Employees want old pension scheme, 'maha rally' on Thursday
Thousands of government employees will likely gather for a "maha rally" at Delhi's Ramlila Maidan on Thursday to demand the reinstatement of the old pension scheme. Both central and state government department employees are expected to participate. Employees' union leaders claimed those who joined the services after January 1, 2004, were forced to enroll in the national pension scheme (NPS), jeopardizing their future.
Why does this story matter?
Employees have expressed apprehensions about their post-retirement prospects with the NPS, alleging that they have been involuntarily placed under the new scheme. On the other hand, the government claims that the NPS is a great retirement savings option for individuals who want to save for their retirement in a disciplined manner. It claimed that its key benefit was that it offered several tax benefits.
Employees worried about financial security post-retirement: Leader
The rally will be organized under the banner of the Joint Forum for Restoration of Old Pension Scheme (JFROPS) and the National Joint Council of Action (NJCA), PTI reported. National Convener NJCA Shiv Gopal Mishra said the employees working since January 1, 2004, were worried about financial security post-retirement. Indian Railways employees, teachers, defense, and ex-paramilitary personnel will likely join the protest rally.
Employees threaten 'Bharat Bandh' if government fails to fulfill demand
Mishra claimed that the NJCA held several protests and sent memorandums to the government and even Prime Minister Narendra Modi about their demands, but to no effect. "This is their right, and the government should restore the old pension scheme immediately," he added. "If the government doesn't heed, a 'Bharat Bandh' will be announced. The entire nation will come to a standstill," he threatened.
Know about old pension scheme
The Centre scrapped the old pension plan (OPS) on January 1, 2004, and replaced it with the NPS. The OPS supposedly had a defined-benefit (DB) pension of half the Last Pay Drawn (LPD) at the time of retirement, as well as components such as Dearness Allowance (DA), etc. To be eligible for the benefit, an employee should have been in service for ten years.
