Ranchi: Jharkhand Government on Thursday brought into effect the old pension scheme in the State after its the Standard Operating Procedure was approved by the State Cabinet. The old pension scheme was scrapped on April 1,2004 and was replaced by the National Pension System (NPS).
Speaking to media persons after the Cabinet meeting, cabinet secretary Vandana Dadel said that in the last cabinet meeting held on July 15 it was decided that the old pension scheme will be brought back, discontinuing the NPS.
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"In this regard, it was decided that a SOP will be framed for implementation of the scheme, which was approved by the cabinet today. The scheme will be considered effective from September 1," said Dadel. The decision brought cheers among State Government employees who celebrated its implementation at the state secretariat in the evening. Chief Minister Hemant Soren shared photos of the celebration and tweeted "Another promise fulfilled."
As per the old pension scheme, the entire amount is paid by the government. But under NPS the employees contribute 10 per cent of their salary towards pension while the state government contributes 14 per cent. The decision will affect about 1.5 lakh Jharkhand government employees. The State Cabinet also approved 25 other proposals.
