Old Pension Scheme Update: After the election, there was a significant change to NPS and OPS; see details

 Old Pension Scheme Update: After the election, there was a significant change to NPS and OPS; see details

Old Pension Scheme Update: After the election, there was a significant change to NPS and OPS; see details

Update on the Old Pension Scheme: Under the OPS, workers do not make any form of contribution. However, after Congress took over Telangana, the circumstances seem to be more intricate. Congress has committed to putting OPS into effect here.

OPS In Telangana: The Assembly elections, which are regarded as the Lok Sabha elections' semifinals, have results. Three states will have government formed by the BJP. The BJP is back in power in Rajasthan and Chhattisgarh, with the exception of Madhya Pradesh. Rajasthan and Chhattisgarh have been in the headlines a lot lately because of the old pension scheme's implementation. Ashok Gehlot, a former chief minister of Rajasthan, was the first to introduce the elderly pension to the state. By introducing OPS, former chief minister Bhupesh Baghel even won over the hearts of government workers in Chhattisgarh. However, since the administration changed, the issue of whether pensions in Rajasthan, Telangana, and Chhattisgarh are new or old has begun to arise.

Under OPS, employees do not make any contributions.

The argument for the National Pension System (NPS) to be implemented in both Rajasthan and Chhattisgarh seems to be strengthening now that the Congress has lost both states. However, there is a catch: both states' government workers have chosen to participate in the Old Pension Scheme (OPS). Employees under OPS do not make any form of contribution. However, after Congress took over Telangana, the circumstances seem to be more intricate. Congress has committed to putting OPS into effect here. The state government is responsible for covering all pension costs under this plan.

Guaranteed payment of 45–50% pension!

It is also anticipated that the Center would attempt to address the complaints of those workers who joined government employment after 2004 and are under NPS, after the BJP's stunning victory in the Assembly elections. Media sources state that the Center is also working to implement a scheme for government workers that guarantees a pension of at least 45 to 50 percent of final pay. The government has also just established a committee in accordance with this. It is anticipated that the OPS committee would report to the government before to the general elections. On the basis of its report, further choices are anticipated.

Which choice is the best?

Three months from now, the Lok Sabha elections will be declared. It is hoped that the committee led by Finance Secretary TV Somanathan would handle the issues without having an impact on the Center's financial situation. The government claims that the moment has come to lessen the load, notwithstanding the budget's Rs 2.4 lakh crore rise in the pension payment. As per media sources, the government has spoken with many stakeholders, including workforce leaders, to determine the optimal alternative inside the system. The Central Government has previously declined to allow OPS to be restored. What steps the administration takes in the states where the BJP has won is yet to be seen.