Centre clarifies, says no conclusion reached on assured pension for NPS

In response to a media report speculating potential changes in the NPS with assured pension for state and central government employees, the Union Finance Ministry categorically dismissed it as false. The Ministry stated that the matter is still under deliberation, and no conclusive decisions have been made yet.

According to earlier reports, there were suggestions that the government might propose a pension amount equivalent to 40-45% of an employee's last drawn salary, replacing the current employee-government contribution scheme.

Regarding the report's details on the proposed pensions under the National Pension System, the Finance Ministry referred to it as misleading. It emphasized that a committee, chaired by the Finance Secretary, was established following an announcement made by the Union Finance Minister during the previous Budget Session in the Lok Sabha. The committee is currently engaged in deliberations and consulting with stakeholders. The Finance Ministry tweeted that the committee has not reached any conclusions thus far.

Several states, governed by the Opposition, have either reverted to the Old Pension Scheme or are considering doing so due to demands from government employees and other pressure groups. Punjab, Rajasthan, Chhattisgarh, Himachal Pradesh, and Jharkhand have already abandoned the new system, which has been in effect since 2004.

Under the Old Pension Scheme, retiring government employees are entitled to receive half of their last drawn salary as a monthly pension. Conversely, the New Pension Scheme involves employees contributing a portion of their salaries to a pension fund, which results in a one-time lump sum payment upon retirement.

It's worth noting that the Old Pension Scheme was discontinued in December 2003, while the New Pension Scheme came into effect on April 1, 2004.