The government is planning to bring back the Old Pension Scheme for all the government employees. This could be a big relief for many workers. If this decision is made, All the employees will get financial support after retirement. Several Indian states have already reintroduced Old Pension Scheme, and now the central government is also thinking about it.
End of OPS in 2004
The Old Pension Scheme was stopped by the central government on 1 April 2004. After that, many states also ended OPS and started the New Pension System (NPS). Under The NPS, both the employee and the government contribute to a pension fund. The final pension amount depends on market performance. But in OPS, retirees get a fixed pension based on their last drawn salary.
Opposition to New Pension System
Many employee and their unions are against the NPS. They say it does not provide a secure income after retirement. J.N. Tiwari, the President of the State Employees Joint Council, has written several letters to Prime Minister Narendra Modi asking to bring back the old pension. He sent letters on 12 March 2022, 8 April 2023, 24 April 2023, and 11 July 2023. He requested that employees be allowed to choose between NPS and OPS.
Problems in States that Adopted OPS Again
Some states have already restarted the Old Pension Scheme. But technical issues still exist. For example, in those states, employees are still having NPS deductions from their salary, even after shifting to OPS. This problem needs to be fixed for OPS to work properly.
Demand for Employee Choice
Earlier, until 2009, the central government gave a few employees the option to choose between the two schemes. Tiwari believes that now all employees—whether central or state—should be allowed to pick their pension plan. Just like private sector employees have the option to join NPS, government workers should have the option to go back to OPS.
Committee Formed by Central Government
On 26 August, J.N. Tiwari met Uttar Pradesh Chief Minister Yogi Adityanath to talk about OPS. The CM said that the central government has formed a committee to study this matter. Reports suggest the committee may support the return of OPS. If that happens, employees should not be forced to stay in NPS.
Political Impact of the Decision
Tiwari warned that if the government does not allow the return of OPS, it may face backlash in the upcoming state and Lok Sabha elections. Pension is an important issue for many employees, and it can affect how they vote.
Conclusion
The return of the Old Pension Scheme could bring major changes for government employees. It would give them more financial security after retirement. If the central government allows a choice between OPS and NPS, it would be a fair and welcomed decision by many workers.