Is The Government Restoring The Old Pension Scheme Back? What You Need To Know!

Financial security is one of the things that is present in all our agendas. It is a measure of security toward the unpredictable future and an important component that makes people feel safe and secure. One of the ways to ensure the same is through the Pension schemes offered by the government like the National Pension Scheme (NPS) was launched as an updated model of the Old Pension Scheme (OPS) to the central government employees.

The National Pension Scheme (NPS) was expected to improve the pension system and fill the gaps that were there in the Old Pension Scheme (OPS) and the living standard of people but unfortunately, people’s experience said otherwise. On November 17th, the All India NPS Employees Federation (AINPSEF) organised a rally at Jantar Mantar, Delhi for the disintegration of the National Pension Scheme and reintegration of the Old Pension Scheme.

Differences Between OPS & NPS

The Old Pension Scheme was working till the year 2004 right till the announcement of the National Pension Scheme. In OPS, employees were entitled to a fixed pension amount, calculated as per their last drawn salary. The government pension was also subjected to change as per inflation by giving dearness allowances (DA) and helping pensioners keep up with the changing times.

However, in NPS, both the government and the employee were subjected to providing a certain amount to their pension fund. The total pension amount relied on the total of the contributions made by the employee and some portion of their pensions were invested in the market-linked funds. This exposure to the market increased the uncertainty in their lives instead of reducing it which made them agitated with every passing day.

The government announced yet another updated model for the NPS. i.e. the Unified Pension Scheme (UPS) but that didn’t solve people’s issues either.

Demands By The AINPSEF Rally

Some major demands that the central government employees voiced through the AINPSEF rally are listed below:

• Reducing unpredictability: The sole reason for the existence of the pension schemes is to reduce unpredictability in terms of finances which neither the NPS nor the UPS fulfils.

• Equality: Some states like Chattisgarh, Rajasthan, Punjab, and Himachal Pradesh have reinstated the OPS in their respective states which is a fuming factor for people from other states.

• Not for the employees: The central govt employees clearly expressed how UPS or NPS don’t reflect the good interests of the people which they should.

Restoring OPS would help the employees get financial stability back in their lives but that also means that it would be difficult for the government to change the pension system again.

Conclusion

Any updates or amendments are introduced in the systems to keep up with the times, improve the working, and most significantly, help the people of the nation in a better and improvised way. That being said, the managing authorities must take people’s feedback and experiences seriously and work accordingly.

The AINPSEF rally is a clear feedback of dissatisfaction experienced by the people concerning the new pension schemes and restoring OPS again. It is only a matter of time till the government responds with a sturdy reply to their demands.

Stay updated with Jaagruk Bharat to get the latest information on government healthcare schemes and more, and reach out to us via our community page if you have any questions.