Jharkhand would soon follow Chhattisgarh and Rajasthan in restoring the old pension scheme from the existing New Pension Scheme.

Sources in the Jharkhand finance department confirmed that the proposal for restoration of the old pension scheme has been drafted.

“We are ready with the draft proposal and it would be tabled in the next cabinet meeting to be held likely in the first week of June,” said a senior official in the finance department.

Principal secretary finance, Ajoy Kumar Singh, however, refused to speak on the issue. “Chief minister has made an announcement in the Vidhan Sabha and the department is working in that direction. I cannot say much on this issue at this moment,” he said.

Incidentally, Hemant Soren had during the last day of the budget session of the Jharkhand Assembly in March had hinted at the revival of the old pension scheme.

“Many governments have announced plans to reintroduce the old pension scheme but we have already started working on it and we will introduce it soon,” Soren had said in the Assembly.

Legislators of the ruling and Opposition parties in the state have been demanding revival of the old pension scheme. The scheme for government employees was discontinued from April 1, 2004, and the NPS was implemented.

Congress-ruled Rajasthan and Chhattisgarh have issued notification for restoration of the old pension scheme. While Bengal and Kerala had not opted for the NPS in 2004.

Under the NPS, a general provident fund facility would be available. A certain amount will be deducted every month from the salary. There is no guarantee of fixed pension after retirement.

The amount of pension for the employee will depend on the stock market return. A pension insurance company will give the NPS after buying an annuity. The benefit of inflation and pay commission will not be available in the NPS.

While in OPS the general provident fund facility is available and there were no deduction made from a salary for pension, a fixed pension is given after retirement, i.e. 50 per cent of the last salary is received as a pension, the entire amount of the pension is given by the government. If a government employee dies while in service, then the family dependent will be entitled to the pension.

The National Movement for Old Pension Scheme (NMOPS), an umbrella body of more than 14 lakh central and state government employees, had urged Union finance minister Nirmala Sitharaman to consider modifications in the NPS. However, in the OPS there will be a big impact on the state budget and there is no clarity on what will happen to the money deposited in NPS till now.

“Both Rajasthan and Chhattisgarh have also sent a detailed proposal to Pension Fund Regulatory and Development Authority (PFRDA) to withdraw thousands of crores accrued under the market-driven NPS since November 2004 after issuing notification earlier this month. We might have to do the same. However, the Rajasthan proposal has been rejected by PFRDA. Let us hope that our proposal is not rejected by PFRDA,” said a top finance department official.

State finance minister and Congress leader Rameshwar Oraon admitted on the additional burden on the state exchequer. “There will be additional burden but for the sake of government employees we will have to shoulder this burden,” said Oraon.