The Central Secretariat Service (CSS) Forum, representing Central government employees, has made it clear that they are committed to fighting for the reintroduction of the Old Pension Scheme (OPS). The Forum firmly believes that OPS is not just a benefit but a right that should be reinstated for all government employees.
The Push for OPS Amid New Pension Policies
This strong stance from the CSS Forum comes in response to the recent decision by the NDA government on August 24 to roll out a Unified Pension Scheme (UPS). Under the UPS, government employees are promised a lifelong monthly pension that equals 50% of their last drawn salary. However, to avail of this benefit, employees are required to contribute 10% of their basic pay towards their retirement fund. Additionally, the UPS ensures that employees will receive periodic increases in their pension, aligned with inflation.
Currently, the National Pension System (NPS) is the pension scheme applicable to all Central government employees who joined service after January 1, 2004. However, starting from April 1, 2025, employees will have the option to either continue with the NPS or switch to the new UPS.
Criticism of NPS and UPS
Ashutosh Misra, the General Secretary of the CSS Forum, has expressed strong concerns over both the NPS and UPS. He pointed out that the NPS, which has been in place since 2004, does not offer a guaranteed pension. Instead, it provides an option for employees to withdraw 60% of their retirement savings as a lump sum. On the other hand, the UPS also falls short in providing a reasonable retirement corpus, even after decades of service. Misra highlighted the potential risk employees face under the UPS, especially in the unfortunate event of an early death after retirement, where they might not even receive the contributions they made.
The Case for Reintroducing OPS
The CSS Forum argues that an insecure employee, uncertain about their financial future, cannot perform optimally in their duties. They believe that bringing back the OPS would benefit both the employees and the government. Unlike the NPS and UPS, the OPS does not require any employee contribution, making it a more attractive and secure option for government workers. Misra emphasized that the money currently deducted from employees’ salaries under the NPS and soon under the UPS could instead be used to stimulate the economy if the OPS were reinstated.
The CSS Forum remains hopeful that the Prime Minister will soon take action to reinstate the OPS, ensuring a more secure retirement for government employees across the country.
