NPS and Old Pension System: A big announcement has been made about the pension of Central Government employees. Government employees can now take advantage of the old pension scheme (OPS) till 31 May 2021, excluding the National Pension System (NPS).
New Delhi: NPS and Old Pension System: A big announcement has been made about the pension of central government employees. Government employees can now take advantage of the old pension scheme (OPS) till 31 May 2021, excluding the National Pension System (NPS). The Department of Pension and Pensioners Welfare (DoPPW) has given this information through a notification.
Application for Old Pension Scheme by 5 May
The government has said that any employees who want to take advantage of this can apply by 5 May. Employees who do not apply will continue to benefit from the National Pension System. Employees who have been appointed between 1 January 2004 to 28 October 2009 will get pension benefits under CCS Pension only.
Old pension scheme is more beneficial!
Experts on this decision say that the old pension scheme is more beneficial than the NPS, because after retirement in the old scheme, pensioners as well as family members also get security.
Which employees will get the benefit of the scheme
The old pension scheme will benefit only those central employees who were appointed before 1 January 2004 in any of the state government departments or autonomous institutions under the Railway Pension Rules or CCS (Pension) Rules, 1972. After this, if he resigned from the job of the pensioner department of the state government, he got an appointment in the pensioner department or central autonomous organization of the central government.
What is NPS
People between the age of 18 to 60 years can invest in the National Pension System. Accounts can be opened in all government and private banks. Employees get tax exemption on deposits in pension scheme under section 80CCD (1) of section 80CCD.
Salaried employees can deposit up to 10 percent of their salary and non-salaried employees up to 20 percent of their total income in a pension account. On this, they get tax rebate of up to 1.5 lakh rupees.
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