Fair policy for the 4th Armed force of India
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1.All Coast Guard personnel who have joined service after 01 Jan 04 are under the new pension scheme. As per the new pension scheme 10 % of his basic emoluments is deducted from the incumbents salary and an equivalent contribution is made by the Govt.This total amount is deposited by paying authority to CRA which will appoint fund managers to rotate this fund via various mutual funds and schemes.As per guldelines of PFRDA subscribers can exit from New Pension Scheme on his/her retirement, resignation or death. The rule in vogue for resignation is as follows:
(a) On resignation, 80% of the accumulated corpus has to be annuitized and subscriber can withdraw remaining wealth, however the main rider in this clause is that the annuitized amount will be paid as monthly pension to the individual only when the subscriber attains 60 years of age.
2.On comparing CG service rules of resignation it is seen that minimum pensionable service is 20 years of service and minimum service tenure to be completed before individual can request voluntary retirement is 20 years(CGO 11/96).This is in contradiction to contributory pension scheme because a CG personnel who has rendered 20 years of service will not get any pension from CPF fund on his voluntary resignaton except 20% of his accumulated wealth.An example to clarify this is as follows:-
(a) Assuming an officer joins CG service at 23 years of age and leaves CG service after 20 years of service, his age becomes 43. As per CPF pension rules, pension is applicable only when the incumbent becomes 60 years old. Which means that a CG Officer/EP who retires in the age bracket of 40-45 after completing 20- 23 years of service will have no monthly income for next 15-20 years till he attains the age of 60 except for the meagre 20% of the accumulated fund that is given when the incumbent retires voluntarily.
3. Even more alarming is the case for Short Service Commission Officers.An example to clarify is as follows:
(a) Assuming an officer joins CG service at 23 years of age and leaves CG service on completion of 08 years of Short Service, his age becomes 31. As per CPF pension rules, pension ts applicable only when the incumbent becomes 60 years old. This would mean that an individuals accumulated wealth is held up by the Govt for 30 years. Considering present inflation rates the question is how much pension wil the accumulated fund generate in 30 years considering the New Pension Scheme has no fixed monthly income defined as it depends on market performance.
4. Thus it is clearly seen that new pension scheme is apt for other Central Govt services but does not match to highly demanding service such as the Coast Guard. No other armed forces ie, The Army, Navy or the Airforce has new pension scheme because of similar tough service conditions.
5. Considering the fact that New Pension Scheme is not going to be reverted back and only the three armed forces (Army, Navy and Airforce) are entitied for the same, following is recommended:
(a) Modification of CGO 11/96-Discharge rules for post 01 Jan 04 joinees may be modified keeping in mind the rules of New Pension Scheme.Inputs for fomulating new discharge rules may be taken from CAFPs (i.e BSE,CRPF,CISF etc) since the CAPFs are also under the New Pension Scheme.
(b) New Pension Fund accounts of SSC officers may not be opened, however GPF may be started for SSC Officers and all accumulated amount may be paid to an SSC officer on completion of his/her tenure.
(c) Case for modification of ECHS (Ex-Serviceman Contributory Health Scheme) eligibility rules may be taken up for post 01 Jan 04 joinees as ECHS eligibility rules state that an incumbent has to be an ex-servicemen pensioner for entitlerment to ECHS facilities. Since New Pension Scheme will not give monthly pension to an incumbent on completing 20 years of service,he will be in-eligible for ECHS facility too.
The Coast Guard shares similar tough service conditions as navy where a ship almost sails for minimum of 18 days in a month with a deficiency of manpower. The CG still comes under CCS rules not considering the harsh reality of their service which otherwise follows all military pattern service conditions. Please help our silent soldiers and their families
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