OPS & NPS: NPS employees got government guarantee by changing these rules..
The central government is going to take another step to remove the anxiety and fear of employees regarding NPS. The Modi government is considering guaranteeing 50 percent of their last salary as a pension to the central government employees who become a part of the National Pension Scheme.
What is the difference between OPS and NPS?
Under the Old Pension Scheme, the employee gets half of the last salary as a pension for life and is subject to adjustment by the recommendations of the Pay Commission. In contrast, NPS is a contribution scheme, where a government employee (NPS latest update) contributes 10% of his basic salary and the central government gives 14%.
Who is complaining about NPS?
Officials say that those who remain in the job for 25-30 years are getting adequate benefits equal to the pension received under OPS (OPS Latest news) and complaints of low payment are coming only from those who have exited the scheme after completing 20 years or less service.
According to the news of Times of India, after the announcement of Finance Minister Nirmala Sitharaman, a committee was formed under the chairmanship of Finance Secretary TV Somanathan. The Center has refused to return to the Old Pension Scheme (OPS).
Now approval to give a 50% guarantee
The Somanathan Committee has looked at the global experience and the results of the changes made by the Andhra Pradesh government. Although it is possible for the Center to give a 40 to 45% guarantee, it does not address the concerns of those employees (NPS government guarantee) who have been working for 25-30 years. As a result, there is growing acceptance within the government to give a 50% guarantee.
According to the report, the Center does not have a retirement fund. Many committee members believe that the Center does not have a retirement fund. The Center will likely create a fund this time too which will keep money aside. Companies keep a separate fund as retirement benefits (NPS benefits) for their employees.
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