Now Reading: No plans to restore Old Pension Scheme, Centre tells Lok Sabha
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No plans to restore Old Pension Scheme, Centre tells Lok Sabha
The Union government has no proposal to restore the Old Pension Scheme (OPS) for its employees, citing an unsustainable fiscal burden, Minister of State for Finance Pankaj Chaudhary told the Lok Sabha…
The Story in Brief
The Union government has no proposal to restore the Old Pension Scheme (OPS) for its employees, citing an unsustainable fiscal burden, Minister of State for Finance Pankaj Chaudhary told the Lok Sabha on Monday. Responding to MP Indra Hang Subba, Chaudhary said the Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013, and its regulations have no provision to refund the accumulated NPS corpus, currently ₹3.65 lakh crore for central employees, to state governments.
Five states, Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh, have informed the Centre about their decision to revert from the National Pension System (NPS) to OPS. Chaudhary noted this is a state subject but flagged reports from the Comptroller and Auditor General (CAG) highlighting fiscal risks. He also reiterated that the Unified Pension Scheme (UPS), launched on April 1, 2025, offers defined, inflation-linked benefits with a minimum ₹10,000 monthly payout under NPS.
The Indian Opinion
The government's firm 'no' on restoring the Old Pension Scheme is fiscally prudent, given the massive ₹16.95 lakh crore deficit target for 2026-27. Yet the narrative often misses nuance: the Union has offered UPS with inflation-linked benefits and a ₹10,000 minimum pension. The real test is whether states like Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh, which have announced OPS reversions, can explain how they will fund the estimated ₹3.65 lakh crore NPS corpus return without legal provision. Watch their state budgets for the answer.
Sources (2): livemint.com, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
