Great news! Old pension scheme can be implemented? Central employees will get the benefit of OPS? Read Latest Updates
Old Pension Scheme latest news: Movements are going on at the state level to restore the old pension scheme. In the recent past, some states have implemented it again. But, its journey still looks long for the central employees. If sources are to be believed, an agreement can be reached on this soon.
Good news has come for the central government employees in the festive season. In the coming days, they can again get the benefit of Old Pension Scheme (OPS). If sources are to be believed, the Modi government can consider this before the year 2024. To meet the long standing demand of the employees, consultation has been sought from the ministry.
Opinion was sought from the Law Ministry of the Central Government regarding the old pension scheme. It was asked in which department the Old Pension Scheme (OPS) can be implemented. However, no concrete reply has been received from the ministry yet. At the same time, in the last session of Parliament, Minister of State for Finance Bhagwat Karad had denied that the government was considering implementing the Old Pension Scheme.
When can the old pension scheme be implemented?
If sources are to be believed, even though the central government is not yet giving any concrete answer regarding the old pension scheme. But, the way the opposition is cashing in on this issue in the elections, its effect can be seen in the coming days. This is the reason why the central government may consider giving Old Pension Scheme (OPS) to those government employees, for whose recruitment advertisements were issued on or before December 31, 2003.
According to Dr. Jitendra Singh, Minister of State, Ministry of Development of North Eastern Region, Prime Minister’s Office, Department of Atomic Energy and Department of Space, the issue of old pension is very big. Opinion was sought from the Law Ministry on this. A decision on this can be taken only after the reply of the ministry.
Which employees will be covered under this?
After the decision of the Supreme Court, the Central Government had put the matter under the Ministry of Law. The Department of Financial Services, Department of Pension and Pensioners’ Welfare (DoP&PW) may take appropriate decision regarding exclusion of those employees from the purview of NPS for whose recruitment the advertisement was issued on or before January 01, 2004 and they would be eligible for the old pension scheme. (OPS) under If the matter is resolved, then pensioners can get a big benefit.
3 big benefits of old pension scheme
1- In OPS, the pension was made on the basis of the last drawn salary.
2- With the increase in inflation rate in OPS, DA (Dearness Allowance) also increased.
3- When the government implements the new Pay Commission, it also increases the pension.
New pension scheme implemented in 2004
The Central Government had implemented the New Pension Scheme in the year 2004. Under this, separate accounts were opened for the funds of the New Pension Scheme and fund managers were also appointed for the investment of the fund.
If the return of investment of pension fund is good, then new employees can also get good amount in future at the time of retirement as compared to the old scheme of provident fund and pension. But the employees say that the return of investment of pension fund will be better, how is it possible. Therefore they are demanding to implement the Old Pension Scheme under the 7th Pay Commission.
Fewer benefits in New Pension Scheme as compared to Old
At the state level, agitations are going on regarding the Old Pension Scheme. Government employees have started uniting on one platform to implement the old pension scheme. Employees’ organizations of various departments have also prepared new strategies. After 2010, the government has appointed employees under the New Pension Scheme. In this scheme, the employees get very less benefits as compared to the old scheme. This does not secure their future. The government will have to pay tax on the money that will be received after retirement.