Will the government scrap New Pension Scheme? What Centre said
1 min read . Updated: 15 Mar 2022, 05:35 PM IST
Premium- The government has no proposal under consideration to scrap New Pension System (NPS) and to revert to old pension scheme
The government has no proposal under consideration to scrap New Pension System (NPS) and to revert to old pension system, the Parliament was informed on Tuesday.
The Rajasthan and Chhattisgarh governments, ruled by the opposition Congress, have already announced their plans to revert back to the old pension system. Taking into consideration the age-old demand of the government officers and employees of the state, the old pension scheme will be restored in place of the New Pension Scheme, Chhattisgarh CM Bhupesh Baghel had said earlier
In a written reply to a query, Minister of State (MoS) for Finance, Bhagwat Karad, said the Rajasthan government, in the Budget speech, had announced to
implement old pension scheme from the forthcoming year, for all employees appointed on or after 1 January, 2004.
A New Pension Scheme (Contribution-based pension scheme) now called National Pension System (NPS), is now in place for central government employees since 2003. NPS was made mandatory for all new recruits to the central government service (except the armed forces) from 1 January, 2004.
The National Pension Scheme was initiated for the central government to get rid of pension liabilities. It allows the beneficiaries i.e, government employees to decide where they want to invest their money. This can be done by contributing regularly in a pension account throughout their career. After retirement, they can withdraw a part of the pension amount.
Contrary to this, the old pension scheme had government and employees contribute an equal portion towards the pension fund. As per rules, the old pension scheme involved 50% of the last drawn salary as the pension amount to a government employee.
