Old pension scheme will not be available if NPS money is withdrawn

Old pension scheme will not be available if NPS money is withdrawn: Finance department has banned, if you apply, the government will accept the violation of orders

Aug 29, 2022 - 23:32
Old pension scheme will not be available if NPS money is withdrawn

The government will not give the benefit of the Old Pension Scheme (OPS) to the employees withdrawing money deposited in New Pension Scheme (NPS). The Finance Department has issued a circular prohibiting the withdrawal of money deducted for NPS. The department has warned the employees that those employees who apply to withdraw the money deposited in NPS will be considered that they do not want to take advantage of OPS.
In the circular, the Finance Department has warned of taking action even considering applying for withdrawal of NPS deposits as a violation of the orders of the government.
In this year's budget, CM Ashok Gehlot announced to implementation of the Old Pension Scheme for five and a half lakh employees. On January 1, 2004, and after that, the employees who came into government jobs had to deduct money in the New Pension Scheme on their own, this money was deposited in PFRDA.
The Finance Department argues that with the announcement of the implementation of OPS, NPS was abolished. In the circular issued on May 19, 2022, there was a provision that the employees who have withdrawn money from NPS will be adjusted from the GPF money received on their retirement. It was not clear in this circular that employees cannot withdraw their money deposited in NPS.
The money deducted by the employees in the New Pension Scheme till March 2021 was deposited in the Pension Fund Regulatory Development Authority (PFRDA). The state government has abolished NPS and implemented OPS. After this, the government asked to return the 39000 crores deposited in PFRDA, then the agency flatly refused. PFRDA has refused to refund the money citing a lack of clear rules on pre-mature withdrawal.
There is a provision in the PFRDA Act that employees can withdraw 25 percent of their own share from this fund at any time. After the implementation of OPS, many employees started withdrawing money from the fund. The government has now banned the withdrawal of money.

Muskan Kumawat Journalist & Writer