The Central Government has told in the Parliament that there is no idea to bring back the Old Pension Scheme. The National Pension Scheme brought in its place is going to remain in force.
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There is no proposal under consideration to restore the old pension scheme. Minister of State for Finance Bhagwat Karad gave this information in Parliament on Monday. He gave this information in reply to a written question in the Lok Sabha. Old Pension Scheme Under this the employees get a fixed pension. Under this, there is a provision for the employee to get 50 percent of the last salary as pension. However, the amount of pension is contributory under the National Pension Scheme which is in effect since 2004.
Karad said that the governments of Rajasthan, Chhattisgarh and Jharkhand have informed the central government and the Pension Fund Regulatory and Development Authority (PFRDA) about their decision to revive the old pension scheme (OPS) for their employees. At the same time, the Punjab government issued a notification on November 18, 2022, which was related to the implementation of OPS for the state government employees. At present, they have been kept under the ambit of pension under NPS.
proposal sent for pension
However, on this matter, the Minister of State for Finance said, ‘The State Governments of Rajasthan, Chhattisgarh and Jharkhand have sent proposals to the Central Government/PFRDA to return the accumulated amount of subscribers under NPS to the respective State Governments. However, no such proposal has been received from the Punjab government. In response to the proposals of these State Governments, the PFRDA has informed the concerned States that there is no provision to refund the amount deposited as Government and employee’s contribution to the State Government.
What is old pension scheme?
Actually, under the old pension scheme, before 2004, government employees were given a fixed pension after retirement. This pension used to be 50% of the employee’s last salary. In this way, the amount of pension was determined on the basis of the salary of the employee.
Under the old pension scheme, if the covered employee had died, then his family members would have got the benefit. However, on April 1, 2004, the old pension scheme was discontinued. In its place, the government came up with the National Pension Scheme.
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