Rajasthan Old Pension Scheme: Govt Allows Opt-Out Option For Boards, Commissions, And Corporations Facing Fund Challenges

The Rajasthan government has issued an order allowing state boards and corporations to withdraw from Old Pension Scheme and adopt the New Pension Scheme if they so wish. An order issued by the finance department stated that boards and corporations can opt out of Old Pension Scheme (OPS) if they are unable to manage pension funds independently. However, officials clarified that employees already covered under the OPS will continue to receive benefits.

"The order is very clear. It is for the boards, corporations and autonomous bodies. It is for the institutions that are not able to provide OPS. Those getting OPS benefits will not be affected," said Finance Secretary Navin Jain.

Officials said that the move marks a significant shift from the earlier Gehlot government's policy, which did not provide an option to withdraw once the OPS was chosen. The current BJP government led by Chief Minister Bhajanlal Sharma had earlier told the Assembly that it had no plan to discontinue the OPS.

According to official data, there are around 1.25 lakh pensioners in various state boards and corporations. Several entities, including the Jaipur Development Authority, Rajasthan State Industrial Development and Investment Corporation Ltd, Marketing Board, Saras Dairy, Rajasthan State Financial Corporation, Roadways, and power utilities, have already established their own pension funds.

Departments such as the Bureau of Enterprises, Tilam Federation, and SC/ST Corporation had earlier submitted proposals seeking permission to withdraw from the OPS, while others such as the Rajasthan Tourism Development Corporation (RTDC) have been requesting government funding for pension liabilities.

However, the new order has triggered strong opposition from employee unions.

Gajendra Singh, president of the Akhil Rajasthan Rajya Karmchari Sanyukt Mahasangh (Integrated), accused the government of trying to roll back the OPS introduced by the Congress administration. "Employees will not tolerate this. If the order is not withdrawn, we will launch an agitation," he said.

Singh claimed that the decision currently applies only to boards, commissions, and corporations, affecting around one lakh employees, but called it a "trial move" before the possible implementation of New Pension Scheme across the government workforce.

He also pointed out that the Unified Pension Scheme introduced by the Union government had failed to attract employees, with only about one per cent opting for it.

"The finance department's orders on pensions reflect authoritarianism and will not be tolerated. Pension is a fundamental right and key livelihood for retirees. If pensions are stopped, retired employees will protest," said Narsi Lal Meena, president of Rajasthan Finance Corporation Pensioners' Association.

He said that as far as the financial condition of the Rajasthan Finance Corporation is concerned, it has been consistently earning profits since its inception and possesses assets worth billions.

Echoing similar views, Tej Singh Rathore, president of the RTDC Employees' Union, said, "The government provides pensions to all employees, so why restrict it to only a few? Boards and corporations work for the state, not the private sector. Such discrimination is unacceptable."