Politics · India Bureau
Karnataka to phase out NPS, restore old pension scheme for state employees
The Karnataka government will soon replace the New Pension Scheme with the Old Pension Scheme, fulfilling a long-standing demand from government employees and an election promise by the Congress party. Deputy Chief Minister G Parameshwara said Chief Minister D K Shivakumar has directed the transition.
LSN India ·
The Karnataka government is set to scrap the New Pension Scheme (NPS) and reintroduce the Old Pension Scheme (OPS) for state employees, Deputy Chief Minister G Parameshwara announced on Saturday.
Addressing a state-level Teachers' Day celebration in Bengaluru, Parameshwara said Chief Minister D K Shivakumar had made the decision to phase out NPS and reinstate OPS following discussions within the cabinet. "The chief minister has held discussions on the issue and the government has taken an important decision to scrap the NPS and implement the OPS soon," Parameshwara said.
The reinstatement of OPS has been a persistent demand from government employees across the state. The Congress party had also pledged to restore the scheme ahead of the 2023 state elections that brought the party to power in Karnataka.
Parameshwara acknowledged that administrative and procedural issues had delayed the implementation of OPS earlier, but indicated that Chief Minister Shivakumar remained committed to completing the transition from NPS to the older pension framework in the near term.