Bhupesh Baghel Cabinet decides to provide benefits under old pension scheme

After Chief Minister Bhupesh Baghel announced the revival of the Old Pension Scheme for Chhattisgarh’s State government employees in his budget speech, the decision was widely celebrated but this celebration was short-lived when the Central Government refused the state’s demand to refund the Rs 17,000 crore plus deposited in the NPS.

Raipur: As the Centre has refused to refund the money deposited towards the New Pension Scheme (NPS), the Chhattisgarh government has played a master stroke by giving the option to all government employees to choose between the old pension scheme (OPS) and the new pension scheme (NPS).

Moreover, at the same time, all government employees, who are appointed after April 2022 will be compulsory members of the old pension scheme. After Chief Minister Bhupesh Baghel announced the revival of the Old Pension Scheme for Chhattisgarh State government employees in his budget speech, the decision was widely celebrated, but that was cut short-lived when the Central Government refused the state’s demand to refund the Rs 17,000 crore plus deposited in the NPS.

Chhattisgarh government cabinet minister Ravindra Choubey said, "The Chhattisgarh government decided in a meeting of the Council of Ministers that instead of November 1, 2004, State government employees will become members of the Chhattisgarh General Provident Fund on April 1, 2022. Also, the State government has presented an option to employees appointed before April 1, 2022, to remain in the NPS or to join the old pension scheme."

"For this, the employees have to submit an affidavit. If an employee opts for the old pension scheme, he or she has to deposit the government’s contribution and dividend in the NPS account from 1.11.2004 to 31.03.2022 to the state government. At the same time, employee contributions and dividends deposited in NPS during this period will be given to government employees under NPS rules." he detailed further.

While the minister predicted that most of the employees will favour and opt for the old pension scheme. According to the decision of the Council of Ministers, retired government servants will also have to deposit the contribution of the government deposited in NPS in the state government account to take advantage of the old pension scheme.