Chhattisgarh govt to allow staff to pick between pension schemes | Latest News India - Hindustan Times
close_game
close_game

Chhattisgarh govt to allow staff to pick between pension schemes

By, Raipur
Dec 31, 2022 03:14 AM IST

Chhattisgarh on Friday said that it will give its employees the option of choosing between the new pension scheme and the more generous old pension scheme.

A month after the Pension Fund Regulatory and Development Authority rejected Chhattisgarh’s demand to return funds deposited for the National Pension System, the state said on Friday that it will give its employees the option of choosing between the new pension scheme (NPS) and the more generous old pension scheme (OPS)

Chhattisgarh chief minister Bhupesh Baghel. (ANI)
Chhattisgarh chief minister Bhupesh Baghel. (ANI)

The decision was taken on Friday during a cabinet meeting chaired by chief minister Bhupesh Baghel, a public relations department official said.

Hindustan Times - your fastest source for breaking news! Read now.

“ During the cabinet meeting, it was decided to introduce OPS by giving option to the employees who were appointed after November 1, 2004 and before April 2022,” the official said.

“For this, employees will have to submit an affidavit. If such an employee opts for OPS, he or she will have to deposit the government’s contribution and dividend in the NPS account since they were appointed (after November 1, 2004) till March 31 this year to the state government’s new General Provident Fund (GPF) under OPS,” the official explained.

ALSO READ: Only 76 of over 1.10 lakh govt employees opt for new pension scheme in Jharkhand

It means employees opting for OPS will have to withdraw their fund deposited in the NPS account and then redeposit it in the new GPF (General Provident Fund) account of the state government, the official further said.

OPS guaranteed inflation and pay commission indexed pension payouts without any contribution from the employee. The new pension scheme (NPS), on the other hand, is built by employee and employer contribution and the returns are market-based.

A number of states, such as Punjab, Rajasthan, Jharkhand and Himachal Pradesh, have moved to return to OPS in recent months.

Chhattisgarh goes to the polls next year.

The cabinet also decided to start a special scheme for the renovation of school buildings and approved the Chhattisgarh Gambling (Prohibition) Bill 2022.

Earlier this month, the Union government told the Lok Sabha there was no proposal being considered to restore to OPS and clarified that there were no provisions to refund contribution in NPS, along with accruals, back to state governments.

ALSO READ: Himachal writes to Centre to refund money deposited towards NPS

In a written reply, minister of state for finance Bhagwat Kisanrao Karad said the governments of Rajasthan, Chhattisgarh, and Jharkhand informed the central government and PFRDA about their decision to restart OPS for their state government employees. The ministry also underlined that PFRDA, India’s pension regulator, has informed the respective state governments “that there is no provision under Pension Fund Regulatory and Development Authority Act, 2013 read along with PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, and other relevant regulations that the funds, which are already deposited both in the form of government contribution and employees’’ contribution towards NPS, along with accruals, can be refunded and deposited back to the state government.”

WITH PTI INPUTS

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Mukhtar Ansari Death News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On