OPS vs NPS: Govt plans to make changes in new pension scheme on lines with old pension scheme

OPS vs NPS: With the purpose of creating the brand new pension scheme (NPS) extra lucrative, the authorities has fashioned a committee. The new committee beneathneath the finance secretary will attempt to deal with the worries of personnel and make modifications withinside the NPS accordingly. This might be accomplished even as ensuring that financial prudence is maintained.

Union Finance Minister Nirmala Sitharaman, even as shifting the Finance Bill 2023 for attention and passage withinside the Lok Sabha, stated the brand new method to the brand new pension scheme might be designed for adoption via way of means of each primary and kingdom governments.

"I recommend to installation a committee beneathneath the finance secretary to inspect the problem of pensions and evolve an method which addresses the wishes of personnel even as keeping financial prudence to shield not unusualplace citizens," she stated.

"The method might be designed for adoption via way of means of each the primary authorities and kingdom governments," she similarly stated.

The formation of the brand new committee comes withinside the backdrop of numerous non-BJP states determining to revert to the dearness allowance-related antique pension scheme. Some worker establishments in different states also are elevating call for for the same.

States like Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have already the Central authorities approximately their choice to revert to the antique pension scheme. Moreover, they've additionally asked a reimbursement of the corpus collected beneathneath the NPS.

Will the antique pension scheme be restored?

The primary authorities has already knowledgeable the Parliament that it isn't always thinking about any concept to repair the OPS in recognize of the primary authorities personnel recruited after January 1, 2004.

Speaking at the announcement, Information and Broadcasting Minister Anurag Thakur stated the committee will study numerous tips at the NPS-OPS issue.

This is the proper step so one can maintain in thoughts the advantage of personnel in addition to financial prudence, Thakur added.

Benefits of the antique pension scheme

Under the OPS, retired authorities personnel obtained 50 in line with cent in their closing drawn income as month-to-month pensions. The quantity maintains growing with the hike withinside the DA rates.

The overall belongings beneathneath control beneathneath the National Pension System and Atal Pension Yojana stood at Rs 8.eighty one lakh crore as on March 4, 2023. NPS has been applied for all authorities personnel besides the ones withinside the militia becoming a member of the primary authorities on or after January 1, 2004. Most of the kingdom/ Union Territory governments have additionally notified the NPS in their new personnel.

According to the PFRDA (Pension Fund Regulatory and Development Authority), 26 kingdom governments, except Tamil Nadu and West Bengal, have notified and applied NPS for his or her personnel.

NPS has been made to be had to each Indian citizen from May 1, 2009, on a voluntary basis.

Further, on June 1, 2015, the Atal Pension Yojana turned into launched, which has given the much-required impetus to the social protection schemes.

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