New Delhi, Mar 24 (Agency) Amid demand for the old pension scheme (OPS) in various states, the Centre on Friday proposed to set up a panel to look into the issues of pensions and evolve an approach which addresses the needs of the employees. “I propose to set up a committee under the Finance Secretary to look into the issue of pensions and evolve an approach which addresses needs of employees while maintaining fiscal prudence to protect common citizens,” Finance Minister Nirmala Sitharaman said in Lok Sabha today while speaking on the Finance Bill 2023.
The Minister said that the approach will be designed for adoption by both the central government and state governments. Demand for restoration of OPS has been growing with a section of government employees in Maharashtra and Haryana pressing for its return. Some of the opposition-ruled states such as Himachal Pradesh, Chhattisgarh, Jharkhand, Rajasthan and Punjab have reverted to the old pension scheme. Old pension scheme or OPS provides a monthly pension amounting to half the last salary drawn to the beneficiaries till the end of their life service. As against this, the New Pension Scheme (NPS) is market-linked and return-based. In this case, the monthly pay-out to the beneficiaries is much lower compared to OPS. The central government introduced NPS with effect from January 2004 (except for armed forces). While speaking in the Lok Sabha, Sitharaman also said that Reserve Bank of India (RBI) is being requested to look into the issue of bringing credit card payments for foreign tours under the Liberalised Remittance Scheme (LRS).
“It has been represented that payments for foreign tours through credit cards are not being captured under the Liberalised Remittance Scheme (LRS) and they escape tax collection at source. The RBI is being requested to look into this with a view to bring credit card payments for foreign tours within the ambit of LRS and tax collection at source thereon.” The Lok Sabha today passed the Finance Bill 2023 with amendments even as opposition parties continued their agitation demanding JPC probe into Adani-Hindenburg issue.