AgenciesThe tussle between Congress-ruled states and the Centre over restoration of old pension scheme (OPS) has taken a sharp turn as Chhattisgarh chief minister Bhupesh Baghel said the money in the National Pension Scheme belonged to the state and its employees and not the Centre.
"The money belongs to the state's employees and the state has also contributed to it. Not a single penny belongs to the Centre. We have been demanding that this be returned to the state but the Centre is not agreeing to it. I have told officials to discuss with employee unions and suggest a solution to this. They will come back with suggestions which will be considered," Baghel said.
The statement comes right after finance minister Nirmala Sitharaman said that the money belonged to the people and could not go back to the state's kitty. Chhattisgarh, where assembly polls are due in November 2023, was the first state to notify reverting to OPS, in May.
Restoration of OPS has become a major poll plank for Opposition parties including Congress and AAP. After the electoral success in Himachal, where Congress promised restoration of OPS, the party is enthused to push the same agenda in other states. Under OPS, the government gives 50% of the salary of an employee at the time of retirement as pension.
Since this system puts a financial burden on the exchequer, the Centre introduced the contributory National Pension System. Under NPS, 10% is deducted from the salary and an equal percentage is contributed by the employer. The contributions are invested in bonds and securities. If an employee takes voluntary retirement, s/he can withdraw 20% of the amount accrued but reinvest 80%. If the employee retires, s/he can withdraw 60% but has to reinvest 40%.
NPS was initially meant for all government employees who joined services after April 2004. Rajasthan and Punjab governments were the first to roll out NPS. It was opened to all adult citizens till the age of 65 in 2009. OCI and PIO card holders were added to the list in 2019.
"The money belongs to the state's employees and the state has also contributed to it. Not a single penny belongs to the Centre. We have been demanding that this be returned to the state but the Centre is not agreeing to it. I have told officials to discuss with employee unions and suggest a solution to this. They will come back with suggestions which will be considered," Baghel said.
The statement comes right after finance minister Nirmala Sitharaman said that the money belonged to the people and could not go back to the state's kitty. Chhattisgarh, where assembly polls are due in November 2023, was the first state to notify reverting to OPS, in May.
Restoration of OPS has become a major poll plank for Opposition parties including Congress and AAP. After the electoral success in Himachal, where Congress promised restoration of OPS, the party is enthused to push the same agenda in other states. Under OPS, the government gives 50% of the salary of an employee at the time of retirement as pension.
Since this system puts a financial burden on the exchequer, the Centre introduced the contributory National Pension System. Under NPS, 10% is deducted from the salary and an equal percentage is contributed by the employer. The contributions are invested in bonds and securities. If an employee takes voluntary retirement, s/he can withdraw 20% of the amount accrued but reinvest 80%. If the employee retires, s/he can withdraw 60% but has to reinvest 40%.
NPS was initially meant for all government employees who joined services after April 2004. Rajasthan and Punjab governments were the first to roll out NPS. It was opened to all adult citizens till the age of 65 in 2009. OCI and PIO card holders were added to the list in 2019.
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