The Uttar Pradesh government has given a special Navratri gift to 65 PCS officers. An order has been issued to include them under the old pension scheme instead of the NPS (National Pension System). These officers were appointed to advertised posts before March 28, 2005.\
According to the government order from the Finance Department dated June 28, 2024, all employees whose appointment advertisement was issued before the NPS notification date (March 28, 2005) but who joined on or after April 1, 2005, will be eligible for the old pension scheme. This benefit is provided under the Uttar Pradesh Retirement Benefits Rules, 1961.
Following this order, Special Secretary of the Appointment Department, Vineet Prakash, has issued instructions to grant the old pension scheme to 65 PCS officers.
What Is the Old Pension Scheme (OPS)?
The Old Pension Scheme (OPS) is a government-backed retirement plan for employees with at least 10 years of service. Under OPS, retirees receive a pension based on their last drawn basic salary and years of service, with no deductions during employment. The government fully funds the pension and revises it twice a year with Dearness Allowance (DA) hikes. However, OPS applies only to government employees.
Difference Between Old Pension Scheme (OPS) and National Pension Scheme (NPS)
Eligible Employees:
- OPS: Only for government employees.
- NPS: Open to government employees, individuals (18-60 years), and NRIs.
Pension Basis:
- OPS: Based on the last drawn salary + DA.
- NPS: Based on investments made during service.
Pension Amount:
- OPS: 50% of the last salary + DA or the average of the last 10 months (whichever is higher).
- NPS: 60% lump sum after retirement, 40% invested in annuities for pension.
Employee Contribution:
- OPS: No contribution is required.
- NPS: 10% of salary + DA, government contributes 14%.
Tax Benefits:
- OPS: No tax benefits.
- NPS: Tax deductions up to ₹1.5 lakh (80C) + ₹50,000 (80CCD(1B)).
Tax on Pension:
- OPS: Fully tax-free.
- NPS: 60% tax-free, 40% taxable.