Old Pension Scheme Benefits – Know Here

Old Pension Scheme Benefits – Know Here

Pension Scheme News – The Old Pension Scheme for government employees was discontinued from April 1, 2004 and the new National Pension System (NPS) was implemented.

The  scheme is once again in news. The reason is the re-implementation of this scheme by some states. After the Rajasthan, Himachal Pradesh government, the Jharkhand government has also introduced the scheme for the government employees.

After the announcement of CM, old pension will be implemented in Chhattisgarh as well. If this happens, more than three lakh government employees appointed after January 1, 2004 will get the benefit. Government employees across the country have been demanding for a long time for the restoration of scheme.

Let us know what are the benefits  and why the employees want this to be implemented. The objective of implementing the new pension scheme was to eliminate the burden of pension payment from the shoulders of the government in the coming years.

So far, the Rajasthan, Himachal Pradesh and Jharkhand governments have announced to restore the old pension scheme. This scheme for government employees in the country was discontinued from April 1, 2004 and the new National Pension System (NPS) was implemented. So what is the difference between old and new pension scheme?

  • General Provident Fund (GPF) facility
  • No deduction from salary for pension
  • Fixed pension on retirement i.e. 50% guarantee on the last salary
  • The entire pension is given by the government
  • On death during service, the dependent gets family pension and job
  • There is no General Provident Fund (GPF) facility
  • 10 percent per month is deducted from the salary
  • Fixed pension is not guaranteed. It will be completely dependent on the stock market and insurance companies
  • The new pension will be given by insurance company. In case of any issues you have to deal with the insurance company
  • The benefit of inflation and pay commission will not be available.