Old Pension Scheme Updates: In Himachal Pradesh from April 1, 2023 Old Pension Scheme (OPS) has been restored. This will benefit 1.36 lakh employees of the state government, who National Pension Scheme (NPS) Will not face deduction under. The Chief Secretary of the state on Monday issued a notification to implement the OPS. The notification states that as per the decision of the cabinet to implement the old pension scheme, the contribution (employer’s and employee’s share) of state government employees covered under the National Pension System will be stopped from April 1, 2023. The restoration of OPS was one of the key promises of the Congress in the 2022 assembly elections and a decision in this regard was taken in the first cabinet meeting on 13 January 2023.

RBI has given warning

The Reserve Bank of India (RBI) had warned about the implementation of the old pension system in some states. The central bank said that there is a big risk regarding the fiscal scenario at the level of the states and such liability will increase for them in the coming years, for which there is no provision of money. The RBI in its report titled ‘State Finances: A Study of the Budget for 2022-23’ has said this at a time when Himachal Pradesh has recently announced the re-implementation of the old pension scheme (OPS) linked to dearness allowance. Earlier, Rajasthan Chhattisgarh and Jharkhand had informed the Central Government and the Pension Fund Regulatory and Development Authority (PFRDA) about their decision to restore OPS.

What is the specialty of the old pension scheme?

1. No deduction from salary for pension
2. Facility of GPF (General Provident Fund)
3. Secured pension plan. It is paid through the treasury of the government
4. Fixed pension up to 50% of the last basic salary is available at the time of retirement in OPS.
5. Gratuity is available up to Rs 20 lakh after retirement.
6. There is a provision of family pension in case of death during service.
7. No investment is required from GPF to get pension at the time of retirement

These are the advantages of New Pension Scheme

1. Deduction of 10% (Basic+DA) from the salary of the employee
2. General Provident Fund (GPF) facility not added
3. NPS is based on stock market, payouts are based on market movements
4. There is no guarantee of fixed pension at the time of retirement
5. There is a temporary provision of gratuity at the time of retirement
6. Family pension is available on death during service, but the government confiscates the money deposited in the scheme.
7. To get pension, 40% money has to be invested from NPS fund.

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