Karnataka Old Pension Scheme: Congress-ruled Karnataka government on Wednesday issued a notification to cover under the old pension scheme to about 13,000 state government employees who were recruited after 2006.
Taking to X, Chief Minister Siddaramaiah announced that earlier when employees were protesting against the new pension scheme, he had promised to fulfil their demand.
"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 National Pension System (NPS) employees were on strike and promised to fulfil the demand after we came to power," Siddaramaiah posted on X.
"I hope this decision has given comfort to all the families of 13,000 NPS employees," The post read.
Difference between old and new pension scheme
Under the old pension system, a government employee was entitled to a monthly pension equivalent to half of his last salary after retirement. In the old pension regime, employees did not have to pay any sort of pension deduction.
Contrary, under the new pension scheme, government employees contribute a portion of their salary to the pension fund, Based on this, they are entitled to a lump sum on retirement. The government also contribute a fixed sum which is higher than the employee's contribution.
The old pension scheme was discontinued in December 2003 and the new pension scheme came into effect from April 1, 2004.