NPS has been applicable in the country since January 1, 2004.
In April 2023, the government formed a committee chaired by the Finance Secretary to review the new pension scheme (NPS).
For a considerable period, there has been a conflict between the central government and the opposition over the old pension scheme (OPS) and the new pension scheme (NPS) in the country. There have been speculations that the government might offer a substantial benefit to central employees and modify the rules of the NPS. However, in response to inquiries, Minister of State for Finance Pankaj Chaudhary clarified in Rajya Sabha that the government is not currently contemplating any proposal of providing a minimum pension of 40 to 45 per cent of their last pay to central employees.
During the question hour in Rajya Sabha, MP KD Singh inquired whether the central government is planning to alter the formula of the market-linked pension received by the NPS beneficiaries. Specifically, he suggested that 40 to 45 per cent of the last salary of the employees should be provided as a pension. However, Chaudhary stated that no such proposal is currently under consideration by the government.
NPS has been applicable in the country since January 1, 2004. Recently, in April 2023, the government formed a committee chaired by the Finance Secretary to review the NPS. This committee has been tasked with assessing the effectiveness and functioning of the new pension scheme and is expected to complete its review within a year. This review aims to analyse the NPS and potentially propose changes for its enhancement or modification.
As of now, the committee constituted for the review of the NPS has not submitted its report to the government. Chaudhary confirmed that the report of the committee is still pending and has not been received yet.
Indeed, the withdrawal of the old pension scheme has become a significant election issue in several states, including Rajasthan, Jharkhand, Chhattisgarh, Himachal Pradesh and Punjab. The decision by these states to opt out of the OPS is garnering attention and might have implications in the upcoming state assembly elections. It highlights the ongoing debate and concern surrounding pension policies and the potential impact on government employees and pensioners in these states.
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