Why do 69 lakh government employees want old pension? Know the difference between OPS and NPS which has created a controversy: – ..
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 bringing back OPS, the central government has taken steps to make NPS more attractive. ‘Unified Pension Scheme’ (UPS) A proposal has been presented. But the question remains, why are employees giving priority to OPS?
The ‘bitter’ truth between OPS and NPS: A comparative study
To understand the priority of employees, it is important to understand the basic structure of these two schemes:
| Speciality | Old Pension Scheme (OPS) | National Pension System (NPS) |
|---|---|---|
| pension guarantee | of final salary 50% Fixed. | Based on stock market returns. |
| employee contribution | from salary 0% Deduction (fully payable by Government). | of salary 10% Compulsory contribution. |
| Dearness Allowance (DA) | Benefit of increasing DA every 6 months. | There is no provision to increase DA. |
| GPF facility | Full amount of GPF including interest on retirement. | of fund only 60% Tax-free withdrawal, annuity of 40%. |
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 ‘indexed’ (DA-linked). As inflation increases, the pensioner’s allowance also increases. The 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 for getting pension to the spouse of the employee after his death.
Pension Revision: With the implementation of Pay Commission, the pension of OPS pensioners also increases, which is not possible in NPS.
Latest update for 69 lakh employees: UPS option
The central government recently Unified Pension Scheme (UPS) has announced, which 1 April 2025 To be implemented from.
New Formula: In UPS, the government has decided to increase the average salary of the last 12 months after 25 years of service. 50% pension Has promised to give.
Benefits of DA: Like OPS, a provision for giving dearness relief (DR) has also been added in UPS.
Minimum Pension: At least after 10 years of service Rs 10,000 Per month pension is assured.
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