OPS comeback faces legal, financial hurdles

CH NEWS BENGALURU Karnataka’s plan to restore the Old Pension Scheme (OPS) for government employees remains stalled by legal, financial and regulatory challenges, leaving nearly 2.8 lakh National Pension Scheme (NPS) beneficiaries awaiting clarity. The Congress had promised to restore OPS in its 2023 election manifesto. The government subsequently formed a committee and obtained a study report, but a clear implementation roadmap is yet to emerge. Deputy Chief Minister G Parameshwara announced on September 5 that the Cabinet had decided to implement OPS soon. However, NPS contributions are managed by the Pension Fund Regulatory and Development Authority, with investments in financial instruments. Recovering accumulated funds, accounting for employee and government contributions, and terminating existing agreements could prove difficult.