Even as the Centre’s Unified Pension Scheme (UPS) — introduced earlier this year as a middle ground between the Old Pension Scheme (OPS) and the National Pension System (NPS) — struggles to gain traction, several employee associations have announced a protest at Jantar Mantar on November 9, demanding the restoration of OPS.
According to Manjeet Singh Patel, president of the All-India NPS Employees Federation, the protest will see participation from multiple employee unions across the country. “We have already written to the Delhi Police to inform them about the demonstration,” Patel said, adding that the objective is to urge the government to fully reinstate the defined-benefit Old Pension Scheme for all employees who joined service after 2004.
Unified Pension Scheme Finds Few Takers
Despite being introduced as a reform to balance employee welfare with fiscal sustainability, the Unified Pension Scheme (UPS) has seen very low adoption. As per official data, only 1.11 lakh employees (about 4.5%) of the 23.93 lakh central government employees under the NPS had opted for UPS as of September 30, 2025.
The Union Cabinet had approved the UPS in August 2024, and it was rolled out by the Ministry of Finance on April 1, 2025. Initially, employees under NPS were allowed to opt for the UPS until June 30, but due to poor response, the government extended the deadline twice — first till September 30 and then again till November 30, 2025.
Under the Old Pension Scheme (OPS), employees received 50% of their last drawn basic salary as pension, ensuring fixed and lifelong post-retirement income. However, under the National Pension System (NPS) — implemented for employees joining after January 1, 2004 — the pension is market-linked, dependent on investment performance.
UPS: A Middle Path Between OPS and NPS
In response to long-standing employee demands, the government launched the Unified Pension Scheme (UPS) to provide a hybrid pension model. The UPS guarantees 50% of the average basic pay drawn during the last 12 months before retirement, but only for employees completing 25 years of service.
However, many government employees remain unconvinced. “While the UPS provides some defined benefit features, it still has several restrictions compared to the Old Pension Scheme,” Patel said. He added that employees are particularly dissatisfied with the waiting period for pension eligibility in the case of voluntary retirement.
Key Employee Demands
In a representation submitted on October 7 to the Department of Pensions and Pensioners’ Welfare, the federation demanded that UPS pension benefits begin from the date of voluntary retirement (VRS) rather than the age of 60. “If an employee retires voluntarily at 45 or 50, they should not have to wait until 60 to receive their pension,” Patel emphasized.
The federation delegation, led by Patel, also met V. Srinivas, Secretary of the Department of Pensions, to present feedback and suggestions on improving the UPS. While the secretary acknowledged the inputs, he has not issued an official comment.
Government Maintains Fiscal Concerns Over OPS
On August 11, 2024, Union Finance Minister Nirmala Sitharaman told the Lok Sabha that the government had no plans to restore the Old Pension Scheme, citing its unsustainable fiscal burden. “The government had moved away from OPS due to its unsustainable fiscal liability on the exchequer,” Sitharaman said. She added that the UPS was introduced after extensive consultations to provide assured post-retirement benefits while maintaining fiscal discipline.
Despite this, employee unions continue to rally behind the OPS, calling it a “socially just and secure” pension model, while criticizing UPS for offering limited guarantees and conditional benefits.
As the November 9 protest at Jantar Mantar approaches, tensions between employee associations and the government are expected to intensify, bringing the debate over India’s pension policies back into national focus.
