Old vs New: No early retirement for debate on pension as elections loom

The economics and politics behind the old versus new pension scheme as elections loom

In Shivamogga, Karnataka, a state that is due to go to polls in April, Bharatiya Janata Party (BJP) legislator Ayanur Manjunath last week joined a bicycle rally of retired government employees who were demanding the state government revert to the old pension scheme (OPS) as the new pension scheme (NPS) did not yield returns sufficient to keep body and soul together.

Local media quoted Manjunath as saying: “Elected representatives are getting pension, which is similar to OPS. If the government feels NPS is good, let this be extended to legislators as well”.

The state is ruled by the BJP, which