NPS Scheme- You can also take advantage of the Old Pension Scheme, know how

Friends, as we all know that life is full of uncertainties, in which no one knows what happens, so a part of your earnings should be invested in a place where you get good returns, one such scheme is the Old Pension Scheme (OPS), which was earlier a retirement benefit scheme given to government employees in India. This scheme ensured financial security to retired employees by providing a fixed pension amount based on their last salary, as well as family pension benefits after the death of the employee. Which the Central Government ended this scheme on 1 January 2004 and implemented the National Pension System (NPS) in its place, let's know the complete details about it-

Key features of Old Pension Scheme (OPS):

Defined Benefit Pension: Retired government employees were entitled to a fixed monthly pension, which was 50% of their last basic salary, including dearness allowance.

Family pension: After the death of the pensioner, a portion of the pension continued to be paid to eligible family members.

Dearness relief: Pensioners under OPS were eligible for biennial revision of dearness relief to cope with inflation.

Government funded: The entire pension amount was paid from the government treasury, thereby guaranteeing income for life.

End of OPS and beginning of NPS:

The old pension scheme was officially discontinued by the NDA government led by Prime Minister Atal Bihari Vajpayee from 1 January 2004.

It was replaced by the National Pension System (NPS), which came into effect on 22 December 2003. Under the NPS, the pension amount depends on the employee's contribution and market performance, and not on any fixed benefit.

The aim of this change was to reduce the financial burden on the government and ensure sustainable pension management in the long term.