The pension system of the past (OPS) or the old pension scheme has long been a point of contention between government employees as well as the government’s budget.
While several state governments such as Jharkhand as well as Chhattisgarh have announced the return in the former pension system thousands of government employees staged an unofficial protest in Gujarat in support of the return to the pension scheme of old.
The good news is that for government employees in Punjab the Aam Aadmi Party (AAP) government has announced that they are looking at reinstatement of OPS.
OPS across the entire state. Punjab chief minister Bhagwant Mann has said his AAP government will conduct the feasibility study to return back to OPS.
“My government is considering reverting to the Old Pension System (OPS). I have asked my Chief Secretary to study the feasibility and modalities of it’s implementation. We stand committed to the welfare of our employees,” stated CM Mann.
My government is considering reverting to the Old Pension System (OPS). I have asked my Chief Secretary to study the feasibility and modalities of it’s implementation. We stand committed to the welfare of our employees.
— Bhagwant Mann (@BhagwantMann) September 19, 2022
It’s possible to remember it was Chhattisgarh was first in the world to restore the OPS. Then, Jharkhand also announced going back to OPS.
In addition, the Rajasthan administration is working towards restoring OPS. OPS across the entire state. Old pension schemes will go to an end in Jharkhand beginning on 1 October.
The pension scheme that was in place before was canceled on April 1st in 2004. It was replaced by market-driven pension plans.
The National Pension System (NPS) was established to Central Government employees covering all new recruits to into the Central Government service (except armed forces) beginning 01.01.2004.
In the Ministry of Personnel, Public Grievances & Pensions had stated in March of this year that it was not preparing a plan to reinstate the pension scheme for Central Government
civil employees joined from or after 01.01.2004 in the considerations under The Government of India.
NPS is now controlled by the PFRDA Act 2013, 2013 and regulations made under the supervision of PFRDA as well as PFRDA and the Department of Financial Services.