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OPS and NPS together! How Will The Andhra Pradesh Guaranteed Pension Scheme Operate?

<p>The Guaranteed Pension System (GPS), a combination of the Old Pension Scheme (OPS) and the New Pension Scheme (NPS), is being implemented by the government of Andhra Pradesh for its workers. On September 27, 2023, the state legislature authorized the GPS, and it is anticipated to go into force on April 1, 2024.<img decoding=”async” class=”alignnone wp-image-228596″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/10/theindiaprint.com-ops-and-nps-together-how-will-the-andhra-pradesh-guaranteed-pension-scheme-operate.jpg” alt=”theindiaprint.com ops and nps together how will the andhra pradesh guaranteed pension scheme operate” width=”1326″ height=”745″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/10/theindiaprint.com-ops-and-nps-together-how-will-the-andhra-pradesh-guaranteed-pension-scheme-operate.jpg 299w, https://www.theindiaprint.com/wp-content/uploads/2023/10/theindiaprint.com-ops-and-nps-together-how-will-the-andhra-pradesh-guaranteed-pension-scheme-operate-150×84.jpg 150w” sizes=”(max-width: 1326px) 100vw, 1326px” title=”OPS and NPS together! How Will The Andhra Pradesh Guaranteed Pension Scheme Operate? 3″></p>
<p>The Guaranteed Pension System: What Is It?</p>
<p>All state government workers will be qualified for the GPS’s guaranteed monthly pension, which will equal 50% of their final basic pay plus a dearness allowance. The employee’s NPS account will receive a matching contribution from the government, and the employee may choose from a variety of investment alternatives.</p>
<p>The state government would cover any gap in the pension amount from the NPS corpus. This makes sure that even if their NPS investment returns are lower, workers are guaranteed a minimum pension of 50% of their last drew income.</p>
<p>Many state government workers, who had been calling for a return to the OPS, have welcomed the GPS.</p>
<p>The GPS implementation process has begun by the government of Andhra Pradesh. All departments and agencies have received a communication from the state government requesting information on the NPS accounts of their workers. According to reports, the government is also hiring a pension fund manager for the GPS.</p>
<p>Over 3 lakh state government workers in Andhra Pradesh are anticipated to gain from the GPS.</p>
<p>What Do OPS and NPS Mean?</p>
<p>Old Pension Scheme and National Pension System are abbreviated as OPS and NPS, respectively. Both are pension plans for Indian government workers.</p>
<p>(OPS) Old Pension Scheme</p>
<p>Employees of the OPS are guaranteed a set pension upon retirement since the OPS is a defined benefit pension plan. Based on the employee’s last drew pay and service history, the pension amount is determined. The OPS is funded by the federal government.</p>
<p>NPS, or the National Pension System</p>
<p>Because the NPS is a defined contribution pension plan, both the government and the employee each pay a specified proportion of the employee’s income to the account. The donations are placed in a range of financial products, including government bonds, debt, and equities. The corpus in the employee’s NPS account at the time of retirement is used to determine the pension amount.</p>
<p>Employees of the government pay a monthly payment equal to 10% of their salaries, while the government contributes at a rate of 14%.</p>
<p>In 2004, NPS was introduced in India.</p>
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