BENGALURU: The state government is keen on abolishing the New Pension Scheme (NPS) and restoring the Old Pension Scheme (OPS). Chief Minister DK Shivakumar has directed the additional chief secretary (Finance) to hold discussions with the Karnataka State Government Employees’ Association, which recently submitted a memorandum, urging the government to abolish NPS.
There are around 5.7 lakh government employees in the state. Of them, over 2.8 lakh are under NPS. All 2.8 lakh employees were appointed after 2006.
In its memorandum, the association urged the ruling Congress to fulfill its election promise of restoring OPS for employees recruited under NPS. The state government needs Rs 1.2 lakh crore per year towards salaries and pensions of its employees. The financial implication of OPS is expected to be higher. Its impact may not be felt now, but over a period of time when the employees retire.
Association president CS Shadakshari told TNIE that the CM has promised to restore OPS. A discussion in this regard is on. “We hope it will be done soon,’’ he said.
The state government has constituted a committee to study the manner in which some states have restored OPS. The committee, with senior IAS officers as its members, visited Rajasthan, Himachal Pradesh, Andhra Pradesh and Telangana, where OPS was restored a few years ago. The committee is yet to submit its final report to the government. The New Pension Scheme was implemented in the state in 2006.
‘Pay salaries on par with Centre’
While West Bengal did not implement it, Andhra Pradesh and Telangana floated a contributory pension scheme to replace NPS. States such as Rajasthan, Chhattisgarh, Himachal Pradesh, Punjab and Jharkhand scrapped NPS through cabinet decisions and state budgets.
In the memorandum, the association also urged the state government to pay salaries and allowances to its employees on par with the Centre. The same has been recommended by the Seventh Pay Commission.
Sources said the Congress government may consider the demands of the association as assembly elections will be held within two years.
