Karnataka Government Extends Old Pension Scheme to 13,000 Post-2006 Employees

Karnataka Government Extends Old Pension Scheme to 13,000 Post-2006 Employees

VoM News Desk | January 25, 2024 | 09:23 AM IST | India, Karnataka | Follow on Google News

Karnataka Government Extends Old Pension Scheme to 13,000 Post-2006 Employees /ANI

Karnataka Government Extends Old Pension Scheme to 13,000 Post-2006 Employees

In a significant move, the Karnataka government has issued a notification to include approximately 13,000 state government employees, hired after 2006, under the Old Pension Scheme. Chief Minister Siddaramaiah expressed his commitment to fulfilling this demand, initially raised during a strike by government employees against the new pension scheme.

Fulfilling Promises: Siddaramaiah’s Assurance to Government Employees

Chief Minister Siddaramaiah took to social media to announce the issuance of an order extending the old pension scheme to around 13,000 state government employees recruited post-2006. He recalled his pledge to address this demand during a visit to the National Pension System (NPS) employees who were on strike even before the elections. This decision aims to provide relief to the families of the 13,000 NPS employees.

Old Pension Scheme vs. New Pension Scheme: Understanding the Difference

Under the old pension scheme, government employees are entitled to a monthly pension post-retirement, typically amounting to half of their last drawn salary. In contrast, the new pension scheme involves employees contributing a portion of their salaries to a pension fund, leading to a one-time lump sum amount upon superannuation. The old pension scheme was discontinued in December 2003, with the new pension scheme taking effect on April 1, 2004. This recent move by the Karnataka government reflects a responsive approach to the concerns raised by post-2006 government employees, addressing their preference for the traditional pension structure over the newer alternative.

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