BENGALURU: The Karnataka State Government Employees’ Association on Monday demanded that the New Pension Scheme (NPS) Review Committee, headed by senior IAS officer Anjum Parvez, should suggest to the government to implement the Old Pension Scheme (OPS).
Association president CS Shadakshari and other office-bearers met senior IAS officer Uma Mahadevan and submitted a memorandum. It stated that the Anjum Parvez committee that has four IAS officers visited Rajasthan, Himachal Pradesh, Andhra Pradesh and Telangana where NPS was revoked and OPS re-implemented. The committee is yet to submit its report, but has told the government it will do so soon.
Shadakshari said NPS has been in effect in Karnataka since 2006. But West Bengal never implemented it, while Andhra and Telangana floated a Contributory Pension Scheme to replace NPS.
Rajasthan, Chhattisgarh, Himachal, Punjab, Jharkhand and other states scrapped NPS through cabinet decisions and state budgets. “Under NPS, 10% of the employees’ basic salary and DA, and 14% contribution from the state is credited to the employees’ fund. It constitutes 24% of the total which is non-withdrawable. This is invested in the share market and the final amount depends on the ups and downs of the market,” he said.
He said with the government limiting contribution to 14%, it can save Rs 1.87 lakh crore per year with all vacancies filled.