For millions of government employees across India, the debate around pensions has once again reached its peak. As living costs rise, healthcare becomes expensive, and financial pressures mount on households, the demand for the Old Pension Scheme (OPS) comeback is stronger than ever. The year 2025 is shaping up to be a decisive point in this conversation, with employee unions, retired workers, and even some state governments raising their voices louder than before. Many feel that the current New Pension Scheme (NPS) does not provide the financial security they were once promised, especially after decades of public service. This deep sense of uncertainty has sparked a nationwide movement urging the central government to restore OPS and ensure a guaranteed post-retirement income.
The push for OPS revival is not new, but the intensity of the demand in 2025 is unlike anything seen before. Economic pressures have added fuel to the fire, with employees claiming that inflation-adjusted expenses have far surpassed their salaries and savings growth. Families dependent on a single government salary say that retirement security is not a luxury but a necessity, especially at a time when medical costs and daily living expenses continue rising without pause. The growing anticipation around a possible policy shift has made the debate more emotional, more urgent, and more politically sensitive.
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What Was the Old Pension Scheme and Why Do Employees Want It Back?
The Old Pension Scheme was a guaranteed pension model where employees received 50% of their last drawn salary as a lifelong monthly pension. This was along with a Dearness Relief (DR) component that adjusted the pension based on inflation. For many government workers, OPS represented stability and predictability. Unlike the market-driven nature of NPS, OPS did not depend on stock market performance, private fund managers, or volatile financial cycles. It simply ensured that after years of service, a person could retire with dignity and financial assurance.
Employees want OPS back because they believe it offers long-term security that the current NPS fails to deliver. Under OPS, a government employee knew exactly how much pension they would receive after retirement. There was no uncertainty, no fluctuation, and no risk of losing money due to market downturns. In a time when inflation is continuously rising and families are spending more on education, healthcare, and basic household needs, this sense of stability becomes extremely valuable.
Why the Shift from OPS to NPS Happened in 2004
In 2004, the Government of India introduced the New Pension Scheme with the intention of reducing the long-term financial burden on the state exchequer. The logic behind this shift was simple: as more people retired, pension liabilities kept increasing. OPS was entirely funded by taxpayer money, and over time, the costs became very high. The government felt that a contributory, market-linked system like NPS would reduce financial pressure and distribute the responsibility between employees and the employer.
However, employees argue that while the shift might have benefited the government financially, it placed a heavy burden on individuals who now have to depend on uncertain market returns for their retirement. Many retirees under NPS have reported receiving pension amounts far below their expectations, sometimes even less than a private-sector employee’s post-retirement benefits. This widening trust gap has become one of the main reasons behind the growing demand for OPS restoration.
Why Employees Believe NPS Is Not Enough in 2025
The biggest criticism against NPS in recent years has come from employees who feel that it provides inconsistent returns. Since the pension depends on stock market performance, employees worry that a single economic crisis could drastically reduce their retirement corpus. Many have already experienced the effects of market dips in the last decade, especially during global economic slowdowns.
Moreover, employees argue that NPS does not offer lifetime security. Even after retirement, pensioners need to buy an annuity from their accumulated funds, and the monthly payout is often lower than expected. In contrast, OPS offered lifetime guaranteed income, along with inflation-based increases through DR. In an era where financial unpredictability is common, employees want a pension model that protects them rather than exposing them to market risks.
The Rising Cost of Living and Why 2025 Is a Turning Point
One of the biggest reasons for the revived OPS demand in 2025 is the soaring cost of living. Families say that essential expenses have doubled in the last decade. Housing rents, medical bills, grocery prices, and school fees are all increasing at a pace that salaries cannot match. For middle-income employees, this creates a stressful financial environment. Many government workers believe that depending on NPS at a time like this is risky and impractical.
With inflation continuing to rise sharply in 2025, even young government employees feel that their future is not secure under NPS. They worry that after 20 or 30 years of service, their pension amount may fall short of what is needed to live comfortably. The lack of clarity regarding long-term financial benefits makes OPS not only desirable but crucial for many working families.
States That Have Already Returned to the Old Pension Scheme
In the last few years, several states have taken bold steps toward returning to OPS. Rajasthan, Chhattisgarh, Punjab, Jharkhand, and Himachal Pradesh already restored the Old Pension Scheme for their state government employees. These states argue that financial security for employees is more important than reducing pension liabilities. Their decisions have increased pressure on the central government to reconsider OPS at the national level.
With more states openly supporting the return of OPS, the conversation has now reached a national stage. Employee unions claim that if these states can manage their finances while providing OPS, there is no reason why the central government cannot adopt similar measures.
What Employee Unions Are Demanding in 2025
Employee unions across India have created a unified platform demanding the complete abolition of NPS and the reinstatement of OPS. They believe that the government must prioritize employee welfare, especially during times of financial instability. Their demands include:
- Full restoration of the Old Pension Scheme
- Ending the mandatory contribution to NPS
- Guaranteed lifelong pension with Dearness Relief
- Pension parity between central and state government employees
- Transparency and clarity in retirement benefits
In 2025, these demands have grown stronger, with large-scale protests, strikes, and petitions being organized across major cities. Many unions have also submitted memorandums to the central government, urging immediate policy changes.
Can the Government Bring Back the Old Pension Scheme Nationally?
This remains the biggest question of 2025. While many states have already reinstated OPS, the central government has so far maintained its commitment to NPS. The government believes that NPS is financially sustainable in the long run and reduces the burden on taxpayers. However, growing public pressure and political implications may influence decisions in the future.
Experts suggest that the government might not fully remove NPS, but there is a possibility of introducing a hybrid model, combining elements of OPS and NPS. This could include partial guaranteed pension, fixed returns, or a minimum pension safety net. Such solutions could reduce market dependency and provide more assurance to employees.
Political Impact: OPS Becomes a Key Election Topic
As elections approach, OPS has become a national political issue. Several parties have already included OPS revival in their election promises, targeting millions of government employees and retired workers across the country. Since this is a highly emotional and financial topic, political narratives are growing stronger around the idea of bringing OPS back.
If the central government makes even a partial change toward guaranteed pensions, it could significantly impact the political landscape in 2025 and beyond.
What the Future Looks Like for Government Employees
For now, the future remains uncertain. Employees continue to push for OPS, unions continue to protest, and states continue to show that OPS can be implemented successfully. Meanwhile, the central government is reviewing suggestions but has not committed to major changes yet.
However, the intensity of the OPS movement in 2025 indicates that pension reform is unavoidable. Whether it is OPS, NPS reform, or a hybrid system, one thing is certain — government employees want a retirement system that guarantees dignity, stability, and financial peace.
Conclusion
The demand for the Old Pension Scheme 2025 marks a critical moment in India’s economic and social landscape. With rising living expenses and growing concerns over financial security, government employees feel that NPS fails to provide the assurance they deserve after decades of service. As the debate continues, the year 2025 may become the turning point that shapes India’s retirement policy for the next generation.
If the government takes action, millions of families could gain long-term security. If not, the demand for OPS will only grow louder, more unified, and more determined in the months ahead.