In a significant move, the Himachal Pradesh government has stopped the deduction of NPS share from April 1. The Finance Department issued its notification on Monday, making it official that the state government has implemented the old pension scheme Civil Services (Pension) Rules 1972. This move has brought relief to around 1.36 lakh government employees, who had been demanding the restoration of the Old Pension Scheme (OPS) for a long time.
The OPS provides a guaranteed pension to government employees after their retirement, whereas the National Pension System (NPS) is a defined contribution scheme that does not offer any guaranteed pension. The decision to restore the OPS in Himachal Pradesh is a significant one, as it marks a departure from the trend of phasing out the scheme in favour of the NPS.
The implementation of OPS in Himachal Pradesh is likely to set a precedent for other states to follow. It also highlights the need to review and reform the pension systems across the nation.
The Union government has set up a committee to review the pension systems for government employees, including the NPS and the OPS. Led by Finance Secretary T.V. Somanathan, the committee’s objective is to find a solution that addresses the concerns of government employees while ensuring that the pension system remains financially sustainable. The review of the NPS and OPS is an important step towards ensuring that the pension systems in India are equitable and fair for all government employees.
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The decision to restore OPS in Himachal Pradesh has been welcomed by government employees, who had been demanding the scheme’s restoration for a long time. The move is expected to provide greater financial security to government employees, who have been grappling with the uncertainties of the NPS. However, the impact of this decision on the financial sustainability of the pension system in Himachal Pradesh remains to be seen.