Central Govt Employees NPS/OPS: There is good news for central employees and pensioners. After the 4% DA/DR increase, employees can get another gift before the New Year.
It is reported that before the Lok Sabha elections, the Modi government at the Center is preparing to amend the National Pension Scheme, for this the pension model of Andhra Pradesh is being considered. Under this, employees can be given benefits like the old scheme. There is a possibility that Modi government may announce a new scheme before 2024. Let us tell you that NPS is applicable across the country for all government employees except the armed forces employees who joined the Central Government after January 2004.
Andhra Pradesh model is being considered
In fact, after the restoration of OPS in Punjab, Chhattisgarh, Rajasthan, Jharkhand and Himachal Pradesh, the demand for the old pension scheme has gained momentum across the country. Employees’ organizations have opened a front against the Central and State Governments for implementing OPS, in such a situation, discussions have started to change the National Pension Scheme by not implementing OPS before the Lok Sabha elections.
According to media reports, Modi government is preparing to make changes in NPS, for this the Finance Ministry is considering adopting Andhra Pradesh model. For this, the government is currently preparing to make changes on the recommendations of a high level committee investigating the matter.
What benefit will you get?
According to media reports, the Central Committee is working on the modalities of the pension scheme, every aspect of which is being closely considered, which is mainly based on the Andhra Pradesh model. The Andhra model guarantees pension based on 40-50% of the employee’s last basic pay. The proposed scheme would be market-linked, with the government meeting any shortfall in the pension fund. Employees will continue to contribute as before, while the government’s contribution will increase. Currently, employees contribute 10% of their basic salary to the NPS, while the government contributes 14% to the NPS account. However, it is not clear whether the new scheme will be linked to DA like the Andhra scheme or not.
Know what is the difference between OPS and NPS
- In OPS, after the retirement of a government employee, half of the last basic salary and dearness allowance is given as pension from the government treasury throughout his life. In OPS, DA is also increased twice every year. On the death of a pensioner government employee, the pension given to his family is also included in OPS.
- Unlike OPS, in the new pension scheme, whatever money you get on retirement as per the stock market, you have to pay tax on it. In OPS, Dearness Allowance (DA) is applied to the employees after 6 months. In OPS, employees get a gratuity of up to Rs 20 lakh after retirement. In OPS, an employee does not have to pay any income tax on the interest on GPF on retirement.
- Under the NPS new pension scheme, a government employee has to pay 10 percent of his basic salary in his pension and the state government contributes only 14 percent. Under the new pension scheme, 40 percent of the NPS fund is invested to get pension on retirement. Has to be done. There is no guarantee of fixed pension after retirement.
- NPS is based on the stock market. This does not include the provision of dearness allowance. In NPS, there is a provision to give 50 percent of the total salary as pension to the family members in case of death of an employee during service. There is no permanent provision of gratuity at the time of retirement in NPS. Pension Retired employees also get the benefit of getting their pension revised once the commission is implemented. In the New Pension Scheme (NPS), the Dearness Allowance (DA) given after 6 months is not applicable.
