The possibility of the Old Pension Scheme (OPS) reappearing in 2026 has started once again the controversy between the government employees in India. The government employees kept on asking to reinstate the OPS as it was providing them security after the OPS was switched over to the National Pension System (NPS) in 2004. The recent debates in politics and society have made the topic more lively and the workers and the pensioners expect the government to do more than ever before.
What Is The Old Pension Scheme?
Old Pension Scheme was a defined-benefit pension system that provided fixed monthly pension to retired government employees of 50 percent of their last drawn salary along with Dearness Relief. The most significant benefit of the OPS was that the employees did not have to contribute a portion from their salaries, as the pension was totally funded by the government. This assured income post-retirement made the OPS very appealing against the risk of being linked to the stock market.
Why Employees Want OPS Back
The employees of the government claim that the current government scheme based on NPS does not guarantee any returns. Under NPS, the pension amount varies with the market performance which creates uncertainty especially for the employees who are about to retire. The rising cost of living and medical expenses have made the demand for OPS even stronger, as the employees now want a stable and predictable pension to ensure financial security during old age.
Government’s Stand On OPS Restoration
The central government has underlined on numerous occasions, even with rising pressure from different quarters, that there is no formal proposal for the reintroduction of OPS for central government employees. The government has pointed out the huge financial burden that OPS brings along with it, saying that it is the cause of long-term fiscal stress. The government, however, is focusing on enhancing contributory pension systems such as NPS and the newly launched Unified Pension Scheme (UPS).
OPS Revival By State Governments
While the Centre stands its ground, some states like Rajasthan, Punjab, Chhattisgarh, and Himachal Pradesh have already brought back OPS for their workers. The decisions made by these states have sparked the hopes that one day there could be a national movement similar to that. But the different pension policies at Centre and states make nationwide rollout unclear.
What To Expect In 2026
Right now, there is no official word that the Old Pension Scheme will return for employees of the central government in 2026. Any major change would have to go through the regular process of getting policy approval, budget allocation and enacting a law. Employees should rely on government announcements only and avoid unproven gossip that is circulating online.
Also Read: Dearness Allowance Hike 2025: Salary And Pension Boost For 47 Lakh Employees