After the Gehlot government of Rajasthan reinstated the old pension scheme in the state, the demand for restoration of the old pension scheme on behalf of the central government and other state government employees may gain momentum.
Old Pension Scheme: The Ashok Gehlot government of Rajasthan has again announced to restore the old pension scheme in the state. After which this is going to become a big issue in other states of the country as well. In other states also, government employees are going to put these demands loudly in front of the governments.
In the assembly elections being held in Uttar Pradesh, the Samajwadi Party promised in its manifesto that if the SP becomes the government in the state, the old pension scheme would be restored again.
CM Gehlot tweeted that, “We all know that the employees associated with government services should feel secure about the future, only then they can make their invaluable contribution towards good governance during the service period. Therefore, for all the personnel appointed on and after January 1, 2004, I announce to implement the pension scheme before the coming year.
हम सभी जानते हैं सरकारी सेवाओं से जुड़े कर्मचारी भविष्य के प्रति सुरक्षित महसूस करें तभी वे सेवाकाल में सुशासन के लिए अपना अमूल्य योगदान दे सकते हैं।अतः 1 जनवरी 2004 और उसके पश्चात नियुक्त हुए समस्त कार्मिकों के लिए मैं आगामी वर्ष से पूर्व पेंशन योजना लागू करने की घोषणा करता हूं।
— Ashok Gehlot (@ashokgehlot51) February 23, 2022
In fact, in many states of the country, government employees are continuously pressurizing the government to restore the old pension scheme again. Even on the streets there are agitations. In recent times, the discussion of the old pension scheme is also in full swing in the political corridor. Lakhs of employees are waiting for the old pension scheme to be restored. Not only the employees of the states, but the central employees are also waiting for this.
It is expected that the government can bring some central employees from New Pension Scheme (NPS) to Old Pension Scheme (OPS). These will include those employees for whose recruitment advertisements were issued on or before December 31, 2003. After an order of the Supreme Court, its fragrance has started.
The old pension scheme was closed in 2004,
The government of the then Prime Minister Atal Bihari Vajpayee had announced the implementation of the new pension scheme from April 1, 2004, except the Defense Forces. From this date or after that, whoever joins the government job, it was made necessary to contribute towards the pension in the New Pension Scheme from their salary.
The central government implemented the new pension scheme, but did not make it mandatory for the states. Later gradually most of the states adopted it. But after a short time, the opposition to the new pension scheme started.
Now let us explain to you the difference between Old Pension Scheme (OPS) and New Pension Scheme (NPS).
- Actually, there is no deduction from salary for pension in Old Pension Scheme (OPS), whereas in NPS 10% (Basic + DA) is deducted from the salary of the employee.
- There is a facility of GPF (General Provident Fund) in the old pension scheme. The facility of General Provident Fund (GPF) has not been added to NPS.
- Old Pension Scheme (OPS) is a secure pension scheme. Its payment is done through the Treasury of the government. The New Pension Scheme (NPS) is based on the stock market, payment is made only on the basis of market movements. There is no guarantee on the returns you get from the market.
- In the old pension scheme OPS, at the time of retirement, fixed pension is available up to 50 percent of the last basic salary. There is no guarantee of fixed pension at the time of retirement in NPS.
- Dearness Allowance (DA) is applicable after 6 months in the old pension scheme. Dearness allowance received after 6 months in NPS is not applicable.
- In the old pension scheme OPS, after retirement, gratuity is available up to Rs 20 lakh. There is a temporary provision of gratuity at the time of retirement in NPS.
- In the old pension scheme OPS, there is a provision of family pension in case of death during service. Family pension is available on death during service in NPS, but the money deposited in the scheme is forfeited by the government.
- In the old pension scheme OPS, no income tax is levied on the interest of GPF on retirement. On retirement in NPS, the money that will be received on the basis of the stock market will have to be taxed.
- At the time of retirement in the old pension scheme OPS, no investment has to be made from GPF to get pension. To get pension on retirement in NPS, 40 percent money has to be invested from NPS fund.
- There is a provision of 40 percent pension commutation in the old pension scheme OPS. This provision is not there in NPS. Medical Facility (FMA) is there, but there is no clear provision in NPS.
