With some non-BJP dominated states deciding to revert to the previous pension scheme, the Centre on Friday determined to arrange a committee underneath the finance secretary to enhance the New Pension System (NPS) to care for the issues of staff whereas sustaining fiscal prudence.
Whereas transferring the Finance Invoice 2023 for consideration and passage within the Lok Sabha, Finance Minister Nirmala Sitharaman mentioned the brand new method to the NPS will probably be designed for adoption by each central and state governments.
“I suggest to arrange a committee underneath the finance secretary to look into the difficulty of pensions and evolve an method which addresses the wants of staff whereas sustaining fiscal prudence to guard frequent residents,” she mentioned.
“The method will probably be designed for adoption by each the central authorities and state governments.”
The choice got here within the backdrop of a number of non-BJP states deciding to revert to the DA-linked previous pension scheme (OPS) and in addition worker organisations in another states elevating demand for a similar.
The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have knowledgeable the Centre about their determination to revert to the previous pension scheme and have requested a refund of the corpus amassed underneath the NPS.
Maharashtra authorities staff agitating for the restoration of the OPS earlier this week known as off a week-long strike after a gathering between their representatives and Chief Minister Eknath Shinde.
Earlier this month, the central authorities knowledgeable Parliament that it’s not contemplating any proposal to revive the OPS in respect of the central authorities staff recruited after January 1, 2004.
Talking on the announcement, Info and Broadcasting Minister Anurag Thakur mentioned the committee will take a look at numerous recommendations on the NPS-OPS subject.
That is the precise step which can take into accout the advantage of staff in addition to fiscal prudence, Thakur added.
Underneath the OPS, retired authorities staff obtained 50 per cent of their final drawn wage as month-to-month pensions. The quantity retains rising with the hike within the DA charges. OPS just isn’t fiscally sustainable as it’s not contributory and the burden on the exchequer retains on mounting.
The whole property underneath administration underneath the Nationwide Pension System and Atal Pension Yojana stood at Rs 8.81 lakh crore as on March 4, 2023.
NPS has been carried out for all authorities staff besides these within the armed forces becoming a member of the central authorities on or after January 1, 2004. Many of the state/ Union Territory governments have additionally notified the NPS of their new staff.
In accordance with the PFRDA (Pension Fund Regulatory and Growth Authority), 26 state governments, excluding Tamil Nadu and West Bengal, have notified and carried out NPS for his or her staff.
NPS has been made accessible to each Indian citizen from Might 1, 2009, on a voluntary foundation.
Additional, on June 1, 2015, the Atal Pension Yojana was launched, which has given the much-required impetus to the social safety schemes.
To control and develop the pension market, the federal government created PFRDA in 2003. It was initially designed for presidency staff completely, however its providers had been subsequently expanded to incorporate all Indian nationals and NRIs, together with self-employed individuals.
PFRDA promotes, develops and regulates organised pension funds; specifically the Nationwide Pension System (NPS) to serve the previous age earnings wants of individuals on a sustainable foundation.
With PTI Inputs