OPS Vs NPS: A committee has been formed under the chairmanship of Finance Secretary to review NPS, which is deliberating on making NPS attractive.
Minimum Pension Benefit: Recently, the Ministry of Finance had denied the news of giving minimum pension to the central employees. But the echo of these news is now being heard in the Parliament as well. During the Question Hour in the Rajya Sabha, the Finance Minister was asked about the change in the rules of pension given to central employees. The Finance Minister was asked whether the central government is considering giving 40 to 45 percent of the last salary before retirement to its employees as pension? Answering this question, Minister of State for Finance Pankaj Chowdhary said that no such proposal is under consideration before the government.
Rajya Sabha MP KD Singh asked a question related to the review of the National Pension Scheme during the Question Hour. He questioned the government whether the central government is considering changing the formula of market linked pension received under the National Pension Scheme? And considering giving 40 to 45 percent of the last salary before the retirement of the employees as pension? Answering these questions, the Minister of State for Finance said that at present the government is not considering any such proposal.
KD Singh asked the Finance Minister whether the committee constituted by the government to review the NPS for central employees has submitted its report to the government? And is the government considering a review of the existing pension scheme? Answering these questions, the Minister of State for Finance said that the report of the committee has not come yet. And the question of review of the existing pension scheme does not arise.
In fact, in the month of June, it was reported that the government may come forward with a proposal to give minimum pension to its employees under NPS. Then the Finance Ministry had denied these reports. In the month of March, when the Finance Bill was being passed by the Lok Sabha in the second phase of the budget session of Parliament, Finance Minister Nirmala Sitharaman announced the formation of a committee to review the NPS under the chairmanship of the Finance Secretary. The committee is still in discussion with different stakeholders. The Finance Ministry had told that the committee has not reached any conclusion at present.
Many Congress-ruled states have reverted to the old pension scheme except NPS for their employees. Slowly it is becoming a big election issue. The pressure on the central government is also increasing. After which, in view of the demand for the Old Pension Scheme, the Central Government had announced the formation of a committee under the chairmanship of the Finance Secretary, which is considering making NPS attractive.
