Old Pension Scheme

For the generic concept, see National Pension System.

Old Pension Scheme (OPS) in India was abolished as a part of pension reforms by Union Government. Repealed from 1 January 2004, it had a defined-benefit (DB) pension of half the Last Pay Drawn (LPD) at the time of retirement along with components like Dearness Allowances (DA) etc. OPS was an unfunded pension scheme financed on a pay-as-you-go (PAYG) basis in which current revenues of the government funded the pension benefit for its retired employees. Old Pension Scheme was replaced by a restructured defined-contribution (DC) pension scheme called the National Pension System.[1]

The Union Government's pension liabilities in Budget Estimate 2022-2023 on account of Old Pension Scheme for existing retirees is ₹2.07 lakh crore.[2] The cost of pension for all State Government's combined Budget Estimate 2022-2023 is ₹4,63,436.9 Crores.[3]

  1. ^ George Mathew (18 January 2023). "Why has RBI warned states against old pension scheme?". The Indian Express. Mumbai. Retrieved 31 January 2023.
  2. ^ "One Hundred Twentieth Report On Action Taken On One Hundred Tenth Report Of The Committee On "Pensioner's Grievances - Impact Of Pension Adalats And Centralized Pension Grievances Redress And Monitoring System (CPENGRAMS)" (PDF). Rajya Sabha Secretariat, New Delhi: The Department Of Pension & Pensioners' Welfare (Ministry Of Personnel, Public Grievances & Pensions). Retrieved 2 February 2023. Presented to the Rajya Sabha on 8th December, 2022 & Laid on the Table of the Lok Sabha on 8th December, 2022
  3. ^ "RBI Publications - State Finances: A Study of Budgets of 2022-23" (PDF). Reserve Bank of India. 16 January 2023. Retrieved 6 February 2023.