We earn to earn our livelihood. Some do a job, while some do their business. At the same time, people who do government jobs (as central or state government employees) also get pensions. But for some time now you must have been hearing about OPS i.e. Old Pension Scheme and NPS i.e. New Pension Scheme. Many problems are going on between the government and the employees regarding this. But maybe you do not know what is this NPS and OPS and what is the difference between these two. So let's try to understand these two in detail. You can learn about this in the next slides...

What is New Pension Scheme?
The government started the New Pension Scheme in the year 2004. Under this, government employees get investment approval, under which they can allow the investment of their money by making regular contributions to a pension account throughout their career. Not only this but when the employee retires in NPS, then after that he is allowed to withdraw a part of the pension amount in a lump sum. Whereas, for the remaining amount, you can buy an annuity plan.

Understand here that an annuity is a type of insurance product, in which a lump sum investment has to be made and you can withdraw it every month, in 3 months, or throughout the year. The retired employee gets regular income till his death. Whereas, if he dies, the entire money goes to the nominee.

What is Old Pension Scheme?
If we talk about the old pension scheme, then in this the pension was 50 percent of the last salary of the employee. At the same time, its entire amount was paid by the government. However, the late Atli Bihari Vajpayee scrapped this Old Pension Scheme in December 2003. At the same time, now people are even agitating to implement this old pension scheme.

Understand the difference between NPS and OPS:-
Where 10 percent i.e. Basic and DA is deducted from the salary of the employee in the New Pension Scheme, there is no deduction from the salary for pension in the Old Pension Scheme.

The facility of the General Provident Fund has not been added in NPS, while the facility of the General Provident Fund is there in the old pension scheme.
The dearness allowance after 6 months is not applicable in the new pension scheme, while it is applicable in the old pension scheme.

Where on the one hand the money received based on the stock market on retirement in NPS will have to be taxed. On the other hand, in the old pension scheme, there is no income tax on the interest of GPF on retirement.

Why is there a problem?
For a long time, people have been agitating to restore the old pension scheme. At the same time, experts believe that in the new pension scheme, the employees get very few benefits as compared to the old scheme, due to which their future cannot be considered secure. Not only this but when the job is completed and the money received will have to be taxed, etc. All these reasons seem to be creating problems between the government and the people.

(PC: iStock)