Old pension Scheme Restoration: Successful Mega Rally by the National Movement at the Ramlila Maidan

Amidst a massive assembly of demonstrators at this historic site, event organizers reported that participants hailing from over 20 states had convened for the 'Pension Shankhanaad Rally.' They carried national flags and banners, fervently advocating for the reinstatement of the previous pension scheme.

Ramlila Maidan in Delhi witnessed thousands of government employees from all corners of the nation congregating on a Sunday to voice their disapproval of the central government's National Pension Scheme (NPS) and to fervently request the revival of the old pension scheme (OPS).

Representatives from the central government, state governments, and public sector enterprises converged at the venue for the "Pension Shankhanaad Rally," an event orchestrated by the National Movement for Old Pension Scheme (NMOPS). This organization spearheaded the campaign in favor of OPS. Vijay Kumar Bandhu, the president of NMOPS, addressing the rally, stated, "We are disseminating the message for OPS restoration across every nook and cranny of the country. Our concerted efforts and struggles have already led to the reinstatement of the old pension scheme in several states. Our team firmly believes that if the central government endorses the old pension scheme, it will alleviate the burden on state governments."

Former Haryana Chief Minister and senior Congress leader Bhupinder Singh Hooda, present at Ramlila Maidan, pledged his support for the protesting employees. He asserted, "We wholeheartedly endorse the legitimate demands of the employee organizations associated with NMOPS. As soon as the Congress government assumes power in Haryana, we will expeditiously fulfill the employees' request for the old pension scheme."

Furthermore, both the Congress and Aam Aadmi Party expressed their solidarity with the protesters. In a social media post in Hindi, the Congress conveyed, "The Modi government should reinstate the old pension scheme and honor the contributions of the workers serving our nation." AAP national convenor and Delhi Chief Minister Arvind Kejriwal shared on social media, "We have already implemented OPS in Punjab and have approached the Centre to implement it for Delhi government employees."

The old pension scheme guaranteed inflation-adjusted and pay commission indexed pension disbursements, without requiring any contributions from the employees. In contrast, the new pension scheme (NPS) relies on contributions from both employees and employers, with returns determined by market conditions, rather than being a fixed percentage of the final salary at the time of retirement. The previous scheme was notably more favorable to government employees. Over the past year, several states led by opposition parties, including Rajasthan, Himachal Pradesh, Chhattisgarh, and Jharkhand, have transitioned from NPS to OPS, triggering controversy. This issue also became a prominent topic in the elections in Himachal Pradesh, where government employees constitute a significant portion of the electorate.

Why do government employees want OPS to be restored?

According to the protestors, the New Pension Scheme (NPS) is nothing but privatisation. OPS, introduced in the 1950s and exclusive to government employees guarantees a monthly pension equivalent to 50 per cent of the last drawn basic salary, along with a dearness allowance upon retirement or an average of the wages earned in the previous ten months, whichever is more favourable. It is a guaranteed return. The NPS, introduced in 2004, is available to both government and private sector employees. Under this scheme, employees must contribute 10 per cent of their base pay, while employers can contribute up to 14 per cent. The scheme offers market-linked returns but does not guarantee returns.

Which political parties supported the OPS rally?

Opposition members from the Congress and Aam Aadmi Party, who are part of the INDIA bloc, extended their support to the protest. The rally also saw supporters from Rajasthan and
Himachal Pradesh, where the Congress government has brought back OPS. Chief Minister Arvind Kejriwal posted in favour of the OPS rally on X, “We strongly support the demand of government employees to bring back OPS. NPS is an injustice against employees. We have implemented OPS in Punjab and have written to Centre for implementing it for Del govt employees. Some other non-BJP govts have also implemented OPS.” Opposition leaders including AAP Rajya Sabha MP Sanjay Singh, former Haryana Chief Minister Bhupinder Singh Hooda and his Congress colleagues Arvinder Singh Lovely, Sandeep Dikshit and Udit Raj, and Bahujan Samaj Party MP Shyam Singh Yadav, besides farmer leader Rakesh Tikait, joined the rally.

What motivates government employees to advocate for the restoration of OPS?

Protesters argue that the New Pension Scheme (NPS) effectively amounts to privatization. In contrast, OPS, initially introduced in the 1950s exclusively for government employees, ensures a guaranteed monthly pension equivalent to 50 percent of the final basic salary, complemented by a dearness allowance at the time of retirement or an average of the earnings from the preceding ten months, whichever proves more favorable. This system offers a dependable return on investment. Conversely, the NPS, launched in 2004, is applicable to both government and private sector workers. Under this scheme, employees are obliged to contribute 10 percent of their base pay, while employers can contribute up to 14 percent. The NPS offers returns linked to the market, without a guarantee of specific returns. Which political parties provided their support to the OPS rally?

Opposition members belonging to the Congress and Aam Aadmi Party, who are part of the INDIA bloc, expressed their solidarity with the protest. Additionally, the rally garnered backing from Rajasthan and Himachal Pradesh, where the Congress-led government has reinstated OPS. Chief Minister Arvind Kejriwal showed his support for the OPS rally on social media platform X, stating, "We wholeheartedly endorse the government employees' demand for the reinstatement of OPS. NPS is unjust to employees. We have already implemented OPS in Punjab and have formally approached the Center to consider its implementation for Delhi government employees. Several other non-BJP state governments have also adopted OPS." Prominent opposition leaders, including AAP Rajya Sabha MP Sanjay Singh, former Haryana Chief Minister Bhupinder Singh Hooda, along with his Congress colleagues Arvinder Singh Lovely, Sandeep Dikshit, and Udit Raj, as well as Bahujan Samaj Party MP Shyam Singh Yadav, in addition to farmer leader Rakesh Tikait, joined the rally in a show of solidarity.

Will the OPS rally exert an influence on upcoming assembly elections?

The demonstrators are pressing for the reinstatement of OPS by the Union government and BJP-led state governments prior to the elections. According to political analysts, OPS is poised to emerge as a prominent talking point in the forthcoming assembly elections in Madhya Pradesh, Chhattisgarh, Telangana, Mizoram, and Rajasthan. The Congress party has already pledged to implement OPS if it secures electoral victory. Notably, the Congress party made OPS an electoral focal point for the first time in Himachal Pradesh. Significantly, states such as Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh have already reinstated OPS.