The question before every government employee now is: Are we going back to the old pension scheme (OPS)? Discussion on the topic revived once again in May 2025. The central government and the state governments are seriously thinking about it, and a final decision in that regard is still awaited. Let us take a look at the events that have transpired in the OPS so far and the things that can change in the coming days.
What Is The Old Pension Scheme (OPS)?
Under the Old Pension Scheme (OPS), government employees used to receive a fixed pension after retirement based on certain calculations on the last salary drawn. But it was put to rest in 2004 due to the introduction of the New Pension Scheme (NPS) in which the entire pension is left to market forces. The employee unions argue that theirs’ is not a secure system under the NPS and therefore they are agitating for returning to the OPS.
What Is The Latest Status On OPS In May 2025?
Central government has not yet taken a major decision on this. Finance ministry did discuss this recently in a meeting, but not much was announced. But some states have decided to implement OPS at their own levels. Some states like Rajasthan, Chhattisgarh and Himachal Pradesh have already implemented OPS. While Punjab and Jharkhand are also gearing to implement OPS.
The reintroduction of OPS was constantly demanded by employee unions. There were strikes and demonstrations in many states, hence increasing the pressure on the government. The central government is receptive to the issue but thus far has taken no decisive action due to the consequential financial burden.
What Is The Difference Between OPS And NPS? Which Scheme Is Better?
OPS effectively guarantees the pension of employees. This, however, increases the government’s financial burden. NPS entails both employee and government contribution, with returns depending on market performance. NPS carries greater investment risk but offers equally good chances for returns. Experts insist that a compromise solution should be worked out between the two schemes so as to ensure employee security without posing an additional burden on the government.
Can OPS Come Back In The Coming Time?
The government is seriously contemplating the matter. Reports suggest that with some amendments, the central government could announce the implementation of OPS. This is likely to be given a big announcement soon. Employees should keep watch for any announcements from the government.
Conclusion
There is no official decision on OPS as of now. Employees should keep monitoring government updates and convey their viewpoints through their respective associations. In case any big decision is taken by the government, it will soon be in the public domain.
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