OPS: A significant number of employees nationwide are urging both the central and state governments to bring back the Old Pension Scheme (OPS). States like Rajasthan, Chhattisgarh, and Punjab have already reinstated OPS. But is the central government also thinking about getting rid of the National Pension System (NPS) and Unified Pension System (UPS) to implement OPS across the country? This question was posed to the Finance Ministry in Parliament on Monday, December 15, 2025.
Is the government planning to replace NPS and UPS with OPS?
In response to inquiries from MPs Anto Antony, Amra Ram, Utkarsh Verma Madhur, and Imran Masood, Minister of State in the Finance Ministry, Pankaj Choudhary, stated, ‘The government currently has no plans to restore the Old Pension Scheme (OPS) for central government employees who are part of the National Pension System (NPS) or Unified Pension System (UPS).’
OPS is the oldest pension scheme in India. It operates on a defined benefit model, with pension amounts adjusted at each Pay Commission. The central government discontinued OPS and introduced the National Pension System, which is a defined contribution scheme, on January 1, 2004.
The central government also rolled out UPS for government employees, which they could choose starting April 1, 2025. This system merges elements of both OPS and NPS, guaranteeing employees a minimum pension of Rs 10,000 after 10 years of service. Additionally, the central government allowed NPS subscribers to switch between NPS and UPS, with a cutoff date of November 30, 2025.
Minister of State Pankaj Chaudhary mentioned that according to the Pension Fund Regulatory and Development Authority Act 2013 (PFRDA) (Exit and Withdrawal under National Pension System) Regulations, 2015, and other related rules, there is no provision for such a change.