High Court notice to to Centre, Delhi govt over New Pension Scheme.

Source:- tkbsen.in

New Delhi: The Delhi High Court on Wednesday issued a notice to the Centre and the Delhi Government on a petition filed by Delhi Judicial Service Association challenging the new pension scheme (NPS) for the judges in the national capital.

Justice A K Chawla issued the notices on the petition filed by Delhi Judicial Service Association through advocate Sachin Jain.

The Delhi Government’s New Defined Contributory Pension Scheme (commonly known as ‘New Pension Scheme’) provides for a compulsory deduction of 10 per cent of basic pay and dearness allowance of employees.

The scheme applies to judicial officers appointed on or after January 1, 2004, in Delhi.

The petitioner has contended that the Delhi Government has no power to “modify the quantum of salaries and pension payable to judicial officers”.

The petitioner also said that the New Pension Scheme is in direct contravention of Supreme Court orders as it treats judicial officers at par with civil servants in the state and further applies retrospectively to all the state employees and judicial officers who have been appointed on or after January 1, 2004.

“In contradistinction, the pension scheme operating in terms of the order of the Supreme Court dated March 21, 2002, in All India Judges’ Association and Ors. v. Union of India (W.P.(C) 1022 of 1989) which guaranteed a minimum of 50 per cent of last pay drawn to judicial officer, the New Pension Scheme provides for a compulsory deduction of 10 per cent of basic pay and dearness allowance of the employee with matching contribution from the Respondent No.1 (Delhi Government) in the New Pension Scheme,” the petitioner said.

“Thereafter, upon superannuation, Judicial Officers can only withdraw 60 per cent of their total pension wealth on retirement under the New Pension Scheme, and the balance 40 per cent is mandatorily required to be deposited or invested in an Insurance Annuity Scheme,” the petitioner added.

The petitioner also said that the Delhi Government has no power to modify the quantum of salaries and pension payable to judicial officers and sought a direction to refund of any deductions made from the salary of the judicial officers towards their contribution to the New Pension Scheme with interest.

The petitioner has also sought a direction to the respondent for the restoration of the old pension scheme as was applicable prior to January 2004 to all the judicial officers of Delhi.