Important meeting held on introduction of NPS – Staff Side suggested PSU like LIC as Fund Manager.

Yesterday, an important meeting was held at the Corporate Office regarding the proposed introduction of the National Pension System (NPS) for BSNL staff. The BSNL Management invited officials from LIC Pension Fund Limited (LIC PFL) to explain various aspects of NPS to the representatives of BSNLEU, NFTE, SNEA and AIGTOA. From BSNLEU, Com. Animesh Mitra, General Secretary, and Com. Aswin Kumar, Assistant General Secretary, participated in the meeting. Earlier, BSNLEU had submitted a detailed letter to the Management raising several queries on the proposed NPS. The LIC representatives responded to these queries during the meeting. It was explained that earlier the Department was contributing 5% to the SPSfor pension benefits, and now a proposal has been made to convert the scheme from SPS to NPS. During the discussion, BSNLEU strongly expressed the following two demands:

1. NPS should remain under the control of a PSU, preferably LIC, as Fund Manager.
2. Employees should be given an option either to continue under the existing SPS or to opt for the new NPS, instead of making it compulsory.

The representatives of LIC Pension Fund Limited clarified the queries raised by the unions and explained the differences between LIC PFL and other private pension fund managers. They also informed that long-term returns under NPS are around 13%, whereas returns under SAP are presently around 7–8%. Subsequently, the Management informed that a Committee comprising four officers has been constituted, with Shri S. P. Singh, PGM(Estt.), as Chairman, to examine the matter in detail. The Committee will submit its recommendations to the Board for approval. The Management has also circulated a key note addressing the queries and suggestions raised by the Unions and Associations. While deliberating on the matter, the General Secretary, BSNLEU, reiterated that LIC Pension Fund Limited, being a PSU, should continue as the Fund Manager under the new system so as to instil confidence among the entire staff side.