Pension Scheme: The government told the Parliament that there is no proposal before the government to restore the old pension scheme.
Old Pension Scheme: The demand for reinstatement of the Old Pension Scheme has gained momentum and recently, government employees from all over the country have staged a protest at Ramlila Maidan in Delhi to increase pressure on the government. On Monday, December 11, 2023, a question was asked to the Central Government in the Parliament regarding the restoration of the Old Pension Scheme. The government said that it has been receiving request letters several times regarding the reinstatement of the old pension scheme. But the government made it clear that there is no proposal before the Government of India to reinstate the old pension scheme for the central employees appointed on or after January 1, 2004.
No plan to restore OPS
During Question Hour, Lok Sabha MPs A Ganeshmurthy and A Raja asked the Finance Minister whether the government employees’ association has demanded the restoration of the old pension scheme based on last salary instead of the contributed pension scheme and these What is the government’s stand on the demands? In a written reply to this question, Minister of State for Finance Pankaj Chaudhary said, there is no proposal before the Government of India to reinstate the Old Pension Scheme for the employees appointed on or after January 1, 2004.
NPS made attractive
The Minister of State for Finance said that the government has been receiving request letters from time to time demanding the reinstatement of the Old Pension Scheme. He said, the National Pension System was implemented by issuing a notification on 22 December 2003. Since then, the government has taken several steps to improve the NPS for central employees and protect their interests. In which the government’s contribution including Pay + DA was increased from 10 percent to 14 percent. Employees were given the option to choose pension fund. Provision was made for compensation to subscribers for choice of investment pattern, non-payment of NPS contribution between 2004-12 or delay in payment. Apart from this, contributions to NPS were brought under the ambit of tax exemption under Section 80C of Income Tax. Apart from this, the limit of tax exemption given on withdrawal of lump sum amount on exit from NPS was increased from 40 percent to 60 percent.
Committee is studying NPS
Pankaj Chaudhary said that a committee has been formed under the chairmanship of the Finance Secretary which is studying the issue of pension of central employees under the National Pension System. This committee is looking into the existing framework and structure of NPS. Also, it is seeing whether any changes need to be made in it. When the Finance Minister was asked for information about those states which have restored the old pension scheme, the Minister of State for Finance said that the governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have asked the Central Government and PFRDA to restore the old pension system for the employees of their states. Information about re-adoption has been given. However, the Punjab government has said that the state government employees and the government are continuing to contribute under the NPS.
