Old Pension Scheme: The demand for re-implementation of the old pension scheme is rising fast before the upcoming elections. After Rajasthan, Chhattisgarh, Punjab, Jharkhand, now the announcement of implementation of the old pension scheme in Himachal Pradesh has raised the political temperature across the country. On the one hand, there is an atmosphere of happiness among the employees and pensioners due to this decision, on the other hand, after the NITI Aayog, now the Finance Commission has expressed concern over it.
NK Singh, chairman of the 15th Finance Commission, said on Friday that it would be “unwise” for states to abandon the new pension scheme implemented after much deliberation and it would put them in “difficulties and pressure” on the Congress and the AAP. Like political parties are promising voters to implement the old pension scheme. It is an unwise move to leave the new pension scheme and adopt the old system.
Commission Chairman NK Singh said that former Prime Minister Manmohan Singh was in favor of the new pension system, while Montek Singh Ahluwalia, then deputy chairman of the Planning Commission, had also appreciated it. My colleague Montek Singh Ahluwalia has commented at length on the subject that going back on the New Pension Scheme and going back to the Old Pension Scheme would be a financial disaster for the State.
Suman Berry had also expressed concern
Earlier, NITI Aayog Vice Chairman Suman Berry had expressed concern in an interview saying that I am a little worried about bringing back the old pension scheme. This will put a burden not on the existing taxpayers but on the future taxpayers and citizens. At present, India needs to focus on improving the fiscal position and promoting sustainable development.
One of the biggest ‘Revdis’ – Montek Singh Ahluwalia
Same former Vice President Montek Singh Ahluwalia said that if OPS is brought back, it will be one of the biggest ‘revadis’ of the government. PM Modi is right about Revdi (free gift). Everyone talks about reducing the fiscal deficit but no one finds a solid solution to get rid of the fixed expenditure. Indian economy needs to grow at 8 per cent instead of focusing on whether there is a recession in America or Europe.
What is OPS and NPS
Significantly, under the old pension scheme, the government used to give full pension amount to the employees-pensioners, it was discontinued from April 1, 2004. As per the new scheme, employees contribute 10 per cent of their basic salary to the pension, while the state government contributes 14 per cent.