31 Jan, 2024 09:59 AM

OPS vs NPS: Comparative chart by Joint Forum for Restoration of Old Pension Scheme

The Ministry of Finance has responded to the memorandum demanding the Defined Non-Contributory and Guaranteed Old Pension Scheme (OPS), in place of the Contributory National Pension System (NPS), for all Central Government Employees submitted by the Joint Forum for Restoration of Old Pension Scheme (NJCA). The finance ministry said, "It is informed that the Committee formed under the Chairmanship of FS & SE to look into the issue of NPS has already had two rounds of detailed discussion with the Staff Side of National Council (JCM) and the valuable views of the NC (JCM) have already been noted by the Committee."

Read: Finance Ministry response to demand of OPS restoration forum

In a memorandum dated January 11, 2024, the Joint Forum for Restoration of Old Pension Scheme (NJCA), constituted under the banner of the NJCA, demanded that the finance ministry restore the defined non-contributory and guaranteed Old Pension Scheme in place of contributory National Pension System for central government employees — including railways, defence, postal, income tax, accounts and audit, central secretariat, Isro, DAE, etc., autonomous bodies, paramilitary forces, all the state government/Union territory employees, including primary teachers, high school and higher secondary teachers, College and University Teachers, etc. It will be applicable for those employees who were recruited on or after January 1, 2004.

"... owing to the reason that the National Pension System(NPS) fails to yield fruitful results, because a meagre amount, as Pension, is being paid to those superannuated under the contributory NPS, different organizations of the central government employees, state government employees as well as Teachers’ Organizations(right from Primary School to University level) have been persistently demanding restoration of the Defined Non-Contributory and Guaranteed Old Pension Scheme in place of Contributory NPS," the memorandum said.

NJCA mentioned a comparative chart which will clear the situation more effectively, as per the memorandum.

OPS vs NPS, as per NJCA

Old Pension Scheme	New Pension Scheme
Non-contributory, defined and guaranteed	Contributory and no-guarantee for minimum pension
After 10 years of qualifying service, 50% of the last basic pay of the employees is guaranteed as the basic pension	No such guarantee and pension depends on the accumulated funds in the pension account i.e. 40% of the corpus should be invested in annuities of SBI, LIC, ICICI and HDFC & the return is only 7% per annum approximately
To compensate price rise/inflation depending upon the Consumer Price Index two installments of Dearness Relief on the basic pension is given every year i.e. on 1st of January and 1st of July.	No compensation for price rise and the pension remains static.
While on retirement/superannuation 40% of the pension can be commuted and taken in advance and the same will be restored back after 15 years from the date of commutation.	No such provision is available
After death of the pensioner, family pension is eligible for the spouse, unmarried daughters, divorcee daughters, widow daughters, physically challenged and mentally retarded children are eligible for family pension.	Family pension provision is available in the NPS only if an employee die in service depending upon the option given by him. However, family pension is not available after the death of the pensioner.
20% additional basic pension - after 80 years and less than 85 years of age. 30% additional basic pension – after 85 years to less than 90 Years of age. 40% additional basic pension – after 90 years to less than 95 years of age. 50% additional basic pension – after 95 years to less than 100 years of age. 100% additional basic pension – after 100 years or more	No such provision.
Pension is Revised/Enhanced after every Pay Commission or whenever pay hike in basic pay with retrospective effect takes place after superannuation.	No such provision exists, since pension in NPS based on the accumulated fund in the corpus on the date of retirement/superannuation.