There is no proposal under consideration for restoring the old pension scheme in the country, the central government told the Lok Sabha on Monday during the Winter Session of Parliament.

Union Minister of State for Finance Bhagwat Karad stated the government’s stance on the matter in response to a question by All India Majlis-e-Ittehadul Muslimeen President Asaduddin Owaisi.

In the old pension scheme, employees get 50% of their last drawn basic pay plus dearness allowance on retirement. Under this system, employees do not have to contribute to their pensions on their own.

Under the new pension scheme, individual savings are pooled into funds during the employment period. Individuals can choose from a range of schemes promoted either by public sector banks or private companies.

The new pension scheme came into effect on April 1, 2003.

On Monday, Karad said that the state governments of Rajasthan, Chhattisgarh and Jharkhand have informed the Centre and Pension Fund Regulatory and Development Authority, or PFRDA, about their decision to restart the Old Pension Scheme for their employees.

He also said that a notification on the Old Pension Scheme has been passed by the Aam Aadmi Party government in Punjab.

He added that the state governments have been informed that under the PFRDA regulations, funds deposited in the form of the government contribution and employees’ contribution towards the national pension system cannot be refunded and deposited back to the state government.

In November, Comptroller and Auditor General of India Girish Chandra Murmu had said that relaunching of the old pension scheme in some states could be financially risky for their governments.