Utility News: After working for half his life, a person thinks of taking rest. He wants that his future life should go on smoothly without any financial problems. For this, the Government of India used to give Old Pension Scheme (OPS) to the government employees after retirement. Which was abolished in the year 2024 and NPS i.e. New Pension Scheme (NPS) has been implemented. Due to which there is a lot of confusion among the people. This problem also persists among the government employees of Rajasthan, which has become difficult for the state government to resolve. In the information issued by the Finance Department on October 4, there are indications that it may allow OPS to remain in force in the state. With this, once again the discussion has intensified in the state about OPS (Old Pension Scheme) and NPS (New Pension Scheme) that which of the two is better and what is the difference between them.
Old Pension Scheme (OPS)
Under the Old Pension Scheme (OPS), the employees used to get a solid amount under a fixed formula. Which was given in a fixed income every month after retirement. After retirement, under this scheme, the employee also got other benefits like gratuity, dearness allowance and dearness relief. In which the government used to cover the entire pension amount without any deduction.
At the same time, the central government started NPS by ending OPS on January 1, 2024, after the implementation of which people were very unhappy. Because the facilities which were in OPS were missing from NPS somewhere.
New Pension Scheme (NPS)
The full name of NPS is National Pension Scheme. Its objective is to provide retirement benefits to all the citizens of India. The aim of NPS is to inculcate a habit of saving for retirement among citizens. Under NPS, personal savings are deposited in a pension fund, which is invested in a diversified portfolio including government bonds, bills, corporate debentures and shares through PFRDA-regulated professional fund managers.
Advantages and disadvantages of old and new pension scheme
The old pension scheme is paid from the government treasury. The new pension scheme is based on the stock market, in which the money invested by you in NPS is invested in the stock market.
In the old pension scheme, the employee is given a guaranteed income according to a fixed formula. Whereas in the new pension scheme, the employee can choose from various investment schemes ranging from low risk to high risk through the pension fund manager. It includes public sector banks, financial institutions and private companies.
Under OPS, retirees get a pension equal to 50% of their last salary. This fixed percentage provides an estimated income after retirement. NPS does not guarantee a fixed pension amount. Pension depends on the total accumulated fund and return on investment.
When the retired person dies, his family continues to receive the same pension amount as family pension. There is no such provision in NPS.
