A huge development has come for the government employees. After the long-standing demand, the Old Pension Scheme (OPS) has finally been reinstated. The new rules which are coming into effect on April 15 have returned smiles to the faces of millions of employees and their families. Let us learn what this scheme is and what benefits will accrue to the employees from it. Prior to 2004, government employees were entitled to grant of old pension scheme benefits post-retirement. Such grants were given under this scheme based on last salary drawn.
New Pension Scheme?
With the introduction of the new scheme, the future income did have uncertainties as it was dependent on the performance of the stock market. As the new pension scheme was concerned with the stock market, employees feared that their pension could be reduced as well if the market were to fall. Most importantly, this government could not assure an uninterrupted income as long as employees lived. This was one of the main causes of grief for all the employees.
New Rules To Come Into Effect On April 15
Under this new rule, the government which appoints an employee with any state government before the year 2004 would have an entitlement to an old pension scheme. Calculating their pensions based on the last salary drawn would provide for their dearness allowance which would be increased from time to time. In some special cases, on the option being exercised by the employee, he would be allowed to choose between the old and the new pension scheme.
What Next?
The return of the old pension scheme is an important decision by the government. This will not only ensure financial security for the employees but it will also relieve their families of future worries. This decision shows that the government listens to its employees and works in their interest. The positive outcome of this decision for government employees will be felt nationwide in the times to come.
Also Read: EPS-95 Pension Hike: Union Cabinet Approves ₹7500 + DA For Pensioners