No Proposal Under Consideration To Restore Old Pension Scheme: FM Nirmala Sitharaman
Finance Minister Nirmala Sitharaman on Monday told Parliament that the government is not considering bringing back the Old Pension Scheme (OPS) for central government employees who are covered under the National Pension System (NPS).
'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)," Sitharaman said in a written reply in the Lok Sabha.
The finance minister explained that the government had moved away from OPS due to its 'unsustainable fiscal liability on the government exchequer".
What is NPS?
NPS is a defined contribution-based pension scheme introduced for central government employees—except those in the armed forces—who joined service on or after January 1, 2004.
To improve pensionary benefits for these employees, the government had set up a committee under the then Finance Secretary to recommend modifications to the NPS. Based on its discussions with stakeholders, the Unified Pension Scheme (UPS) was introduced as an option within the NPS framework 'with the objective of providing defined benefits after retirement to the central government employees covered under the NPS," Sitharaman said.
She added that the features of UPS, including the definition of family, were designed to ensure 'payment of assured payouts while also maintaining fiscal sustainability of the fund."
Unified Pension Scheme Features
Employees opting for UPS under NPS will also be eligible for benefits under the CCS (Pension) Rules, 2021 or CCS (Extraordinary Pension) Rules, 2023, in cases of death during service, or discharge due to invalidation or disablement.
The government formally notified UPS on January 24, 2025. Under the scheme, an assured payout on retirement is set at 50 per cent of the twelve-month average basic pay immediately prior to retirement, provided the employee has a minimum of 25 years of qualifying service.
For those with fewer than 25 years of service, the payout will be proportionately reduced, she said.
(With PTI Inputs)
view comments
First Published:
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
20 minutes ago
- Hindustan Times
Govt approves maiden cadre restructuring of BSF
New Delhi, The government on Wednesday approved the first-ever cadre review of the Border Security Force in 60 years of its existence enhancing its manpower by about 4,000 personnel between constable and inspector ranks. Govt approves maiden cadre restructuring of BSF A BSF spokesperson said the decision pertaining to the Group B and Group C employees will result in "immediate" promotions to a total of 23,710 personnel. The about 2.65 lakh-strong BSF, raised in 1965, is primarily tasked to guard Indian borders with Pakistan in the west and Bangladesh in the east apart from rendering a variety of duties in the internal security domain of the country. "The Government of India has approved the very first cadre review of BSF Group B and C employees, spanning from constable to inspector and its implementation has already begun," the spokesperson said. The order was issued by the Ministry of Home Affairs after approval from the ministry of finance, and officials said that the cadre restructuring of the two service groups of personnel has led to a net gain of 3,994 posts in the jawan and subordinate officers rank. The spokesperson said this will be a "significant" morale boosting step by the government post Operation Sindoor for "career progression" within the "cutting edge" rank and file. "The review is expected to improve promotion avenues from constable to inspector that will provide significant respite to them from existing stagnation, thereby enhancing overall morale and professional development of force personnel," he said. He also said the decision will lead to a total promotions of 23,710 personnel out of which orders for 8,116 personnel in different ranks were issued by the force headquarters on Wednesday. BSF recruits its personnel from the entry-level of constables who get promoted to the next rank of head constable to the higher posts of assistant sub-inspector, sub-inspector and inspector or subedar major in the B and C group posts. The officers of the force are recruited in the Group A service apart from the Indian Police Service who join the force on deputation. This article was generated from an automated news agency feed without modifications to text.
News18
29 minutes ago
- News18
Punjab CM flags off 500 women panchayat leaders for Maharashtra convention
Chandigarh, Aug 13 (PTI) Punjab Chief Minister Bhagwant Mann on Wednesday flagged off a train carrying a 500-member delegation of women sarpanches and panchs to Maharashtra for the national convention of women panchayats. Mann termed it a red-letter day, saying the delegation comprises representatives from high-performing panchayats and aims to enable them to gain new experiences through interactions with peers from other states. He said the visit will help the elected representatives ensure holistic development of their villages. Panchayats are pillars of democracy, directly managing schools, dispensaries, veterinary hospitals and other public welfare institutions in rural areas, the chief minister noted. Mann expressed hope the visit would boost the confidence of women representatives and help them gain new insights for development of villages. The government will also facilitate the delegation's visit to Takht Sri Hazur Sahib in Nanded, he said, adding the initiative commemorates the 350th martyrdom anniversary of Guru Tegh Bahadur. The state will bear all boarding and lodging expenses, he added. Earlier, Mann paid obeisance at Gurdwara Sri Fatehgarh Sahib and vowed to follow the footsteps of Sikh Gurus and martyrs for the welfare of all sections of society. He recalled that the shrine is associated with the martyrdom of the 'chotte sahibzadas' — Sahibzada Zorawar Singh and Sahibzada Fateh Singh, the younger sons of Guru Gobind Singh — who were bricked alive along with their grandmother Mata Gujri by the Mughal governor of Sirhind. Their martyrdom had inspired Punjabis to fight against injustice, tyranny and oppression, since ages and the younger generations need to be made aware of this supreme sacrifice, so that they can also make selfless sacrifices for the country, Mann said. PTI COR CHS OZ OZ view comments First Published: August 13, 2025, 22:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
30 minutes ago
- News18
Per capita steel consumption in India at 100 kg, says steel secretary
New Delhi, Aug 13 (PTI) Domestic per capita steel consumption has hit the 100-kg mark, Steel Secretary Sandeep Poundrik said on Wednesday. India's steel industry has registered growth in terms of production against the global decline, the top ministry official said, according to a statement issued by the Ministry of Steel. Speaking at a workshop organised by Ministry of Steel in the national capital, the secretary 'highlighted India's robust 12 per cent plus growth in steel production compared to global declines, with per capita consumption surpassing 100 kg". Per capita steel consumption reaching 100-kg level is an important milestone for the country as the government's National Steel Policy 2017 aims to scale up finished steel per capita consumption to around 160 kg by 2030-31. The per capita steel consumption was around 60 kg at the time of the launch of the policy in 2017, which also aims crude steel capacity of 300 million tonnes (MT), and production of 255 MT by 2030-31. PTI ABI TRB TRB view comments First Published: August 13, 2025, 22:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
