Rajasthan Implemented Old Pension Scheme (OPS): The Government of Rajasthan has implemented the Old Pension Scheme. Earlier, the state of Chhattisgarh has also implemented OPS.
New Delhi: The Rajasthan government has said that it will give the benefit of old pension scheme to its serving and retired employees. While presenting the budget on February 10, the Chief Minister of Rajasthan had said that instead of NPS, he would give the benefit of OPS to the state employees. Let us tell you that earlier the Chhattisgarh government has announced the implementation of OPS.
What is the new pension system NPS and the old pension system OPS
The Central Government has replaced the old pension system (OPS) in 2004 and implemented the National Pension System (NPS). The pension amount under NPS is decided on the total accumulated amount and the return on investment. In this, the employees get 10 percent of the basic salary and DA and the state government also contributes the same amount. NPS is focused on the stock market and the payouts are market-oriented. On the other hand, in the old pension system (OPS), on retirement of the employee, he gets 50 percent of the salary received in the last month as pension every month. Because, under OPS, the pension amount is decided by the basic salary and inflation rate. This amount is paid from the government treasury.
Rajasthan government implements old pension system
After presenting the state budget 2023-24 and announcing concessions for the public, Rajasthan Chief Minister Ashok Gehlot said that the announced schemes are part of social security and not freebies. He announced the benefit of Old Pension Scheme (OPS) for almost all serving and retired employees in the state.
Chhattisgarh government has implemented the old pension system
Chhattisgarh Chief Minister Bhupesh Baghel said that under the old pension system, government servants will be considered as members of the Chhattisgarh General Provident Fund from April 1, 2022, and from the date of appointment on or after November 1, 2004, to March 31. Till 2022, the employee contribution deposited in the NPS account and the dividend earned thereon will be given to the government employee under the NPS rules.
The central government is not in favor of implementing the old pension system.
The central government has already refused to implement the old pension system. The government has said that it will keep NPS in force. At the same time, the Congress-ruled states had urged the Center to give the amount of employees deposited in NPS, which the Center refused. In this case, the Pension Fund Regulatory and Development Authority (PFRDA) has informed the concerned states that the claim of the states on the accumulated savings of the employees under the National Pension System (NPS) is not legally valid. The pension regulator, after a detailed legal examination of NPS provisions, has told the states that the deposits of employees cannot be transferred to the government treasury. That’s why the states will not be able to get the deposit amount of the employees.
