Curated By: Business Desk
Last Updated: December 13, 2023, 17:12 IST
The Centre shared it in a written assertion within the Lok Sabha.
This is the primary time the Centre has formally dominated out going again to the earlier regime of pension.
The Central Government has no plan to shift again to the previous pension scheme (OPS), which 5 states have already opted for. This was shared by them in a written assertion in Lok Sabha on Monday. The Centre additionally underlined that accrued contributions of the subscribers can’t be utilized by states to revert to the sooner programme below the regulation. This is the primary time the Centre has formally dominated out going again to the earlier regime of pension. They additionally clarified whether or not previous contributions from subscribers might be utilised to revert to OPS. “There is no proposal under consideration of the Government of India for the restoration of the old pension scheme in respect of Central Government employees recruited on or after 01.01.2004,” Minister of State within the Finance Ministry, Pankaj Chaudhary, mentioned in a written reply in Lok Sabha. He, nonetheless, additionally agreed that the representations have been acquired on occasion, together with the request to revive the previous pension scheme.
Pankaj Chaudhary additionally talked about {that a} committee has been arrange below the management of Finance Secretary TV Somanathan to look into the difficulty of pensions below the National Pension System (NPS) given by the federal government staff and amongst different issues, additionally to look at the prevailing framework and the construction of NPS.
He responded to a question by lawmakers Naba Kumar Sarania (Independent), Deepak Baji (Congress) and Krupal Balaji Tumanu (Shiv Sena), who needed to know if the union authorities has any plans on switching again to the OPS.
Pensions for the federal government staffers are a politically polarising concern, with a number of Opposition-ruled stats switching to OPS. The OPS supplied pensioners month-to-month advantages of fifty % of their final drawn wage. The new NPS in drive is a market-linked pension plan launched in 2004 and provides no assured base quantity.
At numerous factors over the past two years, state governments together with Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have reverted to OPS for the staffers on the states’ payroll by informing the Centre and the Pension Fund Regulatory and Development Authority (PFRDA).
If we converse in regards to the new National Pension Scheme, practically 8.7 million centre and state-authorities staff contribute 10 % of their primary wage, whereas the federal government pays 14 % to a pension fund. The ultimate payout depends upon returns on these funds. It is usually invested in authorities debt devices.
