Guwahati: Assam chief minister Himanta Biswa Sarma said in the assembly on Monday that the “state’s economy will be in a shambles” if govt goes to implement the old pension scheme (OPS) for its employees.
Responding to a question raised by Independent MLA Akhil Gogoi, the chief minister said there are over 4.34 lakh state govt employees, excluding those under the Sixth Scheduled Areas, of whom over 2.58 lakh are under the new pension scheme (NPS) and over 1.75 lakh are under OPS.
He said, “Our pension bill is Rs 1,700 crore a month now and if we assume our current salary bill is around Rs 2,800-Rs 3,000 crore per month, then our pension bill will be more than the salary bill in five years. Our economy will then be in a shambles.”
Sarma added that the employees under the NPS stand to gain after retirement. “Those who have joined service at a younger age like 25 years will get a good pension amount under the NPS. But the benefit cannot be the same for some with, say, three years of service under NPS and someone with 30 years of service,” he added.
He said over 7,000 retired personnel are currently drawing pension under the NPS, which was implemented in the state from 2005.
The CM further said the state govt follows the policies of the central govt with regard to pension since the state govt implements the central govt’s pay scale here.
Sarma said the govt is aware of the fact that a limited number of employees is about to retire soon under NPS.
“The central govt has formed a committee to study whether to move forward with NPS or go back to the OPS and other related matters. We have to wait for its recommendations,” he said.
Responding to a question raised by Independent MLA Akhil Gogoi, the chief minister said there are over 4.34 lakh state govt employees, excluding those under the Sixth Scheduled Areas, of whom over 2.58 lakh are under the new pension scheme (NPS) and over 1.75 lakh are under OPS.
He said, “Our pension bill is Rs 1,700 crore a month now and if we assume our current salary bill is around Rs 2,800-Rs 3,000 crore per month, then our pension bill will be more than the salary bill in five years. Our economy will then be in a shambles.”
Sarma added that the employees under the NPS stand to gain after retirement. “Those who have joined service at a younger age like 25 years will get a good pension amount under the NPS. But the benefit cannot be the same for some with, say, three years of service under NPS and someone with 30 years of service,” he added.
He said over 7,000 retired personnel are currently drawing pension under the NPS, which was implemented in the state from 2005.
The CM further said the state govt follows the policies of the central govt with regard to pension since the state govt implements the central govt’s pay scale here.
Sarma said the govt is aware of the fact that a limited number of employees is about to retire soon under NPS.
“The central govt has formed a committee to study whether to move forward with NPS or go back to the OPS and other related matters. We have to wait for its recommendations,” he said.