JOINT CONSULTATIVE MACHINERY (JCM) (Syllabus: GS Paper 3 – Economy)

Context: Staff representatives of the Joint Consultative Machinery (JCM) will request the Prime Minister of India to ensure an assured pension of 50% of the last salary under the National Pension System during their upcoming meeting.

oThis will be in addition to their demand for periodic inflation adjustment, a minimum payout for those who leave govt service before completing 20 years as well as protection for family pension.

Joint Consultative Machinery (JCM)

• Introduction: The scheme was introduced in 1966 to foster harmonious relations and cooperation between the Central Government (as the employer) and its employees.
• Purpose: JCM serves as a platform for constructive dialogue between government employees and the Central Government to resolve disputes peacefully.
• Coverage: It includes all regular civil employees of the Central Government.
• Non-Statutory Agreement: JCM is a non-statutory scheme, mutually agreed upon by the staff side and the official side.
• Exclusions: The scheme does not cover Class-I services, Class-II services (except the Central Secretariat Services and comparable services in government headquarters), and certain managerial, administrative, and supervisory personnel in industrial establishments.
• Union Territories Exclusion: Employees of Union Territories are not covered under the JCM scheme.
• Police Personnel Exclusion: Police personnel are also excluded from the scheme.

National Pension System

• About: NPS is a low-cost, easily accessible, and tax-efficient retirement savings account.
• Flexible Contributions: Individuals can contribute to their retirement account, with the option for employers to co-contribute for social security and welfare.
• Defined Contribution Model: NPS operates on a Defined Contribution basis, meaning the final pension amount depends on contributions and investment returns, not a pre-defined benefit.