This document summarizes the Indian Ministry of Finance's response to Lok Sabha Unstarred Question No. 3657, addressed on August 11, 2025, regarding the Old Pension Scheme (OPS).
The response clarifies the government's position on extending the OPS to employees of Public Sector Undertakings (PSUs) and Public Sector Banks (PSBs), as well as employees of the State Bank of India (SBI).
Regarding Central Government civil employees appointed after January 1, 2004, but whose recruitment process began before that date, the government, in light of various court judgements, issued Office Memorandum (OM) No. 57052021PPWB dated March 3, 2023. This OM provides a one-time option for inclusion under the CCS (Pension) Rules, 1972 (now 2021) for those appointed against posts advertised/notified before the notification date of the National Pension System (NPS), i.e., December 22, 2003.
However, the Ministry of Finance currently has no proposal under consideration to extend similar provisions to employees of PSUs and PSBs.
Finally, the response clarifies that, according to the State Bank of India Employees Pension Fund Regulations, 2014, the OPS is not applicable to individuals who joined SBI on or after August 1, 2010. The Minister of State for Finance, Shri Pankaj Chaudhary, provided this information.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for financial matters.
Old Pension Scheme (OPS): A pension system that provides retired employees with a defined benefit, based on their last drawn salary and years of service.
Public Sector Undertakings (PSUs): Companies in which the Government of India or state governments have a majority stake.
Public Sector Banks (PSBs): Banks in which the Government of India owns a majority stake.
National Pension System: A defined contribution pension system introduced by the Government of India as an alternative to the Old Pension Scheme.
State Bank of India (SBI): A major public sector bank in India.
CCS Pension Rules, 1972: Central Civil Services (Pension) Rules, 1972, governing pension benefits for central government employees (now CCS Pension Rules 2021).
Shri Pankaj Chaudhary: Minister of State for Finance
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
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LOK SABHA
UNSTARRED QUESTION NO. 3657
ANSWERED ON MONDAY, 11 AUGUST, 2025/ SRAVANA 20, 1947 (SAKA)
OLD PENSION SCHEME FOR PSUS AND PSBS
3657. DR. DHARAMVIRA GANDHI
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has decided to extend the benefit of the Old Pension Scheme (OPS)
to those Government employees whose appointment was made after 1 January 2004, but
whose recruitment process/advertisement was initiated before 1 January 2004, if so, the
details thereof;
(b) whether the Government proposes to implement similar comprehensive provisions for
employees of public sector undertakings and Public Sector Banks; and
(c) whether the Government ensures that all the employees of the State Bank of India whose
recruitment process (such as advertisement or examination) was conducted before 1 August
2010, but whose appointments were delayed due to unavoidable circumstances and took place
after 1 August 2010 are also included in the Old Pension?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b) In light of various Court judgments, the Government had issued instructions vide OM No.
57/05/2021-P&PW(B) dated 03.03.2023, giving one-time option to those Central Government civil
employees for inclusion under the CCS (Pension) Rules, 1972 (now 2021) who have been appointed
against the posts or vacancies which were advertised/notified for recruitment/appointment prior to
date of issuing of notification of National Pension System i.e. 22.12.2003. Further, there is no such
proposal under consideration in Ministry of Finance for Public Sector Undertakings and Public Sector
Banks.
(c) As per the State Bank of India Employees’ Pension Fund Regulations, 2014, the old pension will
not be applicable to those who joined the services of SBI on or after 01.08.2010.
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