Old Pension Scheme: Former Governor Raghuram Rajan said, ‘Even if it is not in the near future, it will be a big responsibility in the long run. He said, as far as he understands, going back to the old pension scheme (OPS) would not be practical both technically and legally.
Reserve Bank of India: The Old Pension Scheme (OPS) has been restored in some states of the country. Expressing concern over the decision of Rajasthan, Chhattisgarh, Jharkhand and Himachal Pradesh to revive the old pension scheme (OPS), former Governor of Reserve Bank of India (RBI) Raghuram Rajan said that to address the concerns of government pensioners Less expensive methods should be found for. Rajan said that the old pension scheme involves a large future outlay as the pension is linked to the current salary.
Gave a one-time option to adopt OPS
he said, ‘It may not be in the near future but it will be a big responsibility in the long run. He said, as far as he understands, going back to the old pension scheme (OPS) would not be practical both technically and legally. He said, “The reason why such steps have to be taken, there can be less expensive ways to address those concerns.” In a major move, a one-time option has been given to a select group of central government employees to opt for the old pension scheme.
Entitled to 50 percent amount
Under OPS, employees get a fixed pension. An employee is entitled to receive 50 per cent of his last pay drawn as pension. The National Democratic Alliance (NDA) government had decided to discontinue OPS from April 1, 2004. Under the New Pension Scheme (NPS), employees contribute 10 per cent of their basic salary, while the government contributes 14 per cent.
The governments of Rajasthan, Chhattisgarh and Jharkhand have informed the Pension Fund Regulatory and Development Authority (PFRDA) about their decision to resume OPS for their employees. Punjab has also decided to start OPS again.
