A leading central government employee body has formally written to the Prime Minister requesting the restoration of the Old Pension Scheme (OPS) for nearly 26 lakh Central Government employees who are currently part of the National Pension System (NPS) or the newly announced Unified Pension Scheme (UPS).
The representation highlights growing concerns about retirement security, pension adequacy, and the exclusion of pension revision in the current Terms of Reference (ToR) of the upcoming 8th Central Pay Commission (8th CPC). Employee organizations argue that OPS restoration is essential to ensure guaranteed, inflation-resistant pensions for government staff who joined service after 1 April 2004.
Why Employees Are Demanding OPS Restoration
1. No Guaranteed Pension Under NPS/UPS
- NPS/UPS offer market-linked returns.
- OPS provides a fixed pension (50% of last basic pay).
- Employees prefer assured lifetime income over market uncertainty.
2. Inflation and Retirement Insecurity
- Market returns often fail to beat inflation.
- OPS pensions rise with DA, ensuring protection against rising prices.
3. Missing Pension Revision in 8th CPC ToR
- Current ToR does not clearly mention pension revision for existing pensioners.
- Employee bodies want the ToR amended to include pension updates and OPS review.
4. Sense of Inequality
- Employees before 2004 enjoy OPS, while those after 2004 do not.
- Roles and responsibilities are identical, but retirement benefits differ sharply.
5. Pension as a Right
- Bodies argue pension is “deferred wage,” not a welfare benefit.
- They claim OPS ensures dignity, security, and financial stability in old age.
What OPS Restoration Would Mean
- Guaranteed lifelong pension (50% of last basic pay).
- Automatic DA-linked pension increase every six months.
- Better survivorship and family pension benefits.
- No dependence on volatile markets or annuity returns.
- Higher retirement stability for nearly 26 lakh employees.
Challenges Ahead
1. Fiscal Burden
- OPS requires government to bear full pension cost.
- Long-term liabilities may increase significantly.
2. Transition Complexity
- Migrating employees from NPS/UPS to OPS needs new rules.
- Questions on existing NPS corpus, refunds, or adjustments must be settled.
3. Policy & Administrative Decisions
- Government must balance employee demands with fiscal sustainability.
- Expert committees may be needed to study financial impact.
Conclusion
The demand to restore the Old Pension Scheme under the 8th CPC has gained strong momentum. With nearly 26 lakh Central Government employees seeking guaranteed pensions, the government faces an important social security decision. As 8th CPC discussions progress, OPS restoration—whether fully accepted, partially modified, or replaced with a hybrid model—remains one of the most significant policy debates in India. The final decision will shape retirement security, fiscal management, and the future of government pension reforms.
FAQs
1. Who requested OPS restoration under 8th CPC?
Ans: A major central government employee body has written to the Prime Minister demanding OPS reinstatement for employees under NPS/UPS.
2. Why do employees prefer OPS over NPS/UPS?
Ans: OPS provides a guaranteed lifelong pension, while NPS/UPS depend on market returns that can fluctuate.
3. How many employees would benefit from OPS restoration?
Ans: Around 26 lakh Central Government employees recruited after April 1, 2004.
4. What issue exists in the 8th CPC ToR?
Ans: The current ToR does not mention pension revision for existing pensioners or family pensioners.
5. Will OPS restoration increase government financial burden?
Ans: Yes, the OPS is a non-contributory defined-benefit scheme that raises long-term pension liabilities.
My self Anita Sahani. I have completed my B.Com from Purbanchal College Silapathar. I am working in Dev Library as a Content Manager. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Health, Finance, Biography, Quotes, Study Materials, and more.
