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Updated January 25th, 2024 at 10:42 IST

13,000 More Employees in Karnataka to Benefit From Old Pension Scheme

The Chief Minister said that he had promised to the government who were staging a protest over the new pension scheme.

Manisha Roy
National Pension System, New Rules on Partial Withdrawal
The old pension scheme was discontinued in December 2003 (Representative image) | Image:PTI
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Bengaluru: In a significant development, the Karnataka govt has issued an order to cover about 13,000 state government employees, who were notified before April 1, 2006 but were appointed later, under the old pension scheme, Chief Minister Siddaramaiah has announced.

The Chief Minister said that he had promised to the government who were staging a protest over the new pension scheme that came into effect on April 1, 2004.

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In a post on social media platform X, Siddaramaiah said,“ An order has been issued to cover the old pension scheme to about 13,000 government employees of the state government recruited after 2006. Even before the election, I visited the place when the NPS employees were on strike and promised to fulfill the demand after we came to power. I hope this decision has given comfort to all the families of 13,000 NPS employees(sic).”

Difference between old pension scheme and new pension scheme

Under the old pension scheme for government employees, one is entitled to a monthly pension, typically half of his last drawn salary, after retirement. Whereas the new pension scheme allows employees to contribute a portion of their salaries to the pension fund. Based on that fund, they are entitled to a one-time lump sum amount on superannuation.

The old pension scheme was discontinued in December 2003.
 

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Published January 25th, 2024 at 10:42 IST

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