OPS vs NPS: Government Issues Major Statement on the Restoration of the Old Pension Scheme; 6.9 Million Pensioners Are Benefiting from OPS..

There is a persistent nationwide demand for the restoration of the Old Pension Scheme (OPS). Amidst this, the Central Government has once again clarified its stance in Parliament. Responding to questions raised in the Rajya Sabha, the government presented data illustrating the current state of the country's pension system. According to government statistics, approximately 6.9 million (69 lakh) Central Government pensioners continue to avail the benefits of the OPS, whereas only about 50,000 pensioners are covered under the NPS.

The government also addressed whether there are any delays in NPS payments. Here is a summary of the key points the government highlighted in Parliament regarding the Old Pension Scheme, NPS, and UPS...

How ​​many pensioners in the country are under OPS and NPS?
Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha that approximately 5.014 million (50.14 lakh) employees are currently working for the Central Government. However, when it comes to retired employees—that is, pensioners—a significant disparity is observed. There are approximately 6.9 million pensioners receiving benefits under the OPS (Old Pension Scheme), compared to a mere 49,802 pensioners receiving benefits under the NPS (National Pension System) (as of January 31, 2026). This substantial gap exists because all employees who joined government service before January 1, 2004, are entitled to the OPS, whereas those recruited thereafter fall under the purview of the NPS.

Are there delays in NPS payments? The Government's Response
Employee unions frequently express concerns regarding the complexity of the payment process under the NPS. The government has clarified that, over the past three years, no complaints regarding delays in pension payments under the NPS have been reported. Neither the Ministry of Finance nor the pension regulator (PFRDA) has received any complaints alleging delays in pension disbursement on the part of Annuity Service Providers.

What did the government say regarding the restoration of OPS?
Demands for the re-implementation of the OPS have intensified across several states and among various employee unions. In response to this, the Central Government has stated that the decision to implement the OPS for state government employees rests entirely with the respective state governments, as this matter falls within their exclusive jurisdiction. However, the CAG has warned that implementing the OPS could impose a heavy financial burden on states in the long run.

Which states have reinstated the OPS?
Despite the Centre's concerns, several states have reinstated the OPS. These include Rajasthan, Chhattisgarh, Himachal Pradesh, Punjab, and Jharkhand. Additionally, a few other states are also considering this move.

What is the difference between OPS, NPS, and UPS?
Old Pension Scheme (OPS)
Under the Old Pension Scheme (OPS), employees were not required to make any contributions from their own pockets. It provides a fixed pension after retirement, which typically amounts to approximately 50% of the employee's last-drawn salary. Employees are not required to make any contributions under this scheme, and the Dearness Allowance (DA) also continues to increase.

National Pension System (NPS)
The National Pension System (NPS) is a market-linked scheme. It is a contributory system wherein both the employee and the government deposit funds. The pension received after retirement depends on the market returns generated by this fund.

Unified Pension Scheme (UPS)
To ensure a secure future for employees, the government has recently introduced the option of a Unified Pension Scheme (UPS) within the framework of the NPS. This initiative aims to make the pension payout more predictable—while retaining the core structure of the NPS.

The OPS vs. NPS Debate Continues
The debate surrounding the OPS and NPS remains ongoing. On one hand, employees are demanding the reinstatement of the OPS, while on the other, the government cites the associated financial risks. Given this situation, a major decision regarding this issue could be expected in the near future.

Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.