The Karnataka government has issued an official notification, bringing approximately 13,000 state government employees under the purview of the Old Pension Scheme. The notification specifies that these employees were recruited after the year 2006. This move indicates a decision to extend the Old Pension Scheme benefits to a specific group of employees, diverging from the newer pension system.

Chief Minister Siddaramaiah confirmed to X that he had pledged to fulfill this demand during a strike staged by government employees who were opposing the introduction of the new pension scheme.

Chief Minister Siddaramaiah announced, "An order has been issued to cover the old pension scheme for approximately 13,000 state government employees recruited after 2006. Even before the election, I visited the place during the strike by National Pension System (NPS) employees and committed to fulfilling this demand once in power." He added, "I hope this decision brings relief to the families of all 13,000 NPS employees."

The Old Pension Scheme, which guarantees government employees a monthly pension equivalent to half of their last drawn salary post-retirement, has been reinstated for approximately 13,000 state government employees recruited after 2006.

This marks a departure from the New Pension Scheme, where employees contribute a portion of their salaries to a pension fund, resulting in a one-time lump sum payment upon superannuation.

The transition from the Old Pension Scheme to the New Pension Scheme took place in December 2003, with the discontinuation of the former and the implementation of the latter on April 1, 2004.

The recent decision to include the specified group of employees under the Old Pension Scheme represents a policy shift, providing them with a monthly pension benefit in contrast to the lump sum payout structure of the New Pension Scheme.

Karnataka Chief Minister Siddaramaiah criticized the central government, asserting that it did not fulfill its promise of creating two crore jobs annually. He pointed out that Prime Minister Narendra Modi's commitment to providing 20 crore jobs in ten years remained unfulfilled.

Siddaramaiah made these statements while inaugurating a project aimed at rejuvenating 150 lakes and ponds in 79 villages within Periyapatna taluk, sourcing water from the Cauvery River at Muthtinamulusoge. The remarks reflect concerns about job creation and highlight a perceived disparity between promises and outcomes at the national level.

Image source: ANI