Old pension scheme

Members of the Karnataka State NPS Employees’ Association met Siddaramaiah and appealed to him to bring back OPS. Siddaramaiah promised them that OPS will be brought back. He asked them to work towards the successful implementation of the five guarantees of his government. Senior Congress leader VS Ugrappa said the New Pension Scheme (NPS) came into being on April 1, 2006. In all, 2.98 lakh employees come under this scheme. Their pension money has been deposited with NSDL which will be given at the time of their retirement. He urged the CM to bring back OPS. Karnataka State NPS Employees’ Association president Shantaram Tej too explained that in Rajasthan and Chattisgarh, NPS has been scrapped. Karnataka should also scrap NPS. The pension money deposited till now can be utilised by the government to implement development works. Of the Rs 19 crore deposited, Rs 9 crore is employees’ share which they can convert into general provident fund and the government’s share of Rs 10 crore can be utilised to implement development works, he added. Guarantees barrier to pay panel recommendations? With the state government struggling to arrange revenues for its five guarantees, another challenge it may face in implementing the Seventh Pay Commission recommendations. The commission is expected to submit its report in next few weeks, recommending a pay increase for government employees and it could cause an additional burden of Rs 12,000 crore on the state exchequer INDUSTRIES OPPOSE HIKE...

The Reserve Bank of India (RBI) has cautioned states against reverting to the old pension scheme (OPS), which was in vogue till 2004, stating that it will add to the fiscal burden of States in the coming years. The central bank says OPS – instead of the National Pension Scheme (NPS) — will lead to the accumulation of liabilities which can become a major risk in the future. “The annual saving in fiscal resources that this move entails is short-lived. By postponing the current expenses, states risk the accumulation of unfunded pension liabilities in the coming years,” the RBI said in its ‘Report on state finances’ on Monday. As per the Budget estimates for 2022-23, states are expected to incur a 16 per cent rise in pension expenditure at Rs 463,436 crore in 2022-23 as against Rs 399,813 crore in the previous year, the RBI said. The compounded annual growth rate (CAGR) in pension liabilities for the 12 years ended FY22 was 34 per cent for all the state governments, according to an SBI Research report. Also Read | Why are more states going for OPS? The RBI warning has come after more states joined the queue to bring back OPS instead of the National Pension Scheme (NPS). After Rajasthan, Chhattisgarh, Jharkhand and Punjab, Himachal Pradesh has announced its intention to opt for OPS. States have found it convenient to pay old pensioners with the money collected from the serving employees. Under the OPS, retired employees received 50 per cent of their last drawn salary as monthly...

New Delhi: Senior Congress leader Priyanka Gandhi Vadra Monday launched the party’s campaign in Madhya Pradesh, where assembly assembly elections are due later this year. Addressing a rally in Madhya Pradesh’s Jabalpur, Priyanka announced a slew of promises for voters: Old Pension Scheme ( involving no contribution from employee pay), free electricity up to 100 units and half price up to 200 units, Rs 1,500 per month for women, and LPG cylinders at Rs 500. She also said farm loan waivers started in 2018 will be completed. The Congress had emerged as the single-largest party in the 2018 elections and went on to form the state government, but lost power after a rebellion led by Jyotiraditya Scindia, who defected to the BJP along with over 20 MLAs in 2020. A BJP government was subsequently sworn in under Shivraj Singh Chouhan. While announcing the Congress’ promises, Priyanka said the party “will implement these guarantees 100 percent”. “This is my promise to you,” she added, asking voters to see the party’s record in other states it leads. “In Karnataka, we gave five guarantees, all have been passed by the cabinet. In Rajasthan, there is Old Pension Scheme. All election promises are being implemented. In Chhattisgarh, farmers are getting the highest price for their crops. In Himachal also we are implementing (our promises),” she said. During Priyanka’s visit to the state, there were enough signs of what the Congress campaign might look like. Before t...

Old Pension Scheme: Several states are opting back to the Old Pension Scheme. States like Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have already rolled out the Old Pension Scheme and discontinued the National Pension System (NPS). What is Old Pension Scheme • Under the Old Pension Scheme, the entire pension amount to a government employee is paid by the government after retirement. The pension amount is not deducted from the salary of the employee during the period of employment. • However, the Old Pension Scheme was discontinued by the NDA government in 2004. Then Atal Bihari Vajpayee government had introduced the National Pension System. • Under the Old Pension Scheme, a retired government employee used to get the benefit of the revision of Dearness Relief (DR), twice a year. • Under the Old Pension Scheme, approximately 50 per cent of the last drawn salary was provided as pension. • As per the rule, only government employees were eligible for receiving a pension under the Old Pension Scheme after retirement. • Under the OPS there was the provision of the General Provident Fund (GPF). GPF is available only for all government employees in India. Basically, it allows all government employees to contribute a certain percentage of their salary to the GPF. Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on ...