There is good news for the employees and pensioners. They will get the benefit of guaranteed pension. Preparations for this are being done by the state government. 50% of the last drawn pay of the employees will be made available to them as pension.
Pensioners Pension, NPS, GPS: There is good news for employee-pensioners. Actually they will get the benefit of Guaranteed Pension Scheme. For this, a big decision of the government has been taken. The employees will get great relief from this decision of the government. For the past 4 years, the Government has been demanding the withdrawal of the Employees’ Contributory Pension Scheme.
Decision to implement Guaranteed Pension Scheme
The Jagan Mohan Reddy government of Andhra Pradesh has decided to implement the Guaranteed Pension Scheme in place of the Contributory Pension Scheme. As per the cabinet note, pensioners under GPS will be provided as 50% of their last application instead of 20.3% of their basic pay.
50% of last drawn pay will be given as pension
GPS is similar to the old pension scheme. Under which the employees will get 50% of the last drawn salary as pension. In the cabinet, it has been decided to give two installments of dearness allowance to the pensioners at par with the employees. The pensioners who are covered under the old pension scheme are getting the enhanced DA. When the government amends it, they will be eligible for it.
these will be the rules
As per the cabinet decision, an effort has been made to safeguard the financial well-being of pensioners keeping in view the impact of inflation on their livelihood. In the matter, State Finance Minister Rajendranath Reddy says that the GPS is offering guaranteed fixed pension at 50 per cent of the final order basic pay to the employees and pensioners without any uncertainty attached to it. Inflation-adjusted dearness relief for pensioners will be included in the GPS keeping in view the inflation.
The administration says that the employees union is happy with the GPS model but is not completely satisfied. GPS is similar to the old pension scheme. There is 80% similarity in this but there is still contribution from the employees whereas in the old pension scheme the employees did not have to make any contribution.
In GPS they still have to contribute 10% of the basic pay to the pension fund. However, it is not yet clear how much contribution will have to be made to the pension fund. The picture will become clear after the introduction of the bill in the state assembly. There is no provision for revision of pension in GPS.
