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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 the restoration of the Old Pension Scheme (OPS) for a long time. 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.
Government will assure 50% pension to employees!
Employee unions say that under NPS, there is no fixed benefit after retirement, 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 after retirement they will get the same benefits as OPS. The government is trying to give 50 percent of the monthly salary as pension to the employees coming under the National Pension Scheme (NPS) after retirement.
Employees are getting good returns in the current scheme
This step is being taken by the government because employees are worried about whether they will get adequate pension after retirement or not. However, in the current scheme, employees recruited after 2004 are getting good returns. But for that it is necessary that the employee has deposited the money for 25-30 years without any withdrawal. After the announcement of Finance Minister Nirmala Sitharaman in this matter, a committee (TV Somanathan committee) has been formed under the chairmanship of Finance Secretary TV Somanathan.
Decided not to return to OPS
According to a 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 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. Somanathan committee has studied the pension schemes of countries around the world and the changes made by the Andhra Pradesh government. This committee is also studying the effect if the government guarantees a certain amount on pension. It has been made clear in the study that the central government can guarantee 40-45% pension. But this will not reduce 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, the government will make up for it and it will be necessary to estimate it every year. Some committee members say that in the government pension scheme, the central government does not have a retirement fund. 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 the retirement benefits of their employees.