OPS: The old pension scheme has been restored in states like Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh. After the boom in different states regarding old pension, it started being discussed that the central government can also restore OPS for its employees.
Old Pension Scheme Latest News: Government employees of Karnataka and Maharashtra announced to go on strike, demanding the restoration of the old pension scheme. After this, both the state governments have constituted the committee and asked to submit the report. Earlier, the old pension scheme has been restored in states like Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh. After the boom in different states regarding old pension, it started being discussed that the central government can also restore OPS for its employees.
Responded in a written reply in Rajya Sabha
Minister of State for Finance Bhagwat Karad replied in a written reply in Rajya Sabha on this discussion. He said that the central government is not considering the proposal to restore the old pension scheme in any way. He also said that the state governments which wish to return to the old pension, will not get the refund of the funds collected under NPS. There is no provision in the PFRDA Act regarding this.
Demand for return of accumulated funds
The Central Government informed that non-BJP ruled states, which have restored the Old Pension Scheme (OPS), are demanding the return of accumulated funds in NPS. But there is no rule in the PFRDA Act for the return of this fund. The Center has been informed about the decision to restore OPS by the governments of Rajasthan, Jharkhand, Chhattisgarh, Himachal Pradesh and Punjab. Also, these state governments have requested for the return of the accumulated funds under the National Pension System (NPS).
Karad again reiterated that there is no provision under the Pension Fund Regulatory and Development Authority Act, 2013, under which the accumulated corpus of the subscribers can be returned. Karad informed that the Central Government is not considering any proposal to restore OPS in respect of Central Government employees recruited after January 1, 2004. It was made mandatory for all new recruits to government service (except the armed forces) from January 1, 2004.
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