Context: E-Booklet on one year achievements of  the Department of Pension and Pensioners’ Welfare (DoPPW) was launched through Video Conferencing.

Initiatives undertaken:

  • Among a series of reforms in Pension policy, the most notable is the Amendment of Rule 54 of CCS Pension Rules, 1972. 
    • This provides enhanced Family Pension in the event of the unfortunate death of a Government servant even before completion of 7 years of service.
    • Earlier only those families were eligible for enhanced family Pension (@50% of last pay drawn) wherein the deceased government servant had completed 7 years of service.
  • Extension of  the Old Pension scheme to those employees who joined on or after 01.01.2004 but whose result for recruitment had been declared before 01.01.2004. 
    • This was a long standing demand of employees covered under the National Pension System (NPS) and was the cause of several court cases and anxiety among such employees.
  • Opening of an “Integrated Grievance Cell &  Call Centre with Toll free number 1800-11-1960 ” to facilitate  elderly pensioners in registering their grievances and get information of pending grievances, 
  • Holding of “All India Pension Adalat” wherein more than 50 locations were connected through live interactive video conferencing which resulted in resolution of more than 4000 grievances by a single event.
  • Ensure ease of living for Pensioners by - 
    • Facilitating doorstep service for submission of life certificate with the help of Pension Disbursing Banks
    • DLC (Digital Life Certificate) from home campaign by involving Pensioners’ Associations in 24 cities, 
    • Organizing the First Regional Adalat at Jammu, and 
    • issuance of consolidated instructions to banks in order to ensure ease of living for pensioners.
    • Organizing a tele-consultation for pensioners on Covid 19 

Old Pension Scheme and National Pension Scheme:

  • Under the old pension scheme the benefit is fixed, i.e. it was predetermined how much pension an employee will get linked to his last drawn salary and length of service .
  • After the introduction of the National Pension System (NPS), all Government employees appointed on or after 01.01.2004 to the posts in the Central Government service (except armed forces) are mandatorily covered under NPS. 
  • In case of NPS employee freezes his contribution as a fixed value or percentage of salary and keeps contributing regularly. 
    • Since all contributions are voluntary he may also change the amount any time.
    • He earns interest on his contribution (NPS has been generating handsome returns as this fund is allowed to invest in equities too). 
    • At the time of superannuation, an employee is given pension on the basis of the annuity value of his total corpus at that instant.
  • The major difference is NPS scheme pension post-retirement depends upon the performance of the investment which you have done over the years.
  • Whereas the old pension scheme pension amount depends upon the predefined formula as set by government agencies.



Image Source: pib