State Seems To Be Burdensome In Implementing OPS: The state government across the country has been switching to Old Pension Scheme (OPS) by dropping their current pension schemes in widespread. In Kerala, switching to OPS seems to be burdensome for the government because the government has been availing more loans from the central government in the name of participatory pensions.
SSC GD Best Online Coaching Classes
Kerala has accepted loans on behalf of this scheme in the last financial year and the union government has made some modifications in providing loans to the state government as many of them are switching to old schemes. Upon the financial crisis, and unwillingness to revise OPS, Kerala brought a loan of Rs. 1,700 crore in the previous FY.
Whereas in the current FY, the state has brought a loan of Rs. 1,755 crore to continue participatory pension. A participatory pension is nothing but a fund paid from the compilation of 10% of the salary of the employees and the same from the government, this will be proportional to the return on the investment.