The Karnataka government has issued a notification to reinstate the Old Pension Scheme for around 13,000 state government employees who were recruited after 2006. This decision comes as a response to Chief Minister Siddaramaiah's commitment made during a strike staged by government employees against the implementation of the new pension scheme.
Siddaramaiah took to social media to announce the development, stating, "An order has been issued to cover the old pension scheme to about 13,000 government employees of the state government recruited after 2006. Even before the election, I visited the place when the National Pension System (NPS) employees were on strike and promised to fulfil the demand after we came to power."
Under the Old Pension Scheme, government employees are entitled to a monthly pension post-retirement, equivalent to half of their last drawn salary. In contrast, the new pension scheme requires employees to contribute a portion of their salaries to a pension fund, offering a one-time lump sum amount upon superannuation.
The discontinuation of the old pension scheme occurred in December 2003, with the new pension scheme taking effect on April 1, 2004. The latest decision by the Karnataka government aims to address the concerns of the 13,000 National Pension System (NPS) employees affected by the transition.
Siddaramaiah expressed optimism that the reinstatement of the Old Pension Scheme would bring relief to the families of the affected employees. The move demonstrates the government's commitment to listening to the grievances of its workforce and taking corrective actions to meet their demands.