Union Minister of State for Finance Pankaj Chaudhary told the Lok Sabha in a written reply on December 15, 2025 that the government has no plans to introduce the old pension scheme for central government employees covered under the National Pension System (NPS) and Unified Pension Scheme (UBS).
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The government has stated that it has no plans to reinstate the Old Pension Scheme. The Finance Ministry’s clarification comes after several associations of central government employees have been demanding the reinstatement of the Old Pension Scheme. The Finance Ministry has stated that there are no plans to reinstate the Old Pension Scheme for central government employees covered under the National Pension System (NPS) and Unified Pension Scheme (UBS).
Several MPs had sought information from the government.
Union Minister of State for Finance Pankaj Chaudhary told the Lok Sabha in a written reply on December 15, 2025, “There are no plans to reinstate the Old Pension Scheme (OPS) for central government employees covered under the NPS and UPS.” Several MPs had asked the government to clarify its stand on the issue. These MPs included Anto Antony, Amra Ram, Utkarsh Verma Madhur, and Imran Masoon.
Employees’ Associations Demand the Reinstatement of the OPS
Several central government employees’ associations have demanded the reinstatement of the Old Pension Scheme. This was a non-contributory assured pension scheme under the Central Civil Services Pension Rules, 1972 (now 2021). Employees did not have to make any contributions under this scheme. The NPS and UPS are contributory pension schemes. This means that employees are required to contribute 10% of their basic pay and dearness allowance to both schemes.
OPS is a non-contributory pension scheme.
Under the NPS framework, the government contributes 14% of an employee’s basic pay and DA. Under UPS, the government contributes 10% of the employee’s basic pay and DA. Additionally, the government contributes an additional 8.5% of the employee’s total corpus. MPs also asked in the Lok Sabha whether state governments have implemented OPS for their employees. Chaudhary responded by stating that the governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh have informed the PFRDA of their decision to implement UPS for their employees.
The government launched the NPS in 2004.
The government launched the NPS in 2004 for central government employees. It replaced the Old Pension Scheme. Later, in 2009, the government opened the NPS to the general public. It is a market-linked pension scheme.
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