Karnataka elections: Promise to restore OPS may boost Congress’ poll prospects

BENGALURU: Congress believes its promise to restore the Old Pension Scheme (OPS) — as stated in its manifesto — will help it gain significantly in the May 10 assembly elections just as it did in the Himachal Pradesh assembly polls earlier this year.
Some 3 lakh of the total 9 lakh government employees are covered under the National Pension Scheme (NPS) in the state.
“During Rahul Gandhi’s Bharat Jodo Yatra, we realisedgovernment employees, especially in Karnataka, are angry with BJP governments for not restoring OPS,” said MB Patil, chairman of Congress’ campaign committee. “So, we decided to include this promise in the manifesto. We are committed to fulfilling it.”
Following protests in March demanding a roll back of NPS, the Basavaraj Bommai-led BJP government, which did not want to risk its prospects in elections, formed a panel led by additional chief secretary Rajneesh Goel to study the feasibility of reintroducing OPS for employees who joined service after 2006.
The panel was tasked with visiting five states that implemented OPS and to make suitable recommendations by the end of May. The move was significant since it is not in line with BJP’s stand of not returning to OPS. Many believe political compulsions forced the party to modify its stand.
JD(S), in its manifesto, promised to review the new pension scheme and unveil a new scheme.
“All parties, including BJP, have made promises, but none have shown commitment to implement them,” said a senior officebearer of the Karnataka State Government Employees Association. “We will take it up soon after the polls irrespective of which party comes to power.”
However, officials say implementing OPS could deliver a blow to the state’s finances, which is already in bad shape. “With parties promising so many freebies, OPS may have to wait,” said a senior bureaucrat with the finance department. “The next government will have to reduce spending on other important heads to finance OPS. ”However, Patil said: “We have done our homework. We will implement it without any hitch if we form the government.”
OPS was scrapped in December 2003 by the Atal Bihari Vajpayeeled NDA government. Its substitute, the NPS, took effect on April 1, 2004, but government employees are unhappy with the marketlinked retirement scheme.
NPS was devised to reduce the government’s pension bill. OPS provided 50% of last drawn salary as pension; in NPS, the minimum payment to retired employees as pension is Rs 3,500.