OPS Update 2026: Centre Says No Return for NPS Employees

This is the update many central government employees were waiting for.
And honestly, it’s not the one they hoped to hear.

In a written reply in the Lok Sabha, the central government has clearly said there is no proposal to bring back the Old Pension Scheme (OPS) for employees covered under NPS or UPS. No ambiguity. No “under review”. Just a straight no.

Old Pension Scheme India 2026

Pension Scheme	Who It Applies To	Pension Type	Government Stand
Old Pension Scheme (OPS)	Pre-2004 employees	Fixed, guaranteed	Not coming back for Centre
National Pension Scheme (NPS)	Post-2004 employees	Market-linked	Continues
Unified Pension Scheme (UPS)	New framework	Fund-based with assured benefits	Promoted by Centre
State OPS	Selected states	Guaranteed	Promoted by the Centre

What the Government Said in Lok Sabha

Replying to a written question, Minister of State for Finance Pankaj Chaudhary made the position crystal clear.

There is no proposal under consideration to restore OPS for central government employees who are part of NPS or UPS.

What this really means is simple.
If you’re a central government employee under NPS, don’t expect OPS anytime soon.

But Some States Have Brought Back OPS

Here’s where things get interesting.

The Centre confirmed that some state governments have chosen a different path. These states have officially informed PFRDA about their decision to reintroduce OPS:

• Rajasthan
• Chhattisgarh
• Jharkhand
• Punjab
• Himachal Pradesh

So yes, OPS is back — but only at the state level, not for central government staff.

Big Legal Roadblock: NPS Money Can’t Be Returned

This part often gets ignored, but it’s crucial.

The Finance Ministry clarified that there is no legal provision to return the NPS corpus — the combined contribution of employees and governments — back to the states.

Under the PFRDA Act, 2013, and existing NPS rules, refund of accumulated funds is not allowed.

In simple words:
Even if a state wants OPS, the NPS money already deposited can’t just be taken back.

What Exactly Is the Unified Pension Scheme (UPS)?

The government also explained UPS again, probably because many employees are still confused.

UPS is a fund-based pension system, just like NPS, but with assured retirement benefits.

Your contribution + government contribution gets invested, and pension benefits are paid from that fund.

UPS Benefits Explained Simply

Here’s what UPS promises on paper:

• 50% pension of the average basic pay of the last 12 months, after 25 years of service
• 60% family pension to the spouse after the employee’s death
• Minimum pension of ₹10,000 per month after at least 10 years of service
• Dearness Relief (DA) linked to CPI-IW
• Lump sum payment at retirement, plus gratuity

Sounds decent, right? But there’s a catch.

No Refund of Your Salary Contributions

The government made another thing very clear.

There is no provision to directly refund the money deducted from your salary during service when you retire.
Your pension comes from the fund — not as a returned balance.

This is one of the biggest reasons why many employees still say OPS feels more “safe” and “paisa vasool”.

Asli Sach: OPS Return Looks Unlikely for Centre

After this Lok Sabha reply, the picture is quite clear.

For central government employees, OPS is not on the table right now.
The Centre is pushing ahead with NPS and UPS, while OPS remains limited to some states.

If you’re hoping for a sudden policy U-turn, don’t hold your breath.

Frequently Asked Questions

Is Old Pension Scheme coming back for central government employees?
No. The government has officially said there is no proposal to restore OPS for NPS or UPS employees.

Can states get back their NPS money after switching to OPS?
No. Current laws do not allow the return of NPS corpus to state governments.

Is UPS better than NPS for employees?
UPS offers assured benefits like minimum pension and family pension, but it is still fund-based and not the same as OPS.

SOURCE-  SANSAD