Restoration of Old Pension Scheme – Loksabha Q & A

Restoration of Old Pension Scheme – Loksabha Q & A

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
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LOK SABHA
UNSTARRED QUESTION NO:3569
TO BE ANSWERED ON JULY 15.07.2019

Restoration of Old Pension Scheme

Rakesh Singh
Rodmal Nagar

Will the Minister of FINANCE be pleased to state:-

(a) whether the demand is being made by trade unions/Government employees to restore the old pension scheme for the Central Government employees as the pension amount is lower and uncertain under the new pension scheme which was implemented in the year 2004;
(b) if so, whether the Government is considering the aforesaid demand of the employees; and
(c) if so, the details thereof and if not, the reasons therefor?

ANSWER

The Minister of State (Finance)
(Shri Anurag Singh Thakur)

(a) Yes, Sir.

(b) and (c) Due to rising and unsustainable pension bill, the Government had made a conscious move to shift from the defined benefit, pay-as-you-go pension scheme to defined contribution pension scheme now called as National Pension System (NPS). The transition also helped in freeing the limited resources of the Government for more productive and socio-economic sectoral development.

There is no proposal to replace the NPS with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

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Source: Loksabha