The announcement of Union Finance Minister Nirmala Sitharaman to review the National Pension Scheme (NPS) while moving the Finance Bill 2023 in Lok Sabha last week won’t only satisfy the long pending demand of the employees across the country but it will also stop appeasement of voters over the demand for restoration of old pension scheme (OPS) in many states of the country going to polls in coming few months. Irrefutable fact is that commitment to restore the Old Pension Scheme (OPS) was the main poll plank of the Congress party in assembly elections in Himachal Pradesh and the grand old party immediately after returning to power in the state restored the old pension scheme (OPS) for the state government employees. Since the timing choosen for reviewing the New Pension Scheme (NPS) for the purposes of restoring the old pension scheme (OPS) coincides with timing of assembly elections in some states, the decision to constitute a committee for reviewing the New Pension Scheme (NPS) for the purposes of restoring the Old Pension Scheme (OPS) by the the Union Finance Minister Nirmala Sitharaman has come at the right time. Since the National Pension Scheme (NPS) was years back executed by the Central Government all over the country the restoration of Old Pension Scheme (OPS) by all standards of understandabilities is also the domain of the Central Government. Leaving the decision for the State and Union Territory (UT) Governments to take a call on restoration of Old Pension Scheme changed the rising demand of the restoration of Old Pension Scheme (OPS) into an election plank in almost all the states of the country.
“Since fears of instability in post-retirement life spans under National Pension Scheme (NPS) are rising hugely in the fast changing social security scenario among the Government employees, the restoration of Old Pension Scheme (OPS) is the only way to address their fears about instability in their post-retirement life spans under National Pension Scheme. Administrative wisdom demands that review of the National Pension Scheme (NPS) for the purposes of restoration of Old Pension Scheme (OPS) through a committee to be set up by the Central Government is taken to logical conclusion in short time in furtherance of the causes of stopping the appeasement of voters and also addressing the concerns of the millions of employees across the country”.
True it is that some of the State and Union Territory (UT) Governments don’t have the adequate finances to implement the Old Pension Scheme(OPS) but it is also a fact that Central Government can adjust and accommodate the finances required for the implementation of Old Pension Scheme (OPS) by the State and UT Governments in their annual budgetary allocations. Since fears of instability in post-retirement life spans under National Pension Scheme (NPS) are rising hugely in the fast changing social security scenario among the Government employees, the restoration of Old Pension Scheme (OPS) is the only way to address their fears about instability in their post-retirement life spans under National Pension Scheme (NPS). Administrative wisdom demands that review of the National Pension Scheme (NPS) for the purposes of restoration of Old Pension Scheme (OPS) through a committee to be set up by the Central Government is taken to logical conclusion in short time in furtherance of the causes of stopping the appeasement of voters and also addressing the concerns of the millions of employees across the country.
