Parliament Question: Pension system and reforms for Central Government employees

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES RAJYA SABHA UNSTARRED QUESTION NO. 1993 ANSWERED ON TUESDAY, MARCH 10, 2026/PHALGUNA 19, 1947 (SAKA) PENSION SYSTEM AND REFORMS FOR CENTRAL GOVERNMENT EMPLOYEES 1993#. SHRI PRADIP KUMAR VARMA Will the Minister of Finance be pleased to state: (a) the number of Central Government employees and pensioners currently covered under the New Pension Scheme (NPS) and the Old Pension Scheme (OPS), the details thereof category-wise; (b) the number of cases of delay in pension payments reported in the last three years and the reasons therefor; (c) the Central Government's stance on the demand of States for restoration of the Old Pension Scheme (OPS) and the proposed reforms in the National Pension System (NPS); and (d) the plans for digitalization and the expansion of online services for the welfare of pensioners? ANSWER MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY) (a) The number of Central Government employees are approximately 50.14 lakhs. The category-wise number of Central Government pensioners covered under National Pension System (NPS) and Old Pension Scheme (OPS) are as under: S.No Scheme No. of Pensioners 1 National Pension System (as on 31.01.2026) 49,802 2 Old Pension Scheme (as on 08.12.2025) 69 lakh approximately (b) The Government/ Pension Fund Regulatory and Development Authority (PFRDA) has not come across any case of delay reported by the subscribers under National Pension System in payment of monthly pension by the Annuity Service Providers (ASPs). (c) The restoration of Old Pension Scheme in the States falls exclusively under State policy discretion. However, Comptroller and Auditor General (CAG), in its recent State Finance Audit Reports, has highlighted the fiscal implications of reversion to OPS by the States. NPS is a defined contribution-based scheme which was introduced for Central Government employees (except armed forces) joining service on or after 01.01.2004. With a view of improving upon the pensionary benefits for such employees, a Committee was constituted under the chairpersonship of the then Finance Secretary to suggest measures to modify the NPS. Based on the deliberations of the Committee with stakeholders, Unified Pension Scheme (UPS) has been introduced as an option under NPS with the objective of providing defined benefits after retirement to the Central Government employees covered under the NPS. (d) The Government has introduced a New Single Simplified Pension Application form through its centralised pension processing software, Bhavishya, mandatory for all Central Civil Ministries/Departments, significantly improving ease of filing. Further, Government has also introduced Digital Life Certificates (DLCs) in accordance with the National Initiative of digitally empowering citizens. The lump-sum withdrawal/annuity process for NPS is completely digital wherein subscriber can submit the exit request and get the annuity through online process. Email and SMS are sent to the subscribers upon various stages of their Exit as well as credit of lump sum amount/annuities. The life certificate submission facility for subscribers is also through digital mode. Further, new initiatives and technological enhancements are undertaken on an ongoing basis to improve system efficiency for ensuring ease to the subscribers under the NPS architecture. *******