Rajasthan government has reverted back to the Old Pension Scheme In this context which of the follow...........

Rajasthan Polity and Governance

Rajasthan government has reverted back to the Old Pension Scheme. In this context which of the following statements is/are incorrect?

Under the Old Pension Scheme, employees get pension under pre-determined formula which is 40 percent of last drawn salary.
The concerned employees also get the benefit in the revision of Dearness Relief (DR), once a year.

1 only

2 only

Both

None

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Explanation:

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.