New Delhi: In the course of the current Lok Sabha and Meeting elections, authorities workers have been seen indignant with the central authorities. The largest motive for this was OPS (Outdated Pension Scheme). Worker unions have been constantly agitating for this demand or have been in search of a technique to negotiate with the federal government. Prime Minister Narendra Modi and his authorities understood very properly that if this demand of the staff was not thought-about, then it might attain the extent of agitation. When NPS (Nationwide Pension Scheme) was carried out rather than OPS on 1 January 2004, voices of protest began rising in opposition to it from then itself.
Within the midst of all this, seeing the anger of the staff, Andhra Pradesh was the primary to approve the Assured Pension System (GPS) which was like a combination of previous and new pension scheme. The Andhra Pradesh Assured Pension System Invoice 2023 confirmed that this contributory scheme would assure that authorities workers can be given 50 per cent of their final wage as a month-to-month pension. This is able to additionally embrace dearness allowance reduction.
Many state governments made the system on this foundation
After this, governments in lots of states began the train of connecting workers beneath a brand new system on the premise of this. A committee was additionally shaped to grasp the Andhra Pradesh Assured Pension System in lots of states.
Now when the federal government introduced UPS i.e. Unified Pension Scheme as an alternative choice to OPS beneath the brand new system, the Assured Pension Scheme of Andhra Pradesh was additionally stored in thoughts and it was additionally studied. In such a state of affairs, this scheme grew to become totally different from the previous NPS and OPS in some ways.
In the course of the Narendra Modi 2.0 authorities, which is going through opposition concerning NPS, Finance Minister Nirmala Sitharaman had indicated that the federal government is able to enhance NPS. That is being thought-about. In order that authorities workers can get a set pension. After this, only a few months after the formation of Modi 3.0 authorities, the staff have been given the reward of UPS.
Beneath this new system of UPS, workers will get many advantages like household pension, minimal pension, gratuity and dearness allowance. Nevertheless, in OPS, the federal government used to contribute to all the pension, that’s, all the monetary burden fell on the federal government. Then again, in NPS, each the federal government and the staff have been contributing. However, on this new UPS system, authorities workers will give 10 p.c of their wage as contribution and the federal government which used to contribute 14 p.c earlier has been elevated to 18.5 p.c. That’s, the extra monetary burden on the federal government in OPS shall be barely much less.
What’s the authorities’s contribution in OPS, NPS and UPS?
Now perceive what the federal government needed to do in OPS, NPS and UPS. In OPS, the federal government needed to pay the contribution of each the worker and the federal government and the worker was getting 50 p.c of his final wage as assured pension which was tax free. Whereas, in NPS, authorities workers have been contributing 10 p.c of their primary wage and DA. Additionally, the federal government was contributing 14 p.c of the fundamental wage and DA. Throughout retirement, workers got free withdrawal of 60 p.c of the quantity. Whereas, 40 p.c of the quantity was invested available in the market. This depended available on the market circumstances as to how a lot pension an emp