The Karnataka government recently issued a notification addressing the inclusion of approximately 13,000 state government employees, who were hired after 2006, in the Old Pension Scheme.
Chief Minister Siddaramaiah’s Statement
Chief Minister Siddaramaiah shared his commitment to fulfilling the demand of government employees during a strike against the new pension scheme in a statement to X. As per the notification, eligible employees will have a one-time chance to opt for the defined pension scheme on or before June 30, 2024. The recommendation of those eligible should be made to the heads of departments before July 31, 2024, and sent for the Finance Department approval before August 31, 2024.
Implementation of Old Pension Scheme
An official order has been issued to extend the coverage of the old pension scheme to around 13,000 state government employees recruited after the year 2006. Chief Minister Siddaramaiah reiterated his promise made during a visit to the National Pension System (NPS) employee strike before the elections.
Chief Minister’s Message
Chief Minister Siddaramaiah expressed his hope that the decision to include these employees in the old pension scheme brings comfort to the families of the 13,000 NPS employees.
Comparison of Old and New Pension Schemes
- Old Pension Scheme: Entitles government employees to a monthly pension after retirement, typically amounting to half of their last drawn salary.
- New Pension Scheme: Requires employees to contribute a portion of their salaries to a pension fund, leading to a one-time lump sum payout upon superannuation.
Historical Background of Pension Schemes
The old pension scheme was discontinued in December 2003, with the new pension scheme coming into effect on April 1, 2004.
