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The debate between Old Pension Scheme & New Pension Scheme are always very hot. Everyone has its own perceptions regarding which one is better. Since, in OPS, an employee is getting approx definite guaranteed 50% of last drawn basic salary or 15-20% of last drawn gross salary. In NPS system, a defined amount presently 10 % of basic salary is contributed by employees as well as similar 10-14% are contributed by employers or Govt. (Presently Bank Employees can claim tax deductions only at 10% not 14%). At 60, you must use at least 40 per cent of the corpus to buy an annuity income from a PFRDA-listed insurance company. You have the option to withdraw 40 per cent of the corpus tax-free. You can withdraw the remaining 20 per cent of the corpus (it will be taxed as per the income tax slab applicable to you) or use it to buy annuity. So, why We are demanding #PmRestoreOPS ? The biggest reason in support of NPS as given by Govt was huge pension costs. Govt think tanks were in opinion that such amount can be used in other sectors like development & social welfare schemes. However, my argument against above justification is that as total expenditure incurred on approx 70 lakh Central Govt pensioners was Rs 2,54,284.4 crore during the financial year 2021-22, which mean only 4-5 % of total expenditure are going towards welfare of pensioners. In OPS, Govt is also saving 10-14% matching contributions towards employees pension funds under NPS otherwise NPS is also expensive for Government. Proportion of Govt employees as a total population or proportion of expenses towards salaries to Govt/PSBs/PSUs employees as total GDP contributions are still very low. Further out of 8 crores tax payers, there are 2 crores total employees paid taxes. The Supreme Court of India in one of its judgement noted that pension for a retiree "is neither a bounty nor a matter of grace depending upon the sweet will of the employer." It is a social welfare measures & socioeconomic justice towards old people. We forget the aspect that old pension will result in higher take-home salaries, since employees too will not set aside 10% of their basic pay and dearness allowance towards pension funds. This pension amount will be either invested in FD which in turn the banks will use to lend to other sectors or they use it for living expenses and pay GST and pay income tax too. So end of day consumption needs to be strong from the pensioners. Job security with assured pension provisions post-retirement can be an incentive to acquire and retain the talented workers in Govt & PSU/PSBs sectors. Interestingly, contributions towards pension fund is already paid through taxable income by employees. Still, during withdrawals, employees have to pay tax on remaining 20% of corpus. As there is no guaranteed annuity under NPS, even return on NPS are very low. Further, there is always risks on returns on corpus amount as contributory amount in NPS is allocated in different markets by pension fund managers based on their own experiences. In the absence of proper social security schemes in our country particularly for old age groups, it is prime responsibility of Govt or employers to provide definite, defined & assured pensions to the employees who rendered more than 3 decades of life to particular sectors so that they can live respectful & reasonable life in society with more financial freedom & stability. Further, the present policy of Government encourages a budget regimes that discourage savings. Interest rate on FDs & other saving instruments are not enough that any pensioners can live life on them. The pay in Private sectors is gradually seen as better than that in many Public/Govt sectors.Salary increment is also quite limited as compare to Pvt counterparts. Hence, with increase in rising costs of livings & others, returns of rate on corpus amount in NPS is still unpredictable even after 19 years since it’s implementation.