Old Pension Scheme (OPG) continues to be a major talking point among central and state government officials in 2026. The OPS offers a guaranteed based pension on its promise of 50 percent of the basic of the last pay drawn without any contribution from the employee. Being replaced by the National Pension System (NPS) for new recruits from 2004, demands for restoring OPS have ever stimulated resistance. As a matter of fact, we report here on the subject’s status quo as of 2026.
Government of India’s Stand
The Union Government has time and again emphasized in Parliament and in official replies that there is no such plan of restoring the OPS for the central government employees. The matter of consideration was the Unified Pension Scheme (UPS), which promises definite pensions in a contrbutive framework. No changes of paradigm were announced in the Union Budget 2026 or any recent session.
State-Level Developments
Several opposition-ruled states have already implemented OPS for their employees, setting a trend that continues to pressure the Centre.
| State | Status in 2026 | Key Details |
|---|---|---|
| Rajasthan | Fully restored | Implemented in 2022, continues |
| Chhattisgarh | Fully restored | Reverted to OPS in 2022 |
| Punjab | Fully restored | Implemented for state employees |
| Jharkhand | Fully restored | Adopted OPS in 2023 |
| Himachal Pradesh | Fully restored | Reverted to OPS in 2023 |
These states provide 50% of last pay as pension with no employee contribution, similar to the pre-2004 central scheme.
Unified Pension Scheme vs OPS
The objective of UPS was to guarantee 50% of the average basic pay earned in the past 12 months after completing 25 years of service. Employees in UPS contribute 10% and the amount contributed by the government is 18.5%. Most of the central government employees see UPS as a balanced choice but the unions demand a full return of OPS.
Things Employees Should Know in 2026
Central government employees can consider switching from NPS to UPS, but by now the full restoration of OPS looks harder to achieve due to budgetary constraints. The old age OPS benefits still continue for central government retirees up to 2004. State employees should examine their respective Government orders for eligibility.
The Old Pension Scheme Update 2026 for the central Government shows no variation, but at State level, it appears a topic of continued debate. Always refer to the official DoPT instructions and State government notifications for the true position on NPS, but the OPS.
Also read: DA Merger 2026: Salary Reset, Fitment Factor and Pension Impact