The Old Pension Scheme (OPS) has always served as an effective instrument of financial security for the employees working in the government of India. However, in 2004, it was replaced with National Pension System (NPS), which left many employees confused. In the year 2025, the government has decided to again introduce the Old Pension Scheme which will relieve millions of the government employees. The decision is a way of giving fixed pension benefits and financial wellness to the retired staff.
Restoration And Eligibility Of Old Pension Scheme
The government has come out to say that the Old Pension Scheme will be revived from 15-5-2025. The scheme will be accessible to those government employees who joined service prior to April first 2004 but wrongly covered under NPS. Other than this the scheme will also be extended to defence personnel, railway’s employees, and central autonomous bodies. Employees such as these can only do so until 31 July 2025 to be able to gain the benefits of OPS.
Difference Between OPS And NPS
Under the old pension scheme, a retired employee will receive 50% of the last salary as pension and with dearness relief (DR) applicable. NPS, on the other hand, is a contributory scheme – both the government and the employees contribute to it, yet the final amount of pension is market-linked. The restoration of OPS will give employees in government a more stable pension that is inflation-proof.
Status Of OPS In States
The last few years have seen a few of state governments re-introduce OPS. Similar to the case, Rajasthan, Chhattisgarh and Punjab have brought back the old pension scheme for their staffs. This move by the central government could as well force other states to re-introduce OPS for their employees.
Final Thought
Old Pension Scheme 2025 revival is a major victory to government employees. The choice will improve financial security, stability and future arrangements. However, the government has made this an option to be done once only and will have to be done by the eligible employees within the stipulated time.
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