The government has finally done what millions of employees have been waiting for for years. Once again the Old Pension Scheme (OPS) has been re-implemented. This decision is a big relief, especially for those employees who were tense about their future after retirement. Now they will get a full pension every month, that too without any risk.
What is this old pension scheme
If understood in simple language, OPS is a scheme in which after retirement you get a fixed pension every month according to your last salary. In this, you have nothing to do with the fluctuations of the stock market or any investment. Meaning, whether the market falls or rises – your pension will come on time every month.
This scheme was available to government employees who joined the job before 2004. But later it was removed and NPS (New Pension Scheme) was implemented. Now the government has announced to re-implement the old system.
Why is the old pension scheme so special
The biggest feature of OPS is that it is completely guaranteed. As soon as an employee retires, he gets a fixed pension every month based on his last salary. In this:
There is no market risk
The family also gets a pension if the employee dies
Financial security remains even after retirement
A fixed amount is received every month
What is the problem with NPS
Now if we talk about the New Pension Scheme (NPS), then the pension depends on the investment in the stock market. This means your pension depends on how your investment is performing. There is no such thing as a guarantee in this.
Apart from this, in NPS, the employee also has to deposit money himself, and the pension received in return is not sure. This is the reason why most of the employees were now demanding the return of OPS.
Why did the government take this decision
The government has taken this decision keeping in mind the financial stability of the employees. Especially for those people who joined the job after 2004 and were working under NPS. Now all of them are expected to get the benefit of OPS.
The government says that it is completely serious about its employees and it is its responsibility to give them a secure future. This decision is a big step in that direction.
What will be the effect of this decision
The biggest benefit of this decision will be that lakhs of employees will no longer have to worry after retirement. They will know that a fixed amount will come to their account every month at a fixed time.
This will not only increase the trust of the employees, but the relationship between the government and the employees will also become stronger. Also, it will have a positive effect on their family as well, because this is a kind of social security.
Other benefits of OPS
There is no problem with living after retirement.
There is less tension for expenses like children’s education, and marriage.
Family members also get support.
Fixed income support in case of illness or emergency
Government’s clear strategy
The government wants to show that it is not only concerned about today but also the tomorrow of its employees. By bringing back the old pension scheme, the government has assured the employees that they are not alone.
This can also benefit the government from the electoral point of view because the issue of pensions has always been a big electoral issue.