On Monday, Bhagwat Karad, a minister of state for finance, stated that there was no proposal to reinstate the Old Pension System. OPS has been investigated by committees in Assam, Kerala, and Andhra Pradesh, and numerous states have begun a campaign to reinstate the pension scheme.
The previous plan provided employees with a pension equal to fifty percent of their final salary. The Dearness Relief’s biannual adjustment (DR) also benefits them. There was no salary deduction for the predetermined compensation. Additionally, the General Provident Fund (GPF) was a component of the OPS.
GPF is accessible only to Indian government employees. It allows all government employees to contribute a portion of their pay to the GPF.
At the time of retirement, the employee receives the entire amount accrued during their employment.
On the other hand, the National Pension System is a voluntary defined-benefit retirement savings program that encourages participants to save consistently throughout their working lives in order to help them make the best decisions for their future.
The goal of the NPS is to help people develop routines for saving for retirement. The objective of the new pension plan is to provide a long-term solution to the issue of ensuring that every Indian has an adequate retirement income.
PFRDA-regulated professional fund managers pool individual NPS deposits into a pension fund, where they are invested in a variety of portfolios that include stocks, bonds, government and corporate bills, as well as other securities, in accordance with authorized investment guidelines.
Based on the returns on the investments that were made, these contributions would rise and accumulate until retirement.