Then the issue of the old pension intensified, how different it is from the new pension ie NPS

Then the issue of the old pension intensified, how different it is from the new pension ie NPS

The demand for the old pension scheme ie OPS has intensified. Here OPS means Old Pension Scheme. This system has been implemented in some states, especially in anti-Bharatiya Janata Party states. To be implemented in Punjab and Gujarat also it has been made an election issue. The government had started the National Pension Scheme i.e. NPS by closing the OPS. NPS is the new pension scheme that has been made an issue by the opposition parties. Politics has also heated up on this issue. Be it NPS or OPS, both are retirement schemes in which the subscriber has to deposit money continuously. Unlike OPS, market-linked investments in NPS involve money and the return is given to the pensioner. Apart from this, other fundamental differences separate the two. Let us know about both.

Difference between OPS and NPS
How much pension you get: Under NPS, employees keep depositing money during their job. This deposited money is invested in market-linked securities. In contrast, OPS gives a pension to the government employee based on his last salary. Under OPS, 50 percent of the employee's last salary is given as a pension.
Tax benefits: Under section 80C in NPS, there is a facility of tax exemption up to Rs 1.5 lakh on annual investment. Apart from this, an additional exemption of up to Rs 50,000 can be availed under section 80CCD(1B). On the other hand, there is no provision for any tax exemption in OPS.
Amount of Pension: On retirement, 60% of the NPS corpus can be encashed which is tax-free. The remaining 40 percent is deposited in the annuity of life insurance companies. The money invested in the annuity is taxed. Any income earned from OPS such as interest is not taxable.
Eligibility: NPS can be availed by every citizen in the age group of 18 to 65 years. OPS is only and only for government employees.
who is better of the two
The pension amount received in OPS is fixed. As much as the last salary was received, 50% of it will continue to be received in the form of a pension. But the pension of NPS can increase or decrease. Since NPS is market-linked, fluctuations are common. NPS does not guarantee returns. The biggest feature of NPS is that money is invested in the market linked securities, due to which the money of NPS increases. But it also has risks.

Hence, NPS is better for those who are risk-averse and want to earn big money in the future. NPS is also good for retirement because you can save up to Rs 2 lakh in tax on your investments in a year. Such a facility is not available in the old pension system.

(with language input)