Old Pension Scheme
The Old Pension System (OPS) is no longer financially feasible, and its introduction will be detrimental for those citizens of the country who are not in government jobs. This statement of Finance Secretary TV Somanathan is disappointing for lakhs of employees who were expecting OPS.
However, Somanathan said that some meaningful discussions have been held with the employee organizations and state governments regarding NPS. And the work of the committee formed on NPS is not yet complete. We have talked to the employee organizations and state governments about this. There has been some progress in this. In such a situation, it will take time for its suggestions to come.
Why is it not possible
Somnathan said in a special conversation with ‘PTI-Bhasha’ that one thing is very clear that the old pension system is not financially possible. Bringing the old pension will be harmful for those citizens of the country who are not in government jobs. As far as the committee formed on NPS is concerned, its work is not yet complete. We have talked to the employee organizations and state governments about this. There has been some progress in this. Employees have some concerns.
- First, they say that this is a new scheme. NPS is linked to the stock market, we do not want fluctuations. They say that it should be clear how much pension will be received.
- Second, whatever pension they get after retirement, there should be some provision to deal with inflation i.e. some arrangement like DA (dearness allowance). If this is not done, the real value of pension will keep decreasing.
- Third, if someone has not worked for the full job i.e. 30 years, some minimum pension should be fixed for him. These are such matters on which we have to take a decision.
- Last year, the Finance Ministry had constituted a committee under the leadership of the Finance Secretary to review the pension scheme for government employees and suggest changes in the National Pension System as per the need.
New reforms in collaboration with the states
Responding to a question related to new generation reforms in the budget and cooperation of the states, the Finance Secretary said that discussions will be held with the states to take the reforms forward. Apart from this, they will be encouraged through fiscal measures. He also said that every budget has some priorities, the same is there in this too. Everyone has been taken care of in this.