Archive · 14 Aug 2025
Finance Ministry Rejects OPS Restoration, Clarifies UPS
Government workers have been asking if they can go back to the old pension plan (OPS), where they get half their last salary.
The government said no because it's expensive.
Instead, there's a new plan (NPS) where they both put money in, and the amount depends on the market.
The government also made a new plan (UPS) that tries to be like the old one and guarantees a fixed pension, but not many people have signed up.
The government is giving people more time to decide.
Finance Ministry states it will not restore the Old Pension Scheme (OPS).
The government was questioned about OPS restoration during the Monsoon Session.
The National Pension System (NPS), a defined-contribution plan, replaced OPS in 2004.
The Unified Pension Scheme (UPS), a new option under NPS, launched to improve benefits.
The deadline for UPS enrollment was extended to September 30, 2025, due to low participation.
- Who
- The Finance Ministry and government employees.
- What
- The Finance Ministry's stance on restoring the Old Pension Scheme (OPS) and the Unified Pension Scheme (UPS).
- When
- The Finance Ministry responded to questions during the Monsoon Session regarding OPS restoration.
- Where
- The announcement was made in Parliament.
- Why
- To clarify the government's position on the Old Pension Scheme and address low participation in the Unified Pension Scheme.
Employee Concerns
Government Stance
Pension Security
Employee Concerns
Employees prefer the security of a defined benefit offered by OPS or UPS.
Government Stance
The government's NPS offers market-based returns, which may provide higher benefits in the long run.
Scheme Benefits
Employee Concerns
Many employees are dissatisfied with the contributions required under NPS.
Government Stance
NPS is a viable alternative, but may not be as desirable for those who favor OPS.
- OPS
- Old Pension Scheme: 50% of last salary on retirement
- NPS
- National Pension System implemented since 2004
- UPS
- Unified Pension Scheme: new option under NPS
- UPS Employee Contribution
- 10%
- UPS Government Contribution
- 18.5%
- UPS Participation
- 1.35% of eligible employees
- UPS Deadline Extension
- September 30, 2025