OPS Latest News: For quite some time now, the demand has been raised for re-implementation of the old pension scheme for government employees. This has been a matter of continuous debate, and there are good chances now that the employees might get some relief. Just recently, the employees reiterated their demand for the restoration of the old pension scheme by presenting a memorandum to Leader of Opposition Rahul Gandhi. According to the employees, they want the old pension scheme instead of NPS, which guarantees financial protection at the time of their retirement. The old pension scheme offers employees a pension amounting to 50% of the last salary drawn by him or her on retirement without any contribution from the employees’ side.
Old Pension Scheme Stir On The Rise
Politics has been invigorated over the OPS. Various political parties are making it an election issue while some will support OPS openly. Employees say they have to give a part of salary in NPS, which is like any other burden for them. An old pension scheme, on the other hand, is fully funded by the government, and employees get a fixed amount as a pension after retirement, reassuring financial security in the scheme’s workings.
OPS Vs NPS
In fact, there are so many major distinctions between these two pension schemes that employees strongly uphold the demands of restoring the old pension scheme. In the case of NPS, 10 percent of an employee’s salary is to be contributed; whereas, in the old pension scheme no contribution is to be made. Besides, in OPS, the pension amount continues to increase after retirement based upon the dearness allowance, thus causing an increase in the pension of the said employee. On the contrary, in the case of an employee’s death in NPS, the family gets nothing, while compensation in full is given in OPS.
Unified Pension Scheme Announced
The government has recently announced a Unified Pension Scheme (UPS), which has been touted as an optimal middle ground between OPS and NPS. Under the scheme, employees who work will contribute 10 percent of their salary, while the government will put in 18.5 percent. Furthermore, the pension amount will be cognized based on the average salary received by the employee in the last 12 months. But even after the announcement of the UPS, many employee organizations are still demanding the restoration of OPS. They say under UPS, one has to give from his pocket, while OPS was entirely from the government.
Will The Government Re-implement OPS?
Pressure on the government is continuously mounting on the old pension scheme. Already, in quite a few states, it finds application, hence pressuring the Central Government to engraft the same into policy. Though no concrete decision has yet been formally conveyed to the press, the announcement of UPS indeed builds up a perception that the government is willing to extend some form of compensation to its employees. Now it remains to be seen what major step the government takes on this in
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