HomePoliticsRajasthan OPS move overshadowed by Centre-State dispute regarding funds

Rajasthan OPS move overshadowed by Centre-State dispute regarding funds

The Rajasthan government has put in place the old pension programme (OPS), which ensures that each employee would receive a set income upon retirement. Due to the dispute between the Centre and the state over the release of funds under the NPS, some employees are unsure about its long-term viability.

Employees are required to open a GPF-SAB account in order to be eligible for the OPS, although many are unsure of its use. Because there are no clear instructions on how to take advantage of the OPS promise, employees who withdrew their PF for a variety of reasons are now having difficulty getting the money redeposited.

The Pension Fund Regulatory and Development Authority has failed to release the fund, despite the Center’s announcement of OPS for its employees and requests that they do so since 2005. The state government’s capacity to continue paying pensions to its workers is currently being keenly watched.

Since the state switched back to the Old Pension Scheme for its employees last year, Chief Minister Ashok Gehlot has pleaded with the Union government to return the funds put in the New Pension Scheme. However, the Rajasthan government’s request for the release of cash has been rejected by Nirmala Sitharaman, the minister of finance for the Union.

A government employee who retires under the old pension plan is entitled to a monthly pension that is typically equal to half of their last drawn salary. Employees are eligible to a one-time lump sum payment upon superannuation under the new pension plan in exchange for contributing a percentage of their salary to the pension fund.

The question at hand is whether the current administration will be able to secure the money required to support the OPS over the long haul. While the BJP has not yet thought of a countermove, Congress supporters are pleased that the move is being made to put pressure on the Central government.

Government employees are promised a defined pension under the OPS programme, although the program’s long-term viability is still unknown. Whether the state government is able to secure the money it needs from the Centre to maintain the OPS will determine what happens to the pension benefits for retirees.

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