SEO Title: Old Pension Scheme (OPS) Latest Update 2026: Government Says No Proposal to Restore OPS – Lok Sabha Reply Explained
In a Lok Sabha reply on 10 August 2026, the Finance Ministry said there is no proposal to restore the Old Pension Scheme. See the 5 states that moved back to OPS, their NPS fund amounts, and what it means for postal employees.
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Quick Summary
The Central Government has once again made its stand clear on the Old Pension Scheme (OPS). In a written reply in the Lok Sabha on 10 August 2026, the Ministry of Finance said there is no proposal to bring back OPS, because of its unsustainable fiscal burden on the government.
The reply also shared the names of 5 states that have moved from NPS back to OPS, and how much of their employees’ pension money is still with NPS.
This update matters to lakhs of central government employees, including India Post employees who joined after 2004 and are covered under NPS.
Lok Sabha Reply at a Glance
- Ministry: Ministry of Finance, Department of Financial Services
- House: Lok Sabha
- Question: Unstarred Question No. 3637
- Topic: Implementation of Old Pension Scheme
- Asked by: Dr. Indra Hang Subba, MP
- Answered by: Shri Pankaj Chaudhary, Minister of State for Finance
- Date: Monday, 10 August 2026
What Was Asked?
The MP asked three simple questions:
- Does the Government plan to bring back the Old Pension Scheme?
- If yes, by when? If not, why not?
- How many states have brought back OPS, how much pension money have they deposited, and when will it be returned to them?
What Did the Government Say?
1. No Plan to Restore OPS
The Government clearly said there is no proposal under consideration to restore OPS. The reason given is its unsustainable fiscal liability on the government exchequer. In simple words, the government feels OPS would be too costly to pay for in the long run.
2. Five States Have Moved Back to OPS
These state governments have informed the Centre / PFRDA that they are switching from NPS back to OPS. Their NPS fund value (Assets Under Management) as on 26.07.2026 is:
| State | NPS Fund (AUM) in ₹ Crore |
|---|---|
| Rajasthan | 53,403.89 |
| Punjab | 40,673.08 |
| Chhattisgarh | 24,030.04 |
| Jharkhand | 14,420.90 |
| Himachal Pradesh | 12,525.96 |
| Total | 1,45,053.87 |
That is about ₹1.45 lakh crore in total.
3. NPS Money Cannot Be Returned to States
This is the most important part. The Government said there is no provision under the PFRDA Act, 2013 and the PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 to refund this money to state governments.
This includes:
- The government’s contribution
- The employees’ contribution
- All the returns earned on them
So, the NPS money of employees in these 5 states will stay with NPS as per current rules.
OPS vs NPS: The Basic Difference
| Point | Old Pension Scheme (OPS) | National Pension System (NPS) |
|---|---|---|
| Pension amount | Fixed, about 50% of last basic pay | Depends on market returns |
| Employee contribution | None | 10% of basic pay + DA |
| Government contribution | Fully paid by government | 14% of basic pay + DA |
| DA hike on pension | Yes | No fixed DA on annuity |
| Applies to | Central employees who joined before 01.01.2004 | Central employees who joined on or after 01.01.2004 |
Central employees under NPS can also choose the Unified Pension Scheme (UPS), which offers an assured pension.
What Does This Mean for India Post Employees?
- Postal employees who joined before 2004 remain under OPS. Nothing changes for them.
- Those who joined on or after 01.01.2004, including many MTS, Postman, PA/SA staff and officers, stay under NPS / UPS.
- GDS have their own separate scheme, so this reply does not directly change anything for them.
- Employee unions continue to raise the OPS demand, including before the 8th Pay Commission, but as of now there is no change in government policy.
Why This Is Useful for Exam Aspirants
Pension schemes, PFRDA, NPS, UPS and OPS are common current affairs and general awareness topics. They can come up in:
- GDS to MTS Departmental Exam
- GDS to Postman Departmental Exam
- MTS to PA and Postman to PA Departmental Exam
- Other India Post Promotion Exams
Quick facts to remember:
- PFRDA Act came in 2013
- NPS applies to central government employees who joined on or after 01.01.2004
- 5 states have informed the Centre about returning to OPS: Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh
Prepare Smarter with Post Office Coaching
Stay updated and exam-ready with our courses:
- GDS to MTS Online Classes and GDS to Postman Online Classes
- MTS to PA Online Classes and Postman to PA Online Classes
- Daily India Post Current Affairs and India Post GK
- India Post Mock Tests and India Post Quiz
- India Post Previous Year Question Papers and simple India Post Study Material
FAQs
Q1. Is the Old Pension Scheme coming back for central government employees? No. As per the Lok Sabha reply dated 10 August 2026, there is no proposal to restore OPS.
Q2. Why is the government not bringing back OPS? The government says OPS has an unsustainable fiscal liability on the exchequer.
Q3. Which states have moved back to OPS? Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have informed the Centre / PFRDA.
Q4. Will the NPS money be returned to these states? No. The government says there is no provision under the PFRDA Act and its rules to refund it.
Q5. Which state has the highest NPS fund among these? Rajasthan, with ₹53,403.89 crore as on 26.07.2026.
Q6. Who answered the question in Lok Sabha? Shri Pankaj Chaudhary, Minister of State for Finance.