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Old pension scheme| latest news| old pension benefits| old pension vs new pension

Old pension scheme: Now the discussion of the Old Pension Scheme (OPS) is gaining momentum all over the country. In the last several state elections, the issue of old pension scheme (OPS) is proving to be deciding the fate of political parties. It was closed in 2004 by late Atal Bihari Vajpayee, who was the Prime Minister from the present BJP government.

Government employees then staged countless agitations demanding restoration of the old pension scheme. But the governments tried their best to crush the movements of the employees, but various employee organizations have been fighting this battle from time to time. But now it seems that all political parties have been forced to include this burning issue in their manifestos. Now they also feel that it is difficult to get the throne without the old pension scheme to achieve the important vote bank of government employees.

More recently, the Congress won Himachal Pradesh on one of its poll issues – with the issue of bringing back the old pension scheme. Pensioners formed an important vote bank for the hill state, which has around 2.5 lakh government employees. Another 1.90 lakh employees have now retired and are receiving pension. According to a news laundry report, despite the fact that only 55 lakh voters decide the fate of political parties, these active and retired government employees, along with their dependents, form a strong voter base.



OLD PENSION SCHEME IMAGE
OLD PENSION SCHEME


old pension vs new pension:


Old Pension Scheme (OPS):


• In Old Pension Scheme (OPS), employees receive 50 per cent of their final withdrawn basic salary and Dearness Allowance or their average earnings, whichever is higher, in the last ten months of service. A mint report states that the employee must meet the ten-year service requirement.

• Employees are not required to contribute to their pension under Old Pension Scheme (OPS). The guarantee of pension and family pension after retirement was an incentive to take up government employment. There was no pressure to create a retirement fund. Due to increasing life expectancy, Old Pension Scheme (OPS) has become unsustainable for governments.


New Pension Scheme (NPS):


• Government employed people contribute 10% of their basic salary to their pension under New Pension Scheme (NPS), while their employers contribute up to 14%. Private sector employees can also voluntarily participate in New Pension Scheme (NPS), though some rules have been changed.

• The client has a lot of flexibility and a greater sense of control over his or her fate with New Pension Scheme (NPS). Regardless of equity or debt, a professional pension fund manager can ensure better returns and a larger retirement fund. The Mint report further points out that unlike defined benefit plans, New Pension Scheme (NPS) is a defined contribution scheme.


Why was New Pension Scheme (NPS) opposed?


The opposition can be explained by the points pointed out by the Federation of Central Government Employees' Associations in a recent letter to the Cabinet Secretary, which has called it a disaster for older and retiring employees.

According to the federation, Defense establishment officer who recently retired after more than 13 years of service received only 15% of the assured pension received under the Old Pension Scheme (OPS).

The officer with a basic salary of Rs 30,500 received a monthly pension of Rs 2,417 under New Pension Scheme (NPS), while under Old Pension Scheme (OPS) he would get a pension of Rs 15,250.

Another officer with a basic salary of Rs 34,300 received a monthly pension of Rs 2,506 under New Pension Scheme (NPS) after more than 15 years of service, while under Old Pension Scheme (OPS), he would have been entitled to a pension of Rs 17,150.






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