Restoring the Old Pension Scheme: Government's Stance and Alternatives for Unorganized Sector Workers. Download OPS Loksabha Question Answer in PDF.
In a recent parliamentary session, the issue of reinstating the Old Pension Scheme (OPS) for Central Government employees who joined service after January 1, 2004, was brought to the forefront. Ms. Praniti Sushilkumar Shinde queried the Ministry of Finance about the government's plans regarding this matter.
Government's Response:
(a) Restoration of Old Pension Scheme:
The Ministry of Finance, in its response, clarified that there is currently no proposal under consideration to restore the Old Pension Scheme for Central Government employees falling under the specified category. This scheme, which was replaced by the National Pension System (NPS) in 2004, had been a subject of debate due to concerns over the adequacy of pension benefits provided under NPS.
(b) Data on Pensions for Unorganized Sector Workers:
The government provided insights into its initiatives concerning pension provision for workers in the unorganized sector. Specifically, it highlighted the Atal Pension Yojana (APY), launched on May 9, 2015. This scheme aims to establish a comprehensive social security framework across India, focusing particularly on the economically disadvantaged and those employed in informal sectors.
(c) Financial Burdens and Remedial Measures:
Regarding the financial challenges faced by individuals in the unorganized sectors, the government acknowledged the significant burden and outlined the measures being taken to alleviate these concerns. APY offers a structured approach where subscribers, aged 18 to 40, can opt for monthly, quarterly, or semi-annual contributions based on the desired pension amount. The scheme guarantees a minimum pension ranging from Rs. 1000 to Rs. 5000 per month upon reaching 60 years of age, ensuring financial security post-retirement.
Moreover, as of October 1, 2022, individuals contributing to income tax are no longer eligible to join APY, thereby targeting benefits more effectively towards those in genuine need within the unorganized sector.
Conclusion:
While the government has ruled out the revival of the Old Pension Scheme for Central Government employees post-2004, it continues to expand initiatives like APY to bolster social security among marginalized groups. The emphasis remains on providing a sustainable pension system that meets the evolving needs of a diverse workforce, ensuring financial stability and dignity in retirement years.
In essence, while the OPS remains a topic of contention, the government's proactive measures through schemes like APY underscore its commitment to inclusive growth and social security for all citizens, particularly those in vulnerable economic circumstances.
