look news india
There is a good news for government employees. If you are also investing in NPS for pension after retirement, then this news is for you. Old Pension Scheme (OPS) has been demanded by central employees and various state government employees for a long time. In response to the demands of government employees, OPS was also approved in Himachal Pradesh, Punjab, Rajasthan and Jharkhand. But the central government refused to restore it. However, lakhs of employees are still adamant on their demand.
What are the benefits to government employees?
Employee unions say that after retirement, the fixed benefits are not available under NPS. Whereas in OPS, the employee gets a fixed pension. In such a situation, the government is trying to ensure that the central employees coming under NPS will get the same benefits as OPS after retirement. The government is trying to ensure that the employees coming under the National Pension Scheme (NPS) will be given 50 percent of the monthly salary as pension after retirement.
Good returns in existing 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, the current scheme is giving good returns for employees recruited after 2004. But for this it is necessary that the employee has maintained this amount for 25-30 years without making any withdrawal. After the announcement of Finance Minister Nirmala Sitharaman in this matter, a committee has been formed under the chairmanship of Finance Secretary TV Somanathan.
No return to OPS
According to a report published in the Times of India, 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 the reversal of 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 is also increased from time to time based on the recommendations of the Pay Commission. But in the New Pension Scheme (NPS), the government employee contributes 10 percent of the basic salary and the government contributes 14 percent.
Consider the 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. Along with this, the committee is also studying what effect it will have if the government guarantees a certain amount on pension. It is clear from the study that it is possible for the central government to guarantee 40-45% in pension. But this will not alleviate the worries of employees who have worked for 25-30 years. Therefore, the government is now thinking of giving 50 percent guarantee.
Funds for the new system!
This simply means that if the pension falls short, the government will make up for it. Along with this, it will also be necessary to assess it every year. Some committee members say that the central government's government pension scheme does not have a retirement fund. In the new system, the government can create a fund. Money will be deposited in this fund every year. Just like companies finance retirement benefits for their employees.
According to TOI, officials say that people who have worked for 25-30 years are getting returns equal to the pension they receive under the Old Pension Scheme (OPS). In fact, so far complaints of low pension have come only from those who left the scheme after working for 20 years or less.