Once again, there is good news for a large segment of government employees: the Central Government has once again announced the reintroduction of the Old Pension Scheme (OPS) for certain classes of employees applying from May 15, 2025. This can be described as a significant policy change, which attempts to provide better security in the pension fund of eligible retired government employees-_vey, especially those who, until now, were placed under the New Pension Scheme.
Accompanying this cheer by eligible government employees is a long-awaited sigh of relief by many of them who have been agitating for a return of the guaranteed pension benefits under OPS. Under the scheme, employees are entitled to defined pensions computed at the rate of 50 percent of the last drawn salary, which brings stability and predictability into their retirement income.
Who Gain?
Latest reports from the Department of Personnel and Training (DoPT) have said that the reintroduction will mainly benefit:
- Government employees who have joined service before April 1, 2004 but inadvertently have fallen under NPS.
- Such categories like defense persons, railways, and central autonomous bodies may apply, adhering to the departmental internal guidelines.
- Appointments made under old advertisements or examinations held prior to 2004-joined service between 2004 because of the procedural delay.
This will indeed be a one-time option for such entrants to change to the Old Pension Scheme, having to file their application by July 31, 2025.
Key Difference: OPS And NPS
Pension under the Old Pension Scheme guarantees 50% of the last drawn basic salary as pension with Dearness Allowance (DA) linkage, which rises with inflation. The New Pension Scheme, however, is a market-linked final pension aggregate dependent on contributions made by the employee and the government.
OPS means, if it gets revived, a much more secure and inflation-proof retirement as one will look at it. The turn of several state governments toward OPS for their employees in the past few years has reached top places in Rajasthan, Chhattisgarh, and Punjab.
Conclusion
By all means, from May 15, the Old Pension Scheme will be a great win for central government employees qualified for its enjoyment. Those defined will surely have to hurry to opt within narrow time provisions to be able to derive the full advantage of such a policy change. Although this change brings needed financial security to many future retirees, hopefully, it will initiate broader discussions regarding pension reform in the country.
Also Read: Pension Verification Deadline Nears – Don’t Miss It Or Lose Your Pension