GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO. 2308
ANSWERED ON MONDAY, 15 DECEMBER, 2025/ AGRAHAYANA 24, 1947 (SAKA)
Implementation of Old Pension Scheme
2308 SHRI ANTO ANTONY
SHRI AMRA RAM
SHRI UTKARSH VERMA MADHUR
SHRI IMRAN MASOOD
Will the Minister of Finance be pleased to state:
(a)
whether the Government proposes to implement Old Pension Scheme (OPS)
for its employees by abolishing the National Pension System (NPS) and
Unified Pension Scheme (UPS), if so, the timeline thereof and if not,
the reasons therefor;
(b) whether
many State Governments have implemented OPS for their employees, if so,
the process to return the funds deposited with the Centre to the State
Governments along with the amount of funds deposited by the States
wherein OPS is in place, State-wise;
(c) whether any discrepancies are associated with the UPS system of pension, if so, the details thereof;
(d)
whether it is a fact that the contribution deducted from the salary of
employees during their service will not be returned to them at the time
of retirement; and
(e) if so, the details thereof?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a)
There is no proposal under consideration of the Government for
restoration of Old Pension Scheme (OPS) in respect of Central Government
employees covered under National Pension System (NPS) or Unified
Pension Scheme (UPS).
(b)
The State Governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab,
and Himachal Pradesh have informed Pension Fund Regulatory and
Development Authority (PFRDA) about their decision to restart Old
Pension Scheme (OPS) for their State Government employees. There is no
provision under Pension Fund Regulatory and Development Authority Act,
2013 read along with PFRDA (Exits and Withdrawals under the National
Pension System) Regulations, 2015, and other relevant Regulations, vide
which the accumulated corpus of the subscribers viz Government
contribution, Employees' contribution towards NPS along with accruals,
can be refunded and deposited back to the State Government.
(c)
to (e): UPS, being a fund-based Pension System, relies on the regular
and timely accumulation and investment of applicable contribution (from
both the employee and employer) for assured payouts to the employees.
Under UPS, at the time of retirement, a subscriber is eligible to
receive benefits as below:
i.
Assured payout at rate of 50% of the average basic pay drawn over the
last 12 months prior to superannuation for a minimum qualifying service
of 25 years. This payout to be proportionate for lesser service period
up to a minimum of 10 years of service.
ii.
Assured family payout at the rate of 60% of payout admissible to the
employee immediately before his/her demise to legally wedded spouse.
iii. Assured minimum payout of Rs.10,000 per month on superannuation after minimum 10 years of qualifying service.
iv.
Inflation indexation on assured payout, on assured family payout, and
assured minimum payout. Dearness Relief will be based on All India
Consumer Price Index for Industrial Workers (AICPI-IW) as in case of
serving employees.
v. Lump sum
payment at superannuation in addition of gratuity at rate of 1/10th of
monthly emoluments (basic pay+DA) as on the date of superannuation for
every completed six months of service. This payment will not reduce the
quantum of assured payout.
vi.
There is no provision for return of contribution deducted from the
salary of employees during their service, once the payout starts.
However, UPS subscriber or the legally wedded spouse, as the case may
be, shall have an option to withdraw an amount not exceeding 60% of the
individual corpus or benchmark corpus, whichever is lower, available in
the PRAN tagged to UPS on the date of superannuation or voluntary
retirement or retirement under Fundamental Rules 56(j) subject to
proportionate reduction in the assured payout payable to such UPS
subscriber.
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