Old Pension Scheme vs New Pension Plan in India

Last month, Chief Minister Arvind Kejriwal announced that the Delhi government would seek legislation to bring back the old pension scheme for employees and teachers. A copy of the draft resolution is also published in the media.

Similarly, the AP Government and the Government of Kerala have set up a group of IAS officers for this purpose.


The old pension scheme still continues in Bengal. These are the measures taken by the state governments to respect the rights of civil servants who have lost the future by the new pension scheme.

The Government of India-led Government has passed a new pension scheme from  1.1.2004 through the Executive Order to 20.12.2003. But on 4 September 2014, the bill was passed into law in parliament.

Meanwhile, the new pension scheme was implemented in Tamil Nadu at 1.4.2003. Yes, why are government employees opposed to the new pension scheme?

According to the new pension scheme, the basic salary of the employees and 10% of the pension will be made. The government will make 10% of the money. The government will pay interest (currently 8%). The Pension Regulatory Commission is set up to manage this.

The public sector and private financial managers have been appointed to manage this money. Fund managers of UTI, LIC, SBI and Reliance have put the money in equity capital.

Interest rates for the savings are rising if the market value rises in the market. If the stock market estimates fall, the savings value will fall. The Pension Regulation Commission Rule (PFRDA) states that employees do not guarantee money.

Furthermore, the key issue is that the person does not get the money to pay for retirement. Only 60% of storage will be available at hand. Get 20% only if you have a retirement. If an employee’s contribution is Rs 10 lakhs, the employee will get Rs.6 lakh in the hands of the government. The LIC pension annuity plan will be Rs 4 lakh.

There are many different types of this project. If the employee only gets a bit more money and the successor of his wife and his successor will be less. In any case, interest in the first 7 years will be less than 8%.

An example:

  • After the death of a railway employee in 2008, his work on grace was given to his wife.
    The girl retired after 10 years of work. His basic salary is Rs. 31,000.
  • He has saved Rs. 5,93,000. The hands got Rs.3,80,000. That’s 60% hands.
    The remaining 40% was deposited in the Rs.2,13,000 annuity plan.
  • He had only a pension for his entire life because he was not an heir.
  • How much do you know the monthly pension available to him? Only Rs 1,200 only!

Old Pension Scheme would have received half of the base salary he had purchased,

Ex: 15,500 pension. There is a famine.

  • In case of a new pension scheme, if the employee has to receive Rs 15,500 a monthly pension, he should have saved at least Rs.21,37,500 for the annuity plan.
  • If the Central Government’s minimum pension of Rs. 00,000 Any tertiary staff cannot afford this money. What is the situation if the borrower’s education, marriage and medicine have borrowed?

The state pensioners belonging to the new pension scheme have no family pension or no pay if they die during the work. Family pensions and work will be legally banned if the federal government dies in the workplace. See how much difference!

Jayalalithaa, who realized the legitimate opposition among the Tamil Nadu government employees for the new pension scheme, promised that the new pension plan would be reviewed if AIADMK came to power in the 2011 election. But it was not fulfilled.

Later, appointed a Professional Committee in 2016 to bring back the old pension scheme following a strike by the government

During this period a new pension scheme involves 5,06,000 civil servants and teachers. Rs 22,981 crore has been collected from them till 31.3.2018. The retirees, optional retirees, the total number of dead during the work was 6,768.
‘We will not ask any government (pension) above and do not make a case.’ They have been given the full amount of money added to this period.



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