Today the Finance Minister has made the employees happy because the government has made this formula for the benefit of the employees, which will benefit thousands of employees.
Demand is being made on behalf of crores of central and state government employees to restore the old pension. Some state governments have accepted the demands of the employees regarding this. But the Central Government is trying to find a middle ground regarding the old and the new pension scheme.
In view of this, Finance Minister Nirmala Sitharaman, while presenting the Finance Bill on Friday, said in the Lok Sabha that there is a need to reform the National Pension System (NPS). A committee will be formed under the leadership of the Finance Secretary. The Finance Minister proposed to constitute a committee to improve NPS in the matter related to the pension of government employees.
The committee will be constituted under the leadership of the Finance Secretary. The question is, what steps can the government take to find a middle ground amid the long-standing demand of the employees to restore the old pension (OPS)? Sources say that the government is trying to find a way through which the employees can be made happy without putting extra burden on the exchequer.
Trying to find a middle way
Sources say that Modi government is planning to find a middle way on the demand of old pension (OPS). The government is considering two options. As a first option, it is being considered that government employees should be given guaranteed pension at about 50% of the last salary received under NPS. With the implementation of this rule, changes can be made in the existing NPS without putting much burden on the exchequer.
There can be change in NPS in this way
Sources related to Finance Ministry also say that there can be change in NPS in such a way that after retirement the employee will get 41.7% amount as a lump sum amount. The remaining 58.3% amount was received on the basis of annuity. From the analysis it is found that if the 58.3% corpus made up of Central/State Government contribution (14%) is annuitised, the pension in NPS can be around 50% of the last drawn salary. No official statement has been given by the government.
