Chandigarh Implements Old Pension Scheme for Eligible Employees under National Pension System

Chandigarh Administration’s recent decision to bring back the old pension scheme is good news for many government employees currently under the National Pension System. According to the latest guidelines, eligible employees appointed before January 1, 2004 but enrolled in NPS due to joining dates will switch back to the Central Civil Services (Pension) Rules, 1972 by August 15, 2025. This move addresses worries about retirement security, providing stable pension benefits instead of the changing NPS returns.

Who Can Get the Old Pension Scheme in Chandigarh?

The scheme mainly applies to employees assigned to posts that were advertised or notified on or before December 22, 2003, but who actually joined service on or after January 1, 2004. These employees were first enrolled in the NPS but can now switch back to the OPS according to the Office Memorandum No. 57/05/2021-P&PW(B) dated March 3, 2023, from the Ministry of Personnel, Public Grievances and Pensions. Government departments will check service records to confirm who qualifies.

Also Read – NPS vs Unified Pension Scheme: Which Pension Scheme is Better for Government Employees?

Why the Old Pension Scheme is Better Compared to NPS

The old pension scheme promises a fixed pension equal to 50% of your last salary, which increases with inflation over time. This is a big advantage over the National Pension System, where retirement benefits depend on market performance. Under NPS, you and your employer contribute a part of your salary, but the final returns are not certain and depend on the market.

Official Process and Timeline for Switching Back

The Chandigarh Administration has set a clear timeline and process to make the transition easy. Departments must finish checking eligibility and complete all switches by August 15, 2025. The process involves a careful review of appointment dates and service records, working closely with central government rules. Employees will be regularly informed about their pension status.

What This Means for Your Retirement Security

Bringing back the OPS is seen as a boost to financial security for government workers at retirement. It offers clear and steady benefits, reducing worries about future pension amounts or depending on market ups and downs. For many employees and retirees, this policy strengthens the social safety net, promising steady income after their active service years.

How Other States Are Bringing Back OPS

Chandigarh joins other states like Rajasthan, Chhattisgarh, and Himachal Pradesh in bringing back OPS after years of using NPS. These states responded to employee unions and public demand for financial certainty in retirement. This shows a growing trend of governments balancing budget concerns with promises of social welfare.

Challenges and Concerns About Bringing Back the Old Pension Scheme

Some critics warn that restoring OPS could pressure public finances because it promises fixed pension payments without requiring employees to contribute to the pension fund. There are concerns over long-term pension costs, especially as the number of pensioners grows. Some experts also mention the challenge of managing rising expenses while keeping budgets in check.

Overall, going back to the old pension scheme is a big change in Chandigarh’s employee welfare system. If you are a government employee or retiree in Chandigarh, keeping up with your eligibility and the transition process will help you get the most from this important pension restoration.

Aspect	Details
Eligibility Criteria	Appointed/pre-2004 notified posts, joined after Jan 1, 2004, enrolled under NPS
Transition Deadline	August 15, 2025
Governing Office Memorandum	OM No. 57/05/2021-P&PW(B) dated March 3, 2023
Pension Benefit Under OPS	50% of last drawn salary with inflation adjustment
Official Website	Department of Pension & Pensioners’ Welfare