Pension System and Reforms for Central Government Employees: Government Shares Details in Rajya Sabha

In a written reply to an Unstarred Question in the Rajya Sabha on March 10, 2026, the Ministry of Finance provided key details regarding the pension system for Central Government employees, including coverage under different schemes, delays in pension payments, and ongoing reforms.

Coverage Under NPS and OPS

The Government informed that the total number of Central Government employees is approximately 50.14 lakh.

As per the data provided:

• Around 49,802 pensioners are covered under the National Pension System (NPS) (as on January 31, 2026).
• Approximately 69 lakh pensioners are covered under the Old Pension Scheme (OPS) (as on December 8, 2025).

No Reported Delays in NPS Pension Payments

Addressing concerns about delays in pension disbursement, the Government stated that neither it nor the Pension Fund Regulatory and Development Authority (PFRDA) has come across any reported cases of delay in the payment of monthly pensions under NPS by Annuity Service Providers.

Government’s Stand on OPS Restoration

On the demand raised by some States for restoration of the Old Pension Scheme, the Government clarified that such decisions fall entirely under the jurisdiction of State Governments.

However, it was noted that the Comptroller and Auditor General (CAG), in recent State Finance Audit Reports, has highlighted the fiscal implications of reverting to OPS.

The Government reiterated that NPS is a defined contribution-based scheme, applicable to Central Government employees (except armed forces) who joined service on or after January 1, 2004.

To improve pensionary benefits under NPS, a Committee chaired by the then Finance Secretary was constituted. Based on its recommendations and stakeholder consultations, the Unified Pension Scheme (UPS) has been introduced as an option within NPS to provide defined benefits after retirement.

Digital Initiatives for Pensioners

The Government also highlighted several digital initiatives aimed at improving ease of access and efficiency for pensioners:

• Introduction of a Single Simplified Pension Application Form through the ‘Bhavishya’ centralized pension processing system, now mandatory for all Central Civil Ministries and Departments.
• Implementation of Digital Life Certificates (DLCs) to facilitate easier submission of life certificates.
• Fully digital process for NPS exit and annuity, enabling subscribers to complete procedures online.
• Automated email and SMS alerts at various stages of pension processing.
• Ongoing technological enhancements to improve system efficiency and user experience under the NPS framework.

These measures are part of the Government’s broader efforts to streamline pension administration and enhance service delivery for pensioners.

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