The Finance Ministry has appointed a committee to review the pension system of government employees. A committee headed by the Finance Secretary has been constituted to suggest reforms in the NPS which will improve the pension benefits of government employees. Last month, Finance Minister Nirmala Sitharaman had said that she would look into the issue of pension under NPS for government employees and formulate a policy keeping in mind the needs of the employees. This announcement comes in the backdrop of several non-BJP states deciding to return to the DA-linked Old Pension Scheme.
The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have informed the Center about their decision to revert to the old pension scheme and requested to return the accumulated corpus under NPS. But the finance ministry had informed Parliament last month that it was not considering any proposal to restore the old pension scheme for central government employees recruited after January 1, 2004.