OPS – Old Pension Scheme
NPS – New Pension Scheme
There are at least 9.5 lakh State employees who joined government service before November 2005 and they already enjoy the benefits of the OPS.
Under the scheme, a government employee received a monthly pension equivalent to 50% of their last drawn salary.
There was no need for any contribution by employees.
The OPS was discontinued in the State in 2005.
Under the NPS a State government employee contributes 10% of their basic salary plus dearness allowance, with the State making a matching contribution.
The money is then invested in one of the several pension funds approved by the Pension Fund Regulatory and Development Authority and the returns are market-linked.
The CMO note further said that the State government employees concerned will be required to give the option to implement the OPS within a period of six months from the publication of the government’s decision.
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