Reconsider CP scheme: V Vijay Sai Reddy

Vijayawada: The YSRC MP, Mr V. Vijay Sai Reddy, through a ‘special mention’ in the Rajya Sabha on Tuesday, urged the government of India to reconsider the Contributory Pension Scheme and revert to the Old Pension Scheme. He also participated in the debate over the Indian Institute of Management Bill, 2017 in the Rajya Sabha on Tuesday and made some important observations for the government.

He said that after the shabby implementation of the CPS, employees are demanding to revert to OPS, as there is no clarity on the payment benefits after retirement or in the case of the sudden death of an employee. “If you look at teachers, for example, they are in a pitiable condition. After deducting the 10 per cent share and 10 per cent to the government, there is no guarantee that they will get even a minimum pension,” the MP said.

“In the OPS system, the government pays the gratuity and commutation based on the approved calculation. But, in the case of CPS, there is no guarantee how much pension an employee will get, even after employees pay their share value right up to the age of retirement. The government does not give any guarantee and there is an uncertainty in this because everything entirely depends on the share market.

“Secondly, every employee must pay 30 per cent on Income Tax on the amount received after retirement,” Mr Vijay Sai Reddy mentioned. “There are 56 lakh employees, out of which 1.8 lakhs are under CPS Scheme in AP.  All employees in states and the UTs are agitating to revert to the OPS. “So, I strongly feel that their demand is genuine and demand the GOI to immediately revert to the OPS without further delay,” said  Mr Vijay Sai Reddy.