Nestled in the Himalayas, Sikkim is a state in northeastern India known for its stunning landscapes, rich cultural heritage, and unique policies. One such policy that sets Sikkim apart from other states in India is its Old Pension Scheme. This scheme has been in place for several years and provides financial security to government employees in the state after their retirement. In this article, we will delve into the intricacies of Sikkim’s Old Pension Scheme, its eligibility criteria, benefits, and how it differs from the National Pension Scheme (NPS).

The Basics of Sikkim’s Old Pension Scheme

Eligibility Criteria

To be eligible for the Old Pension Scheme in Sikkim, an individual must be a government employee in the state. This includes employees of various departments, boards, corporations, and autonomous bodies controlled by the government of Sikkim. The scheme is not applicable to employees who have joined service after a certain cut-off date when the government introduced the National Pension Scheme.

Benefits of the Scheme

One of the key benefits of the Old Pension Scheme is that it provides a guaranteed pension to employees after their retirement. The amount of pension is determined based on the employee’s years of service, average salary, and other factors. Unlike the NPS, where the pension amount depends on market fluctuations, the Old Pension Scheme offers a more stable and secure retirement option.

Calculation of Pension

In Sikkim’s Old Pension Scheme, the pension amount is calculated based on the employee’s last drawn salary. The pension is typically a percentage of the last drawn salary, with the exact percentage varying based on the number of years of service. Employees also have the option to commute a part of their pension as a lump sum at the time of retirement.

Key Differences from the National Pension Scheme (NPS)

While the NPS is a contributory pension scheme where both the employee and employer make regular contributions, the Old Pension Scheme in Sikkim is a non-contributory scheme. This means that employees do not have to make any contributions towards their pension under the Old Pension Scheme. Additionally, the mechanism for calculating pension amounts and the overall structure of the scheme are different from the NPS.

Frequently Asked Questions (FAQs)

1. Can employees choose between the Old Pension Scheme and the National Pension Scheme?

No, employees cannot choose between the two schemes. The Old Pension Scheme is applicable to employees who joined service before a certain cut-off date, while the NPS is mandatory for those who joined after the cut-off date.

2. Is there a minimum service period required to be eligible for the Old Pension Scheme?

Yes, employees must complete a minimum service period to be eligible for pension benefits under the Old Pension Scheme. The exact service period may vary based on the specific rules and regulations of the scheme.

3. Can employees switch from the Old Pension Scheme to the National Pension Scheme?

Once an employee is enrolled in either the Old Pension Scheme or the NPS, they cannot switch to the other scheme. The choice of pension scheme is generally determined at the time of joining service.

4. Are there any provisions for disability or family pension under the Old Pension Scheme?

Yes, the Old Pension Scheme in Sikkim includes provisions for disability pension and family pension in case of the employee’s demise. These benefits provide additional financial security to employees and their families.

5. Is the pension amount fixed for life under the Old Pension Scheme?

The pension amount under the Old Pension Scheme is not fixed for life. Periodic revisions and enhancements may be made to ensure that pension amounts keep pace with inflation and changing economic conditions.

In conclusion, Sikkim’s Old Pension Scheme plays a crucial role in providing financial security and stability to government employees in the state. By understanding the eligibility criteria, benefits, and key differences from the National Pension Scheme, employees can make informed decisions about their retirement planning.


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