No proposal for restoration of old pension scheme is not under consideration, Finance Minister in Parliament

Government Has told Parliament on Monday that the Government of India has no proposal under consideration to restore the Old Pension Scheme (OPS) for the Central Government employees under the National Pension System (NPS). Finance Minister Nirmala Sitharaman, while answering a question in the Lok Sabha, said that the government has distanced himself from OPS due to its indiscriminate fiscal responsibility at the government treasury. Let us tell you that NPS is a certain contribution-based scheme that was launched on or after January 1, 2004 for the central government employees (except armed forces) joining the service.

UPS option for employees coming under NPS

The Finance Minister said that a committee was formed under the chairmanship of the then Finance Secretary to suggest measures to amend the NPS, for the purpose of improving the pension benefits of such employees. He said that on the basis of the committee’s deliberations with the stakeholders, the Integrated Pension Scheme (UPS) has been introduced as an option under NPS, with the aim of providing fixed benefits to central government employees under NPS after retirement.

Government presented UPS as an alternative in January

Nirmala Sitharaman said that the characteristics of UPS, including the definition of the family, have been designed in such a way that the prescribed payment should be ensured as well as the financial stability of the fund. In addition, he said that the government employees who opt for UPS under NPS, will also be eligible for the option to get benefits under the CCS (Pension) Rules, 2021 or CCS (Exceptional Pension) Rules, 2023 during the state of service, in case of his service. He said that UPS has been introduced by the government on January 24, 2025 as an option under NPS through a notification.

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