Finance Minister Nirmala Sitharaman told Parliament that there is no plan to reintroduce the Old Pension Scheme (OPS) for central government employees covered under the National Pension System (NPS). She cited the heavy fiscal burden of OPS as the reason. Instead, the government has introduced the Unified Pension Scheme (UPS) within the NPS framework to provide defined retirement benefits while ensuring fiscal sustainability.

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• No proposal to restore OPS for NPS-covered central staff
• OPS dropped due to unsustainable fiscal liability
• NPS started Jan 1, 2004, for non-armed forces central staff
• Government set up committee to improve NPS benefits
• UPS introduced as option within NPS on Jan 24, 2025
• UPS assures 50% of last 12-month average basic pay at retirement
• Minimum 25 years qualifying service for full assured payout
• Includes benefits under CCS Pension Rules for death/disability cases
• Designed to balance assured payouts and fiscal sustainability
• Covers only central government employees under NPS framework