Despite the government’s efforts, just 31,555 out of 30 lakh central employees have opted for the Unified Pension Scheme (UPS) within the first four months. With only 60 days remaining until the final deadline of 30 September, the scheme has failed to gain traction among employees, most of whom are still demanding the restoration of the Old Pension Scheme (OPS).
The UPS, aimed at replacing the National Pension System (NPS), has not found favour with workers, as most believe it fails to provide the same financial security as OPS. According to AIDEF General Secretary C. Sreekumar, the few who chose UPS—mainly ex-servicemen—were under the impression that they would receive ₹10,000 per month in pension. However, they later realised a minimum of 25 years of service is required to receive such benefits, leading to widespread regret among early adopters.
Dr. Manjeet Singh Patel, President of the National Mission for Old Pension Scheme Bharat, added that those who opted for UPS are mostly close to retirement. He argued that unless the government reduces the service requirement from 25 to 20 years and allows pensions from the day of voluntary retirement, the scheme is ineffective. He also called for a return of employee contributions without deductions if the lump-sum option is removed.
Employee federations maintain that both NPS and UPS are inadequate. Over 99% of employees under NPS have rejected UPS, forcing the government to extend the deadline. Meanwhile, growing unrest is pushing unions to escalate their demands.
During the first day of Parliament’s monsoon session, the government was asked whether it had received any suggestions from the National Council (NC-JCM) regarding the 8th Pay Commission. The response confirmed that proposals related to employee salaries, allowances, pensions, gratuities, and post-retirement benefits were submitted. These include recommendations for DA-merger, family pension reforms, and revival of the 1972 CCS pension scheme for post-2004 recruits.
Recently, ten central trade unions and independent employee federations also staged a nationwide strike, demanding the withdrawal of both NPS and UPS. Confederation Secretary S.B. Yadav warned that if the government fails to address these concerns, workers may be forced to take stronger action in the future.
