None
Skip to mainThe finance ministry on Monday said governments of five states -- Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh -- have informed the Centre about their decision to revert to the old pension scheme.
In a written reply to a question in the Lok Sabha, minister of state for finance Bhagwat Karad said as per RBI's report titled 'State Finances: A Study of Budget of 2022-23', the annual saving in fiscal resources that reversion to the old pension scheme entails is short-lived.
By postponing the current expenses to the future, states risk the accumulation of unfunded pension liabilities in the coming years.
"The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh have informed the central government/Pension Fund Regulatory and Development Authority (PFRDA) about their decision to restart Old Pension Scheme (OPS) for their state government employees," Karad said.
He further said there is no provision under the Pension Fund Regulatory and Development Authority Act vide which the accumulated corpus of the subscribers, viz governments' and employees' contribution towards NPS along with accruals, can be refunded and deposited back to the state government.
As per Reserve Bank of India's report titled 'State Finances: A Study of Budget of 2022-23', the annual saving in fiscal resources that reversion to the old pension scheme entails is short-lived. By postponing the current expenses to the future, states risk the accumulation of unfunded pension liabilities in the coming years.
The Reserve Bank of India (RBI), last month, had cautioned states against reverting to the Dearness Allowance-linked old pension scheme (OPS), which was in place till 2004, stating that it will add to the fiscal burden of states in the coming years.
Under the OPS, retired government employees received 50 per cent of their last drawn salary as monthly pensions. The amount keeps increasing with hike in the DA rates.
OPS is not fiscally sustainable as it is not contributory in nature and the burden on exchequer keeps on mounting. The government is not considering going back to the old scheme for the central government employees.
🕑 26 Jul, 2024 09:58 AM
44.8% DA for CPSE IDA employees in 2017 pay scales
🕑 26 Jul, 2024 09:56 AM
217.8% DA for CPSE IDA employees in 2007 pay scales
🕑 26 Jul, 2024 09:52 AM
436.5% DA for CPSE IDA employees in 1997 pay scales
🕑 26 Jul, 2024 09:34 AM
Revised DA rated for CPSEs following IDA pattern of 1987 and 1992 Basis
🕑 24 Jul, 2024 09:38 AM
Lok Sabha Q&A : Restoration of Old Pension Scheme is not under consideration
🕑 23 Jul, 2024 12:43 PM
Relief for IT payers in the new tax regime
🕑 23 Jul, 2024 12:04 PM
Budeget 2024 : Updates
🕑 22 Jul, 2024 04:42 PM
No proposal to constitute 8th Central Pay Commission: Govt in Lok Sabha
🕑 22 Jul, 2024 04:39 PM
Centre lifts ban on govt employees joining RSS activities
🕑 13 Jul, 2024 02:31 PM
7 point charter of demands by confederation: 8th CPC, OPS, DA arrears...
🕑 23 Jun, 2024 08:47 AM
8th Pay Commission: How much pay hike central govt employees expect?
🕑 20 Jun, 2024 05:59 PM
Finance Minister May Increase Income Tax Exemption in Budget 2024
🕑 18 Jun, 2024 03:34 PM
The Impact and Expectations Surrounding the 8th Central Pay Commission
🕑 07 Jun, 2024 10:13 AM
Indian Members of Parliament: Compensation and Benefits
🕑 10 Apr, 2024 08:35 AM
Kendriya Vidyalaya Sangathan Admission Guidelines 2024-2025
🕑 05 Apr, 2024 01:23 PM
Kendriya Vidyalaya Balvatika Admission Schedule - 2024-25
🕑 02 Apr, 2024 09:25 AM
Kendriya Vidyalaya Admissions Open for 2024-25: Key Dates & Appln Process
🕑 01 Apr, 2024 09:23 AM
Kendriya Vidyalaya (KV) schools where Balvatika is functioning
🕑 14 Mar, 2024 02:07 PM
Govt bans 18 vulgar 18 OTT. See the list here