Big blow to govt employees! THIS state won't implement Old Pension Scheme as it will lead to bankruptcy

"The government won't provide pensions in accordance with the previous plan. The state will become bankrupt if the outdated pension plan is implemented since it will incur a burden of Rs 1,10,000 crore: Deputy CM Devendra Fadnavis

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New Delhi: Devendra Fadnavis, the deputy chief minister of Maharashtra, said today, December 21, that the state would fall bankrupt if it reinstated the previous pension plan because doing so would cost the exchequer a total of Rs 1.10 lakh crore. Fadnavis mentioned that the old pension plan was stopped in 2005 in response to a query in the state Assembly. The Congress-Nationalist Congress Party administration at the time received appreciation from him for its choice to abandon the previous pension programme for the benefit of the country.

Employees received defined pension benefits under the previous pension plan. According to this, the employee is legally entitled to a pension that is equivalent to 50 percent of their most recent paycheck. However, the 2004 implementation of the National Pension System makes the pension amount contributory.

"The government won't provide pensions in accordance with the previous plan. The state will become bankrupt if the outdated pension plan is implemented since it will incur a burden of Rs 1,10,000 crore. The outdated pension plan won't be put into effect, according to Fadnavis, who also serves as Maharashtra's finance minister.

(With inputs from PTI)