Power Sector Engineers Call for Restoration of Old Pension Scheme

The All India Power Engineers Federation (AIPEF) has petitioned Finance Minister Nirmala Sitharaman to reinstate the old pension scheme for power corporation employees across the states and Union Territories. The AIPEF argues that the new pension system offers insufficient retirement security and calls for uniform pension policies.

The All India Power Engineers Federation (AIPEF) has called on the Finance Ministry to reinstate the old pension scheme for employees in power corporations. In a letter to Finance Minister Nirmala Sitharaman, the AIPEF demanded a uniform pension system for engineers and employees across states and Union Territories.

According to AIPEF Chairman Shailendra Dubey, the current New Pension System (NPS) deducts 10 per cent of an employee's salary, with 14 per cent contributed by the government or employer. The funds are then invested in the market, which determines the pension amount upon retirement. Dubey criticized this system, emphasizing that the old pension scheme guarantees 50 per cent of the last drawn salary with adjustments during pay revisions.

The federation has also sent letters to all state chief ministers, urging the central government to ensure uniform pension policies for power sector employees nationwide. Under the old pension scheme, the government bears full responsibility for providing pensions, unlike the NPS which deducts contributions from employees.

(With inputs from agencies.)