There has been a heated conflict between the central government and the opposition regarding the old pension scheme (OPS) and the new pension scheme (NPS) for quite some time. In recent times, there have been widespread rumours and speculations regarding potential government benefits for central employees and proposed changes to the NPS rules. However, Pankaj Chaudhary, minister of state for finance, addressed these concerns during a session in the Rajya Sabha, confirming that, as of now, the government has no plans to grant a minimum pension of 40 to 45 percent of their last pay to central government employees.
During the question hour in the Rajya Sabha, MP KD Singh raised a query about the central government’s intentions to revise the market-linked pension formula for NPS beneficiaries. He was of the view that the pension should be set at 40 to 45 percent of the employee’s last salary.
The NPS has been in effect in the country since January 1, 2004. In April 2023 a committee, chaired by the finance secretary, was established to review the NPS and to evaluate its effectiveness and functioning. It is expected to conclude its assessment within a year. The review aims to thoroughly scrutinise the NPS and recommend changes for its improvement or modification.
As of now, the committee tasked with reviewing the NPS has not submitted its report to the government. Chaudhary confirmed that the committee’s report is still pending and has not been received yet.
