Old pension Scheme: Karnataka CM Siddaramaiah give good news to govt employees

Old pension Scheme: Leaders of the state National Pension System (NPS) employees union met Karnataka Chief Minister Siddaramaiah at the Chief Minister’s Home Office Krishna regarding the implementation of the old pension scheme.

The Karnataka Chief Minister Siddaramaiah has held a meeting with NPS Employees’ Organization, State Primary Education Association office bearers and ministry employees regarding the cancellation of NPS and implementation of old pension.

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There was a discussion about the cancellation of National Pension System in the meeting and the CM told to organize a big conference soon about the implementation of Old Pension Scheme (OPS) and promised to make an official announcement about the cancellation of NPS and implementation of OPS in the conference.

The Karnataka Chief Minister said that as per the promise given to the government employees, he will fulfill the promise of canceling the National Pension System and he said that he will listen to the employees’ plea and take action to implement the old pension.

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State Government National Pension System Employees Association State President Shantarama Teja, Secretary Nagabhushan, State Primary Education Association President Nagesh, Secretary Chandrasekhara Nuggali, State Government Employees Association Honorary President Shivrudraiah and office bearers of NPS Employees Association were present in the meeting.

Pension works as a security for a comfortable life for senior citizens. Pension acts as an important financial support especially for common people. National Pension Scheme is available as an important investment option for senior citizens.

The National Pension Scheme introduced by the Pension Fund Regulatory and Development Authority in 2004 has replaced the old pension system. This new pension scheme is applicable to both government and private sector employees. NPS not only ensures pension but also offers investment opportunities. It also has the potential for high returns on investment.

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Initially this pension scheme was available only to government employees. Now private employees can avail the benefit of this pension scheme. There are two types of NPS, tier one and tier two options. Opting for a tier one account allows withdrawals only after retirement.

The Old Pension Scheme (OPS), established in the 1950s, was available only to government employees. Under this scheme, employees received 50 percent of their last pay as monthly pension along with bereavement allowance. Unlike NPS, the salary is not subject to deductions and the income received through this scheme is tax free.

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Old Pension Scheme (OPS) is a government approved retirement scheme. Government employees get monthly pension under OPS. It provides guaranteed pension to government employees who have completed at least ten years of service based on their last basic pay and years of service. Under OPS, the government pays the full pension amount to the government employees after retirement.

Thus, no amount is deducted from the salary of the employees while they are in service. After retirement, government employees get the pension amount and the benefit of revision of Dearness Allowance (DA) twice a year. As they get pensions based on their last salary and DA, their pension increases twice a year when DA increases. However, OPS is applicable only to government employees.