It is time for India’s 97% to speak up against the Old Pension Scheme
1 year, 2 months ago

It is time for India’s 97% to speak up against the Old Pension Scheme

Live Mint  

Few will dispute that the Indian economy’s recovery from the covid shock has been better than that of most other major economies, barring perhaps the US. If this admittedly K-shaped rebound is to continue apace and become more equitable, government spending must hold up; and, as a corollary, the health of government finances isn’t imperilled. In a country inured to irresponsible poll promises of ‘freebies’ such as free water and electricity, and loan waivers, political parties have been promising the most dangerous of them all: A return to the earlier defined-benefit Old Pension Scheme in lieu of the post-2004 defined-contribution New Pension System. Given the huge and unsustainable burden that the OPS imposes on the public exchequer, this would simply sound the death-knell for all attempts to put government finances on a much-needed even keel after the toll imposed by pandemic-related expenses. It would be an “unmitigated fiscal disaster,” says Jayaprakash Narayan, founder of the Hyderabad-based Foundation for Democratic Reforms, which is leading advocacy efforts aimed at educating the public and political class on the dangers of going down that route.

 resources  health  indias  97  scheme  political  pension  huge  poll  old  speak  ops  public  promises  return

History of this topic

Private vs public sector pensions - how to avoid a race to the bottom: This is Money podcast
2 months, 2 weeks ago

Private vs public sector pensions - how to avoid a race to the bottom: This is Money podcast

Daily Mail  

Of all the tax-raising ideas in Rachel Reeves' 'running out of options' Budget, one stood out for how widely it was shot down: charging employer national insurance on pension contributions. This would leave only private sector employers exposed, their workers' pensions potentially dented and taxpayers picking up the tab to protect more generous public sector schemes. Public sector defined benefit …

Resurrecting the New Pension Scheme (NPS)
3 months, 3 weeks ago

Resurrecting the New Pension Scheme (NPS)

Times of India  

There is nothing called a perfect public policy scheme – best epitomised into NPS’ failure to stand up to popular expectations. Government employees reluctantly joining the NPS as reluctant subscribers jokingly called it as ‘No Pension Scheme’. Yet, until the unified pension scheme came recently, there was no alternative for the large NPS subscribers, perceiving themselves as poor cousins to …

Reforms to strengthen Unified Pension Scheme
4 months ago

Reforms to strengthen Unified Pension Scheme

New Indian Express  

On August 24, the Union cabinet approved the Unified Pension Scheme, a significant step towards providing government employees a secure and assured pension after retirement. Over the last few years, the opposition has highlighted the dissatisfaction of government employees with the National Pension Scheme, commonly known as the New Pension Scheme. First, assured pension of 50 percent of the employee's …

Ajit Ranade: A truly secure nest egg is one that’s fully funded
4 months, 1 week ago

Ajit Ranade: A truly secure nest egg is one that’s fully funded

Live Mint  

The government announced a change in the National Pension System, which has been in force for more than 20 years. Under the new Unified Pension Scheme, the retired government employee is assured of an income that is 50% of the average salary drawn in the last year before retirement. It is unfair to the country’s 97% non-government workers and unborn …

Ecostani | Unified Pension Scheme, a moral victory for the Opposition
4 months, 2 weeks ago

Ecostani | Unified Pension Scheme, a moral victory for the Opposition

Hindustan Times  

The Unified Pension Scheme approved by the Union government on Saturday — a mix of contribution and assured pension, to replace the New Pension Scheme, a wholly contributory mechanism — will provide some social security to government employees after retirement. The scheme, which is virtually akin to the Old Pension Scheme that NPS replaced in 2004, assures government employees 50% …

Unified pension scheme: T.N. government begins studying possible implications over UPS
4 months, 2 weeks ago

Unified pension scheme: T.N. government begins studying possible implications over UPS

The Hindu  

Even as the Tamil Nadu government is awaiting full details of the Unified Pension Scheme, it has begun the preliminary task of studying possible implications in the event of the adoption of such a scheme in the State. As and when the government decides to implement the State-specific pension scheme, the political leadership would prefer to wait for an “opportune …

Maharashtra becomes first state to implement Unified Pension Scheme | DETAILS
4 months, 2 weeks ago

Maharashtra becomes first state to implement Unified Pension Scheme | DETAILS

India TV News  

Maharashtra cabinet: The Maharashtra government, led by Chief Minister Eknath Shinde, has become the first in the country to implement the Unified Pension Scheme for state employees. Additionally, the cabinet cleared the Rs 7,000 crore Nar-Par-Girna river linking project, which is expected to primarily benefit the northern Maharashtra districts of Nashik and Jalgaon. Other major decisions taken by Maharashtra Cabinet …

Unified Pension Scheme is a U-turn That Will Have Severe Fiscal Implications
4 months, 2 weeks ago

Unified Pension Scheme is a U-turn That Will Have Severe Fiscal Implications

The Quint  

It is important to note that the NPS was introduced by the Vajpayee government because of a "fundamental issue" associated with the OPS, that is, it was unfunded and will ultimately balloon the nation’s fiscal deficit to unsustainable levels. In 1990-91, the Centre’s pension bill was Rs 3,272 crore, and the outgo for all states put together was Rs 3,131 …

New pension scheme to benefit central govt staff
4 months, 2 weeks ago

New pension scheme to benefit central govt staff

Hindustan Times  

The Union cabinet led by Prime Minister Narendra Modi on Saturday approved a new pension policy for nearly 2.3 million central government employees, unveiling a framework that will give assured 50% of basic pay as monthly payout, assuaging federal staff unions that had sought guaranteed retirement benefits. Modi had set up a panel led by cabinet secretary-designate TV Somanathan, the …

Telangana Government Workers Reject Centre’s Pension Plan
4 months, 2 weeks ago

Telangana Government Workers Reject Centre’s Pension Plan

Deccan Chronicle  

Hyderabad: In a strong show of resistance, state government employees covered under the New Pension Scheme have expressed their firm opposition to the Unified Pension Scheme approved by the Union Cabinet on Saturday. The National Movement for Old Pension Scheme secretary-general, G. Sthitaprajna, voiced the employees' dissatisfaction with the new Unified Pension Scheme announced by the Centre. "If a government …

Govt, workers thrash out key issues in new pension scheme
5 months ago

Govt, workers thrash out key issues in new pension scheme

Hindustan Times  

Representatives of the government and its employees have reached a consensus on the contentious pension issue, addressing concerns about post-retirement benefits without reverting to the old pension scheme, according to two people familiar with the matter. “After working out the finer details, the committee will submit its report to the government soon.” The resolution addresses three core apprehensions of employees, …

For the social sector, it is old wine in an old bottle
5 months, 2 weeks ago

For the social sector, it is old wine in an old bottle

The Hindu  

Budget 2024 is no different from previous years as far as allocations for the social sector are concerned. The Economic Survey has a chapter called ‘Social Sector: Benefits that Empower’, which states, “India’s high and sustained economic growth in recent years is being accompanied by social and institutional progress, underpinned by transformational and effective implementation of Government programmes with an …

Old vs new pension scheme: Will Budget 2024 offer 50% of last drawn salary as annuity?
5 months, 2 weeks ago

Old vs new pension scheme: Will Budget 2024 offer 50% of last drawn salary as annuity?

Firstpost  

Amid calls to restore old pension scheme, government is considering a proposal to increase pension benefits under National Pension System. Reports suggest Finance Minister Nirmala Sitharaman may announce a 50% pension guarantee of employees’ last drawn salary in Budget 2024. File Photo Amid calls, including from Opposition parties, for restoration of old pension scheme, Narendra Modi government is likely to …

Budget 2024: Govt may double minimum guaranteed amount under Atal Pension Yojana
6 months ago

Budget 2024: Govt may double minimum guaranteed amount under Atal Pension Yojana

India TV News  

Budget 2024: The government is considering a proposal to increase the minimum guaranteed amount under its popular social security initiative, Atal Pension Yojana. Proposals to make scheme more attractive As of June 20, there have been more than 66.2 million enrollments in the Atal Pension Yojana, with 12.2 million new accounts added in the financial year 2023-24 alone. Economically deprived …

Government employees may soon get 50% of last pay as pension under NPS: Report
6 months ago

Government employees may soon get 50% of last pay as pension under NPS: Report

Hindustan Times  

Central government employees who are covered under the National Pension System may soon receive 50 per cent of their last drawn pay as pension as the government seeks to address concerns over payout disparities, The Times of India reported. The government has ruled out a return to the Old Pension Scheme which guaranteed a defined benefit of half of the …

Budget 2024: Central government staff could get 50% final pay as pension
6 months ago

Budget 2024: Central government staff could get 50% final pay as pension

India Today  

The upcoming Budget 2024 is just a few weeks away, and the government may offer 50% of the final pay drawn as a pension for central government employees enroled under the National Pension System. Read Full Budget 2024 Coverage While the government has dismissed the idea of returning to the Old Pension Scheme, it is considering ways to provide reassurance …

Budget 2024: Central govt employees may receive 50 per cent of last drawn salary as pension under NPS
6 months ago

Budget 2024: Central govt employees may receive 50 per cent of last drawn salary as pension under NPS

India TV News  

As the Finance Ministry prepares to present the 2024–25 fiscal year budget, the National Democratic Alliance government is contemplating a significant reform for central government employees. According to a report by the Times of India, the government may offer 50% of the last drawn salary as a pension under the National Pension System. Addressing employee concerns This proposed move aims …

Congress ignores Old Pension Scheme in Lok Sabha election manifesto, says 'it's in our minds'
9 months ago

Congress ignores Old Pension Scheme in Lok Sabha election manifesto, says 'it's in our minds'

Op India  

On 5th April, the Congress party released its manifesto ‘Nyay Patra’ for the coming Lok Sabha elections. After strongly campaigning for reverting to Old Pension Scheme in state assembly elections, the party has now backtracked and made no mention of OPS in its manifesto for the general elections. Congress’s decision to restore the Old Pension Scheme has taken a heavy …

NPS scheme may get a makeover in Interim Budget 2024
11 months, 2 weeks ago

NPS scheme may get a makeover in Interim Budget 2024

India Today  

India is expected to consider extending tax concessions on contributions and withdrawals in the upcoming Interim Budget 2024, in an effort to make the National Pension Scheme more attractive, as per a Deloitte report The government might specifically focus on individuals aged 75 and above. Corporations enjoy tax exemptions for contributions up to 10 per cent of the basic salary …

India urgently requires universal pension plan, say senior citizens
1 year ago

India urgently requires universal pension plan, say senior citizens

The Hindu  

In the absence of a social security scheme, India should urgently introduce a universal pension scheme to ensure economic security for its retired and elderly population. Stagnant pension sum According to Mr. Gangadhar, the government of India runs Indira Gandhi National Old Age Pension Scheme, and pays ₹2,000 per month to citizens above the age of 60 who are Below …

Will deliberate on Old Pension Scheme after panel report: Amit Shah
1 year, 1 month ago

Will deliberate on Old Pension Scheme after panel report: Amit Shah

The Hindu  

Union Home Minister Amit Shah said on Thursday that the government would deliberate on restoring the Old Pension Scheme once the committee constituted for the purpose submitted its report. Mr. Shah, while replying to a question on restoration of the OPS at a press conference in Jaipur, said, “We have constituted a committee to study the OPS. As soon as …

The Old Pension Scheme wildfire must be stopped before it’s too late
1 year, 2 months ago

The Old Pension Scheme wildfire must be stopped before it’s too late

Live Mint  

The political battle between protecting the National Pension System and going back to the Old Pension Scheme is heating up, thanks to the various state elections just started. Public opinion and voter passion is being stirred by presenting the OPS as ‘pro-people’ and NPS as ‘anti-people.’ Meme creators and slogan writers are busy making graphic and emotive campaigns. OPS guarantees …

Govt may amend pension scheme
1 year, 2 months ago

Govt may amend pension scheme

Live Mint  

New Delhi: The Union government is likely to amend the national pension scheme by the year-end to ensure employees get at least 40-45% of their last-drawn salary as retirement payout based on recommendations of a high-level panel currently looking into the matter, two people familiar with the developments said. The altered pension scheme will continue to be linked to market …

Punjab govt. employees await implementation of old pension scheme
1 year, 2 months ago

Punjab govt. employees await implementation of old pension scheme

The Hindu  

Pritam Singh was elated as were other employees last November when the Aam Aadmi Party government in Punjab issued a notification to restore the old pension scheme. ‘Optimism faded away’ Mr. Singh retired as a teacher from a government school in Ludhiana this April and since then has been drawing pension under the NPS. “I am getting a monthly pension …

‘We strongly support’: Kejriwal on demands to bring back old pension scheme
1 year, 3 months ago

‘We strongly support’: Kejriwal on demands to bring back old pension scheme

Hindustan Times  

Delhi chief minister Arvind Kejriwal on Sunday expressed his support for the demands of central and state government employees to reinstate the old pension scheme, who have also staged a protest for the same. The Congress party also joined the chorus in support of the protest against the New Pension Scheme and the call to restore the old pension scheme. …

Restore Old Pension Scheme before 2024 election, employees urge Centre
1 year, 4 months ago

Restore Old Pension Scheme before 2024 election, employees urge Centre

The Hindu  

Thousands of employees of the Union government and Central public sector undertakings, including the defence establishments, marched to Ramlila Maidan here on Thursday demanding the restoration of the Old Pension Scheme. After the protest rally, organised by the Joint Forum for Restoration of Old Pension Scheme, a platform of about 60 unions, the employees sent a memorandum to Prime Minister …

Govt Likely To Change NPS Rules For 40%-45% Assured Pension: Report
1 year, 6 months ago

Govt Likely To Change NPS Rules For 40%-45% Assured Pension: Report

ABP News  

The central government is considering revising the current market-linked National Pension Scheme to provide its employees with a minimum pension of 40 per cent to 45 per cent of their last drawn salary, reported news agency Reuters citing two government officials. Under the current National Pension Scheme, employees are required to contribute 10 per cent of their basic salary, while …

Govt mulling over assured pensions at 40-45% as some states move back to OPS
1 year, 6 months ago

Govt mulling over assured pensions at 40-45% as some states move back to OPS

Live Mint  

Amid the politics of the Old Pension Scheme vs National Pension Scheme, the Government of India officials on Wednesday said that they are mulling over some changes in the new market-linked pension scheme which will ensure employees a minimum pension of 40%-45% of their last drawn salary, a report by Reuters said. The development comes as many Opposition-ruled states in …

Himachal Pradesh CM seeks refund of more than ₹9,200 crore deposited in NPS
1 year, 7 months ago

Himachal Pradesh CM seeks refund of more than ₹9,200 crore deposited in NPS

Live Mint  

Himachal Pradesh Chief Minister Sukhvinder Sukhu has announced his intention to meet with Union Finance Minister Nirmala Sitharaman in the national capital to seek a refund of ₹9242.60 crore deposited by the state government in the New Pension Scheme. Speaking at the 'Purani Pension Aabhar Rally' organised for the state's government employees, Sukhu reiterated the Congress government's commitment to fulfilling …

Congress will ‘compel’ Centre to implement old pension scheme in entire country: Rajasthan CM Gehlot
1 year, 7 months ago

Congress will ‘compel’ Centre to implement old pension scheme in entire country: Rajasthan CM Gehlot

The Hindu  

Rajasthan Chief Minister Ashok Gehlot on Sunday said the Congress will “compel” the Centre to implement the old pension scheme in the entire country, asserting that the committee on the new pension scheme was constituted under pressure mounted by the party. The committee would suggest whether in the light of the existing framework and structure of the National Pension System, …

Should States revert to the Old Pension Scheme? | The Hindu Parley Podcast
1 year, 7 months ago

Should States revert to the Old Pension Scheme? | The Hindu Parley Podcast

The Hindu  

The National Pension Scheme was launched in 2004. While the older pension scheme offered defined benefits to all government employees without any contribution on their part, the NPS requires employees to contribute a sum throughout their working years. Almost two decades after the NPS came into effect, several States are switching back to the Old Pension Scheme. Earlier this year, …

Should States revert to the Old Pension Scheme?
1 year, 7 months ago

Should States revert to the Old Pension Scheme?

The Hindu  

The National Pension Scheme was launched in 2004. While the older pension scheme offered defined benefits to all government employees without any contribution on their part, the NPS requires employees to contribute a sum throughout their working years. Editorial | The old and the new: On the demand for the Old Pension Scheme The States trying to revert to the …

Guaranteed pension is not bad economics
1 year, 8 months ago

Guaranteed pension is not bad economics

The Hindu  

With multiple State governments announcing reversion to the old pension scheme and some more speculating to do the same, the debate on pensions is hotting up. Let’s say the employees continue contributing 10% of their basic pay monthly as they do now under the NPS but the State promises to pay a pension of 50% of the last drawn salary …

Assam approves ‘highest’ monthly pension for people jailed during Emergency
1 year, 8 months ago

Assam approves ‘highest’ monthly pension for people jailed during Emergency

The Hindu  

GUWAHATI The Assam Government has decided to give a monthly pension of ₹15,000 to 301 people of the State who were jailed during the Emergency in the 1970s. The pension would be a recognition of their contribution to the country’s democracy and their sacrifices,” Housing and Urban Affairs Minister Ashok Singhal said after the Cabinet meeting. This decision of the …

India’s creaking pensions system needs transparency, not populism
1 year, 8 months ago

India’s creaking pensions system needs transparency, not populism

Live Mint  

It is widely recognised worldwide that pensions for government employees tend to be a populist plank for garnering votes. Because it had no funding plan, the government’s liability simply kept growing, making OPS a ticking fiscal time bomb. Under the NPS, employees contribute 14% of their salary to a pension corpus while the government contributes 10% of employees’ salaries to …

Indian Govt Forms Panel to Review Pension System; Details
1 year, 9 months ago

Indian Govt Forms Panel to Review Pension System; Details

News 18  

The Indian government has formed a panel to review the country’s pension system and discuss whether changes are warranted, the finance ministry said on Thursday. Finance Minister Nirmala Sitharaman announced last month that the government would consider changes to the country’s pension system to be used by both the federal and all state governments, seeking to unify the different schemes …

Why we need to debate the Old Pension Scheme
1 year, 9 months ago

Why we need to debate the Old Pension Scheme

The Hindu  

What is the fiscal space for the Old Pension Scheme? The OPS guarantees government employees 50% of their final drawn pay plus Dearness Allowance as a post-retirement income for life, and 50% of that pension to any qualifying dependent family members in the event of death of that employee. There continue to be concerns that the OPS would soon become …

Amid Protests In Several States, Centre To Form Panel To Look Into Pension System Of Govt Staff
1 year, 9 months ago

Amid Protests In Several States, Centre To Form Panel To Look Into Pension System Of Govt Staff

ABP News  

Amid massive protests in several states by government employees demanding restoration of the old pension scheme, Union Finance Minister Nirmala Sitharaman on Friday said the Centre would form a committee to look into issues related to pension, ANI reported. READ | 18 Lakh Maha Govt Staff Go On Strike For Old Pension Scheme After Failed Talks From 2004, the Central …

Some States lagging behind on NPS dues, Centre tells RS
1 year, 9 months ago

Some States lagging behind on NPS dues, Centre tells RS

The Hindu  

Some States are falling behind in making contributions towards their employees’ retirement savings under the New Pension Scheme, the Finance Ministry indicated on Tuesday, flagging “an increasing divergence of practices between different State Governments” in the way they handle pension obligations for staff recruited after 2004. While a majority of the States are paying the correct dues towards their employees’ …

Explained: Why govt employees are demanding restoration of Old Pension Scheme?
1 year, 9 months ago

Explained: Why govt employees are demanding restoration of Old Pension Scheme?

Live Mint  

Demand for restoration of the Old Pension Scheme is growing with each passing day as many employees in Maharashtra and Haryana went on strike on Tuesday seeking its return. The former RBI governor said the old pension scheme does involve massive future outlays because of the indexation of pensions to current salaries. Old Pension Scheme is a retirement scheme approved …

Restore old pension scheme, Central Government officers urge Cabinet Secretary
1 year, 9 months ago

Restore old pension scheme, Central Government officers urge Cabinet Secretary

The Hindu  

A section of officers, led by the Confederation of Central Government Employees and Workers and the All India State Government Employees Federation, has approached Cabinet Secretary Rajiv Gauba demanding that the old pension scheme be restored and the National Pension Scheme revoked. The organisations said the Defined Benefit Pension Scheme, or the OPS, for government employees was a well-built and …

Maharashtra CM announces committee to study implementation of Old Pension Scheme
1 year, 9 months ago

Maharashtra CM announces committee to study implementation of Old Pension Scheme

The Hindu  

The Maharashtra government on Monday to set up a committee consisting of senior bureaucratic officers to look into the demand of the State government employees to implement the old pension scheme in the State. Therefore, the government is not against the principle behind the demand to implement the old pension scheme. This committee will submit the report in a timely …

’Find less costly ways...’: Raghuram Rajan speaks on Old Pension Scheme
1 year, 10 months ago

’Find less costly ways...’: Raghuram Rajan speaks on Old Pension Scheme

Live Mint  

Former RBI Governor Raghuram Rajan has expressed his concern regarding the Old Pension Scheme. He said that restarting the old pension scheme would be an enormous obligation in the long run, adding, "less costly ways should be found to address the demands of government pensioners". The former RBI governor said the old pension scheme does involve massive future outlays because …

Implementation of OPS to be detrimental for larger public: Ex-RBI governor
1 year, 10 months ago

Implementation of OPS to be detrimental for larger public: Ex-RBI governor

Live Mint  

With several non-BJP-ruled states contemplating going back to Old Pension Scheme system, the former RBI Governor D Subbarao has made a piece of cautionary advice about the danger of retrograding to this rule. The ex-RBI Governor said the decision to restart OPS will be decidedly a “regressive move” and will provide more privilege to government servants at the cost of …

Select Central government employees can opt for Old Pension Scheme
1 year, 10 months ago

Select Central government employees can opt for Old Pension Scheme

The Hindu  

In a significant decision, the government has decided to give a one-time option to select Central government employees to migrate to the Old Pension Scheme, who applied for jobs advertised before December 22, 2003, the day the National Pension System was notified but joined the service in 2004, when the NPS came into effect. The option is available to the …

In Maharashtra Council, Devendra Fadnavis echoes Montek Singh Ahluwalia to counter Old Pension Scheme demand
1 year, 10 months ago

In Maharashtra Council, Devendra Fadnavis echoes Montek Singh Ahluwalia to counter Old Pension Scheme demand

The Hindu  

Maharashtra Deputy Chief Minister Devendra Fadnavis on March 3 echoed in the Legislative Council former Planning Commission deputy chairman Montek Singh Ahluwalia’s Opposition to the Old Pension Scheme. Mr. Fadnavis was responding to a question raised by Congress member Rajesh Rathod regarding the State’s plans on the implementation of OPS for teachers and State government employees who joined after 2005. …

Reverting to Old Pension Scheme will privilege government servants at cost of larger public: Former RBI governor D. Subbarao
1 year, 10 months ago

Reverting to Old Pension Scheme will privilege government servants at cost of larger public: Former RBI governor D. Subbarao

The Hindu  

The decision of some States to restart Old Pension Scheme will be decidedly a regressive move and will provide more privilege to government servants at the cost of larger public, majority of which has no social safety net, former RBI governor D. Subbarao has said. According to Mr. Subbarao, if State governments revert to a 'pay as you go' pension …

Maharashtra not entirely negative on Old Pension Scheme: Devendra Fadnavis
1 year, 10 months ago

Maharashtra not entirely negative on Old Pension Scheme: Devendra Fadnavis

India Today  

Maharashtra's Deputy Chief Minister Devendra Fadnavis on Friday said that the government is not "entirely negative" about the Old Pension Scheme for government employees, but added that any decision on the plan will have to be made keeping in mind the state's finances. Fadnavis's latest remarks came hours after he echoed Montek Singh Ahluwalia’s opposition to the old pension scheme …

Is there a middle way between the Old Pension Scheme and the New Pension Scheme? | In Focus podcast
1 year, 10 months ago

Is there a middle way between the Old Pension Scheme and the New Pension Scheme? | In Focus podcast

The Hindu  

Five states – Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh – have informed the Centre that they would be reverting to the Old Pension Scheme. Some analysts even believe that one of the reasons for the Congress victory in Himachal was its campaign promise to revert to the Old Pension Scheme. But government employees in different states have staged protests …

Discover Related