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Ops vs NPS: Employees don’t want new pension scheme, demand restoration of old pension scheme – Ops vs NPS ThePipaNews

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Summary

OPS vs NPS: It has been 18 years since the implementation of NPS. A worker associated with this scheme gets a pension of only 3-4 thousand rupees when he retires. In the old pension system, the employee got 50 percent of his basic salary as pension after retirement.

Shiv Gopal Mishra, secretary of the National Council of the ‘Staff Side’ (JCM), wrote a letter to the Cabinet Secretary this week. It said that all central government employees, including the central paramilitary forces, have opposed the National Pension Scheme ‘NPS’. Their demand is to cancel the NPS and introduce the old pension system. From January 1, 2004, government employees were taken out of the old pension system and included in the NPS. Mishra said in his letter that the employees who joined the NPS scheme, who are retiring today after 18 years, got what? One worker received monthly pension of Rs 2417 in NPS, second received Rs 2506 and third received Rs 4900.

There is no provision for costly relief

According to Shiv Gopal Mishra, had these same employees been under the old pension system, they would have received Rs 15250, Rs 17150 and Rs 28450 per month respectively. Employees also get nominal pension on retirement after putting 10% of their salary in NPS every month. There is no provision for dearness relief like the old pension system. Employees covered under the old pension system get financial benefits in the form of costly relief. Sreekumar says that there is anger in all departments of the central government over the NPS. The workers are facing huge financial loss due to this. Their social security is also not guaranteed. Government employees are being deliberately pushed into suffering after retirement.

Economic gain is low, loss is high

It has been 18 years since NPS came into force. A worker associated with this scheme gets a pension of only 3-4 thousand rupees when he retires. In the old pension system, the employee got 50 percent of his basic salary as pension after retirement. There were other benefits as well. This is not all NPS. 40 percent advance can be taken in old pension system. After 15 years, 40% of the pension is returned. NPS is a market based system. It has less financial gain, more loss, because there is always room for risk in the market.

OPS, now implemented by many states

The old pension system provided that a retired employee’s pension would increase by twenty percent when he or she crossed the age of 80 years. If one lives up to 100 years, he gets a pension equal to the basic pay. Some time ago a parliamentary committee recommended a five percent increase in pension up to the age of 65. After that, when the pensioner crosses the age of 70 years, his pension will again be increased by five percent. After 80 years, the pension has been increased by 20 percent. This was done because the life span of many people rarely reaches 80 years. West Bengal government has not implemented NPS in its own right. The old pension system is in operation there. Mishra wrote in his letter that NPS has now been withdrawn in Jharkhand, Chhattisgarh, Punjab and Rajasthan. Other state governments are also considering restoration of old pensions.

Lok Sabha elections will suffer

The Central Government should seriously consider this demand of the workers. Old pension is a big problem for central employees. The ‘staff side’ has sought appointment with the National Council Cabinet Secretary. In this regard, civil defense workers protested at Jantar Mantar on 26 September. Employees said that if the central government does not implement the old pension system now, it will suffer the consequences in the 2024 Lok Sabha elections. Sreekumar, member of National Council of Staff Side (JCM) and general secretary of All India Defense Employees Federation ‘AIDEF’ said that the central government has cheated the workers by canceling the old pension. In NPS, if a worker retires after 25 years of service, he will get a pension of Rs 2 to 4 thousand. In the old pension system, on retirement, the employee used to get 50 percent of his last basic pay, to which dearness relief was added.

Central workers have given this option to Govt

Mukesh Singh, general secretary of the Indian Defense Workers’ Union and member of the JCM-II level council of the defense ministry, has written a letter to Prime Minister Modi demanding restoration of the old pension system. He gave many suggestions to the Prime Minister. If the central government does not want to cancel the NPS, it will conditionally pay a minimum pension which is half of the last salary of the workers. Not only this, but it has to be coupled with a costly relief allowance. If the central government does not meet this demand soon, the rumblings of central workers will be heard in Delhi in November. Lakhs of central workers from across the country will throng the national capital.

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