In election year, Centre-State tussle over funds casts a shadow over Raj OPS move

By Archana Sharma
Jaipur, May 6 The Rajasthan government has implemented the old pension scheme (OPS) that guarantees employees a defined pension after retirement, benefitting hundreds of retired employees.

Employees in various state government departments, however, are still confused over whether the Rajasthan government will be able to sustain this scheme for long or will it be a mere promise post election if some other party comes in power as the Centre and the state are in a face off over the issue of release of funds under the NPS.

A state government staffer Himani said, "All employees are happy over the fact that they will be getting pension. However, at the same time, different circulars being issued from time to time without any clarity confuse them."

"In its latest order, the government has asked to open a GPF-SAB account. All employees are clueless about what this account is. The order says the opening of this account will help in compliance of FD orders and speedy disbursement of arrears."

"Earlier, we were asked to re-deposit the PF we have withdrawn to ensure we become beneficiaries of OPS," said another employee. Now many employees who have withdrawn their PF for buying houses or for their child's marriage are running from pillar to post to get the funds re-deposited. However, till now there are no clear guidelines on how we are going to benefit from this OPS promise, he said,

The Gehlot government has announced OPS for its employees and has also asked the Centre to release the Rs 39,000 crore accumulated under the new pension scheme in the account of Rajasthan government employees since 2005.

However, the Pension Fund Regulatory and Development Authority has refused to release this fund. Now everybody is watching to see how the state government sustains the disbursement of pension to employees.

Earlier this year during the budget session of the assembly Chief Minister Ashok Gehlot, during the motion of thanks on the Governor's address, urged the Union government to release the fund deposited in the New Pension Scheme as the state reverted to the Old Pension Scheme for its employees last year.

"We cannot afford to leave the funds of the state employees transferred under the New Pension Scheme for share market fluctuations anymore. The Central government should release it for the employees and employers under the Old Pension Scheme at the earliest," Gehlot told the House after two days of debate on the Governor's address.

"Hamara paisa NPS mein jama hai..OPS lagoo karne ke bavjood nahin de rahi hai abhi, agar nahin degi to hum Supreme Court jayenge, par lekar rahenge" (Our money is deposited in NPS..even after implementing OPS, Centre is not giving it now, if it doesn't, we will go to the Supreme Court, but we will take it back for OPS), Gehlot warned.

Gehlot had announced the revival of the old pension scheme in the budget last year.

Gehlot said benefits of the old pension scheme will also be granted to personnel of boards, corporations, academies and universities.

However, Union Finance Minister Nirmala Sitharaman refused the demand of the Rajasthan government for the release of funds deposited towards the New Pension Scheme.

"I don't want to comment on the issue of the Old Pension Scheme but the state government has promised it on its own and now expects that the fund should be released to the government," the finance minister said, adding, "It should not be expected. It is the money entitled to the employee and should be given to him only."

Under the old pension scheme, a government employee is entitled to a monthly pension after retirement. The monthly pension is typically half of the last drawn salary of the person.

Under the new pension scheme, employees contribute a portion of their salary to the pension fund. Based on that, they are entitled to a one-time lump sum amount on superannuation.

The old pension scheme was discontinued in December 2003, and the new pension scheme came into effect on April 1, 2004.

Meanwhile BJP leaders told that the Congress government wants the funds amounting to Rs 39000 cr which it can use for its own ends. The state is financially poor and the state governments PSUs are in poor health. Those employed in 2004 will get pension in 2033-34, and the government will need lumpsum funds for it.

The million dollar question now is which government will be ruling the state at that time and will it be able to get funds?