New Pension Scheme: Will Modi Government Follow Andhra Pradesh's Guaranteed Pension Model?

Published On: June 10, 2024 - In good news for government employees, the newly elected National Democratic Alliance (NDA) government may guarantee up to 50% of the last basic pay as a pension to central government staff. A committee set up by the Modi government has drafted a report on ways to increase benefits under the National Pension System (NPS) as against the current market-based returns. A panel headed by finance secretary TV Somanathan in March 2023 suggested ways to increase pensionary benefits without reverting to the fiscally non-contributory old pension system (OPS). The committee, in its report submitted to the government in May, has largely toed the Andhra Pradesh NPS model enacted in 2023. So, will the NDA government’s proposed move to a guaranteed pension system be a game-changer for central government employees? Watch News9's Shweta Kothari and Kartik Malhotra discuss what the Andhra Pradesh model is and how this will affect the broader pension scheme in India with Chairman of All India Professionals’ Congress, Praveen Chakravarty.