7th pay Commission: These state government employees get good news on their pensions; lakhs to benefit, but there is a catch
7th pay Commission: Other states, including Uttar Pradesh, Andhra Pradesh and Tamil Nadu are witnessing protests by employee unions for suspension of NPS for quite a long time. The state governments, however, have so far not taken any step in this regard.
7th pay Commission: Amid ongoing stir for restoration of Old Pension Scheme (OPS), an MLA in Delhi's legislative assembly, Ajay Dutt, sought the attention of Deputy Chief Minister Manish Sisodia, urging the government to put an end to the New Pension System (NPS) and restore the old pension scheme in the interest of lakhs of employees. Considering how the Aam Aadmi Party (AAP) dominates Delhi assembly numerically, the proposal was quickly accepted.
According to reports, the proposal submitted in the Delhi Assembly stated that the NPS does not assure the employees of guaranteed returns and the latter can also not get any loans on this investment. The employees are also not getting any yearly increments on this investment and can also not withdraw amounts from this pension fund in case of medical emergency.
Since this investment is linked to market, it is also prone to markets risks, said the proposal. It concluded by saying that, considering all these aspects, the Delhi government lends its support to the old pension scheme. Notably, and much to the joy of the state government employees, the Arvind Kejriwal-led Delhi government has also asked other states to follow its example.
Notably, other states, including Uttar Pradesh, Andhra Pradesh and Tamil Nadu are witnessing protests by employee unions for suspension of NPS for quite a long time. The state governments, however, have so far not taken any step in this regard.
Meanwhile, the Delhi government has also stated that it will also urge the Central government to restore the old pension scheme considering the interest of employees and their social security.
However, even as the Delhi government has passed the proposal to implement the old pension scheme, rather than the new pension scheme, it will not get implemented. For that, the clearance from Centre will be eagerly awaited by the employees.
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At the central level, there are some 50 lakh Central government employees and nearly the same number of pensioners who are demanding a hike in the minimum pay and fitment factor beyond 7th Pay Commission report recommendations. The central government's working as well as retired staff are hopeful of some concessions from the BJP-led ruling dispensation at the Centre as 2019 Lok Sabha Elections are slated next year.