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.
