Parliament Budget Session: Amid the continued second leg of the Parliament Budget Session, the federal government, on Friday, introduced {that a} committee beneath the finance secretary will likely be set up to enhance the New Pension System (NPS). According to the data the step is being taken with a view to maintain the issues of workers whereas sustaining fiscal prudence.
While shifting the Finance Bill 2023 for consideration and passage within the Lok Sabha, Finance Minister Nirmala Sitharaman stated that the brand new method to the NPS will likely be designed for adoption by each central and state governments.
The committee will likely be tasked to handle workers’ wants
“I propose to set up a committee under the finance secretary to look into the issue of pensions and evolve an approach which addresses the needs of employees while maintaining fiscal prudence to protect common citizens. The approach will be designed for adoption by both the central government and state governments,” she stated.
The determination comes within the backdrop of a number of non-BJP states deciding to revert to the DA-linked Old Pension Scheme (OPS) and in addition worker organisations in another states elevating demand for a similar.
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Several states reintroduce Old Pension Scheme
The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have knowledgeable the Centre about their determination to revert to the Old Pension Scheme and have requested a refund of the corpus accrued beneath the NPS.
Earlier this month, the central authorities knowledgeable Parliament that it’s not contemplating any proposal to restore the OPS in respect of the central authorities workers recruited after January 1, 2004.
Under the OPS, retired authorities workers obtained 50 per cent of their final drawn wage as month-to-month pensions. The quantity retains rising with hike within the DA charges.
OPS just isn’t fiscally sustainable as it’s not contributory in nature and the burden on the exchequer retains on mounting.
The whole belongings beneath administration beneath the National Pension System and Atal Pension Yojana stood at Rs 8.81 lakh crore as on March 4, 2023.
NPS carried out with impact from January 2004
It is price mentioning right here that NPS has been carried out for all authorities workers besides these within the armed forces becoming a member of the central authorities on or after the first of January 2004. Most of the state/ Union Territory governments have additionally notified the NPS for his or her new workers. NPS has been made accessible to each Indian citizen from May 1, 2009, on a voluntary foundation.
(With inputs from PTI)
