In this article we will discuss about news on bringing back the OPS (old pension scheme) by central govt. As we all know there has been tremendous pressure on govt for bring back the old pension scheme.
What is OPS ?
In 2004 NDA govt came up with a planning for reducing cost of governments, they proposed a new pension scheme (NPS).
So it’s important to understand what is the basic difference between NPS and OPS. How NPS is harmful for govt employees and how it’s beneficial for government.
Earlier than 2004 the govt employees use to get their 100% pension from govt money which was causing heavy burden on govt for paying pension and later family pension. So in NPS the officials proposed that we will deduct 10% of monthly salary for all the employees and we will invest that money in stock market. Later we will get some interest from stock market which could be given as pension for employees.
So ultimately here the point is that the govt will be deducting some money from monthly salary of employees and investing in stock market later the employees will be getting little interest which will be called as pension.
Alright so now we understood why OPS is bad for government and good for employees. Also the people like IAS, IPS, politicians are still under OPS, which means they will be serving for only 5 years but still getting pension for lifetime. But the actual government employees who work for country till the age of 60 years will be left on road.
Differences between NPS and OPS
- In OPS employees will be getting fixed pension after Retirment
- In NPS there is no fix pension , the monthly pension depends on how share markets are performing
- If the stock markets are up then employees will be getting good returns, otherwise there will be very less amount of money in the form of pension.
- Due to stock market high volatility nature employees will not be getting enough money to live a basic life.
Why OPS is Necessary for Employees
Well there are couple of reasons why OPS should be made mandatory for all the government employees. As we have already discussed all the pros and corns of the NPS above. We understood that pension depends on the stock market which is highly volatile in nature.
So there is no Guarente that we will be receiving this much fixed amount as pension.
Also the amount which we get from stock market as pension is very less which cannot fulfill even basic needs of the employees.
Recent Developments in bringing back OPS
If we take a look at recent developments in implementing OPS. well couple of states already agreed to give OPS and scrap NPS like Punjab, Uttarakhand, MP, Rajasthan etc. These are just few states but apart from this now congress has promised of giving OPS if they come into power in up coming elections.