“Recipe for financial bankruptcy…” Montek Singh Ahluwalia cautions states on Old Pension Scheme

Jan 07, 2023

New Delhi, January 07 (ANI): Offering to revert to the Old Pension Scheme is a popular way for political parties to woo voters. From the fresh Congress-led Himachal Pradesh government promising to bring back the scheme to the AAP-led Punjab government restoring it, many state governments seem to be quashing the new pension scheme. Rajasthan, Chhattisgarh, Jharkhand, and Punjab are four Indian states with OPS. Under the old scheme, employees get a pension under a pre-determined formula which is equivalent to 50 per cent of the last drawn salary, while under the new system of the New Pension Scheme, 10 per cent of the basic pay and dearness allowance will be contributed by the employee.