing advancement in scientific and medical field and the dearth for specialized experts in various disciplines of medical, nursing and technological fields, improvement of Preventive, Secondary, Tertiary and Super Speciality health care Services in Karnataka and also to provide access to quality health care services to all sections of Society. The Pay and Allowances to the Regular Employees of these Institutions is through Grants from the State Government of Karnataka.

The Government of Karnataka by its orders referred above has introduced New Defined Contributory Pension Scheme called New Pension Scheme (NPS) for all its employees joining state Government Service on or after 01.04.2006 and All India Service Officers who have joined Central Government Services on or after 01.04.2004. The NPS is mandatory to all new recruits of the State Government service joining on or after 01.04.2006 under the contributory pension scheme. The new recruits are required to contribute 10% of their basic pay and dearness allowance thereon every month and the same will be matched by the State Government in equal proportion.

 The Government of Karnataka has adopted the NPS architecture as prescribed by Pension Fund Regulatory and Development Authority (PFRDA).

 

The common Memorandum of Association, Rules and Regulations and Bye Laws of Government Medical Autonomous Institutions under the Administrative Jurisdiction of Department of Medical Education framed as per Government Notification at Ref No 4 clearly stipulates that Provisions for

Pension shall be sought from the State Government and Governing Council of respective Institutions with approval of State Government shall frame rules to govern Pension and other retirement benefits on par with State Government Employees.

 

Government has issued a Circular dated 21.02.2015 regarding applicability of NPS to the employees of State Autonomous Bodies (SABs) appointed on or after 01.04.2006 under various departments of State Government. Para 3 of the Circular states employer’s contribution needs to be paid by the organization from their own resources and no request to provide additional grant/ amount on this account would be entertained by the Finance Department. In continuation of the same Government Circular Dated 27.04.2016 was issued outlining the procedure to be followed by the SABs for implementation of NPS to its employees.

 

Though the Department of Medical Education, Government of Karnataka vide G.O at Ref No 7 wished to bring The Regular employees of the above Institutions under HRMS System for better Salary and other emoluments monitoring did not approve/ Mention NPS Extension.

 

The Autonomous Institutions under the Administrative Control of Department of Medical Education are not intended for Profit making. As mentioned above their Objectives are Providing Medical Education to Meritorious Students at Undergraduate, Post Graduate and Super Specialty level. The foremost Objective of The State Government to provide quality and Cashless (Below Poverty Line Families)/ Affordable (Above Poverty Line families) health care is met through able functioning of these Organizations. Asking these Organizations to provide employer’s contributions towards NPS is transferring the burden on the poor and needy patients. However further delay in Implementation of the scheme would affect the welfare of the employees as they retire with no benefits (If Scheme is not implemented)/ Low NPS returns (If delayed further)

 

The Sixth Pay State Commission, Karnataka, in response to Karnataka State Govt. Medical Autonomous Institutions Non-Teaching Employees Association Representation Dated 21/08/2017 recommended that government should take necessary steps to ensure that employees of all grant-in-aid institutions including Medical Institutions who are receiving salaries from government are covered by the New Pension Scheme. (Volume 1, Chapter 8, Para 29)

 

The Government (Department of Medical Education) has already approved NPS implementation at Indira Gandhi Institute of Child Health, Institute of Nephro-Urology and Sri Jayadeva Institute of Cardiac Sciences and research Centre

 

The other Institutions under the control of Department of Medical Education are unable to Implement NPS as Administrative Approval is yet to be accorded by State Government of Karnataka and also Government is yet to come forward to provide Employer Contribution through grant -in -aid similar to Paying Defined Pension. There are approximately 3000 Number of employees appointed on or after 01.04.2006 in these Organizations. The employees are losing out on returns generated under NPS as contributions along with the matching contributions have not been remitted to NPS for further investments. Thereby the said employees retire with lesser Pension amount. There are several representations given to The Government latest being the one at the Ref No 11.

 

In the circumstances mentioned above we humbly request for Government Approval of Implementation of The New Pension Scheme for the Regular Employees of All Autonomous    Institutions (Medical, Dental and Super Speciality) Under the Administrative Jurisdiction of Department of Health and Family Welfare (Medical Education), Government of Karnataka with applicability being Date of Joining The Service and Sanction of payment of Employer Contribution through State Budget.

 

                                                                                                                             Yours Sincerely

                                                                                                                        (Signatures Annexed)

                                                                                           The Employees Appointed on or after 01/04/2006

 

Copy To

1)      The Principal Secretary to the Govt of Karnataka, Department of Health and Family Welfare (Medical Education).

2)      The Director of Medical Education, Department of Medical Education, Government of Karnataka.

3)      The Directors of all Medical, Dental and Super Speciality Institutions Under the Administrative Jurisdiction of Department of Health and Family Welfare (Medical Education), Government of Karnataka.