Old Pension Scheme – Here’s some big news for government employees across India – the Old Pension Scheme (OPS) is making a temporary comeback. Starting May 15, eligible government workers have a one-time opportunity to shift from the New Pension Scheme (NPS) back to the more traditional OPS. This move is creating quite a buzz among lakhs of central and state government employees who have been pushing for a more secure post-retirement option. If you’re a government employee and want to understand whether this switch makes sense for you, keep reading. This guide breaks everything down in a casual, easy-to-understand way.
So, What Is the Old Pension Scheme?
The Old Pension Scheme is a retirement benefit plan that guarantees you a monthly pension after you retire. Unlike the NPS, which is linked to market performance, OPS offers a fixed amount every month. The pension is usually calculated as half of your last drawn salary and is fully funded by the government. This means you don’t have to contribute anything from your side while in service.
OPS also comes with a lot of additional perks like cost-of-living adjustments through DA (Dearness Allowance), family pension benefits in case something happens to the pensioner, and full financial backing from the government. It’s basically a stable and predictable retirement plan – something many employees are now missing in the NPS.
Who Can Opt for OPS Starting May 15?
This offer is not open to everyone, so it’s important to know if you’re eligible. Here’s the short version of the criteria:
- You must have joined government service before January 1, 2004.
- You should currently be enrolled in the New Pension Scheme.
- You haven’t withdrawn your NPS amount yet.
- You’re working with the central government or in states that are part of this scheme.
- You must apply between May 15 and August 15.
- Your application will need approval from your department head or a designated authority.
So, if you joined government service after January 1, 2004, unfortunately, this offer isn’t for you. But if you qualify, this could be your only chance to make the switch.
States That Have Already Brought Back OPS
Several states have already implemented the Old Pension Scheme, which shows that the demand for this system is widespread. Here’s a quick overview of where things stand:
- Rajasthan and Chhattisgarh were among the first to implement OPS back in 2022.
- Punjab, Jharkhand, and Himachal Pradesh followed suit soon after.
- These states have discontinued NPS for government employees and are fully back on the OPS track.
- Other states like Maharashtra are still discussing whether to bring it back.
- Some states like West Bengal have never moved to NPS in the first place.
Why Are Employees Choosing OPS Over NPS?
There are several reasons why many government employees are leaning toward the Old Pension Scheme. Let’s break them down simply:
- Fixed Pension: You get a steady income after retirement, no matter what happens in the market.
- Zero Risk: There are no ups and downs based on stock markets or investments.
- Lifetime Financial Security: You also get family pension benefits, and your pension adjusts for inflation.
- No Contribution Needed: Under OPS, the government pays everything. You don’t have to make monthly contributions like in NPS.
- Simpler Financial Planning: With guaranteed returns, you can plan your retirement better.
Main Differences Between OPS and NPS
Here’s a quick comparison of the two:
- OPS gives you a fixed pension. NPS gives you a pension based on how your investments perform.
- OPS is risk-free. NPS comes with market risks.
- In OPS, the government pays 100 percent. In NPS, both you and the government contribute.
- OPS has inflation-linked increases. NPS doesn’t adjust for inflation.
- OPS includes lifetime family pension. NPS only offers limited benefits to dependents.
How to Apply for the Old Pension Scheme
If you’re eligible and want to shift to OPS, here’s what you need to do:
- Write a formal request and submit it to your department or HR head.
- Fill out the special OPS form, which your office will provide.
- Attach documents like proof of joining date, service record, and current NPS status.
- Once submitted, your application will be verified.
- If approved, your NPS account will be frozen and your pension records updated under OPS.
Important Dates You Need to Remember
- Start Date to Apply: May 15, 2025
- Last Date to Apply: August 15, 2025
- Department Review Deadline: September 30, 2025
- Final Approved List Announcement: October 15, 2025
- OPS Benefits Begin From: November 1, 2025
The return of the Old Pension Scheme is a big deal, especially for those who’ve been asking for more post-retirement security. For eligible government workers, this is a rare chance to shift to a more stable pension system. But remember, this is a one-time offer. So, weigh the pros and cons carefully before you decide. For many, this could be the retirement safety net they’ve been waiting for.