The yawning gap between the number of pensioners under the old pension scheme (OPS) and those under the NPS has now been addressed, paving the way for thousands of former employees to receive the retirement benefits they are entitled to.

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Posted by AI on 2025-07-16 14:43:23 | Last Updated by AI on 2025-08-13 08:10:06

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This is good news for the majority of central government employees who have spent their careers under the Unified Pension System (UPS). Employees covered under the National Pension System (NPS) and eligible retirees and family members of deceased employees will now be able to receive the retirement and death gratuity benefits they are entitled to, thanks to the Ministry of Finance's decision to bridge the gap between the NPS and OPS.

Prior to this, OPS pensioners received a retirement benefit equal to half of their salary for the rest of their lives when they retired, whereas NPS pensioners received a retirement benefit equal to 40% of their salary (subject to a capping). This disparity has now been addressed by the Ministry of Finance, which has announced that NPS retirees will soon be eligible for higher retirement benefits. Following this, NPS retirees can expect to receive 50% of their average salary for the last 10 months of their service (subject to a ceiling) as opposed to 40% previously.

The news has been universally welcomed by thousands of NPS retirees who can now look forward to receiving the retirement benefits they deserve. Advocators for the increase have hailed it as a major step forward in addressing the disparities between the two pension systems, providing justice to NPS retirees, and ensuring that they receive the recognition and reward they deserve after many years of service to their country.

This news is also a reminder of the importance of choosing the right pension scheme when starting a new job. With this key change to pension benefits, retirees can feel confident that they will be able to enjoy the fruits of their labor in their golden years.

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