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Old Pension Scheme: UPSC Important Topic| 20 November 2022

Old Pension Scheme

✓The scheme assures life-long income, post-retirement.

✓Under the old scheme, employees get a pension under a pre-determined formula which is equivalent to 50% of the last drawn salary. They also get the benefit of the revision of Dearness Relief (DR), twice a year. The payout is fixed and there was no deduction from the salary.

✓Moreover, under the OPS, there was the provision of the General Provident Fund (GPF).

✓GPF is available only for all the government employees in India. Basically, it allows all the government employees to contribute a certain percentage of their salary to the GPF. And the total amount that is accumulated throughout the employment term is paid to the employee at the time of retirement.

✓The Government bears the expenditure incurred on the pension. The scheme was discontinued in 2004.

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