The Union Finance Ministry has categorically stated that there is no proposal under the 8th Pay Commission framework to restore the Old Pension Scheme (OPS) for Central Government employees covered under the National Pension System (NPS) or the Unified Pension Scheme (UPS). The clarification was given in a written reply in the Lok Sabha on December 15, 2025, by Minister of State for Finance Pankaj Chaudhary.
8th Pay Commission: OPS Not to Be Restored for Central Employees
Responding to questions raised by Members of Parliament, the government said that although states like Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have decided to restart OPS, the refund of NPS corpus to state governments is not permitted under existing laws. The PFRDA Act, 2013 and related regulations do not allow the accumulated NPS funds to be returned once deposited.
The Finance Ministry also detailed the provisions of the Unified Pension Scheme (UPS), highlighting that it offers:
- Assured pension of 50% of average basic pay after 25 years of qualifying service
- Minimum assured pension of ₹10,000 per month after 10 years of service
- Family pension at 60% of the employee’s pension
- Inflation-linked Dearness Relief
- Lump sum payment at retirement in addition to gratuity
However, the government clarified that salary contributions made by employees during service are not refundable after retirement, except for a limited option to withdraw up to 60% of the pension corpus, which would lead to a proportionate reduction in monthly pension.
The statement provides clarity amid ongoing debates around pension reforms and confirms that OPS restoration is not under consideration under the 8th Pay Commission for Central Government employees.
