NEW DELHI: With government employees renewing their agitation for the restoration of the Old Pension Scheme and the same becoming a political issue ahead of the 2024 Lok Sabha elections, the Centre has formed a four-member panel to address their grievances about the New Pension System (NPS).
The committee will look into the need for changes in the existing framework of the NPS, and suggest changes keeping in mind the fiscal implications and budgetary constraints. It may also consult with state governments before arriving at any recommendations.
According to the Centre, NPS is fiscally more prudent. The four-member panel will be headed by finance secretary T V Somanathan. Chairman of the Pension Fund Regulatory and Development Authority; secretary, Ministry of Personnel; and special secretary (personnel), Dept of Expenditure will be the other members.
Finance Minister Nirmala Sitharaman had recently told Parliament that a committee under the Union finance secretary would be formed. The move comes at a time when government employees, including in states governed by the BJP, have launched an agitation in favour of the restoration of the Old Pension System.
Why old is gold
Under the old pension scheme, also called the defined benefit pension, the bulk of the contribution towards pension accounts comes from the government. In the New Pension Scheme, the pension amount is decided based on the contribution of the employees