PM during his speech in the Rajya Sabha warned gave an apparent warning to states reverting to Old Pension Scheme and cited example of financial crisis in neighboring countries and stated,
“The future of our children will be ruined,”
Further stated,
“Look at the plight of countries in the neighbourhood. See how reckless borrowing has left those countries reeling under debt burdens. If we follow the same example and spend recklessly, as some states have done, thinking that the burden is going to be borne by coming generations, then our country is also going to be ruined,”
PM Modi warns states reverting to Old Pension Scheme (OPS)
Centre has time and again warned states if they reverted to Old Pension Schemes . The finance ministry had revealed earlier this week that five states – Rajasthan, Chhattisgarh, Jharkhand , Punjab and Himachal Pradesh had said they would be going back to the OPS.
Demand for restoration of OPS is not new
The call for OPS restoration is not a recent one. However, political parties, mainly those opposed to the BJP, have recently begun their campaign.
PM Modi said political parties shouldn’t be playing with the destiny of the country’s children citing the economic issues in neighbouring countries. He urged the states to exercise financial restraint.
the prime minister said
“You should not commit such a sin. While we may be able to enjoy our lives, the future of our children would be ruined,”
Old Pension Scheme
Old Pension Scheme (OPS) in India was abolished as a part of pension reforms by Union Government. Repealed from 1 January 2004, it had a defined-benefit (DB) pension of half the Last Pay Drawn (LPD) at the time of retirement along with components like Dearness Allowances (DA) etc. OPS was a unfunded pension scheme financed on a pay-as-you-go (PAYG) basis in which current revenues of the government funded the pension benefit for its retired employees. Old Pension Scheme was replaced by a restructured defined-contribution (DC) pension scheme called the National Pension System.
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