Raipur: CM Bhupesh Baghel presenting the Budget on Wednesday rolled back the Old Pension Scheme in the state giving relief to lakhs of govt employees ahead of Holi. Employees have taken over the streets celebrating the big announcement made. Roughly 2.95 lakh individuals recruited after 2004 would be benefitted from the rollback. Baghel also informed to increase the honorarium of govt advocates for the FY 2021-22.
Chhattisgarh is the second state to re-introduce the old pension scheme that was scrapped from April 1, 2004, and replaced with a marker driven new scheme. Members of the party on grounds of anonymity informed that the re-introduction was discussed by former party president Rahul Gandhi with Rajasthan CM and Chhattisgarh CM days ago. “Baghel was told to explore the introduction of the old pension scheme from the next financial year,” hinted a Congress functionary.
What is the difference between NPS and OPS?
NPS is a contributory mechanism while OPS is regulated through a defined mechanism. The government brought in NPS because the cost of pension payments was high. Under the OPS, employees get a pension according to a predetermined formula, which is half of the last salary. They also get the benefit of a hike in Dearness Relief (DR) twice a year. Whereas, in NPS an employee deposits 10 per cent of basic pay and dearness allowance.