Old Pension Scheme- Big news for pensioners. In his reply given in the Lok Sabha on August 13, 2025, Minister of State for Finance Pankaj Chaudhary clarified that those central government employees who were appointed on vacancies released before December 22, 2003, but joined the job after January 1, 2004 will not get the benefit of Old Pension Scheme (OPS). The government had already given a special one-time option for this on March 3, 2023, the deadline of which has expired. Now no new proposal is under consideration.

Who could get OP

As per OM No. 57/05/2021-P&PW(B) issued in the year 2023, only those Central Government employees could apply for OPS who had passed in the result declared before 31st December, 2003, their vacancy was notified before 1st January, 2004. But, they joined the job after 1st January, 2004 and joined NPS. These employees had to submit the form by August 31, 2023 and the appointing authority had to take a decision by November 30, 2023. Now this opportunity is over.

What are the rules for SBI employees?

Responding to a question by Patiala MP Dharamvir Gandhi in the Lok Sabha, minister Choudhary clarified, “Any employee who joined SBI after August 1, 2010, will not get OPS benefits,” The Economic Times reported. Even if his recruitment process began before that date or the job was delayed due to some “inevitable reason”.

Difference between OPS and NPS

OPS (Old Pension Scheme): In this, 50% of the last salary was given as pension on retirement. No contribution was required from the employee. It was discontinued in 2004, but some states are still running it.

NPS (National Pension System): This is a market-based scheme where both the employee and the government contribute. The pension amount on retirement is not fixed, it depends on the performance of the fund.

Unified Pension Scheme (UPS): In place of OPS, the central government has now launched the Unified Pension Scheme (UPS), which is an option within NPS. In this, on retirement after 25 years of service, a guaranteed pension of 50% of the basic salary of the last 12 months is available.

The employee will contribute 10% of his salary, while the government will contribute 18.5%. This option can be exercised till September 30, 2025. So far, only 1.35% of the employees have opted for it.