Power Sector Engineers' Association Urges Finance Ministry To Restore Old Pension Scheme

The All India Power Engineers Federation has made an appeal to the Finance Ministry, requesting the restoration of the old pension scheme for employees working in power corporations across various states and Union territories.

In a formal letter addressed to Finance Minister Nirmala Sitharaman, AIPEF emphasised the need for a uniform pension system for all engineers and employees within the power sector.

The federation also forwarded copies of the letter to the Chief Ministers of all states, highlighting their stance on the matter.

Shailendra Dubey, chairman of AIPEF, underscored the disparity between the current New Pension System and the old pension scheme. He pointed out that under NPS, employees contribute 10% of their salary, with the government or employer contributing 14%.

This amount is then invested in the market, yielding pension returns based on market fluctuations at the time of retirement, potentially resulting in lower pension amounts.

In contrast, Dubey noted that the old pension scheme guarantees a pension equivalent to 50% of the last drawn salary, with revisions linked to pay revisions.

Additionally, in the event of a pensioner's demise, the spouse receives family pension benefits under the old scheme, for which the government assumes full responsibility without any deductions from employees.

AIPEF emphasised in its communication that achieving uniformity across all power corporations nationwide necessitates the central government's intervention.

They urged the Finance Ministry to issue directives to all states to adopt the old pension system uniformly for power employees and engineers in their respective jurisdictions.

(With inputs from PTI)