OPS vs NPS: Why do 69 lakh government employees want old pension? Know the difference between OPS and NPS which has created a ruckus

News India Live, Digital Desk: The issue of pension for government employees in India remains the biggest political and economic discussion at present. While states like Rajasthan, Chhattisgarh and Himachal Pradesh have taken the bold step of reintroducing OPS, the central government has proposed ‘Unified Pension Scheme’ (UPS) to make NPS more attractive. But the question is the same, why are employees giving priority to OPS? The ‘bitter’ truth between OPS and NPS: A comparative study. To understand the preference of employees, it is important to understand the basic structure of these two schemes: Features Old Pension Scheme (OPS) National Pension System (NPS) Pension Guarantee 50% of final salary fixed. Based on market returns. Employee contribution 0% deduction from salary (fully paid by the government). Salary 10% mandatory contribution.Dearness Allowance (DA)Benefit of increase in DA every 6 months.No provision for increase in DA.GPF facilityFull amount of GPF including interest on retirement.Tax-free withdrawal of only 60% of the fund, 40% annuity.Why are employees choosing OPS? (5 Main Reasons) Social Security Guarantee: In OPS, the employee knows how much amount he will get every month after retirement. In NPS, it completely depends on the fluctuations of the stock market, due to which there remains uncertainty regarding old age security. Power to fight inflation: The pension received in OPS is ‘index’ (DA-linked). As inflation increases, the pensioner’s allowance also increases. Annuity once fixed in NPS remains the same for life. Benefits without any deduction: In OPS, no money is deducted from the employee’s in-hand salary, whereas in NPS, a deduction of 10% every month affects their current expenses. Family Pension: OPS has a simple and strong provision of getting pension to the spouse of the employee after his death. Pension Revision: When the Pay Commission is implemented. There is also an increase in the pension of OPS pensioners, which is not possible in NPS. Latest update for 69 lakh employees: Option of UPS. The Central Government has recently announced the Unified Pension Scheme (UPS), which is to be implemented from April 1, 2025. New formula: In UPS, the government has promised to give pension of 50% of the average salary of the last 12 months after 25 years of service. Benefit of DA: Dearness relief in UPS also like OPS. Provision for giving (DR) has been added. Minimum Pension: A minimum pension of Rs 10,000 per month has been ensured after 10 years of service.