Rajay Sabha question regarding reintroduction of old Pension Scheme for Central Civil employees

GOVERNMENT OF INDIA

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS

(DEPARTMENT OF PENSION & PENSIONERS’ WELFARE)

RAJYA SABHA 

UNSTARRED QUESTION NO. 2518

(TO BE ANSWERED ON 24.03.2022)

RESTORATION OF OLD PENSION SCHEME 

2518 SHRI MD. NADIMUL HAQUE: 

 SHRI DEEPENDER SINGH HOODA: 

Will the PRIME MINISTER be pleased to state: 

(a) whether Government propose to reintroduce the Old Pension Scheme (OPS) following 

the demands for same that has risen from various quarters; 

(b) if so, the details thereof and if not, the reasons therefor; 

(c) whether Government is aware that experts have pointed out that under the National 

Pension System(NPS), economic downturns can affect pensions as it is market-linked; 

(d) whether Government is aware that under NPS, there is no proper safety net for retired 

employees as under the OPS; 

(e) whether Government propose to adopt any measure to address these issues; and 

(f) if so, the details including timeline regarding the same?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES 

AND PENSIONS AND MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE

(DR. JITENDRA SINGH)

(a) & (b): The National Pension System (NPS) was introduced for Central Government 

employees w.e.f. 01.01.2004 vide Ministry of Finance (Department of Economic Affairs) 

Notification No. 5/7/2003-ECB & PR dated 22.12.2003 for all new recruits joining the Central 

Government service (except armed forces) from 01.01.2004. 

On introduction of the National Pension System, the Central Civil Services (Pension) 

Rules, 1972 were amended. Accordingly, the benefits of old pension scheme under the Central 

Civil Services (Pension) Rules, 1972 are not admissible to the Central Government civil servants 

appointed on or after 01.01.2004, under the amended rules.

There is no proposal to reintroduce old pension scheme to Central Government civil 

employees joined on or after 01.01.2004 under consideration of Government of India.

(c) to (f): NPS is now regulated under PFRDA Act, 2013 and regulations framed there under 

by PFRDA and Department of Financial Services. As per information furnished by Department 

of Financial Services:

The returns being market linked is a basic design feature of the National Pension System 

(NPS), however, pension being a long term product also enables the investments to grow with 

decent returns, despite short term volatility. Further, the prudential guidelines stipulated by the 

Pension Fund Regulatory and Development Authority (PFRDA), the skills of the professional 

Fund Managers chosen through a rigorous process, and choice of asset allocation across various 

asset classes (Equity, Corporate Bond, Government Securities) enable the subscriber’s 

accumulations to grow over the long term, riding over the short term volatility.

To safeguard the interest of the subscribers against any possible erosion of the pension 

wealth in times of an economic downturn, the exposure of equity/ equity linked

instruments have been limited to only 15 % in the default scheme, which is made available to the 

Government subscribers in a default mode. Equity exposure exceeding this limit of 15% is only 

available for the subscribers who choose to exercise individual investment choice while moving 

out of the default scheme. Further, risk averse subscribers can also choose to invest their entire 

contribution (100%) in Government bonds.

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