Wednesday, May 18, 2022

Chhattisgarh first state to restore old pension scheme

Chhattisgarh has become the first state in the country to restore the old pension scheme in order to provide assured income to retired employees, said an Economic Times report. The state government has sent a proposal to the Pension Fund Regulatory and Development Authority (PFRDA) for the withdrawal of Rs 17,000 crore accrued under the National Pension Scheme since November 2004.
The government issued a notification saying that the old pension scheme will be effective from April 1, 2022. Also, the 10 per cent deduction for monthly contribution from the salary of government employees as a contribution to the new pension scheme will be abolished from April 1, 2022. However, a minimum of 12 per cent of basic salary will be deducted as per the General Provident Fund rule.
The old pension scheme gives 50 per cent of the employee’s salary as pension.
A similar request by the Rajasthan government was rejected. The Centre had rejected the Rajasthan government’s request to withdraw Rs 39,000 crore accrued under the National Pension Scheme since 2004. The Rajasthan government had said it would withdraw funds accrued since 2004 and shift them under the general provident fund.
Necessary amendments in the rules were approved for the implementation of the budget announcement of the Old Pension Scheme (OPS) for all government employees appointed on and after January 1, 2004. In the course of its implementation, the proposal for various amendments in the Rajasthan Civil Services (Pension) Rules, 1996, Rajasthan Civil Services (Contributory Pension) Rules, 2005, various revised pay scale rules and Rajasthan Civil Services (Medical Attendance) Rules, 2013 were approved.
With this decision, the government employees appointed on and after January 1, 2004 would have been eligible for pension benefits on their retirement. Along with this, they will also be able to get cashless medical facility under the Rajasthan Government Health Scheme.

SourceAGENCIES

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