Clash of old and new pension scheme...

The salaried employees of several states have been clamoring for re-implementation of the old pension scheme for some time now. The central government is avoiding its implementation arguing that the implementation of the old scheme will increase the financial burden on the states. Thus, a patch is stuck between the old and the new pension scheme. The old pension scheme is a hot favorite for salaried employees. Amidst such controversies, PM Modi has recently favored Andhra Pradesh's Jagan Mohan government's pension scheme, which includes the interests of both employees and the state government. Union state level finance minister said in Parliament that five states Rajasthan, Chhattisgarh, Punjab, Himachal Pradesh and Jharkhand have decided to adopt the old pension scheme. However, there is no mention of how and how much the central government will help in this. In this way, the new pension scheme was implemented by the Center 18 years ago. It was named as National Pension Scheme. In the new pension scheme, the amount of pension is not determined on the basis of basic pay and dearness allowances as before. Pension is paid on the amount deducted from the employee's salary during employment. Thus most of the employees get Rs. 500 to Rs. 2000 pension is available. The major problem with this is that no amount of minimum pension has been fixed. This has made it difficult for millions of people to live on pension after employment. However, this is a win-win deal for the government as the new scheme does not impose any economic or financial burden on the government. 50 percent of the amount deducted from employees' wages is kept in government securities and 15 percent in stock markets. Pension is given to the employees from its income. One of the major drawbacks of the new pension scheme is that the pension amount is so low for employees who have a short tenure that it becomes difficult for them to make ends meet. It is the responsibility of the government to provide adequate social security to the employee after retirement but this very purpose has been killed in the new pension scheme. Hence most of the employees prefer to get their amount as per the old pension scheme. The good thing is that people are interested in how they will get social security rather than how much pension they will get.

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