Himachal Pradesh became the fourth state to revert to the Old Pension Scheme (OPS) for state government employees. Chhattisgarh, Rajasthan and Punjab, too, have rolled out OPS.
The Reserve Bank of India (RBI) has advised states against the old pension system (OPS). In its latest report on state finances, the central bank said that the major risk looming large on the subnational fiscal horizon is the likely reversion to the OPS by some states.
This statement from RBI comes at a time when some state government are restoring to the old pension scheme.
About old pension scheme : In the old pension regime, pension was 50 percent of the last drawn salary of the employee and the entire amount was paid by the government...
Source : CNBC
