Maharashtra: 17 lakh government employees on strike for old pension scheme

From sanitation workers to teachers, paramedics of hospitals to other government employees, everyone has joined the strike on Tuesday to implement the old pension scheme. The strike is happening when the 10th and 12th board exams are going on.

Employees of various government departments in Maharashtra raised slogans like “Only one mission, restore old pension”.

The chorus for restoring the old pension scheme has become louder across India. While many non-BJP ruled states have decided to restore the old pension scheme for their employees, this is the first time that such a huge protest is being seen where BJP and Shiv Sena are in power.

under Old Pension Scheme (OPS), the pension amount is provided by the government, which increases its liability, whereas in NPS there is a contributory mechanism of the employee as well as the government.

Earlier this month, the central government allowed select employees to opt for OPS. Personnel Ministry in its order said that the employees who had joined the Central Government services against the posts advertised or notified prior to December 22, 2003, the date on which national pension system (NPS) was notified, they are eligible to join the old pension scheme under the Central Civil Services (Pension) Rules, 1972 (now 2021).

A select group of government servants can opt for this option till August 31, 2023.

government employees this month Karnataka called off their indefinite strike after the state government announced a 17% hike in basic pay.

The employees had demanded interim relief of 40% hike in basic pay and revision of pay as per 7th Pay Commission.

Meanwhile, the Aam Aadmi Party (AAP) has extended its support for the reinstatement of OPS, as has his (Bhagwant Mann) government in Punjab. Himachal Pradesh government has already restored the old pension scheme. Earlier, the governments of Rajasthan and Chhattisgarh have also adopted the same path.

Experts, including the former RBI governor, have warned about the old pension scheme.

“This would be a decidedly retrograde step, both for our commitment to fiscal responsibility and the credibility of our reforms more broadly,” said former RBI governor D Subbarao.

While another ex-RBI governor Raghuram Rajan suggested that states should find less expensive ways to meet the demands of government pensioners.

The state government which is taking the old pension route believes that this will lead to social security and welfare of their employees. However, economists see this as a trend that could spell disaster in the future as states are not going to create any funds by doing so.

OPS was closed by the NDA government in 2003 with effect from April 1, 2004.