Need to debate if OPS will create economic crisis: RS deputy chairman

Under the OPS, an employee gets 50% of the last drawn monthly salary as pension as against the NPS which is a market-linked scheme.

Rajya Sabha Deputy Chairman Harivansh on Monday underscored the potential economic ramification of going back to the old pension scheme (OPS) that was shelved by the National Democratic Alliance government headed by Atal Bihari Vajpayee nearly two decades ago.

The talk of restoring the OPS for the sake of power is on. Society should debate whether such moves would create an economic crisis in the country akin to Sri Lanka and Pakistan, he said at a lecture series on Challenges in New Era.

Harivansh said that the NDA government led by Vajpayee scrapped the OPS on April 1, 2004, and introduced the National Pension Scheme (NPS).

Under the OPS, an employee gets 50 per cent of the last drawn monthly salary as pension as against the NPS which is a market-linked scheme.

Now, for the sake of power, there is talk of reverting to OPS because government employees are organised, and thus, they form a significant vote bank, he said.

The five states that have restored the OPS have been burdened with an estimated Rs 3 lakh crore as per media reports, he said. He said that 56 per cent of the total tax revenue of the Rajasthan government will be spent on just six per cent of workers.

so do we want to create Sri Lanka and Pakistan-like situations in our country in future? Society should debate on this issue, he added.