In a landmark decision, Himachal Pradesh decided to restore the Old Pension Scheme (OPS) for all the 1.4 lakh government employees in the state, becoming the fourth state to do so. By restoring the OPS, Congress has delivered on one of its poll promises.
Apart from Himachal Pradesh, states like Punjab, Rajasthan, and Chhattisgarh have already employed the Old Pension Scheme for all the government employees in the state, giving them heaps of benefits after retirement from their jobs.
After the major decision by the Himachal Pradesh government, the government employees in the state will have the right to choose between the Old Pension Scheme and New Pension Scheme (NPS) for their retirement plan, which was one of the primary election points in the state.
As the Himachal Pradesh government has decided to revert back to the Old Pension Scheme, here is all you need to know about the benefits offered by OPS.
Old Pension Scheme: Benefits for the common man
There are many reasons why government employees had been batting for the return of the Old Pension Scheme in many states. One of the primary reasons was that OPS promises life-long income for the common man after retirement.
As per the Old Pension Scheme, government employees will receive their pension as per a pre-set formula which is equivalent to 50 percent of the last drawn salary. They also get the benefit of the revision of Dearness Relief (DR), twice a year.
Further, the payout under the OPS is fixed and there is no deduction from the salary. The provision of the General Provident Fund (GPF) is also available under the Old Pension Scheme and is accessible to all government employees in the state.
The state government is set to bear the expenses incurred on the pension under the OPS. While OPS was discontinued by the government in 2004, four states in India have decided to bring it back. The four states are ruled by opposition parties – Congress and Aam Aadmi Party (AAP).
In a recent decision, the Delhi High Court also ruled that all the defence personnel that is employed by Central Armed Police Forces (CAPF) – CRPF, CISF, BSF, ITBP, AR – will also fall under the Old Pension Scheme, since it already covers the Indian Armed Forces.
This means that all the benefits falling under the Old Pension Scheme will now be applicable to the state government employees of Punjab, Himachal Pradesh, Rajasthan, and Chhattisgarh; the Indian Armed Forces, and all those who fall under the CAPF.
READ | Himachal Pradesh announces restoration of Old Pension Scheme to its NPS employees
