What is Old Pension Scheme? Is the new pension scheme better than this?

In its budget announcement, the Rajasthan government returned for the employees of the state. old pension applicable announced to do. The pension scheme which was running at present was the new pension scheme. In this article of ours, you will know what is the difference between old pension scheme and new pension scheme? And Is old pension better than new pension? Let us know about it in detail –

What is Old Pension Scheme?

In states like Rajasthan, Chhattisgarh, the old pension scheme has been implemented again for the employees. Apart from this, preparations are being made to implement Old Pension Scheme in states like Punjab, Tamil Nadu and Jharkhand. It is being said that the old pension scheme is much better than the new pension. To understand in detail about these two pensions, first we have to understand the difference between these two.

old pension scheme

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Difference between old pension and new pension scheme –

differential tax base old pension new pension scheme
deduction no salary cut salary cut
pension basis government gives pension Pension based on stock market
GPF GPF facility No GPF facility
how much pension half of last salary no one wants

deduction There will be no deduction of any kind in the old pension, the same amount will be deducted from the salary in the new pension.

pension basis In the old pension scheme, the basis of pension is that the government gives pension in this. Whereas in the new pension scheme, pension is given based on the condition of the stock market.

GPF On the basis of old pension, GPF facility is given in this, whereas there is no facility like GPAC in the new pension scheme.

how much pension is given Under the old pension scheme, half of the last salary of the employee is given, there is no definite basis for how much pension will be received under the new pension scheme.

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Is the new pension scheme better in this?

Regarding which pension is the best and not in these two pension schemes, we can say that according to the difference between these two pensions, then it can be said that the old pension is very good. To implement this old pension, the Government of Rajasthan, which is very much liked by the employees.

The old pension scheme is considered to be the best, the biggest reason for this is that it has many benefits which can be availed by the employees. The old pension scheme is being considered better than the new pension scheme.

Burden of pension on governments

If a government implements pension, then how does it affect the government and the burden that the government is able to give pension to the employees. Here are some effects –

  • It is believed that about 30 percent of the tax paid by the tax payer of a state only goes towards giving pension to the employees.
  • Apart from this, if the old pension is added to it, then the expenditure of up to 20 percent will increase further.
  • Apart from this, about 46 percent of the total income of tax in the state of Kerala goes to pension.

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Benefits of pension

  • If any pension holder dies due to any reason, then in that case the entitled to that pension will be his wife, or her husband in his family.
  • Whatever the salary of the employee at the time of retirement, half of that employee is given as pension.
  • In the old pension, the amount of pension is fixed whereas in the new pension no such amount is accumulated.
  • Apart from this, the facility of General Provident Fund is given in the Old Pension Scheme.
  • No deduction of any kind is made under the old pension scheme.

When will the old pension be restored?

In Rajasthan, the state government has announced such a pension, but it has not been implemented yet. It is a process only after which it will be implemented. It is believed that it can be implemented within this financial year itself.

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