After the implementation of the old pension scheme by the Rajasthan government, in Chhattisgarh also the government employee was given the old pension scheme. Chief Minister Bhupesh Baghel announced this in the Chhattisgarh Legislative Assembly on Wednesday. After the announcement of CM, due to the implementation of old pension in Chhattisgarh, more than 3 lakh government employees appointed after January 1, 2004 will get the benefit.
Let us inform that during the government of Atal Bihari Vajpayee, except the Defense Forces, from April 1, 2004, it was announced to implement the new pension scheme in place of the old pension scheme. Those joining government jobs after April 1, were made mandatory to contribute towards pension in the New Pension Scheme from their salary. The central government implemented the new pension scheme, but did not make it mandatory for the states. Most of the states adopted it, but after a short time the employees’ unions of the state started opposing the new pension scheme and there was a demand to start the old pension scheme.
There will be no financial burden on the state government
With the implementation of the old pension scheme, there will be no financial burden on the government for the coming decade. On the contrary, there will be a saving of Rs 1680 crore annually. This is the amount, which the state government gives from its own hands in the Contributory Pension i.e. New Pension Scheme. The new pension scheme has been implemented since 2004. After that the number of government employees recruited is said to be above three lakhs. These employees will retire only after 2030-32. Then the burden of their dues will fall on the government. The employees’ organizations of Chhattisgarh are loudly demanding to start the old pension scheme again.
Difference between OPS (Old Pension Scheme) and NPS (New Pension Scheme)
There is no deduction from salary for pension in Old Pension Scheme, whereas 10% (Basic + DA) is deducted from the salary of the employee in New Pension Scheme.
The old pension scheme has the facility of GPF General Provident Fund, while the facility of General Provident Fund (GPF) has not been added to the new pension scheme.
Old Pension Scheme is a secure pension scheme. It is paid through the government’s treasury, while the new pension scheme is stock market based. Payment is made on the basis of market movement.
In the old pension scheme, at the time of retirement, fixed pension is available up to 50 percent of the last basic salary. There is no guarantee of fixed pension at the time of retirement in the New Pension Scheme.
In the old pension scheme, after retirement, gratuity is available up to Rs 20 lakh. There is a temporary provision of gratuity at the time of retirement in the New Pension Scheme.
Dearness Allowance (DA) is applicable after 6 months in the old pension scheme. The dearness allowance received after 6 months in the New Pension Scheme is not applicable.
In the old pension scheme, there is no income tax on GPF interest on retirement. On retirement in the New Pension Scheme, the money received on the basis of the stock market will have to be taxed.
In the old pension scheme, there is a provision of family pension in case of death while in service. In the New Pension Scheme, family pension is available on death during service, but the money deposited in the scheme goes to the government.
In the old pension scheme, at the time of retirement (retirement), no investment has to be made from GPF to get pension. In New Pension Scheme, 40 percent amount has to be invested from New Pension Scheme Fund to get pension on retirement.