If you are also an employee, then you need to know the information. The difference between OPS and NPS has been explained by Montek Ahluwalia, former deputy chairman of the Planning Commission.
Non-BJP-ruled states have given a lot of air to the Old Pension Scheme (OPS). Even in the recently concluded Himachal Pradesh assembly elections, Congress had made the old scheme a big issue and promised to implement it once the government was formed. But the big challenge for the state governments is also the fund because implementing it will increase the huge burden on the exchequer of the government. Montek Singh Ahluwalia, former Deputy Chairman of the Planning Commission, has now given a big statement on the old pension scheme.
Bankruptcy recipe
In the presence of Finance Minister Nirmala Sitharaman, Montek Singh Ahluwalia said during a program that the revival of the old pension scheme by some state governments is a recipe for financial bankruptcy. He said that I certainly agree with the view that this move is absurd and a recipe for financial bankruptcy.
The big advantage for those taking this step forward is that bankruptcy will come after 10 years. Montek Ahluwalia believes that the system should prevent political parties or parties in power from adopting policies that can lead to financial disaster.
Difference between new and old pension scheme
NPS i.e. New Pension Scheme is applicable in the country since January 1, 2004. There are some advantages and some disadvantages to both pensions. Under the old scheme, at the time of retirement, half of the employee's salary is given as a pension. Because in the old scheme, the pension is determined according to the last basic salary of the government employee and the inflation rate figures. In the old pension scheme, there is no provision to deduct any money from the salary of the employees for pension. With all. In the old pension scheme, payment is made through the treasury of government.
New pay commission effective
In the old pension scheme, the amount of gratuity is available up to Rs 20 lakh. At the same time, on the death of the retired employee, his family members get the pension amount. The most important thing is the provision of DA received after every 6 months in the old pension scheme, that is, even when the government implements the new Pay Commission, it also increases the pension.
Along with the central government, experts also say that the pension system puts a heavy burden on the government. Not only this, the old pension scheme has more impact on the government exchequer. Montek Singh Ahluwalia has also pointed in this direction.
Provisions of the Old Pension Scheme
In the old pension scheme, there was no deduction from the salary of the employee. In NPS, 10% is deducted from the salary of the employees. The old pension scheme used to have the facility of GPF, but the new scheme does not have this facility.
In the old pension scheme, about half of the salary at the time of retirement was received as a pension, whereas in the new pension scheme, there is no guarantee of a fixed pension. Because the old pension is a safe scheme, which is paid from the government treasury. At the same time, the new pension scheme is based on the stock market, in which payments are made according to the movement of the market.
If the returns on NPS are good, then compared to the old scheme of Provident Fund and Pension, employees can also get a good amount at the time of retirement. Because it depends on the stock market. But in case of low returns, the fund can also be reduced.
