Deepak Shenoy calls reverting to old pension scheme 'a terrible decision'

Deepak Shenoy said that by extending the scheme, the government will be spending Rs 44,000 crore "for what is unnecessary".

Deepak Shenoy, founder and CEO of CapitalMind, has reacted to chief ministers Arvind Kejriwal and Bhagwat Mann's comments on reverting to the Old Pension System (OPS), calling it a "very retrograde" and "terrible decision".

"This is a terrible decision. Taxpayers will be paying HUGE pensions going forward if this becomes the norm. Very retrograde. This is just another insane freebie that we will pay but these politicians will go out of power by then," Shenoy tweeted.

This is a terrible decision. Taxpayers will be paying HUGE pensions going forward if this becomes the norm. Very retrograde.
This is just another insane freebie that we will pay but these politicians will go out of power by then. https://t.co/c0qqbVdDbs

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— Deepak Shenoy (@deepakshenoy) September 19, 2022

He added that OPS is a bad idea because state governments want the money that has been saved by govt employees in their PFRDA accounts so far. "That's a LOT of money they can spend immediately, since some other government has to take care of pensions later," Deepak Shenoy wrote.

When a Twitter user commented that the OPS was a social security and not a freebie for Indians, Shenoy said, "Social security only for govt employees? Why make everyone else pay for it, when we can hardly afford to. The NPS (National Pension Scheme) allows everyone to build a good solid retirement corpus, use it."

Another reason this is a bad idea: These state governments want the money that has been saved by govt employees in their PFRDA accounts so far. That's a LOT of money they can spend immediately, since some other government has to take care of pensions later.

— Deepak Shenoy (@deepakshenoy) September 19, 2022

The Capital Minds CEO's reaction comes after Punjab chief minister Bhagwat Mann on Monday said that the government is considering going back to the OPS and that he has asked his chief secretary to study the feasibility and modalities of its implementation. "We stand committed to the welfare of our employees," he tweeted.

My government is considering reverting to the Old Pension System (OPS). I have asked my Chief Secretary to study the feasibility and modalities of it’s implementation. We stand committed to the welfare of our employees.

— Bhagwant Mann (@BhagwantMann) September 19, 2022

Lauding him, Arvind Kejriwal wrote, "Wow! A great decision. All govt employees across India want Old pension scheme to be restored."

The old pension scheme was discontinued in 2004 and has been one of the major demands of state government employees.