Good news for government employees of this state as Old Pension Scheme likely to return

The old pension system (OPS) or old pension scheme has been a bone of contention between the government employees and the exchequer. While many state governments like Jharkhand and Chhattisgarh have announced restoration of the old pension system, thousands of government employees held a protest recenlty in Gujarat demanding the restoration of the old pension system. 

Now, in good news for the government employees of Punjab, the Aam Aadmi Party (AAP) government has announced that it’s considering restoring the OPS in the state. Punjab Chief Minister Bhagwant Mann said that the AAP government will carry out the feasibility study for reverting to the OPS.

“My government is considering reverting to the Old Pension System (OPS). I have asked my Chief Secretary to study the feasibility and modalities of it’s implementation. We stand committed to the welfare of our employees,” said CM Mann.

It may be recalled that Chhattisgarh was the first state to restore the OPS. After that, Jharkhand also announced going back to the OPS. The Rajasthan government is also working on restoring the OPS in the state. The old pension scheme will come into effect in Jharkhand from October 1. 

The old pension scheme was scrapped on April 1, 2004. It was replaced with a market-driven new pension scheme.

The National Pension System (NPS) was introduced for Central Government employees covering all new recruits joining the Central Government service (except armed forces) from 01.01.2004. The Ministry of Personnel, Public Grievances & Pensions had said in March this year that there was no proposal to reintroduce the old pension scheme to Central Government civil employees joined on or after 01.01.2004 under consideration of the Government of India. 

NPS is now regulated under the PFRDA Act, 2013 and regulations framed there under by PFRDA and the Department of Financial Services.