The Debate Rages Between OPS and NPS End
The OPS and NPS discussion has been rekindled with a recent case of a BSF jawan who retired after 20 years of service. The stark difference in pension amounts under the two systems has again brought to the fore the issues related to the financial security of government employees post-retirement.
The Case of the BSF Jawan
The BSF jawan, who has rendered two decades of service to the nation, gets only ₹11,500 in a month as pension through NPS. On the other hand, if the same jawan was on OPS, his pension amount would have been ₹32,742 per month. This makes the difference an alarming over ₹21,000, raising questions of whether NPS is at all capable of giving a sustainable post-retirement life for the government employees.
Understanding OPS and NPS
Under the OPS, retired government employees are also entitled to receive a percentage of their last drawn pay as a monthly pension during their lifetime, which forms part of a fixed pay pension scheme paid by the government.
Conversely, the NPS is market-linked where, both while in service and after, the employees along with the government contribute to a pension fund. During retirement, the amount that has accumulated is used for the procurement of an annuity where the pensionary amount gets determined. In contrast to OPS, this amount cannot be as much and changes with the fluctuations of market performance.
Implications and Concerns
This has further highlighted the issue of financial insecurity among NPS retirees. Many see this as a country where its armed forces and those in the government deserve nothing less than a better pension system.
The Overall Scenario
It’s no longer just a numbers game. It affects the morale of government employees. Policymakers are now being compelled to revisit the pension systems and address glaring inequalities in order to ensure a dignified retirement for all.
