Old and new pension scheme

Members of the Karnataka State NPS Employees’ Association met Siddaramaiah and appealed to him to bring back OPS. Siddaramaiah promised them that OPS will be brought back. He asked them to work towards the successful implementation of the five guarantees of his government. Senior Congress leader VS Ugrappa said the New Pension Scheme (NPS) came into being on April 1, 2006. In all, 2.98 lakh employees come under this scheme. Their pension money has been deposited with NSDL which will be given at the time of their retirement. He urged the CM to bring back OPS. Karnataka State NPS Employees’ Association president Shantaram Tej too explained that in Rajasthan and Chattisgarh, NPS has been scrapped. Karnataka should also scrap NPS. The pension money deposited till now can be utilised by the government to implement development works. Of the Rs 19 crore deposited, Rs 9 crore is employees’ share which they can convert into general provident fund and the government’s share of Rs 10 crore can be utilised to implement development works, he added. Guarantees barrier to pay panel recommendations? With the state government struggling to arrange revenues for its five guarantees, another challenge it may face in implementing the Seventh Pay Commission recommendations. The commission is expected to submit its report in next few weeks, recommending a pay increase for government employees and it could cause an additional burden of Rs 12,000 crore on the state exchequer INDUSTRIES OPPOSE HIKE...

There have been rumours concerning the shift in pension schemes, after three states—Rajasthan, Chhattisgarh, and Jharkhand—reverted back to the Old Pension Scheme and abandoned the New Pension Scheme. The Punjab government has recently switched its employees back to OPS. You may now be asking what the differences between the Old and New Pension Schemes are. What is the Old Pension Scheme? OPS or Old Pension Scheme is a government-authorised retirement scheme. The beneficiaries receive a monthly pension from it till the end of their service lives. The monthly pension equals one-half of the person's most recent pay. ( Also Read: What is the New Pension Scheme? NPS or New Pension Scheme is a retirement scheme which was introduced in 2004 by the government of India. In NPS the beneficiaries will be able to withdraw 60% of the amount invested after retirement. Government employees who participate in this NPS contribute 10% of their base pay, while their employers may contribute up to 14%. What is the difference between Old Pension Scheme and New Pension Scheme? Government personnel are eligible for pensions under the Old Pension Scheme based on their last drawn wage whereas the New Pension Scheme reimburses the employees for their contributions made while they were employed by the NPS Scheme. Under OPS employees receive 50% of the last drawn salary as a pension whereas under NPS employees get a 60% lump sum after retirement and 40% is invested in annuities for getting a monthly...

The pension system is an integral part of the economic and social security system of a country. It provides financial security to elderly citizens and helps them meet their daily expenses. In India, the pension system has gone through several changes over the years, from the Old Pension Scheme (OPS) to the What is Old Pension Scheme? The old pension scheme was introduced in the 1950s and is applicable only to government employees. Under this scheme, government employees are entitled to receive 50% of their last drawn basic salary plus a dearness allowance upon retirement or an average of their wages over the previous ten months of employment, whichever is more favourable to them. What is New Pension Scheme? The new pension scheme was introduced by the National Democratic Alliance (NDA) government in December 2003 and came into effect on April 1, 2004. It is applicable to both government and private sector employees. Under the NPS, employees contribute 10% of their base pay, while their employers can contribute up to 14%. Private sector employees also have the option to actively participate in the NPS. With this scheme, consumers have more freedom and control over their destiny, as they can benefit from market-linked returns without any guarantee of returns. Additionally, 60% of the corpus on maturity is tax-free, while the remaining 40% must be invested in Flexibility: The old pension scheme did not have much flexibility as it provided a fixed monthly income. The new pensi...

பழைய ஓய்வூதியத் திட்டம், சமீபத்திய புதுப்பிப்பு: கடந்த ஓராண்டில், பழைய ஓய்வூதியத் திட்டத்தை பல மாநில அரசுகள் மீண்டும் அமலுல்படுத்தியுள்ளன. மத்திய அரசு ஊழியர்களும் பல மாநில அரசு ஊழியர்களும் மீண்டும் பழைய ஓய்வூதியத் திட்டத்தை அமல்படுத்த வேண்டும் என கோரிக்கை விடுத்து வருகின்றனர். இதற்காக கடந்த சில மாதங்களாக பல போராட்டங்களும் பேச்சுவார்த்தைகளும் நடந்து வருகின்றன. பழைய ஓய்வூதியத் திட்டம் குறித்து அவ்வப்போது பல வித புதுப்பிப்புகளும் வந்த வண்ணம் உள்ளன. மாநிலங்களை பொறுத்த வரையில் ராஜஸ்தானின் அசோக் கெலாட் அரசுதான் முதன்முதலில் இந்த ஊழியர்கள் பழைய ஓய்வூதியத்திற்கு தகுதியற்றவர்கள் இது தொடர்பாக பிறப்பிக்கப்பட்ட உத்தரவில், பணியை ராஜினாமா செய்த அல்லது பணி நீக்கம் செய்யப்பட்ட பணியாளர்களுக்கு பழைய ஓய்வூதியம் கிடைக்காது என தெரிவிக்கப்பட்டுள்ளது. அரசு உத்தரவின்படி, பழைய ஓய்வூதிய விருப்பத்தை தேர்வு செய்ய விரும்பும் ஊழியர்கள், ஜூன் 30 -க்குள் விண்ணப்பிக்க வேண்டும், இல்லையெனில் அவர்கள் சிபிஎஃப் திட்டத்தில் உறுப்பினராக கருதப்படுவார்கள். இறந்த ஊழியர்களின் குடும்ப உறுப்பினர்களும் குடும்ப நிதித் துறையின் மூத்த அதிகாரி ஒருவர் கூறுகையில், ‘பழைய ஓய்வூதியத் திட்டத்தைத் தேர்ந்தெடுக்காத ஊழியர்களின் பங்களிப்பு, பல்கலைக்கழகங்களின் முறைப்படி செய்யப்படும். அதாவது, முதலாளியின் பங்கு மற்றும் பணியாளரின் பங்கில் இருந்து தலா 12% செலுத்த வேண்டும். முதலாளியின் பங்கு ஓய்வூதிய நிதிக்கும், பணியாளரின் பங்கு ஜிபிஎஃப் (GPF) நிதிக்கும் செல்லும்.' என்று கூறினார். பழைய ஓய்வூதியத் திட்டம் என்றால் என்ன? பழைய ஓய்வூதியத் திட்டத்தில், பணி ஓய்வுக்கு பின், ஊழியர் சம்பளத்தில் பாதியை ஓய்வூதியமாக பெறுகிறார். பழைய ஓய்வூதியத்தின் கீழ்...

Premium UPSC Essentials | Issue at a glance: The OPS versus NPS debate The issue of the old pension scheme (OPS) versus the new pension scheme (NPS) has dominated news since a long time now. From basics to advance, let's go through all you need to know . Beyond the issue know why there is need to reform India's pension system Old pension scheme (OPS) versus new pension scheme (NPS) is a hot debate these days. Economic, social and political dimensions of the debate demands to have a good understanding of the basics and advance of the issue. We go Beyond the issue to learn: Why there is need to reform India’s pension system? Relevance: Essential for Prelims, Mains and Interview. The debate finds its place in the syllabus of GS II (Welfare schemes for vulnerable sections of the population by centre and states) and GS III. Aspirants must have ready to use facts and points on this issue to substantiate their arguments in mains or personality test. Why in news? — The issue of the old pension scheme (OPS) versus the new pension scheme (NPS) has dominated news since a long time now. Some state governments recently announced their plan to implement the old pension scheme (OPS) by replacing the National Pension Scheme (NPS). MoS Finance in LS said, “The state governments of Rajasthan, Chhattisgarh, and Jharkhand have informed the Central government/PFRDA about their decision to restart old pension scheme (OPS) for their state government employees.” What is pension and why is it requ...

New pension scheme vs old pension scheme: Here is all you need to know The newly elected Congress Government led by Sukhvinder Singh Sukhu regime has restored the Old Pension Scheme (OPS) for Himachal Pradesh government employees with immediate effect. This has stirred a debate around the two variants of Pension Scheme in India. Image Source : FREEPIK New Pension Scheme Vs Old Pension Scheme The Indian government introduced a new pension scheme for its citizens, known as the National Pension System (NPS) in 2003 and came into effect in the following year. NPS aims to provide a defined contribution pension for the country's citizens. The new scheme was launched as an alternative to the existing Old Pension Scheme (OPS) and aims to provide a more secure and stable retirement income for the country's citizens. In this article, we will take a closer look at the differences between the NPS and OPS. The NPS is a defined contribution scheme that allows individuals to invest in a variety of pension funds. The scheme is open to all citizens of India between the ages of 18 and 60. Under the NPS, the government does not provide any guaranteed pension. Instead, the pension received is based on the investment returns generated by the pension funds. The scheme also provides for a life insurance cover of Rs.5 lakh for the subscriber. The OPS, on the other hand, is a defined benefit scheme that provides a pension based on the individual's last drawn salary and the number of years of servi...

New pension scheme vs old pension scheme: Here is all you need to know The newly elected Congress Government led by Sukhvinder Singh Sukhu regime has restored the Old Pension Scheme (OPS) for Himachal Pradesh government employees with immediate effect. This has stirred a debate around the two variants of Pension Scheme in India. Image Source : FREEPIK New Pension Scheme Vs Old Pension Scheme The Indian government introduced a new pension scheme for its citizens, known as the National Pension System (NPS) in 2003 and came into effect in the following year. NPS aims to provide a defined contribution pension for the country's citizens. The new scheme was launched as an alternative to the existing Old Pension Scheme (OPS) and aims to provide a more secure and stable retirement income for the country's citizens. In this article, we will take a closer look at the differences between the NPS and OPS. The NPS is a defined contribution scheme that allows individuals to invest in a variety of pension funds. The scheme is open to all citizens of India between the ages of 18 and 60. Under the NPS, the government does not provide any guaranteed pension. Instead, the pension received is based on the investment returns generated by the pension funds. The scheme also provides for a life insurance cover of Rs.5 lakh for the subscriber. The OPS, on the other hand, is a defined benefit scheme that provides a pension based on the individual's last drawn salary and the number of years of servi...

The pension system is an integral part of the economic and social security system of a country. It provides financial security to elderly citizens and helps them meet their daily expenses. In India, the pension system has gone through several changes over the years, from the Old Pension Scheme (OPS) to the What is Old Pension Scheme? The old pension scheme was introduced in the 1950s and is applicable only to government employees. Under this scheme, government employees are entitled to receive 50% of their last drawn basic salary plus a dearness allowance upon retirement or an average of their wages over the previous ten months of employment, whichever is more favourable to them. What is New Pension Scheme? The new pension scheme was introduced by the National Democratic Alliance (NDA) government in December 2003 and came into effect on April 1, 2004. It is applicable to both government and private sector employees. Under the NPS, employees contribute 10% of their base pay, while their employers can contribute up to 14%. Private sector employees also have the option to actively participate in the NPS. With this scheme, consumers have more freedom and control over their destiny, as they can benefit from market-linked returns without any guarantee of returns. Additionally, 60% of the corpus on maturity is tax-free, while the remaining 40% must be invested in Flexibility: The old pension scheme did not have much flexibility as it provided a fixed monthly income. The new pensi...

Members of the Karnataka State NPS Employees’ Association met Siddaramaiah and appealed to him to bring back OPS. Siddaramaiah promised them that OPS will be brought back. He asked them to work towards the successful implementation of the five guarantees of his government. Senior Congress leader VS Ugrappa said the New Pension Scheme (NPS) came into being on April 1, 2006. In all, 2.98 lakh employees come under this scheme. Their pension money has been deposited with NSDL which will be given at the time of their retirement. He urged the CM to bring back OPS. Karnataka State NPS Employees’ Association president Shantaram Tej too explained that in Rajasthan and Chattisgarh, NPS has been scrapped. Karnataka should also scrap NPS. The pension money deposited till now can be utilised by the government to implement development works. Of the Rs 19 crore deposited, Rs 9 crore is employees’ share which they can convert into general provident fund and the government’s share of Rs 10 crore can be utilised to implement development works, he added. Guarantees barrier to pay panel recommendations? With the state government struggling to arrange revenues for its five guarantees, another challenge it may face in implementing the Seventh Pay Commission recommendations. The commission is expected to submit its report in next few weeks, recommending a pay increase for government employees and it could cause an additional burden of Rs 12,000 crore on the state exchequer INDUSTRIES OPPOSE HIKE...

பழைய ஓய்வூதியத் திட்டம், சமீபத்திய புதுப்பிப்பு: கடந்த ஓராண்டில், பழைய ஓய்வூதியத் திட்டத்தை பல மாநில அரசுகள் மீண்டும் அமலுல்படுத்தியுள்ளன. மத்திய அரசு ஊழியர்களும் பல மாநில அரசு ஊழியர்களும் மீண்டும் பழைய ஓய்வூதியத் திட்டத்தை அமல்படுத்த வேண்டும் என கோரிக்கை விடுத்து வருகின்றனர். இதற்காக கடந்த சில மாதங்களாக பல போராட்டங்களும் பேச்சுவார்த்தைகளும் நடந்து வருகின்றன. பழைய ஓய்வூதியத் திட்டம் குறித்து அவ்வப்போது பல வித புதுப்பிப்புகளும் வந்த வண்ணம் உள்ளன. மாநிலங்களை பொறுத்த வரையில் ராஜஸ்தானின் அசோக் கெலாட் அரசுதான் முதன்முதலில் இந்த ஊழியர்கள் பழைய ஓய்வூதியத்திற்கு தகுதியற்றவர்கள் இது தொடர்பாக பிறப்பிக்கப்பட்ட உத்தரவில், பணியை ராஜினாமா செய்த அல்லது பணி நீக்கம் செய்யப்பட்ட பணியாளர்களுக்கு பழைய ஓய்வூதியம் கிடைக்காது என தெரிவிக்கப்பட்டுள்ளது. அரசு உத்தரவின்படி, பழைய ஓய்வூதிய விருப்பத்தை தேர்வு செய்ய விரும்பும் ஊழியர்கள், ஜூன் 30 -க்குள் விண்ணப்பிக்க வேண்டும், இல்லையெனில் அவர்கள் சிபிஎஃப் திட்டத்தில் உறுப்பினராக கருதப்படுவார்கள். இறந்த ஊழியர்களின் குடும்ப உறுப்பினர்களும் குடும்ப நிதித் துறையின் மூத்த அதிகாரி ஒருவர் கூறுகையில், ‘பழைய ஓய்வூதியத் திட்டத்தைத் தேர்ந்தெடுக்காத ஊழியர்களின் பங்களிப்பு, பல்கலைக்கழகங்களின் முறைப்படி செய்யப்படும். அதாவது, முதலாளியின் பங்கு மற்றும் பணியாளரின் பங்கில் இருந்து தலா 12% செலுத்த வேண்டும். முதலாளியின் பங்கு ஓய்வூதிய நிதிக்கும், பணியாளரின் பங்கு ஜிபிஎஃப் (GPF) நிதிக்கும் செல்லும்.' என்று கூறினார். பழைய ஓய்வூதியத் திட்டம் என்றால் என்ன? பழைய ஓய்வூதியத் திட்டத்தில், பணி ஓய்வுக்கு பின், ஊழியர் சம்பளத்தில் பாதியை ஓய்வூதியமாக பெறுகிறார். பழைய ஓய்வூதியத்தின் கீழ்...