Union Minister of State for Finance Pankaj Chaudhary said on Monday that the central government is not considering reintroducing the old pension scheme (OPS) because it would place a heavy financial burden on the central government.
In his written reply to questions raised in the Lok Sabha on this matter, he said, “The National Pension System (NPS) was introduced as a contributory pension scheme for central government employees who joined service after January 1, 2004 (excluding members of the armed forces). Under this, the Unified Pension Scheme (UPS) was introduced from April 1, 2025. Central government employees who choose this scheme are provided a minimum monthly pension of Rs. 10,000 upon completion of their service, taking inflation into account.”
State’s choice: Switching back from the National Pension Scheme to the old pension scheme is the individual choice of states. The states of Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh have informed the Central Government and the Pension Fund Regulatory and Development Authority (PFRDA) that they have switched to the old pension scheme in this way.
Meanwhile, the financial impact of switching to the old pension scheme has been noted by the Comptroller and Auditor General (CAG) in its state finance audit report.
The old pension scheme has not been considered for reimplementation because it would place a greater financial burden on the central government.
As of July 7, assets worth Rs. 3.65 lakh crore are being managed under the National Pension System for central government employees,” he said.
Fiscal deficit: In response to another question on the fiscal deficit, he said, “In 2021-22, the fiscal deficit was 6.7 percent of the country’s gross domestic product (GDP). This has come down to 4.4 percent in the 2025-26 financial year. The fiscal deficit in the 2026-27 financial year is projected to be Rs. 16.95 lakh crore (4.3 percent).”