Old Pension Scheme ( OPS ) has been restored in Rajasthan . Due to this, the lottery of lakhs of government employees has come out before Holi.
With this, Rajasthan has become the first state to bring back the old pension scheme for government employees. This development comes at a time when Samajwadi Party (SP) and Bahujan Samaj Party (BSP) have promised to bring back OPS in the assembly elections in Uttar Pradesh.
NPS since January 2004
Except West Bengal, the new pension scheme (National Pension System, NPS) is applicable in other states and union territories. The Center has introduced NPS for the officers and employees who joined the government service on or after January 1, 2004 . NPS is applicable in all departments except the Armed Forces.
announcement in budget
Rajasthan Chief Minister Ashok Gehlot said in the budget speech that we all know that the employees associated with government services should feel secure about the future, only then they can make their invaluable contribution in the right direction during the service period. Therefore, I propose to introduce old pension scheme for all employees appointed on or after January 1, 2004.
What is the difference between NPS and OPS
NPS is the contributory mechanism whereas OPS is the defined mechanism. The government brought in NPS because the cost of pension payment was high.
Under OPS, employees get pension according to a predetermined formula, which is half of the last salary. They also get the benefit of hike in Dearness Relief (DR) twice a year.
Contribution to NPS
The new system runs on contribution, where an employee deposits 10 per cent of basic pay and dearness allowance. Earlier, the Center was contributing the same amount, but now it has been increased to 14 percent.
However, the state governments have continued to contribute their 10 per cent. Now in this year’s budget, the tax deduction limit for employer’s contribution to the NPS account of state government employees has been increased from 10 per cent to 14 per cent.
This will help in enhancing the social security benefits of the State Government employees and bring them at par with the Central Government employees.
Welcome to Trade Unions
Trade unions have welcomed the announcement of the Rajasthan government. INTUC general secretary Sanjay Singh said that the central and other state governments should also consider this.
CITU has also welcomed the move. CITU general secretary Tapan Sen said that this has been a legitimate demand of government employees for a long time.
