Restoration of Old Pension Scheme if so, the details thereof and if not, the reasons therefor along with the reasons for introducing UPS
GOVERNMENT
OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
*STARRED
QUESTION NO. *308*
ANSWERED
ON MONDAY, 11 AUGUST, 2025/ SRAVANA 20, 1947 (SAKA)
RESTORATION
OF OLD PENSION SCHEME
*308.
SHRI SUDAMA PRASAD
SHRI UTKARSH VERMA MADHUR
Will
the Minister of FINANCE be pleased to state:
(a)
whether the Government proposes to restore the Old Pension Scheme (OPS), if so,
the details thereof and if not, the reasons therefor along with the reasons for
introducing UPS;
(b) whether the Government is aware about the non-feasibility of the New
Pension Scheme and if so, the details thereof;
(c) the reasons for excluding unemployed son, unmarried/widowed/divorced
daughter and dependent parents from the definition of family in UPS; and
(d) the reasons for the reduced pension in UPS as compared to OPS and the
declaration of UPS only through a Press release?
ANSWER
THE
MINISTER OF FINANCE
(SMT. NIRMALA SITHARAMAN)
(a)
to (c) There is no proposal under consideration of the Government of India for
restoration of Old Pension Scheme (OPS) in respect of Central Government
employees covered under National Pension System (NPS). The Government had moved
away from OPS due to its unsustainable fiscal liability on the Government
exchequer. NPS is a defined contribution-based scheme which was introduced for
Central Government employees (except armed forces) joining service on or after
01.01.2004. With a view of improving upon the pensionary benefits for such
employees, a Committee was constituted under the chairpersonship of the then
Finance Secretary to suggest measures to modify the NPS. Based on the
deliberations of the Committee with stakeholders, Unified Pension Scheme (UPS)
has been introduced as an option under NPS with the objective of providing
defined benefits after retirement to the Central Government employees covered
under the NPS.
The features of UPS including the definition of family
have been designed in such a way so as to ensure payment of assured payouts
while also maintaining fiscal sustainability of the fund. Further, the
Government employees who opt for UPS under NPS shall also be eligible for
option for availing benefits under the CCS (Pension) Rules, 2021 or the CCS
(Extraordinary Pension) Rules, 2023, in the event of death of the Government
servant during service or his discharge on the ground of invalidation or
disablement.
(d) UPS has been introduced through a notification by
the Government on 24.01.2025, as an option under NPS. Under UPS, assured payout
is admissible on retirement @ 50% of twelve monthly average basic pay,
immediately prior to retirement after a minimum 25 years of qualifying service.
In case of lesser qualifying service period, proportionate payout would be
admissible.
GOVERNMENT OF INDIA
MINISTRY
OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED
QUESTION NO. †3454
ANSWERED
ON MONDAY, 11 AUGUST, 2025/ SRAVANA 20, 1947 (SAKA)
IMPLEMENTATION
OF OLD PENSION SCHEME
†3454.
SHRI AMRA RAM
Will
the Minister of FINANCE be pleased to state:
(a)
whether the Government intends to implement old Pension Scheme, if so, the time
by which the Government proposes to implement this scheme and if not, the
reasons therefor;
(b) whether the Government proposes to return the corpus of New Pension Scheme
to the States which have implemented old pension scheme, if so, the details
thereof and if not, the reasons therefor; and
(c) the number of States which have implemented old pension scheme along with
the amount of pension fund deposited with the Government by these States and
the time by which the fund is likely to be returned to the States?
ANSWER
MINISTER
OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a)
There is no proposal under consideration of the Government of India for
restoration of Old Pension Scheme (OPS) in respect of Central Government
employees. The Government had moved away from OPS due to its unsustainable
fiscal liability on the Government exchequer.
(b)
& (c) The State Governments which have informed the Government/Pension Fund
Regulatory and Development Authority (PFRDA) about reversion from National
Pension System (NPS) to OPS and the details of pension fund under NPS as on
31.07.2025 are as below:
|
S. No. |
Name of State |
Amount of Pension Fund (Rs. in Cr) |
|
1. |
22,499.80 |
|
|
2. |
11,111.93 |
|
|
3. |
14,368.67 |
|
|
4. |
31,960.43 |
|
|
5. |
50,884.11 |
There
is no provision under the Pension Fund Regulatory and Development Authority
(PFRDA) Act, 2013, read along with PFRDA (Exits and Withdrawals under the
National Pension System) Regulations,2015, and other relevant Regulations, vide
which the accumulated corpus of the subscribers towards National Pension System
can be refunded and deposited back to the State Government.
Comments