Will Old Pension Scheme benefits be given to these government employees? Here's what finance ministry says
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What does OM No. 57/05/2021-P&PW(B) say?
SBI employees' eligibility for Old Pension Scheme
What is Old Pension Scheme (OPS)?
What is National Pension System (NPS)?
There have been continuous attempts by central government employees whose appointments were done on the basis of vacancies advertised before implementation of NPS , that they should be allowed to get Old Pension Scheme . This question was raised in Lok Sabha to which the government responded.The Finance Ministry has said that Old Pension Scheme (OPS) benefits won't be extended to central government employees who were appointed against the vacancies advertised before the issuing of the notification of National Pension System (NPS) on December 22, 2003.Pankaj Chaudhary, Minister of State for Finance, said in a Lok Sabha session on Tuesday (August 13, 2025) that in light of various court judgements, the government had issued instructions vide OM No. 57/05/2021-P&PW(B) dated 03.03.2023, giving a one-time option to central government civil employees for inclusion under the CCS (Pension) Rules, 1972 (now 2021).Also Read: Old Pension Scheme benefits in UPS: Central Govt employees can claim OPS benefits in Unified Pension Scheme for these cases The minister clarified that no proposal is under consideration for extended OPS benefits to such employees, whether they are employed in Public Sector Undertakings (PSUs) or Public Sector Banks.In a memorandum dated March 3, 2023, Department of Pension and Pensioners Welfare said that in consultation with the Department of Personnel & Training, Department of Expenditure and Department of Legal Affairs, in the light of the various representations/references and decisions of Hon'ble Courts, issued instructions vide OM No. 57/04/2019-P&PW(B) dated 17.02.2020, giving a one-time option to Central Government employees who were declared successful for recruitment in the results declared on or before December 31, 2003, against vacancies which occurred before January 01, 2004, and were covered under the National Pension System on joining service on after January 01, 2004, to be covered under the CCS(Pension) Rules, 1972 (now 2021). There was a fixed time schedule for different activities under the aforesaid OM dated 17.02.2020.Also Read: Central government employees, in NPS, can choose OPS under certain conditions; Check eligibility, forms to submit Chaudhary was referring to the query of Dharamvira Gandhi, a member of Parliament from the Patiala constituency, who also asked whether the government ensures that all the employees of State Bank of India , whose recruitment process was conducted before August 1, 2010, but whose appointments were delayed due to unavoidable circumstances and took place after August 1, 2010, are also included in the Old Pension Scheme?Chaudhary said, 'As per the State Bank of India Employees' Pension Fund Regulations, 2014, the old pension will not be applicable to those who joined the services of SBI on or after 01.08.2010.'Old Pension Scheme (OPS) is an age-old pension system in India that dates to the 19th century. It went through many changes ever since and got its present form post independence in 1947. The striking change was when the retirement age was increased from 58 to 60. The scheme provides a defined pension at retirement. It also has the features of pension commutation and family pension.The scheme was discontinued by the central government in January 2004 and replaced with New Pension System (NPS). However, many states still follow Old Pension Scheme (OPS).NPS replaced OPS for central government employees on January 1, 2004. It is a defined contribution system where employees get market-linked returns. Unlike OPS, it doesn't provide a defined pension. Central government employees can open a Tier I NPS account. At 60 years of age, they can withdraw up to 60 per cent of their corpus as a lump sum amount. From the remaining amount, they need to purchase an annuity plan, which provides them a monthly pension.
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