Government employees and the exchequer have been at odds over the old pension system (OPS) or old pension scheme. While many state governments, including those of Jharkhand and Chhattisgarh, have announced the restoration of the previous pension system, thousands of government employees recently staged a protest in Gujarat to call for the reinstatement of the previous pension system.
The Aam Aadmi Party (AAP) government has announced that it's considering restoring the OPS in Punjab. Punjab Chief Minister Bhagwant Mann said that the AAP government will carry out the feasibility study for reverting to the OPS.
"My government is considering reverting to the Old Pension System (OPS). I have asked my Chief Secretary to study the feasibility and modalities of its implementation. We stand committed to the welfare of our employees," said CM.
Chhattisgarh was the first state to announce the restoration of the old pension scheme and after that Jharkhand announced going back to the old pension system which will come into effect from October 1. The Rajasthan government on the other hand is also working to set up OPS in the state.
The old pension scheme was scrapped on April 1, 2004. It was replaced with a market-driven new pension scheme.
All new employees joining the Central Government service (aside from the armed forces) as of January 1, 2004, are covered by the National Pension System (NPS). The Government of India had stated in March of this year that there was no proposal to reintroduce the old pension scheme to Central Government civil employees hired on or after January 1, 2004, according to the Ministry of Personnel, Public Grievances & Pensions.
The PFRDA Act of 2013 and the regulations made thereunder by PFRDA and the Department of Financial Services now govern NPS.
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