The old pension scheme is once again in news. The reason is the re-implementation of this scheme by some states. After the Rajasthan, Himachal Pradesh government, the Jharkhand government has also introduced the old pension scheme for the government employees.
After the announcement of CM, old pension will be implemented in Chhattisgarh as well. If this happens, more than three lakh government employees appointed after January 1, 2004 will get the benefit. Government employees across the country have been demanding for a long time for the restoration of old pension scheme.
Let us know what are the benefits of the old pension scheme and why the employees want to this to be implemented. The objective of implementing the new pension scheme was to eliminate the burden of pension payment from the shoulders of the government in the coming years.
So far, the Rajasthan, Himachal Pradesh and Jharkhand governments have announced to restore the old pension scheme. The old pension scheme for government employees in the country was discontinued from April 1, 2004 and the new National Pension System (NPS) was implemented. So what is the difference between old and new pension scheme?
Old Pension Scheme
General Provident Fund (GPF) facility
No deduction from salary for pension
Fixed pension on retirement i.e. 50% guarantee on the last salary
The entire pension is given by the government
On death during service, the dependent gets family pension and job
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New Pension Scheme (NPS)
There is no General Provident Fund (GPF) facility
10 percent per month is deducted from the salary
Fixed pension is not guaranteed. It will be completely dependent on the stock market and insurance companies
The new pension will be given by insurance company. In case of any issues you have to deal with the insurance company
The benefit of inflation and pay commission will not be available.
