In a definitive parliamentary clarification regarding pension policy, the Ministry of Finance reiterated that there is no proposal under consideration to restore the Old Pension Scheme (OPS) for Central Government employees.
Replying to Unstarred Question No. 3637 in the Lok Sabha on Monday, August 10, 2026, Minister of State for Finance Shri Pankaj Chaudhary cited the unsustainable fiscal burden of the OPS exchequer while addressing state-wise NPS assets under management (AUM) and statutory exit provisions.
Centre Rules Out OPS Revival Due to Fiscal Liabilities
Addressing parts (a) and (b) of the question asked by MP Dr. Indra Hang Subba, the Ministry stated unequivocally that the Central Government does not intend to revert to the defined-benefit Old Pension Scheme:
- No Proposal for Restoration: The Government of India confirmed there is no plan to reinstate the Old Pension Scheme.
- Fiscal Sustainability Reason: The decision to stay away from OPS is driven by the unsustainable fiscal liability it places on the government exchequer over the long term.
State-Wise NPS Corpus Data (As on July 26, 2026)
Replying to part (c) regarding state governments that informed the Centre or the Pension Fund Regulatory and Development Authority (PFRDA) about reverting to OPS, the Finance Ministry presented the accumulated Assets Under Management (AUM) deposited under NPS:
| State Name | NPS Assets Under Management (AUM) |
| Rajasthan | ₹53,403.89 Crore |
| Punjab | ₹40,673.08 Crore |
| Chhattisgarh | ₹24,030.04 Crore |
| Jharkhand | ₹14,420.90 Crore |
| Himachal Pradesh | ₹12,525.96 Crore |
PFRDA Rules Bar Refund of Accumulated NPS Funds
Regarding the demand by state governments for the return of deposited pension funds, the Finance Ministry clarified the strict statutory framework:
- No Refund Provision: Under the PFRDA Act, 2013, read alongside the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, there is no provision allowing the accumulated corpus to be refunded or transferred back to state governments.
- Protection of Subscriber Corpus: The accumulated corpus—comprising Government contributions, Employees’ contributions, and accrued returns—belongs to individual subscribers and cannot legally be handed over to state exchequers.
Summary of Lok Sabha Reply on OPS Implementation
| Parameter | Official Position / Statutory Status |
| Central Government OPS Proposal | None (Ruled out due to fiscal burden) |
| States Reverting to OPS | Rajasthan, Punjab, Chhattisgarh, Jharkhand, Himachal Pradesh |
| Highest State NPS Corpus | Rajasthan (₹53,403.89 Cr) |
| PFRDA Statutory Refund Legal Status | No provision exists to refund NPS corpus to states |
