Which government stopped old pension scheme

Old Pension Scheme Update: A good news is coming out regarding the old pension. If you are also a government employee and want to take advantage of the old pension scheme, then there is good news for you. At present, the Old Pension Scheme (OPS) has been implemented in many states of the country. At the same time, debate is going on in many states on its implementation. Let us tell you that in the states where the New Pension Scheme is applicable, there is a demand to cancel it and implement OPS. Time till 31st August Let us tell you that at this time the central government has given the employees an opportunity to choose the old pension scheme. You have till 31st August. You can opt for the old pension scheme till 31 August 2023. The government has informed that the eligible employees who do not opt ​​for the Old Pension Scheme (OPS) by August 31, will be placed in the New Pension Scheme. OPS has been implemented in many states, tell that the state government has also implemented it in Chhattisgarh. Apart from this, it has been implemented in many states including Rajasthan, Punjab. The Central Government abolished the old pension scheme in the year 2004 and replaced it with the National Pension System. What are the advantages of old pension scheme? Talking about the benefits of the old pension scheme, its biggest advantage is that it is made on the basis of the last drawn salary. Apart from this, as the inflation rate increases, DA also increases. Even when the governmen...

One of the upsides of working in the government sector is that you get a pension after retirement. This pension continues till the time you are alive. As we talk of pensions, we must know the difference between Old Pension Scheme and New Pension Scheme. Let us first start with each of their concepts. What’s Inside? • • • • 1. • 2. • 3. • 4. • 5. What is Old Pension Scheme? The pension scheme in India was introduced in 1950 and has always applied only to government employees in the country. Under the OPS Old Pension Scheme, government employees receive 50% of their last drawn basic salary. They also get Dearness Allowance. This is all provided to them once they are retired. This scheme comes with a guaranteed income. However, an employee has to work for at least 10 years to avail of this scheme. What is New Pension Scheme? The New Pension Scheme, also called NPS, was introduced in 2003 by the National Democratic Alliance (NDA) government. However, it came into effect in 2004. The New Pension Scheme is available for both employees of the government as well as private sectors. Under this scheme, the employees make a contribution of 10% of their basic salary, and 14% is contributed by the employers. Employees working in the private sector can also participate in the New Pension Scheme. When you contribute to this scheme, you get more freedom and control of your future. You will be able to benefit from the returns that are linked to the market. In addition to this, 60% of the b...

Bring back old pension scheme, Central government employees write to Cabinet Secretary The National Pension System is a disaster for retiring employees, says an apex body of various government unions; pension under existing scheme just 15% of that under earlier one November 06, 2022 08:01 pm | Updated November 07, 2022 10:07 am IST - New Delhi A federation of Central government employees’ unions has written to the Cabinet Secretary to The federation said a Defence establishment official who recently retired after more than 13 years of service received only 15% of the assured pension he would have otherwise availed under the OPS. Under the NPS, the official with a basic pay of ₹30,500 received ₹2,417 as monthly pension as against the ₹15,250 pension he would have been given under the OPS. Also Read | Another official with a basic pay of ₹34,300, received ₹2,506 as monthly pension after more than 15 years of service, whereas under the OPS, he would have been entitled to ₹17,150 as pension. The letter signed by the Joint Consultative Machinery (JCM), an apex body of various government unions comprising Group B and Group C officials, said: “It is amply clear that the NPS employees despite their contribution of 10% of their wages every month for their entire service is getting only a very meager pension and are worse off vis-à-vis the OPS. The pension under NPS remain static and there is no Dearness Relief to compensate the price rise /inflation as available in the OPS.” It sai...

List of States That Have Gone Back To Old Pension Scheme New Delhi: The debate between old pension and new pension schemes has once again come into the limelight with the newly formed Congress government in Himachal Pradesh adopting the former which many may call a deliberate attempt to strangle the state’s finances. Just yesterday, Monday, the Reserve Bank of India (RBI), in a report made very skeptical remarks on (Opposition-ruled) states adopting the Old Pension Scheme (OPS). “A major risk looming large on the subnational fiscal horizon is the likely reversion to the old pension scheme by some states. The annual saving in fiscal resources that this move entails is short-lived. By postponing the current expenses to the future, states risk the accumulation of unfunded pension liabilities in the coming years,” the central bank said. Rajasthan: The Ashok Gehlot-led Congress government in Rajasthan successfully restored the OPS. In fact, Chief Minister Ashok Gehlot voraciously spoke in favour of the scheme he implemented in his state while he was campaigning for the Congress party in Himachal Pradesh during the assembly elections. Chhattisgarh: After announcing the state budget in December 2022, cabinet led by Chief Minister Bhupesh Baghel decided decided that employees can shift back to the OPS after making a submission to deposit the contribution made by the state towards the National Pension System (NPS) and the dividend earned thereon. Jharkhand: Even though Congress par...

For the generic concept, see Old Pension Scheme (OPS) in India was abolished as a part of pension reforms by The Union Government's pension liabilities in Budget Estimate 2022-2023 on account of Old Pension Scheme for existing retirees is Rupees 2.07 lakh crore. History [ ] The practice of pension payment to retired employees is evident in Colonial India since 1881. OPS has its origins since Benefit [ ] An employee joining the central or state services prior to 1 January 2004 would receive Current Beneficiaries [ ] • Soldiers employed in service pension after their retirement. • • Judges after a twelve-year service are eligible for lifetime defined benefit pension under OPS. Exception [ ] Existing faculties from of Following a supreme court order in 2023, Department of Pension and Pensioners’ Welfare (DPPW) allowed the employees who joined the Central government services as per posts advertised or notified before 22 December 2003 one-time option to choose OPS before 31 August 2023. Defined Benefit Pension vs. Defined Contribution Pension [ ] Defined Benefit (DB) scheme like OPS is a type in which the beneficiary pension is based on a defined formula which may have a percentage of salary or a percentage of salary times the years of service or a flat rate per year of service as its parameters. Defined Contribution (DC) scheme like NPS is a type of in which the beneficiary makes contributions to a retirement fund during his service and the receivable pension is based on the b...

People Also Read: Select central government employees covered by the National Pension System will now get a one-time option to switch to Central Civil Services (Pension) Rules, 1972 popularly known as the old pension scheme (OPS). The Department of Pension and Pensioners’ Welfare (DoPPW) issued an office memorandum on March 3, 2023, detailing who is eligible to switch to the old pension scheme.

Demand for restoration of the Old Pension Scheme is growing with each passing day as many employees in Maharashtra and Haryana went on strike on Tuesday seeking its return. Some non-BJP-ruled states including Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh have already reverted to OPS and ditched the new pension scheme (NPS). Former RBI Governor Raghuram Rajan has expressed his concern regarding the OPS and said that restarting the old pension scheme would be an enormous obligation in the long run, adding, "less costly ways should be found to address the demands of government pensioners". The former RBI governor said the old pension scheme does involve massive future outlays because of the He has advised state governments said the old pension scheme does involve massive future outlays because of the indexation of pensions to current salaries. What is Old Pension Scheme? Old Pension Scheme (OPS) is a retirement scheme approved by the central government which provides a monthly pension to the beneficiaries till the end of their life service. Under this, the amount of monthly pension is equal to half of the last salary drawn by an individual. What is New Pension Scheme? New Pension Scheme (NPS) is the latest retirement scheme in which the beneficiaries will be able to withdraw 60% of the amount invested after retirement. It was introduced by the central government in December 2003 to replace the defined benefit pension system with defined contribution It was ...

Bring back old pension scheme, Central government employees write to Cabinet Secretary The National Pension System is a disaster for retiring employees, says an apex body of various government unions; pension under existing scheme just 15% of that under earlier one November 06, 2022 08:01 pm | Updated November 07, 2022 10:07 am IST - New Delhi A federation of Central government employees’ unions has written to the Cabinet Secretary to The federation said a Defence establishment official who recently retired after more than 13 years of service received only 15% of the assured pension he would have otherwise availed under the OPS. Under the NPS, the official with a basic pay of ₹30,500 received ₹2,417 as monthly pension as against the ₹15,250 pension he would have been given under the OPS. Also Read | Another official with a basic pay of ₹34,300, received ₹2,506 as monthly pension after more than 15 years of service, whereas under the OPS, he would have been entitled to ₹17,150 as pension. The letter signed by the Joint Consultative Machinery (JCM), an apex body of various government unions comprising Group B and Group C officials, said: “It is amply clear that the NPS employees despite their contribution of 10% of their wages every month for their entire service is getting only a very meager pension and are worse off vis-à-vis the OPS. The pension under NPS remain static and there is no Dearness Relief to compensate the price rise /inflation as available in the OPS.” It sai...

List of States That Have Gone Back To Old Pension Scheme New Delhi: The debate between old pension and new pension schemes has once again come into the limelight with the newly formed Congress government in Himachal Pradesh adopting the former which many may call a deliberate attempt to strangle the state’s finances. Just yesterday, Monday, the Reserve Bank of India (RBI), in a report made very skeptical remarks on (Opposition-ruled) states adopting the Old Pension Scheme (OPS). “A major risk looming large on the subnational fiscal horizon is the likely reversion to the old pension scheme by some states. The annual saving in fiscal resources that this move entails is short-lived. By postponing the current expenses to the future, states risk the accumulation of unfunded pension liabilities in the coming years,” the central bank said. Rajasthan: The Ashok Gehlot-led Congress government in Rajasthan successfully restored the OPS. In fact, Chief Minister Ashok Gehlot voraciously spoke in favour of the scheme he implemented in his state while he was campaigning for the Congress party in Himachal Pradesh during the assembly elections. Chhattisgarh: After announcing the state budget in December 2022, cabinet led by Chief Minister Bhupesh Baghel decided decided that employees can shift back to the OPS after making a submission to deposit the contribution made by the state towards the National Pension System (NPS) and the dividend earned thereon. Jharkhand: Even though Congress par...

Old Pension Scheme Update: A good news is coming out regarding the old pension. If you are also a government employee and want to take advantage of the old pension scheme, then there is good news for you. At present, the Old Pension Scheme (OPS) has been implemented in many states of the country. At the same time, debate is going on in many states on its implementation. Let us tell you that in the states where the New Pension Scheme is applicable, there is a demand to cancel it and implement OPS. Time till 31st August Let us tell you that at this time the central government has given the employees an opportunity to choose the old pension scheme. You have till 31st August. You can opt for the old pension scheme till 31 August 2023. The government has informed that the eligible employees who do not opt ​​for the Old Pension Scheme (OPS) by August 31, will be placed in the New Pension Scheme. OPS has been implemented in many states, tell that the state government has also implemented it in Chhattisgarh. Apart from this, it has been implemented in many states including Rajasthan, Punjab. The Central Government abolished the old pension scheme in the year 2004 and replaced it with the National Pension System. What are the advantages of old pension scheme? Talking about the benefits of the old pension scheme, its biggest advantage is that it is made on the basis of the last drawn salary. Apart from this, as the inflation rate increases, DA also increases. Even when the governmen...