What is OPS: Under the Old Pension Scheme, government employees are guaranteed 50 percent of their last salary as pension. But this is not the case in NPS and employees have to deposit 10 percent of their basic salary. Now the government is considering the guarantee of giving benefits of OPS under NPS as well.
Old Pension Update: If you are also investing in NPS for pension after retirement, then this news is of your use. Yes, central employees and employees of different state governments have been demanding for a long time to restore the Old Pension Scheme (OPS). Accepting the demands of government employees, OPS was also restored in Himachal Pradesh, Chhattisgarh, Punjab, Rajasthan and Jharkhand. But the central government refused to restore it. Despite this, lakhs of employees are adamant on their demand.
The government will assure 50% pension to the employees!
Employee unions say that after retirement, the fixed benefit is not available under NPS, whereas in OPS the employee gets a fixed pension. In such a situation, the government is trying to assure the central employees coming under NPS that they will get the same benefits as OPS after retirement. The government is trying that the employees coming under the National Pension Scheme (NPS) will be given 50% of the monthly salary as pension after retirement.
Employees are getting good returns in the current scheme
This step is being taken by the government because employees are worried whether they will get adequate pension after retirement or not. However, employees recruited after 2004 are getting good returns in the current scheme. But for that it is necessary that the employee has maintained the deposit of money without any withdrawal for 25-30 years. After the announcement by Finance Minister Nirmala Sitharaman in this matter, a committee has been formed under the chairmanship of Finance Secretary TV Somanathan (T V Somanathan committee).
Decision taken not to return to OPS
According to the news published in Times of India (TOI), the Central Government has decided not to return to the Old Pension Scheme (OPS). But the government kept the window open for a certain level of help at a time when the Congress was announcing to reverse the decision of the Manmohan Singh government. Under the Old Pension Scheme (OPS), half of the last salary received every month after retirement is given as pension. This pension also increases from time to time based on the recommendations of the Pay Commission. But in the New Pension Scheme (NPS), government employees deposit 10% of the basic salary and the government contributes 14% to it.
The government is now considering giving 50% guarantee
Employees get pension based on the amount deposited after retirement. The Somanathan Committee has studied the pension schemes of countries around the world and the changes made by the Andhra Pradesh government. Also, this committee is also studying what will be the effect if the government guarantees a certain amount on pension. The study made it clear that it is possible for the central government to guarantee 40-45% pension. But this will not alleviate the worries of employees working for 25-30 years. That is why, the government is now considering giving 50% guarantee.
In the new system, the government will create a fund!
This simply means that if there is a shortage of money for pension, then it will be met by the government, and it will be necessary to estimate every year. Some committee members say that the central government does not have a retirement fund in the government pension scheme. In the new system, the government will probably create a fund. Money will be deposited in this fund every year, just like companies create a fund for retirement benefits for their employees.
