Old pension scheme will put burden of Rs 1.10 trn on exchequer: Fadnavis

Maharashtra Deputy Chief Minister Devendra Fadnavis said the govt will not revert to the old pension scheme as it would put a burden of Rs 1.10 trn on the exchequer and lead to bankruptcy of the state

Maharashtra Deputy Chief Minister Devendra Fadnavis on Wednesday said the government will not revert to the old pension scheme as it would put a burden of Rs 1.10 lakh crore on the exchequer and lead to bankruptcy of the state.

Replying to a question in the state Assembly, Fadnavis said the old pension scheme was stopped in 2005.

He also lauded the then Congress-Nationalist Congress Party government for taking the decision of stopping the old pension scheme in the interest of the state.

Under the old pension scheme, employees get a defined pension. Under this, an employee is entitled for a 50 per cent amount of the last salary drawn as pension.

However, the pension amount is contributory under the National Pension System, which is in effect from 2004.

The government will not give pensions as per the old scheme. If the old pension scheme is to be implemented, then it will add a burden of Rs 1,10,000 crore and this will lead to bankruptcy of the state. The old pension scheme will not be implemented, said Fadnavis, who is also the finance minister of Maharashtra.

The Congress-ruled states like Chhattisgarh, Rajasthan and Himachal Pradesh have announced they would restart the old pension scheme, a move termed as financially not viable by several experts.

The Aam Aadmi Party-ruled Punjab has also returned to the old pension scheme.