EXPLAINER
The story so far: On February 23, Rajasthan Chief Minister Ashok Gehlot announced restoration of the old pension scheme for the government employees, who joined the service on or after January 1, 2004. The announcement meant that the National Pension System (NPS) would be discontinued in the State. Following this, another Congress-ruled State, Chhattisgarh announced restoration of the Defined Pension Benefit Scheme (DPBS/OPS).
In the recently concluded Uttar Pradesh assembly election, Samajwadi Party president Akhilesh Yadav had announced the restoration of OPS, drawing the support of several government teachers and employees in the process. The BJP had maintained that restoration of the old system would cause an unnecessary financial burden on the government. The demand has resonated in other parts of the country. In the last week, protests were organised in J&K, Punjab, Andhra Pradesh, Himachal Pradesh and Madhya Pradesh. Trade unions across the country organised a two-day strike on March 28 and 29 and demanded scrapping of the old pension scheme. The Finance Ministry had earlier ruled out proposals by a federation of Central and State governments employees saying that the “changes will be financially untenable.”
