Rajya Sabha Q&A : Old Pension Scheme restoration not under consideration

Dr Bhagwat Karad, The Minister of State Finance has informed that the government is not having any proposal under consideration to bring back the Old Pension Scheme instead of the National Pension System (NPS) The minister was replying to a question by Shri Rakesh Singh in the Rajya Sabha. The restoration of the old pension scheme is one of the demands that the central government employees unions constantly demand.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

UNSTARRED QUESTION NO: 812
ANSWERED ON: 07.02.2022

Restoration of Old Pension Scheme

Rakesh Singh
Will the Minister of

FINANCE be pleased to state:-

(a) whether the Central and State Government employees are opposing the New Pension Scheme;
(b) if so, the details thereof;
(c) whether the Government proposes restore the Old Pension Scheme keeping in view the benefits of the said scheme in interest of employees;
(d) if so, the reasons thereof; and
(e) if not, the reasons therefor?

ANSWER

The Minister of State (Finance)

(a) to (e) Representations have been received from time to time which include the request for restoration of Old Pension Scheme. There is no proposal under consideration of Government of India for restoration of old pension scheme in respect of Central Government employees recruited on or after 01.01.2004. The National Pension System (NPS) was introduced by the Government of India to replace the defined benefit pension system by defined contribution pension scheme in order to provide old age income security in a fiscally sustainable manner and to channelize the small savings into productive sectors of the economy through prudential investments.