The Old Pension Scheme (OPS), in place until the introduction of the National Pension System (NPS) in 2004, continues to remain the point of contention with government employees for its restoration. It guaranteed 50% of the last drawn salary with Dearness Relief, which would give security to people in their retirement. Here in this article, we are having a look at the latest UPDATES, the demands of the unions, and the Unified Pension Scheme as of August 2025.
A Background To The OPS Issue
The OPS caters to employees hired before January 1, 2004, fixing pension and without any contribution from those employees, as against pensions under NPS, which are market-linked. By 2023, five opposition-run states, Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh, had revived the OPS, thereby triggering the demand for its reinstatement by central government unions. Due to its mixed nature combining some aspects of old OPS and NPS, the UPS, which was introduced in April 2025, is regarded by the unions as falling short of a full restoration of the OPS.
The Old Pension Scheme (OPS), in place until the introduction of the National Pension System (NPS) in 2004, continues to remain the point of contention with government employees for its restoration. It guaranteed 50% of the last drawn salary with Dearness Relief, which would give security to people in their retirement. Here in this article, we are having a look at the latest UPDATES, the demands of the unions, and the Unified Pension Scheme as of August 2025.
A Background To The OPS Issue
The OPS caters to employees hired before January 1, 2004, fixing pension and without any contribution from those employees, as against pensions under NPS, which are market-linked. By 2023, five opposition-run states, Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh, had revived the OPS, thereby triggering the demand for its reinstatement by central government unions. Due to its mixed nature combining some aspects of old OPS and NPS, the UPS, which was introduced in April 2025, is regarded by the unions as falling short of a full restoration of the OPS.
Preparing Steps For Employees:
- Choose wisely: Evaluate UPSvNPS by September 30, 2025, as once chosen, UPS is irrevocable. Calculators available on cleartax.in may be used.
- Update records: Ensure that Aadhaar and bank details are updated on epfindia.gov.in.
- Keep updates monitored: Employees can follow announcements issued by DoPT or unions on changes in policies, avoiding unofficial sources leading to misinformation.
Also Read: EPS-95 Pension Hike: RS 7,500 Minimum Monthly Pension Likely for 78 Lakh Retirees