National Pension Scheme: During the passage of the Finance Bill in the Lok Sabha, Finance Minister Nirmala Sitharaman has announced that the National Pension Scheme will be made more attractive for government employees. For this, he has announced formation of a committee on National Pension Scheme. This committee will be constituted under the chairmanship of the Finance Secretary. The Finance Minister said that the recommendations of this committee will be applicable to all, including central government employees and state government employees.
During the debate on the Finance Bill, the Finance Minister said in the Lok Sabha, “I want to discuss the issue of pension under the chairmanship of the Finance Secretary and evolve an approach that meets the needs of the workforce while maintaining financial prudence.” I announce the formation of a committee for the safety of common citizens. The Finance Minister said that the recommendations of the committee would be prepared for adoption by both the Central Government and the State Governments.
Actually, there is a tussle between the Center and the opposition-ruled states regarding the National Pension Scheme. The state government employees including the central government are opposing the National Pension Scheme these days and are demanding to revive the old pension scheme.
The controversy over NPS is also heating up as old pension schemes have been revived in Congress ruled states like Himachal Pradesh, Rajasthan, Chhattisgarh. After which the pressure on the government to review NPS was increasing.
There is also a political aspect to the formation of a committee on NPS by the Modi government. Even in BJP ruled states government employees are demanding reinstatement of OPS. Lok Sabha elections are going to be held after a year. The issue of pension of government employees is becoming a political issue. This is the reason why the Central Government has decided to form a committee to improve the NPS.
Features of New Pension Scheme
- In NPS, 10%+DA is deducted from the basic salary of the employee.
- NPS is based on the stock market. So it is not more secure.
- To get pension after retirement in NPS, 40% of NPS fund has to be invested.
- There is no guarantee of fixed pension after retirement in this scheme.
- The new pension scheme is based on the stock market. That’s why there is a provision of tax here also.
- There is no provision of Dearness Allowance (DA) after 6 months in the new pension scheme.
Old Pension Scheme ( ops) I had these facilities.
- In the old pension scheme, half of the employee’s salary is given as pension at the time of retirement.
- The scheme has provision for General Provident Fund ie GPF.
- Gratuity amount up to Rs 20 lakh is available in OPS.
- In the old pension scheme, payment is made from the exchequer.
- There is also a provision for pension amount to the family members of the retired employee on his death.
- In OPS no money is deducted from the salary of the employee for pension.
- There is a provision to get DA after 6 months in OPS.
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