homefinance News

No refund for states seeking to exit new pension scheme

finance | Dec 12, 2022 8:59 PM IST

No refund for states seeking to exit new pension scheme

Mini

The union government has told the parliament it is not considering any proposal to restore the old pension scheme (OPS). It has told opposition-ruled states, who have refused to adopt the new pension scheme that it cannot return the accumulated corpus as there is no provision under current laws.

The union government on Monday told the Parliament that it is not considering any proposal to restore the old pension scheme (OPS). It has told opposition-ruled states, who have refused to adopt the new pension scheme that it cannot return the accumulated corpus as there is no provision under current laws.

Recommended Articles

View All

The government is very much clear on the fact that they don't really have a role to play as such, on the states entering into NPS, there was enough clarity on that front.
There was a massive debate on it before NPS was rolled out, and that continued for a long period of time, and states themselves took a lot of time to come into the system, from 2004 to 2010.
Also, there are massive fiscal implications, if some of the states go back to the OPS. There is an advisory rolled out and, there is intent by the Reserve Bank of India, by the finance commission, by the finance ministry, and by various experts, that fiscal consolidation or fiscal prudence is very much required.
So, keeping all of that in mind doesn't really make sense for this reversion, of course, unless, some of those states go back to OPS, maybe making some fiscal savings, at least in the initial years. This could also have some implications for Centre-state relations.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng