Centre rubbishes media report on possible tweak in pension system, says no conclusion reached

New Delhi, June 22, 2023

Dismissing a media report on possible changes in the new pension system in the country as "false", the Union Finance Ministry on Thursday clarified that the matter is still under deliberation and no conclusion has been reached.

Earlier, reports suggested that the government will propose 40-45 per cent of their last drawn salary as pension to employees instead of the current employee-government contributed scheme.

With reference to the report, which gave details of pensions being allegedly proposed by the government for the employees under the National Pension System, the Finance Ministry said, "This news report is false."

"The committee, set up under the chairmanship of the Finance Secretary in pursuance of an announcement made by the Union Finance Minister in the Lok Sabha in the last Budget Session, is at present in the midst of its deliberations and is in the process of consulting stakeholders," the Finance Ministry tweeted, adding the Committee has not yet reached any "conclusion whatsoever".

Many Opposition-ruled states have reverted to the Old Pension Scheme, or are mulling to, in the face of demands from government employees and other pressure groups.

So far, Punjab, Rajasthan, Chhattisgarh, Himachal Pradesh, and Jharkhand -- all Opposition-ruled states -- have reverted to the Old Pension Scheme while ignoring the new one which has been in vogue since 2004.

Under the Old Pension Scheme, a government employee is entitled to half of his/her last drawn salary as monthly pension upon retirement.

Under the New Pension Scheme, employees contribute a portion of their salaries to the pension fund. Based on that, they are entitled to a one-time lump sum amount on superannuation.

For the record, the OPS was discontinued in December 2003 and the NPS came into effect on April 1, 2004.

[ANI]