New Pension Scheme

The government has announced setting up of a four-member committee to review the National Pension Scheme (NPS)

The panel will devise its own procedure and mechanism, including consulting with the states, to arrive at its recommendations

The state used to spend a proportion of its revenue receipts on pension expenditure in double digits in 2019-20 and 2020-21

Employees from several states have been demanding a change in the current pension system. Some states, including Rajasthan, Chhattisgarh, Jharkhand have already switched back to the old pension scheme

The share of young women getting these jobs, however, declined to 35.4 per cent in 2022, from 37.1 per cent in the preceding year, contrary to the trend seen at the Centre

Under OPS, there is no defined contribution from employees but there is assured pension. However, NPS has defined contribution but no assured returns in terms of some proportion to last drawn salary

MoS for finance says five states have reverted to Old Pension Scheme for their staff

GPS: The scheme, which was proposed for the first time in April 2022, offers a guaranteed pension of 33 per cent of the last drawn basic pay without any deduction to the state government employees

Only 285,226 new state government employees joined the NPS, as compared to 321,255 subscribers in the corresponding period last year

The just over a month old Congress government in Himachal Pradesh on Friday fulfilled a key poll promise, with the Cabinet, at its first meeting, deciding to provide OPS to all government employees

As the Centre has refused to refund the money deposited towards the New Pension Scheme (NPS), the Chhattisgarh government has given an option to all govt employees to choose between the OPS and NPS

Guarantee benchmarked to the rate of return on ten-year government security

Agitators seek dearness relief as scheme component to ensure equitable pension; want adherence to provisions of CMPS 1998 on review and revision of pension every three years

The pension reform had the backing of both BJP and Congress. Now, the political parties are using it as a tool to gain power in certain states. While this may be good politics, is it good economics?

Reverting to OPS is being considered an easier option from a political standpoint, but could financially stress the states

Reverting to OPS is being considered an easier option from a political standpoint, but could financially stress the states

Like most other state budgets, Rajasthan's appears to have been crafted with one eye on the polls, while side-stepping on the issue of resources available to finance its programmes

The government issued a notification saying that the old pension scheme will be effective from April 1, 2022

The NPS has offered higher returns so far than other schemes

The promise by the SP and the BSP in the ongoing Uttar Pradesh Assembly elections that they will revive the Old Pension Scheme (OPS) was dismissed as a political rhetoric by many