Old Pension Scheme: Big news for pensioners. If you work for the central government, this news might not be what you were hoping for. Various organizations have been advocating for the reintroduction of the Old Pension Scheme (OPS) alongside the recommendations from the Eighth Pay Commission. Recently, the government has made a significant announcement regarding this issue.
What did the government announce?
The central government has made it clear in Parliament that there is currently no proposal to bring back the Old Pension Scheme (OPS). This clarification came after MP R. Girirajan posed a question during the Rajya Sabha session on July 23, 2026. Minister of State for Labor and Employment, Shobha Karandlaje, responded by stating that, according to the Department of Expenditure in the Ministry of Finance, no such proposal is being considered.
It’s important to highlight that several key organizations representing central government employees are pushing for the revival of the old pension scheme (OPS) in conjunction with the 8th Pay Commission. In their submissions to the Pay Commission, groups such as the National Council of Joint Consultative Machinery (NC-JCM), Federation of National Postal Organizations (FNPO), All India Defense Employees Federation (AIDEF), All India NPS Employees Federation (AINPSEF), and the Indian Railways Technical Supervisors Association (IRTSA) have made strong appeals for the reinstatement of the old pension scheme.
These organizations argue that under the National Pension System (NPS), employees with lower salaries and those who join later receive minimal pensions upon retirement, which jeopardizes their financial security in the future.
What did NC-JCM say?
These organizations argue that only the old pension scheme can provide such employees with a respectable pension and a means of livelihood.NC-JCM wrote in a memorandum that the government’s decision to implement NPS in place of the fixed and non-contributory pension scheme for employees who joined the central government service on or after January 1, 2004, is illegal in view of the Supreme Court’s decision which states that pension is equivalent to property rights and can be enforced. NC-JCM says that pension in NPS depends on market fluctuations, which weakens the social security of old age.
What about UPS?
Employee organizations have also raised questions about the Unified Pension Scheme (UPS). They claim that the government described it as a combination of the NPS and OPS, but it did not receive sufficient support from employees. The central government implemented the NPS for central government employees on January 1, 2004. Subsequently, most states adopted it. However, some states later reinstated the OPS.