Old Pension Scheme: Old Pension Scheme is in a lot of discussions these days. Meanwhile, a big update has come out on the Old Pension Scheme.
In an important decision, the government has decided to give one time option to central government employees to switch to Old Pension Scheme (OPS). With this, government employees will be able to switch from the new pension scheme to the old pension scheme. However, this decision taken by the Modi government is not applicable to all government employees. Only selected government employees will be able to take advantage of this.
NEW PENSION SCHEME
According to media reports, government employees who applied for jobs advertised before December 22, 2003, the day the National Pension System (NPS) was notified, but joined service in 2004, will be able to shift to OPS. Joined when NPS came into force. NPS was notified on 22 December 2003. As per DoPPW, eligible employees can exercise the one-time option till 31 August 2023.
The old pension scheme
will benefit many government employees. The order will apply to Central Armed Police Forces (CAPF) personnel and other central government employees who joined the services in 2004, as the recruitment process was delayed due to administrative reasons. Employees’ contribution to NPS will be credited to the General Provident Fund (GPF) of the individual.
Pension Scheme
The Bharatiya Janata Party-led government has said that restoring the old system will put unnecessary financial burden on the government. While many opposition ruled states like Chhattisgarh, Rajasthan, Jharkhand, Punjab and Himachal Pradesh have also announced to restore OPS. As on January 31, 23,65,693 central government employees and 60,32,768 state government employees were enrolled under NPS. NPS was implemented by all the states except West Bengal.
