NPS Vs Old Pension Scheme: RBI Says Some States’ Reversal To OPS Pose Significant Fiscal Risks
Even as several states recently reintroduced the old pension scheme (OPS) and several others contemplating it, the RBI on Monday said the decision of some states to revert to OPS poses significant fiscal risks for states, apart from dampening India’s medium-term macroeconomic outlook.Recently, five states reintroduced OPS, including Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh. Apart from these, Haryana has also witnessed a series of employee union protests in February to reintroduce OPS.Rajasthan was the first state to reintroduce the old pension scheme in April 2022, followed by Chhattisgarh (notifying OPS in December 2022), Jharkhand and Punjab (October 2022), and Himachal Pradesh (April 2023).The central government introduced the National Pension System (NPS) in 200...