Old Pension Scheme (OPS) is a pension scheme, under which the salary of government employees was based on their salary at the time of retirement. Under this scheme, after the death of the retired employee, his family members were also given pension. However, the old pension scheme in India was abolished by the central government under pension reforms. The scheme was canceled from 1 January 2004. In these, half of the final salary received at the time of retirement, including components like dearness allowances etc., was available.
The national pension system came into force on 22 December 2003. Under this, the old pension scheme (OPS) was implemented. Whereas in the old pension scheme OPS, at the time of retirement, up to 50 percent of the final basic salary was given a fixed pension. Old pension schemes also provide guaranteed income after retirement.
However, the NDA government discontinued the old pension scheme in 2004. Then the Atal Bihari Vajpayee government started the National Pension System. Under the old pension scheme, retired government employees used to get the benefit of amending inflation relief twice a year. Regarding the eligible employees for the old pension scheme, the DOPT has said that members of AIS, selected through Civil Services Examination, 2003, Civil Services Examination, 2004 and Indian Forest Services Examination, 2003, are eligible to be covered under these provisions.
Which state has implemented the old pension scheme?
Rajasthan resumed the old pension scheme in April 2022. Subsequently, Chhattisgarh notified the scheme in December 2022, Jharkhand, Punjab on October 2022 and Himachal Pradesh on 17 April 2023. Old Pension Scheme (OPS) is a safe pension scheme. It is paid from the government treasury.
