Old Pension Scheme in Himachal Pradesh, Rajasthan, Chhattisgarh, Jharkhand, Punjab: Latest Updates

Old Pension Scheme (OPS) implementation latest news updates: NPS vs OPS has become a new political battleground between states and the Centre. After Rajasthan, Chhattisgarh, Jharkhand and Punjab, Himachal Pradesh has become another state that has decided to replace National Pension System (NPS) with Old Pension Scheme (OPS).

Rajasthan, Chhatisgarh and Jharkhand have already informed the Central Government and Pension Fund Regulatory Development Authority (PFRDA) about their decision to restore OPS for their employees. These states have also asked the PFRDA to return the accumulated corpus of subscribers under NPS. However, the Central Government has said it is not considering any proposal for proposal for the restoration of OPS.

Also Read: How much money is held under NPS

The pension regulator has also informed the state governments that there is no provision for the refund of funds to state governments under the PFRDA Act 2013 and other related regulations. Here are the latest updates and what the Central Government is saying:

States that have decided to restore OPS

In a written reply to a query by Member of Parliament Asaduddin Owaisi on December 12, the Union Minister of State in the Ministry of Finance, Dr Bhagwat Karad, said the State Governments of Rajasthan, Chhattisgarh, and Jharkhand have informed the Central Government/PFRDA about their decision to restart Old Pension Scheme (OPS) for their State Government employees.

The Minister also said that the State Government of Punjab on 18th November 2022 issued a notification regarding the implementation of OPS to the government employees who are presently being covered under the National Pension System (NPS).

Also Read: NPS returns for State, Central Government Employees in 5, 10 years compared

NPS to OPS: States that have sought refunds

The Minister said that the State Governments of Rajasthan, Chhattisgarh, and Jharkhand, have sent proposals to the Central Government/PFRDA to return the accumulated corpus of subscribers under NPS to respective State Governments. However, no such proposal has been received from the State Government of Punjab.

What PFRDA says on NPS corpus refund

The Minister informed the Parliament that PFRDA has informed the states there is no such provision for refund of NPS corpus to state governments under relevant regulations.

“In response to the proposals of the State Governments of Rajasthan Chhattisgarh, and Jharkhand, PFRDA has informed the respective State Governments that there is no provision under Pension Fund Regulatory and Development Authority Act, 2013 read along with PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, and other relevant Regulations, as amended from time to time, vide which the funds, which are already deposited both in the form of Government contribution and Employees’ contribution towards NPS, along with accruals, can be refunded and deposited back to the State Government,” Dr Karad said in his written reply.

Also Read: NPS planner: You will need Rs 5.7 lakh/month pension if spending Rs 1 lakh/month now!

Is Central Government planning to replace NPS with OPS?

The Central Government is also not considering any proposal to restore OPS.

“There is no proposal under consideration of the Government of India for restoration of old pension scheme,” the Minister said.

Beware of fake news!

Meanwhile, a viral message circulated on social media is claiming that the Central Government replace NPS with the old pension scheme. However, there is no such plan being considered by the Central Government.

“This is a misleading claim. There is no proposal from the Central Government to implement Old Pension Scheme (OPS),” the Government’s official fact-checker, PIB FactCheck tweeted on December 12.