The Himachal Pradesh government has announced that it will be reinstating the old pension scheme for its employees. The decision was taken by the newly elected government in its first cabinet meeting held on Friday.
Guidelines for the implementation of the scheme will be issued soon.
The old pension scheme, also known as the defined benefit scheme, was in place for government employees until it was replaced by the National Pension System (NPS) in 2004. The NPS, which is a defined contribution scheme, has been criticized by government employees for its lack of security and predictability in terms of post-retirement benefits.
The Himachal Pradesh government has stated that the decision to reinstate the old pension scheme was made after taking into account the demands and concerns of government employees. The scheme will be available to all employees who were covered under the old pension scheme prior to its discontinuation in 2004, and will be applicable to new employees as well.
The old pension scheme, also known as the defined benefit scheme, is a more traditional pension scheme where the benefits are defined and are based on the employee's length of service and salary. This scheme offers a fixed pension amount and a gratuity to the employee, which is calculated based on the employee's last drawn salary and the number of years of service.
The government has also announced that it will be providing benefits such as family pension and death gratuity to the employees and their families. This will provide financial security to the employees and their families in case of any untoward incident.
The implementation of the scheme is expected to provide relief to thousands of government employees in Himachal Pradesh who have been demanding the reinstatement of the old pension scheme for many years. The scheme will also provide a much-needed boost to the morale of government employees, who have been feeling demotivated due to the lack of job security and predictability of post-retirement benefits under the NPS.
The government has also stated that it will be making necessary amendments to the relevant laws and regulations to facilitate the implementation of the scheme. The guidelines for the implementation of the scheme will be issued soon, and the government has assured that the scheme will be implemented as soon as possible.
FAQs
Q: What is the difference between the old pension scheme and the National Pension System (NPS)?
The old pension scheme, also known as the defined benefit scheme, is a more traditional pension scheme where the benefits are defined and are based on the employee's length of service and salary. The NPS, on the other hand, is a defined contribution scheme where the benefits are based on the employee's contributions and investment returns.
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