Important news for central and state government employees. The government has refused to reinstate the old pension scheme (OPS). The government has said that there is a great difference between NPS (New Pension Scheme) and OPS. Its benefits are different.
Important news for central and state government employees. The government has refused to reinstate the old pension scheme (OPS). The government has said that there is a great difference between NPS (New Pension Scheme) and OPS. Its benefits are different. They cannot be compared. NPS is a Contributory Pension Scheme. This includes age to join NPS, subscription period, investment amount, Annuity option. It is a market linked product handled by PFRDA. It is based on returns from the market. Returns are not guaranteed in this. However, PFRDA has done such management, which gives good returns.
Benefits of NPS
According to the government order, the Central Government had formed a high level committee for the benefit of NPS Subscribers. The committee has streamed NPS several times so that the central employees benefit.
AUM of 5.34 Crore
As of 31 December, the NSC’s Subscriber has increased to 13.99 million. While it has an Asset Under Management of Rs 5.34 crore. It includes state and central government employees. Government efforts will give employees the same returns as OPS.
What were the 3 major benefits of old pension
1- OPS was the pension scheme in which pension was made on the basis of the last drone salary.
2- With the rise in inflation in OPS, DA (dearness allowance) also increased.
3- When the government implements the new pay commission, it also increases the pension.
What is in NPS
The Central Government has implemented the New Pension Scheme (NPS) with effect from 1 January 2004. At the same time, NPS came into force from April 1, 2004 in many states. The special thing is that new employees in NPS will not get pension and family pension benefits like the old employees at the time of retirement. Contribution of 10% of salary and dearness allowance is taken from new employees in this scheme. While the government contributes 14%.
New plan implemented in 2004
The Central Government introduced the new pension scheme in 2004. Under this, separate accounts were opened for the funds of the new pension scheme and fund managers were also appointed to invest the fund. If the return of investment of pension fund is good, then new employees can get good amount in future at the time of retirement as compared to old scheme of provident fund and pension. But the employees say that the return of investment of pension fund will be better, how is it possible. Therefore, they are demanding to implement the old pension scheme.
If this NPS is continued according to the present rules, the retired employees would get only one-fiftieth of the benefits equivalent to OPS.
The retired employees would become beggars and most of them would commit suicide.
This NPS can be turned into a better one than OPS. I have ideas for that.