In this article we will provide you the old pension scheme latest news and details related to New Pension Scheme.
 INTRODUCTION TO OLD PENSION SCHEME UPDATES
Stay informed about the 2023 updates regarding the Old Pension Scheme (OPS). Central government employees are once again preparing to voice their concerns, this time by organizing a protest at Ramlila Maidan in Delhi, demanding the return of OPS.
Key employee organizations, such as the Uttar Pradesh State Employees Federation and the Joint Struggle Steering Committee (S-4), have outlined their plans for phased protests starting on October 30.
The culmination of these efforts will be a protest at Ramlila Maidan in Delhi.
CENTRAL GOVERNMENT EMPLOYEES’ CONCERNS
Central government employees across the country are getting ready to protest and raise their voices against the replacement of the Old Pension Scheme with the National Pension System (NPS).
The agitation is being meticulously planned and aims to put pressure on the government to reconsider the retirement benefits of its employees.
LATEST UPDATES ON THE OLD PENSION SCHEME
The latest news about the Old Pension Scheme reveals that the State Employees Federation is actively engaging and motivating employees to join the movement.
Awareness rallies are being conducted throughout the state to garner support for the cause. As part of their strategy, an open letter campaign to Members of Parliament (MPs) will be launched from October 30 to November 2.
The objective is to garner political support for the restoration of the Old Pension Scheme.
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WHAT YOU NEED TO KNOW ABOUT THE OLD PENSION SCHEME
The Old Pension Scheme, often abbreviated as OPS, is a retirement benefit program that was originally formulated and managed by the Central Government of India.
This scheme was designed to provide financial security and support to a specific group of individuals as detailed below.
AUTHORITY: CENTRAL GOVERNMENT OF INDIA
The Central Government of India, a federal governing body, had the authority to establish and oversee the Old Pension Scheme.
It was responsible for defining the rules, regulations, and conditions governing this pension scheme.
This authority granted the government the power to make decisions regarding the eligibility criteria, benefits, and administration of the scheme.
BENEFICIARY: EMPLOYEES OF THE CENTRAL GOVERNMENT
The primary beneficiaries of the Old Pension Scheme were the employees working under the Central Government of India.
This included a wide range of government employees, such as civil servants, armed forces personnel, and other government staff members.
Essentially, anyone employed by the Central Government was eligible to be a beneficiary of this pension program.
MAXIMUM AMOUNT: ₹1,25,000 PER MONTH
Under the Old Pension Scheme, the maximum amount that a beneficiary could receive as a monthly pension payout was capped at ₹1,25,000.
This figure represented the upper limit, ensuring that retirees received a substantial financial benefit to support their livelihood during their post-employment years.
CURRENT STATUS: REPLACED BY NATIONAL PENSION SYSTEM (NPS)
As of the present, the Old Pension Scheme is no longer in operation. It has been replaced by the National Pension System (NPS).
This means that Central Government employees who have joined the workforce after a certain date are now enrolled in the NPS rather than the Old Pension Scheme.
The transition to the NPS marked a significant shift in the retirement benefits provided to these employees.
OFFICIAL WEBSITE: PENSIONERSPORTAL.GOV.IN
The official website for the Old Pension Scheme, where beneficiaries and stakeholders could access important information, updates, and resources, was “pensionersportal.gov.in.”
This website served as a central platform for individuals to gather information and interact with the pension scheme’s administrative authorities. However, with the replacement of the Old Pension Scheme by the NPS, this website may have seen changes or updates to reflect the new system’s requirements.
THE VIEW FROM THE SUPREME COURT
A division bench of High Court judges, Justice Vivek Singh Thakur and Justice Bipin Chandra Negi, emphasized the significance of the pension as a social security scheme, aligning it with the socioeconomic requirements of the Constitution.
This perspective was established during a hearing for a petition filed by Roop Lal.
The High Court has ordered the state government to provide all pension benefits within one month in adherence to the Supreme Court’s judgment on the Old Pension Scheme.
RECENT DEVELOPMENTS
The All India State Government Employees Federation is gearing up for a massive rally in Delhi on November 3. The rally will focus on various demands, including the restoration of the Old Pension Scheme.
Kamlesh Mishra, the National Vice President of the federation, has expressed that if the government does not heed their demands, employees may be compelled to make challenging decisions.
THE OLD PENSION SCHEME AND CENTRAL GOVERNMENT EMPLOYEES
The Old Pension Scheme has become a focal point of political debate as it directly impacts a substantial number of voters  the employees.
 With the discontinuation of the Old Pension Scheme on April 1, 2004, and its replacement by the National Pension System, concerns have arisen regarding the adequacy of benefits provided under the new scheme.
Employees argue that it offers diminished security for their futures and that they are burdened with taxes on postretirement income.
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COMMON QUESTIONS ANSWERED
Q1: What is the current status of the Old Pension Scheme?
A1: The Old Pension Scheme has been replaced by the National Pension System (NPS) by the central government.
Q2: What is the Supreme Court’s judgment on the Old Pension Scheme?
A2: According to the high court judgment, the Old Pension Scheme is still provided to paramilitary forces.
National Pension Scheme (NPS) Amendments: Ensuring Adequate Retirement Payouts
OVERVIEW
NPS currently allows pensioners to withdraw 60% of their retirement corpus tax free, with the remaining 40% used to purchase a taxable annuity.
The Union government is considering amendments to NPS by yearend to secure retirees at least 40 to 45% of their final salary as a retirement payout.
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THE CURRENT SCENARIO
The issue of pensions is politically divisive, with some states switching to the Old Pension Scheme (OPS), which guarantees pensioners a monthly benefit equal to 50% of their last salary.
In contrast, NPS, introduced in 2004, lacks guaranteed base amounts and is market linked.
 NPS requires employees to contribute 10% of their salary, matched by a 14% contribution from the government. OPS don’t demand employee contributions.
PROPOSED NPS AMENDMENTS
Actuarial calculations will be adjusted to offer higher returns.
Changes are expected in the distribution of contributions between employees and employers (central government and states).
 Amendments aim to provide an assured basic amount, linked to inflation, without returning to the unfunded OPS.
THE GOVERNMENT’S STANCE
The ruling central government formed a committee to review the pension system.
The revised pension scheme will still rely on market returns, but mechanisms will be established to ensure a minimum of approximately 40% of the last drawn salary.
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CONCERNS
The old pension system’s fiscal sustainability has been questioned, as it could increase state governments’ debt burdens.
In 2023-24, India’s federal pension budget was ₹2.34 lakh crore.
The old scheme offers an attractive assured benefit, with pensions automatically adjusted for inflation.
Research indicates that pension liabilities for state governments have been increasing significantly, with annual growth of 34% for the 12year period up to 202122.
The modified NPS aims to balance market driven returns with an assured basic pension to provide a better retirement solution.
The key challenge lies in maintaining fiscal responsibility while ensuring that retirees receive a reasonable financial foundation for their postemployment years.