‘OPS for Social and Economic Security’

RSD- Telangana News: The state government, which says that it is implementing welfare schemes for the social and economic security of the people, is adopting a dodgy approach in the matter of Old Pension Scheme (OPS). The teaching world, which has already made its voice heard through petitions, protests and movements, has called for the ‘Chalo Hyderabad’ program to articulate the issue more strongly. Everyone was expecting a positive decision on OPS in the recently held cabinet meeting. But there are criticisms that the government is not paying attention. There are currently 3.28 lakh employed teachers in the state and two lakh CPS employees out of them. This number is likely to increase due to new recruitments. An order has been issued applying this scheme to all the employees of the state government, employees of local bodies, employees of universities, employees of organizations receiving Grand In Aid and employees of autonomous corporation who joined the service from 1st September 2004 in the united state of Andhra Pradesh. After the formation of Telangana state, the state government issued a GO on 23rd August 2014 to implement the CPS policy. As a result, all state government employees appointed after 2004 have been brought under CPS. That’s why September 1st is being observed as the pension strike day by teachers’ unions.

There are cases where a CPS employee who dies while on the job receives a pension that is less than the government’s support pension. Their families are left on the streets due to lack of social and economic security. Due to the coming under CPS, employees and teachers are losing facilities like 50 percent pension at the time of retirement, 30 percent pension for family members, at least Rs.16 lakh gratuity and commutation. This CPS was brought in so that the financial burden of pensions does not fall on the governments. This policy is being implemented by the majority of the state governments in the country as per the instructions of the central government. But the social and financial security of the employees has been ignored. Under CPS, an employee will deposit 10 percent of his basic paydays and another 10 percent from the government as a matching grant to the National Pension Scheme Trust (NPST). Only 60% of the accumulated amount will be paid to the employee in cash till the employee retires. The remaining 40 percent of the money is invested in the Indian stock market. The profit earned thereon is paid to the retired employee under monthly pension. In case of losses in the share market, it will be taken from the employee’s money. It is very regrettable that employee’s pension is given on stock market profit and loss by investing the money of employees and teachers in the stock market. Their money will be deprived of financial security. That is why the job teacher associations have been demanding for years that this CPS policy should be canceled and OPS should be implemented.

The state governments of Rajasthan, Chhattisgarh, Jharkhand, Himachal Pradesh, Punjab and Karnataka have canceled the CPS. In this way, the decision to cancel CPS in some states has increased the pressure on other state governments. The Pension Fund Regulatory and Development Authority (PFRDA) Act empowers state governments to abolish CPS. Any state government is free to do so if it wants to abolish CPS for the socio-economic security of its employees. After the formation of Telangana state, Chief Minister KCR issued an order for CPS employees as per GO MS No. 58, 11th June 2021 that in case of death of an employee, family pension will be paid to their heirs in which the entire CPS subscription deducted from the job salary till then has to be surrendered to the government. A scheme with such policies needs to be canceled immediately. It is not right to implement CPS like a knife on the neck of the employees who contribute a lot to the government in the development and governance of the people. As the elections are approaching in the state, the working teachers are making plans for united movements to increase pressure on the government. Employers and teachers are hoping that Chief Minister KCR will abolish CPS and restore OPS before the upcoming elections.