Reverting to OPS is being considered an easier option from a political standpoint, but could financially stress the states
Like most other state budgets, Rajasthan's appears to have been crafted with one eye on the polls, while side-stepping on the issue of resources available to finance its programmes
The government issued a notification saying that the old pension scheme will be effective from April 1, 2022
The NPS has offered higher returns so far than other schemes
The promise by the SP and the BSP in the ongoing Uttar Pradesh Assembly elections that they will revive the Old Pension Scheme (OPS) was dismissed as a political rhetoric by many
But systematic withdrawal plan carries risk that retirees may overdraw
There would now be four slabs, each attracting charges based on the quantum of assets under management
Deviating from the NPS imposes very large costs upon the exchequer
Investors should quiz them to understand the product, which options to invest in, and how to get the final payout