All employees got great news, Old Pension System will be implemented across the country on this day, see the latest update Old Pension New update
All employees got great news, Old Pension System will be implemented across the country on this day, see the latest update Old Pension New update Old Pension New update: The pension system for employees in India has been a controversial issue for quite some time. Before 2004, all state governments used to provide the Old Pension Scheme (OPS) to their employees. Under this scheme, the employee used to get a fixed percentage of his last drawn income as a monthly pension after retirement. However, in 2004 the central government introduced the New Pension Scheme (NPS), in which both the employee and the employer make fixed contributions.
Demand for employees
Since the new pension scheme, employees have raised the demand to restore the old pension system. They argue that a part of their income goes as investment in NPS, which reduces their current income. Moreover, they do not get a fixed monthly income after retirement, as their pension in NPS comes from the provident fund, which is affected by market fluctuations.
Challenges for the government
On the other hand, restoring the old pension system is a big challenge for state governments. Their expenditure on pension payments will increase significantly, which will put pressure on the financial resources of the states. For example, the Rajasthan government spends about Rs 26,000 crore per year on pensions, which is a large part of the state's total budget.
Andhra Pradesh Model
Amid this controversy, some state governments are considering taking a middle path. The Andhra Pradesh government has introduced a new model in which employees will get 50% of their last drawn income as a monthly pension after retirement. This arrangement provides an alternative between the old pension scheme and the new pension scheme.
Possible changes in Rajasthan
In Rajasthan too, the Gehlot government is considering this issue. The government has expressed the possibility of adopting the Andhra Pradesh model in place of the new pension scheme for employees recruited after 2004. However, before finalizing this decision, the government will have to consider many aspects, such as financial feasibility and meeting the demands of the employees.
The issue of pension arrangements is not only important for the employees, but it also affects the finances of the states. Therefore, governments have to find a solution that meets the aspirations of the employees and at the same time does not put unnecessary burden on the financial resources of the states. The Andhra Pradesh model can be a possible option, but it should be customized based on the specific circumstances of the state.
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