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Showing posts from April, 2011

New Pension Scheme for railway employees challenged

The new pension scheme introduced by the Union Government for railway employees has been challenged in the Madras Bench of the Central Administrative Tribunal.An employee of the southern railway and Dakshin Railway Employees Union (DREU) have challenged the scheme terming it unconstitutional and invalid.According to the new scheme, employees appointed on or after 01.01.2004 in the Railways would be governed by the new pension scheme which would be governed by 'Pension Fund Regulatory Development Authority' which would function under the overall control of Ministry of Finance. According to the new scheme, 10% of Pay and DA of an employee would be deducted and an equal amount would be contributed by the central government.  The entire pension scheme is being authorized through various executive orders, which cannot be done to govern the retirement benefits of government employees which has to be in tune with Articles 41 to 43 of the Constitution, alleges the application. The not…