Old Pension Scheme Latest News: The old pension scheme has been a topic of discussion for quite some time now, especially among government employees. The scheme, which was introduced several years ago, provided pension benefits to employees upon retirement. However, in recent years, there have been several changes to the scheme, which have caused confusion and concern among employees. In this article, we will discuss the latest news on the old pension scheme.
The old pension scheme was replaced by the National Pension System (NPS) in 2004. The NPS is a defined contribution pension scheme, which means that the pension amount is determined by the contributions made by the employee and the employer during the employee’s service. However, several government employees were not happy with the NPS and demanded the restoration of the old pension scheme.
In 2019, the government announced that it would allow government employees who joined service before 2004 to opt for the old pension scheme. This was seen as a significant relief for many employees who were unhappy with the NPS. However, the government also announced that employees who opt for the old pension scheme would have to contribute a higher percentage of their salary towards the scheme.
The latest news on the old pension scheme is that the government has extended the deadline for government employees to opt for the old pension scheme. The earlier deadline was December 31, 2021, but it has now been extended to March 31, 2022. This extension was welcomed by many employees who were unable to make a decision before the earlier deadline.
The government has also clarified that employees who opt for the old pension scheme will have to contribute 14% of their salary towards the scheme, compared to the 10% contribution required for the NPS. This means that employees who opt for the old pension scheme will have to contribute more towards their pension, but they will also receive a higher pension amount upon retirement.
It is important to note that the decision to opt for the old pension scheme is a personal one, and employees should carefully consider their options before making a decision. Employees who opt for the old pension scheme will not be able to switch back to the NPS, so it is essential to make an informed decision.
In conclusion, the latest news on the old pension scheme is that the deadline for employees to opt for the scheme has been extended, and employees who opt for the scheme will have to contribute a higher percentage of their salary towards the scheme. It is important for employees to carefully consider their options before making a decision, as this decision will have a significant impact on their pension benefits upon retirement.
Why govt employees are demanding restoration of Old Pension Scheme?
Government employees are demanding the restoration of the old pension scheme for various reasons. One of the main reasons is that the old pension scheme provided a fixed pension amount to employees upon retirement, which was calculated based on the number of years of service and the last drawn salary. In contrast, the National Pension System (NPS), which replaced the old pension scheme, is a defined contribution scheme, where the pension amount is determined by the contributions made by the employee and the employer during the employee’s service.
Many government employees believe that the NPS puts the burden of managing their retirement funds on them, which can be stressful and time-consuming. The old pension scheme, on the other hand, provided a sense of security and stability, as employees knew how much pension they would receive upon retirement.
Additionally, many government employees feel that the NPS does not provide adequate pension benefits, especially for those who do not contribute for a long period. Under the NPS, employees have to contribute a minimum of 10% of their salary towards the scheme, but this may not be enough to provide sufficient pension benefits upon retirement.
Furthermore, there are concerns about the performance of the fund managers who manage the NPS corpus. Many employees believe that the performance of the fund managers has not been up to the mark, and this may affect their pension benefits.
Overall, the demand for the restoration of the old pension scheme is mainly driven by the desire for a fixed pension amount and a sense of security and stability, which many employees believe the NPS does not provide.
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