Will new pension scheme be scrapped? Here's what the Centre replied

The NDA government under Atal Bihari Vajpayee in 2003 had scrapped the Old Pension Scheme (OPS) and introduced the National Pension Scheme (NPS) from April 1, 2004

The Centre on Monday denied intentions of scrapping the existing National Pension Scheme (NPS) for the government employees and reverting to the old pension scheme, along the lines of decisions taken by Congress-ruled Rajasthan and Chhattisgarh.

On the first day of the second leg of the budget session, Congress MP from Chhattisgarh's Bastar asked the government whether it had any intentions of scrapping the NPS and revert all the officials of central government under the Old Pension Scheme (OPS).

Replying to the question, union minister of state for finance Dr Bhagwat Karad said there was no proposal under consideration under the government of India.
It was the NDA government under Atal Bihari Vajpayee that had scrapped the old pension scheme in 2003 and had introduced the existing national pension scheme on April 1, 2004, just a month before it was voted out of power.

The Centre said it has no plans to remove the New Pension scheme (Representative photo)

The National Pension Scheme was initiated for the central government to get rid of pension liabilities. It allows the beneficiaries i.e government employees to decide where they want to invest their money. This can be done by contributing regularly in a pension account throughout their career. After retirement, they can withdraw a part of the pension amount.

Explained: Old vs new pension schemes and why government staff are protesting

Contrary to this, the old pension scheme had government and employees contribute an equal portion towards the pension fund. As per rules, the old pension scheme involved 50 per cent of the last drawn salary as the pension amount to a government employee.

Samajwadi Party president Akhilesh Yadav had promised to bring back old pension scheme had his alliance won the Uttar Pradesh polls.