Central Government Construct a Committee to Review the NPS

Setting up of a Committee to review the Pension System for Government Employees.

The undersigned is directed to invite attention to the announcement made by the Finance Minister in Lok Sabha on 24.3.2023 to, inter-alia, set up a Committee under the Finance Secretary to look into the issue of pensions under the National Pension System in respect of Government employees and evolve an approach which addresses the needs of the employees while maintaining fiscal prudence to protect the common citizens. Accordingly, it has been decided to set up a Committee as under:

2.Finance Secretary & Secretary (Expenditure) -Chairman Member Secretary,

Department of Personnel & Training Ministry of Personnel, Public Grievances & PensionsSpecial Secretary (Pers). Department of ExpenditureMember

iv.Ministry of Finance

Chairman

Member

Pension Fund Regulatory & Development Authority (PFRDA)

3.The Terms of Reference of the Committee shall be as under:

L Whether in the light of the existing framework and structure of the National Pension System, as applicable to Government employees, any changes therein are warranted;

If so, to suggest such measures as are appropriate to modify the same with a view to improving upon the pensionary benefits of Government employees covered under the National Pension System, keeping in view the fiscal implications and impact on overall budgetary space, so that fiscal prudence is maintained to protect the common citizens.

The Committee may also co-opt any officer of the Central Government as part of its deliberations, whenever such a need is felt by the Committee.

5. The Committee shall devise its own procedure and mechanism, including consultation with States etc., to arrive at its recommendations.

Department of Expenditure (Personnel Division) will provide Secretarial assistance to the Committee.

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