Pension Scheme: Rajasthan government has withdrawn the old pension scheme (OPS) in the state, which will give relief to lakhs of government employees before Holi. The implementation of the old pension scheme will be applicable to those employees who have been appointed on or after January 1, 2004. With this, Rajasthan has become the first state to bring back the old pension scheme for government employees. However, the Samajwadi Party (SP) and the Bahujan Samaj Party (BSP) have also promised to bring back the OPS if voted to power during the ongoing 2022 assembly elections in Uttar Pradesh. Presently, except West Bengal, National Pension Scheme (NPS) is applicable in all other states and union territories. The Center had introduced NPS for the officers and employees who joined the government service. It is applicable in all departments except the Armed Forces.
Making the announcement in the budget session, Rajasthan Chief Minister Ashok Gehlot said, We all know that the employees associated with government services should feel secure about the future, only then they can make their invaluable contribution towards good governance during the service period. . Therefore, I propose to implement the old pension scheme for all employees appointed on or after January 1, 2004.
Difference Between NSP and OPS
The main difference between NPS and OPS is that while the former is a contributory mechanism, the latter is a defined mechanism. The government brought in NPS as the cost of pension payment was high. Under OPS, employees get pension according to a pre-determined formula, which is half of the last salary. They also get the benefit of hike in Dearness Relief (DR) twice a year. Whereas in NPS, the employee deposits 10 percent of the basic salary and dearness allowance. The Center has increased its contribution to 14 per cent. State government employees will also get an increased contribution of 14 percent of the employer in the NPS account from now on. It will optimize the social security benefits of state government employees and bring them at par with central government employees.
Posted By: Navodit Saktawat