8th Pay Commission: Will Central government employees get the Old Pension Scheme? Here's the latest update
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Old Pension Scheme: What did the government tell Parliament?
Responding to a question in the Rajya Sabha on July 23, 2026, the Centre said that currently there was no proposal to restore the Old Pension Scheme (OPS) for Central government employees. The reply, based on information from the Ministry of Finance's Department of Expenditure, reiterates the government's existing stand on the issue.
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Why are employee unions demanding the Old Pension Scheme?
Several employee organisations have urged the 8th Pay Commission to recommend the return of OPS. They argue that employees covered under the National Pension System (NPS), especially those who joined service later and are in lower pay grades, may receive relatively modest retirement benefits compared with the guaranteed pension available under OPS.
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Which employee organisations have sought OPS restoration?
The demand has been raised by organisations including the National Council of the Joint Consultative Machinery (NC-JCM), the Federation of National Postal Organisations (FNPO), the All India Defence Employees Federation (AIDEF), the All India NPS Employees Federation (AINPSEF) and the Indian Railways Technical Supervisors Association (IRTSA) in their memorandums to the 8th Pay Commission.
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Why does the NC-JCM oppose the National Pension System?
In its memorandum, the NC-JCM argued that the NPS makes retirement benefits dependent on market performance and therefore provides less certainty than the Old Pension Scheme. It also stated that replacing OPS with NPS for employees who joined service on or after January 1, 2004, is discriminatory and affects retirement security.
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Why is the Unified Pension Scheme (UPS) also being questioned?
The NC-JCM also criticised the Unified Pension Scheme (UPS), which the Centre has introduced as an alternative pension option. According to the memorandum, only about 1.22 lakh of more than 26 lakh eligible NPS subscribers had opted for UPS, and the organisation used this as a justification for wanting to revert to OPS instead.
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When was NPS introduced for central government employees?
The National Pension System became applicable to most central government employees joining service on or after January 1, 2004. Many states later adopted NPS as well, although some states subsequently decided to return to the Old Pension Scheme for their employees.
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Has the government changed its stand on OPS?
No. According to the latest statement made in Parliament, the Centre continues to maintain that there is no proposal to restore the Old Pension Scheme for central government employees. This is consistent with its position in previous years despite repeated demands from employee organisations.
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What does this mean for central government employees?
For now, NPS and UPS remain the applicable pension options for eligible central government employees. Although employee bodies continue to press for the restoration of OPS through the 8th Pay Commission, the government's latest reply indicates that no policy change is currently under consideration.