Rajasthan has become the first State to go back to Old Pension Scheme (OPS) for its government employees.

Till date, barring West Bengal, all States and Union Territories and the Cente have New Pension Scheme, better known as National Pension System (NPS).

Centre introduced NPS for all its new officials and employees, except those from armed forces, joining service on or after January 1, 2004.

New Pension Scheme (NPS) is known as contributory mechanism while OPS is called defined mechanism.

One of most important factors for switching to NPS was to cut down the cost of pension payout.

Under OPS, employees get pension under pre-determined formula which is half of last drawn salary. They also get the benefit in the revision of Dearness Relief (DR), twice a year.

However, the new mechanism is based on contributions where an employee deposits 10 percent of the basic pay plus dearness allowance.

Rajasthan has become the first State to go back to Old Pension Scheme (OPS) for its government employees.

This development has taken place at a time when key opposition parties had promised to revert to Old Pension Scheme in other states, if voted to power.

Centre introduced NPS for all its new officials and employees, except those from armed forces, joining service on or after January 1, 2004.

Rajasthan was first among States which adopted the system and later various States except West Bengal adopted the system.

According to the key officials, the employees associated with government services should feel secure about the future, only then they can make their invaluable contribution towards good governance during the service period.

Therefore, for all the employees appointed on or after January 1, 2004, the state government has proposed to implement the old pension scheme, on the occasion of presentation of State Budget for fiscal year 2022-23.