8th Pay Commission: Will Central Government Employees Get Old Pension Scheme? Here’s the Latest Update

The Central government has reiterated that there is no proposal to restore the Old Pension Scheme (OPS) for Central government employees, even as employee unions continue to press for its revival ahead of the 8th Pay Commission. The clarification was given in Parliament in response to a question in the Rajya Sabha, reaffirming the Centre's existing position on the issue.

What the Government Told Parliament

Responding to a question in the Rajya Sabha on July 23, the Ministry of Finance's Department of Expenditure said there is currently no proposal under consideration to reinstate the Old Pension Scheme for Central government employees.

The reply comes amid renewed discussions around the 8th Pay Commission and demands from several employee organisations seeking the return of the defined-benefit pension system that was discontinued for new Central government recruits from January 1, 2004. 8th Pay Commission: Level 15-18 Employees May Get Monthly HRA up to INR 1.93 Lakh Under 2.57 Fitment Factor.

Why Employee Unions Are Seeking OPS

Various Central government employee bodies, including the National Council-Joint Consultative Machinery (NC-JCM), have urged the 8th Pay Commission to recommend restoration of the Old Pension Scheme.

Under OPS, employees receive a guaranteed pension linked to their last drawn salary after retirement. In contrast, the National Pension System (NPS) is a market-linked, contributory pension scheme in which both employees and the government contribute to an individual pension account. 8th Pay Commission Latest News: NC-JCM Demands INR 69,000 Minimum Pay and 6% Annual Increment.

Will the 8th Pay Commission Decide on OPS?

Although employee unions have submitted their demand for the restoration of OPS, the government's latest reply indicates there has been no policy change so far.

The 8th Pay Commission is continuing consultations with stakeholders on issues related to pay, allowances and pension. However, the Centre has not indicated that restoration of OPS is under active consideration.

What Is the Old Pension Scheme?

The Old Pension Scheme provides a defined pension after retirement, generally based on an employee's last drawn salary and years of service, with the government bearing the pension liability.

The National Pension System, introduced for most Central government employees joining service on or after January 1, 2004, replaced OPS with a contributory model in which retirement benefits depend on accumulated contributions and investment returns.

What Happens Next?

The 8th Pay Commission will continue to receive suggestions from employee associations, pensioners and other stakeholders before finalising its recommendations. While pension reforms remain one of the key issues raised by unions, the Centre's latest statement makes it clear that, at present, there is no proposal to bring back the Old Pension Scheme for Central government employees.

(The above story first appeared on LatestLY on Jul 27, 2026 03:04 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).