India News | Old Pension Scheme Could Lead to Financial Insolvency: Former Dy Chairman of Planning Commission

New Delhi [India], January 6 (ANI): Former deputy chairman of the Planning Commission Montek Singh Ahluwalia on Friday cautioned state governments that bringing back the Old Pension Scheme could be a regressive step and lead to financial insolvency.

Ahluwalia said the move to bring back the old pension scheme may be an 'absurd idea' considering the economic challenges the country and the world are facing today.

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His remarks came at a book release in the national capital.

This is not the first time Montek Ahluwalia has spoken against OPS. Sometime back, he had said that OPS is one of the biggest cess given by the state governments.

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Notably, Prime Minister Narendra Modi has often spoken out against political parties developing and promoting a culture of free rein.

Under OPS, the pension of central and state government employees was fixed at 50 per cent of the last drawn basic pay, while under the new system of the New Pension Scheme, 10 per cent of the basic pay and dearness allowance will be contributed by the employee. The new regime has come into force for those employees who came into service in 2004. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)