A separate fund for Pension System in India : Pension Committee Accepts NPS as Bad Pension System

Government employees of both the Central and States' government are struggling for restoration for Old Pension Scheme (OPS) that was eradicated about 20 years back by then the government. West Bengal was merely a state that never switched to New Pension Scheme (NPS), after some years of implementation of NPS the government employees (victims of NPS) felt the dark-side of New Pension Scheme. As the NPS is linked with market returns, there is no fixed income/retirement pension for government employees who gave their life for serving the government.

Amid of all this, due to political reasons, many states (i.e. Rajasthan, Chhattisgarh, Jharkhand, Punjab, ...) reverted again to OPS. The ruling party of central government denies restoration of OPS as it could increase the financial burden on the government, many states also denied for same, but the government employees kept asking for amendment in pensionary system.

Andhra Pradesh was the first state to implement something different model for pensionary system for state government employees of Andhra. They introduced Guaranteed Pension Scheme (GPS) that is based on contributory pension model. I had previously much talked about Andhra Pension Model (please click to read)Andhra Pension Model (please click to read). Many states also proposed to switch for Andhra Pension Model. 

Recently, the central government of India established a committee named as Somnathan Committee for Pension Study, this committee studies a lot on foreign pension plans and more focusing on Andhra Pradesh's Andhra Pension Model (GPS), the committee's officer has proposed for soon recommending for Pension Model based on Andhra Model. By the study of Somnathan Pension Committee, in return of NPS deducted money in today's plan is only sufficient for providing a pension of 40% - 45%, but government may provide them 50% pension linked with DA (Dearness Allowance) similar to Andhra Model but establishing a separate pension fund that should only be used for filling the gap of pension for government employees. The committee also suggested that if someone is serving 25-30 years in NPS, he can only achieve 40%-50% in initially pension terms, but overall OPS is much better, that is actually not possible to re-introduce, but the proposed model for pensionary system alike Andhra Model may work well.

कर्मचारियों को पुरानी पेंशन योजना (ओपीएस) जैसी ही 50% वाली आन्‍ध्रा मॉडल की पेंशन मिलेगी GPS Pension