Are you a retired government employee? If yes, then there is good news for you. The government has decided to increase the pension of retired employees under the Old Pension Scheme (OPS).
How much will the pension increase
The government has proposed to increase the pension of retired employees from 20 to 100 percent. This increase will be based on age.
Employees between the ages of 80 to 85 years will get a 20% increase.
Employees between the ages of 85 to 90 years will get a 30% increase.
Employees between the ages of 90 to 95 years will get a 40% increase.
Employees between the ages of 95 to 100 years will get a 50% increase.
Employees above the age of 100 years will get a 100% increase.
Which employees will be eligible?
This hike will be given to those employees who have retired under the Old Pension Scheme (OPS). For this, employees have to complete 20 years of regular service.
Good news for employees investing in NPS as well
The government has also given good news for employees investing in NPS. Now these employees can also opt for voluntary retirement after completing 20 years of service.
When will this rule be implemented?
The government has not yet announced the date of implementation of this rule. However, it is expected that it will come into effect soon.
Additional information
This scheme applies only to employees retired under the Old Pension Scheme (OPS).
This scheme will not be applicable for employees retired under the New Pension Scheme (NPS).
The government has not issued any official notification for this scheme, it is only a proposal as of now.
This hike will be in the form of an additional pension or additional ex-gratia allowance.
The government has requested all ministries/departments and pension disbursing authorities/banks to follow this rule.
Be Prepared Now
If you are a retired government employee, you can wait for this scheme to be implemented. Wait for the final decision of the government and when the scheme is implemented, you can avail the hike in your pension.