If you’re invested in the National Pension Scheme (NPS), especially for your pension after retirement, recent developments are crucial.
Many central and state government employees have long advocated for reinstating the Old Pension Scheme (OPS).
While some states like Himachal Pradesh, Chhattisgarh, Punjab, Rajasthan, and Jharkhand have acceded to this demand, the central government has declined to do so.
Despite this, numerous employees remain steadfast in their demand for OPS restoration.
Government’s Assurance on Pension Benefits
Employee unions highlight that under the current National Pension Scheme (NPS),
retirees do not have a guaranteed fixed benefit, unlike the OPS where a fixed pension is assured.
To address this concern, the government is exploring options to ensure that employees covered under NPS receive similar pension benefits as those under OPS after retirement.
One proposed solution is to guarantee 50% of the monthly salary as pension post-retirement.
Consideration of Pension Guarantees
In response to worries about sufficient post-retirement pensions, particularly for those entering the workforce after 2004,
the government is contemplating measures to provide assurances.
A committee led by Finance Secretary TV Somanathan is examining various pension schemes worldwide and assessing the feasibility of guaranteeing a substantial portion of pensions,
potentially up to 50%.
This initiative aims to alleviate concerns among employees who have diligently contributed to their retirement funds over 25-30 years.
