Rajasthan Govt to roll back NPS; Employees appointed after 1 Jan, 2004 entitled to old pension scheme

Feb. 23: In what seems to be a welcome news for the state government employees of Rajasthan is soon those who were appointed after 1 January, 2004 shall be entitled to the old pension scheme. Rajasthan Chief Minister Ashok Gehlot presented the state Budget 2022-23 today and announced that all Rajasthan Govt employees appointed on or after 1st January, 2004 will be entitled to pension scheme like earlier (older version of the scheme) from next year onwards.

The Central Government had introduced the National Pension System (NPS) with effect from January 1, 2004 (except for armed forces). Since its introduction, employees of all government sectors have been protesting to scrap the national pension scheme and restoration of the old pension scheme.

All Rajasthan Govt employees appointed on or after 1st January 2004 will be entitled to pension scheme like earlier (older version of the scheme) from next year onward: Rajasthan CM Ashok Gehlot announced in Assembly during Budget speech

(File photo) pic.twitter.com/2PuWpvVTZB

— ANI (@ANI) February 23, 2022

As per the NPS regime they can withdraw 60% of their pension contribution in bulk and out of the remaining 40% they get barely ₹700 and ₹800 every month as annuity after remitting 10% of their salary for 15 years! So the paltriness of the NPS scheme is gradually dawning upon them and so the anger mounts.

Why the employees are opposing the New Pension Scheme?

Under the old pension scheme, the employees would get assured interest from the government for their accumulating pension fund. But under the NPS, the workers’ savings would be invested in the stock market and their pension amount would be decided by accruals from the share market. Private pension funds would invest their money and make a profit for themselves.

The announcement of Rajasthan Chief Minister Ashok Gehlot during the budget session as regards abolishing NPS and adoption of OPS for all state govt employees who joined service after 1 January, 2004 was welcome by the employees associations.