Old Pension Scheme: Old Pension Scheme (OPS) is a pension scheme, under which the salary of government employees was based on their retirement. Under this scheme, after the death of a retired employee, his family members were also given pension.
However, the old pension scheme was abolished in India as a part of pension reforms by the central government. This scheme was canceled with effect from 1 January 2004. In this, a defined-benefit pension equal to half of the last salary drawn at the time of retirement including components like dearness allowance etc. was available.
The National Pension System came into effect on 22 December 2003. Under this, Old Pension Scheme (OPS) was implemented. Where in the old pension scheme OPS, fixed pension was available up to 50 percent of the last basic salary at the time of retirement. The old pension scheme also provides guaranteed income after retirement.
However, the old pension scheme was discontinued by the NDA government in 2004. Then the Atal Bihari Vajpayee government started the National Pension System. Under the old pension scheme, retired government employees used to get the benefit of revision in Dearness Relief (DR) twice a year.
Now the same government employees can use the Old Pension Scheme (OPS) option till August 31, 2023. Regarding employees eligible for the Old Pension Scheme, DoPT has said that members of AIS selected through Civil Services Examination, 2003, Civil Services Examination, 2004 and Indian Forest Service Examination, 2003 are eligible to be covered under these provisions.
Which state has implemented the old pension scheme?
Rajasthan had restarted the Old Pension Scheme in April 2022. Subsequently, Chhattisgarh notified the scheme in December 2022, Jharkhand, Punjab in October 2022, and Himachal Pradesh on April 17, 2023. The Old Pension Scheme (OPS) is a secured pension scheme. It is paid through the government treasury.
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