Jaipur News Desk: After working for half of one’s life, a person thinks of taking rest. He wants his future life to go smoothly without any financial problems. For this, the Government of India used to give Old Pension Scheme (OPS) to government employees after retirement. Which was abolished in the year 2024 and NPS i.e. New Pension Scheme (NPS) has been implemented. Due to which there is a lot of confusion among the people. This problem also persists among the government employees of Rajasthan, which has become difficult for the state government to solve. In the information issued by the Finance Department on October 4, it has been indicated that it may allow OPS to remain in force in the state. With this, once again the discussion regarding OPS and NPS has intensified in the state, which one is better and what is the difference between them.
Old Pension Scheme (OPS)
Under the Old Pension Scheme (OPS), employees used to get a fixed amount under a fixed formula. Which was given as a fixed income every month after retirement. After retirement, under this scheme, the employee also got other benefits like gratuity, dearness allowance and dearness relief. In which the government used to cover the entire pension amount without any deduction. Whereas, on January 1, 2024, the Central Government abolished OPS and started NPS, after the implementation of which people were very unhappy. Because the facilities which were there in OPS, were somehow missing from NPS.
New Pension Scheme (NPS)
The full name of NPS is National Pension Scheme. Its objective is to provide retirement benefits to all citizens of India. NPS aims to inculcate the habit of saving for retirement among citizens. Under NPS, individual savings are deposited into a pension fund, which is invested in investments including government bonds, bills, corporate debentures and shares through PFRDA-regulated professional fund managers. Investments are made in diversified portfolios.
Advantages and disadvantages of old and new pension scheme
The old pension scheme is paid from the government treasury. The new pension scheme is based on the stock market, in which the money you invest in NPS is invested in the stock market. In the old pension scheme, the employee is given guaranteed income according to a fixed formula. Whereas in the new pension scheme, the employee can choose from various investment schemes ranging from low risk to high risk through the pension fund manager. This includes public sector banks, financial institutions and private companies. Under OPS, retirees have to They get pension equal to 50% of their last salary. This fixed percentage provides estimated income after retirement. NPS does not guarantee a fixed pension amount. Pension depends on the total accumulated corpus and returns on investment. On the death of a retired person, his family continues to receive the same pension amount in the form of family pension. There is no such provision in NPS.
