Karnataka govt announces to implement Old Pension Scheme for 13,000 employees

In a significant move, the Karnataka government has announced the reinstatement of the Old Pension Scheme (OPS) for approximately 13,000 state government employees who were recruited after 2006. 

This decision comes as a fulfilment of Chief Minister Siddaramaiah's promise to the government employees who had been on strike against the New Pension Scheme (NPS).

The Old Pension Scheme is a defined benefit pension plan, which guarantees a specific retirement benefit amount for employees, unlike the NPS which is a defined contribution plan where the retirement benefit depends on the investment performance. The reinstatement of OPS was a longstanding demand by the state government employees, and it has been met with a positive response from various quarters.

According to the information provided, eligible employees will have a one-time opportunity to opt for the OPS before June 30, 2024. 

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The recommendations for eligible employees should be forwarded to the heads of departments by July 31, 2024, and subsequently sent for approval to the Finance Department by August 31, 2024.

This announcement aligns with the actions taken by some other states in India that have already implemented the central government order to revert to the OPS. The Karnataka State Government Employees’ Association president, C S Shadakshari, confirmed receiving a "definite assurance" from the state government regarding the implementation of the OPS.

The decision to bring back the OPS is expected to have a significant financial impact on the state's exchequer, especially considering the additional burden of the 7th Pay Commission, which is projected to increase annual expenditure substantially for the salaries of the state’s six lakh employees.

Chief Minister Siddaramaiah has also promised to implement the Karnataka Arogya Sanjeevani Scheme, a health insurance initiative, for government employees and their families, further demonstrating the government's commitment to the welfare of its employees.

The notification issued by the Karnataka government on January 24, 2024, marks a pivotal step in addressing the concerns of government employees regarding their post-retirement benefits and reflects the government's dedication to upholding the interests of its workforce.