The demand for the restoration of Old Pension Scheme (OPS) has sparked a powerful national movement among government employees in India. Discontent with the National Pension System (NPS) and skepticism over the newly introduced Unified Pension Scheme (UPS) have fueled this ongoing agitation. This article explores the determined employee-led movement, the government’s response, and the broader political and financial impact of the push for the restoration of Old Pension Scheme.
The Nationwide Movement to Restore the Old Pension Scheme
The call for the restoration of Old Pension Scheme echoes strongly across India’s government workforce. OPS, a defined-benefit pension model, guaranteed 50% of the last drawn salary for life—without requiring employee contributions. Replaced by the NPS in 2004, the scheme’s absence has sparked widespread unrest due to the NPS’s market dependency and lack of pension security.
Major Protests and Demands
Mass Mobilization: Government employees have held massive rallies, strikes, and sit-ins across Haryana, Maharashtra, Assam, and Delhi. In November 2024, over 60 lakh employees marched in Delhi under the leadership of the All India NPS Employees Federation (AINPSEF), demanding full restoration of Old Pension Scheme benefits.
Union Campaigns: Organizations such as the Joint Forum for Restoration of Old Pension Scheme (JFROPS) and the National Movement for Old Pension Scheme (NMOPS) have led relentless campaigns, including state-level protests in Assam by AAGNPSEA.
Core Concerns: Employees assert that the restoration of Old Pension Scheme is essential for post-retirement financial security. Unlike NPS, OPS offers guaranteed returns and inflation protection. The newly proposed UPS is considered an inadequate substitute.
The movement has become politically charged, with unions declaring they will vote against parties opposing the restoration of Old Pension Scheme. Several non-BJP states like Rajasthan, Punjab, and Chhattisgarh have already reverted to OPS, strengthening the momentum.
The government's position on reinstating the old pension scheme
The central and various state governments have taken differing stands on the issue, trying to strike a balance between long-term fiscal responsibility and public sector demands.
Central Government Response
No Nationwide Rollback: The Centre has maintained that the complete restoration of Old Pension Scheme is fiscally unviable. In a 2022 Lok Sabha statement, Minister Pankaj Chaudhary confirmed that full OPS restoration is not on the cards.
Unified Pension Scheme (UPS): Introduced in August 2024 and effective from April 1, 2025, UPS promises a pension of 50% of last drawn salary after 25 years of service. However, it remains contributory, with employees contributing 10% and the government 18.5%.
Expert Committee: A government panel, led by Finance Secretary T.V. Somanathan, reviewed NPS practices and pension models globally, but has not recommended reinstating OPS fully.
Warnings to Protesters: The Department of Personnel and Training (DoPT) issued notices warning of disciplinary actions against those participating in OPS protests.
State Government Actions
States Restoring OPS: Rajasthan (2022), Punjab, Himachal Pradesh, Jharkhand, and Chhattisgarh have officially returned to the Old Pension Scheme, honoring electoral commitments by Congress and AAP.
Refund Stalemate: These states have sought refunds of their NPS corpus from the Pension Fund Regulatory and Development Authority (PFRDA), which has declined, citing the absence of refund provisions.
Opposition from Other States: States like Maharashtra and Haryana have opposed the restoration of Old Pension Scheme, citing budgetary pressure. Maharashtra CM Eknath Shinde urged employees to call off their 2023 strikes, while Haryana officials warned of fiscal collapse if OPS were reintroduced.
NPS Non-Adopters: West Bengal and Tamil Nadu never switched to NPS and continue with OPS.
Fiscal and Political Implications of Old Pension Scheme Restoration
The restoration of Old Pension Scheme carries serious fiscal implications while reshaping political narratives.
Budgetary Risks: According to the RBI’s 2023 analysis, reverting to OPS poses a “major risk” to state finances, potentially impacting essential services like health and education. Former RBI Governor Raghuram Rajan voiced similar concerns about long-term unsustainability.
Electoral Impact: The Congress party has made restoration of Old Pension Scheme a central promise in its electoral campaigns, whereas the BJP backs the UPS model. With elections on the horizon, the OPS debate remains a potent political weapon.
Unions’ Discontent: Employee groups like the Indian Railways Technical Supervisors’ Association (IRTSA) criticize the UPS for failing to match OPS’s guarantees. They argue that the 25-year service clause and mandatory contributions make UPS less beneficial. The Supreme Court’s view that pensions are a legal entitlement has added weight to the unions’ arguments.
Why the Restoration of Old Pension Scheme Matters
At the heart of the movement lies a broader conversation about India’s pension system and social security priorities. While the OPS guarantees retiree security, it imposes a considerable burden on government finances. The NPS, although sustainable, lacks assurances. The new UPS seeks to bridge the gap but fails to satisfy the growing demand for full restoration of Old Pension Scheme.
Highlights:
Employee Solidarity: The nationwide protests demonstrate the strength and unity of the workforce fighting for the restoration of Old Pension Scheme.
Policy Tug-of-War: Governments are caught between fiscal prudence and employee satisfaction, with states choosing different routes.
Electoral Influence: The issue is now central to political discourse, influencing voting behavior and party manifestos.
Conclusion
The push for the restoration of Old Pension Scheme represents one of the most significant government employee movements in recent years. As the Unified Pension Scheme takes effect in April 2025, its success or failure may dictate the movement’s future direction. Unless a balanced, satisfactory solution is achieved, agitation around the restoration of Old Pension Scheme is likely to intensify in the months ahead.
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