Judicial employees working in Maharashtra subordinate courts moved Bombay High Court challenging the new pension scheme

The Bombay High Court was hearing a petition challenging the applicability of the new Defined Contribution Pension Scheme (DCPS) to members of the State Judicial Employees Confederation. In view of the same, the High Court has sought a reply affidavit from the High Court registrar and the Maharashtra State Law and Justice Department.

The petition was filed by a confederation of group C composed of judicial employees working in Maharashtra subordinate courts. The employees moved to the HC aggrieved by a 2021 December letter issued by the High Court which introduced the new pension scheme for government servants appointed after November 1, 2005. Additionally, the confederation included members recruited before November 2005, who were governed by the old pension scheme, and some of the petitioners were governed by the new pension scheme.

The plea said that in 2003, the Central government introduced a new contribution pension scheme for employees recruited after January 1, 2003. Further, in 2005 the State also introduced a DCPS which clarified that the pension rules and existing general provident fund 

scheme would not apply to the government servants recruited on or after November 2005. In 2014, the new scheme was merged with the National Pension Scheme.

The scheme had two tiers:

• Every government employee makes a monthly contribution of 10% of his salary and the state makes an equal contribution which will be kept in an account, which cannot withdraw till retirement. Upon exit, it is also made compulsory to invest 40% of the total pension to purchase an annuity from a Life Insurance Company.

This scheme was made applicable to the subordinate courts in 2008 through a notification. 

In the present writ petition, the letter and the notification of 2008 are being challenged.

• The scheme gave the employee discretion to withdraw from the scheme.

The new pension scheme provided that government employees could leave the pension plan at any time. However, the mandatory annuitization was retained at 80%.