Jagan provides 'Pension Light' to PM Modi. It is known for long demand has been going on to do away with the CPS (Contributory Pension Scheme) and restore the old pension scheme. But till now PM Modi the the union government remained silent on the entire issue even as many states expressed their protests.
In the midst of all this, CM Jagan provided light and solution to PM Modi. AP CM Jagan announced Guaranteed Pension Scheme and it comes with the other benefits like regularisation of services of 10,000 employees, setting up 12th Pay Revision Commission, enhancement of HRA by four per cent in district headquarters and payment of 2.73 per cent dearness allowance (DA) with arrears from January 1, 2022.This is against about 20 per cent of the basic as pension under CPS in which no DR is given.
The CPS was for the first time introduced by the Centre in 2003 and all the states except one or two adopted it keeping in view the ever growing financial burden to meet pension needs of OPS. Minister Venu Gopal Krishna revealed "If we implement the OPS Rs 1.33 lakh crore will have to be paid in the form of pensions by 2040 and Rs 3.73 lakh crore by 2070. At some stage, the government would not be able to bear this burden and may have to discontinue OPS again,"
Now reports are coming that PM Modi and the Union Government is planning to come with similar kind of pension scheme. It is planning to assure its employees a minimum pension of 40-45 per cent of their last drawn salary by altering the current market-linked pension scheme to assuage some holdout states, In the runup to the 2024 elections PM Modi doesn't want to antagonise any sections and is planning to take this step.
While the the old pension system guarantees a fixed pension of 50 per cent of an employee's last drawn salary, without requiring them to contribute anything during their working life, the current CPS(NPS) requires employees to contribute 10% of their basic salary and the government 14 per cent. The government is planning to amend the current scheme so that while both employees and the government still make contributions, employees get an assured 40-45 per cent of their last drawn salary as pension
