In a recent announcement, the finance ministry revealed that as of March 31, 2023, there are over 67.95 lakh central government pensioners, encompassing defence pensioners. The data, compiled from various departments including the Department of Pension and Pensioners’ Welfare, Controller General of Defence Accounts, Ministry of Railways, Department of Telecommunication, and Department of Posts, indicates a diverse distribution among civil, defence, telecom, postal, and railway pensioners.
As of the mentioned date, civil and defence pensioners stood at close to 11.42 lakh and over 33.87 lakh, respectively. Additionally, the number of telecom and postal pensioners was reported at over 4.38 lakh and 3.01 lakh, respectively. Railway pensioners accounted for over 15.25 lakh individuals.
Addressing inquiries about the possible restoration of the old pension scheme (OPS) for central government employees, Minister of State for Finance Pankaj Chaudhary clarified that there is no such proposal under consideration. He noted the existence of a committee, chaired by the Finance Secretary, tasked with examining pension-related issues under the National Pension System (NPS) for government employees.
Chaudhary further highlighted that several state governments, including Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh, have communicated their decision to revert to the Old Pension Scheme (OPS) for state government employees. However, he emphasized that there is no provision to refund and deposit the accumulated corpus of subscribers, along with contributions and accruals, back to state governments as per the existing regulations.
The OPS, which guaranteed retired government employees 50% of their last drawn salary as monthly pensions, is considered unsustainable due to its non-contributory nature, leading to a mounting burden on the exchequer. The National Pension System (NPS) has been implemented for government employees, excluding those in the armed forces, joining the central government since January 1, 2004.
