A new OPS version is scheduled to see new life in 2025. The government has opened the door to the reinstitution of defined-benefit pensions after years of use of the National Pension System. This update will provide certainty of monthly payments and increased cost- of- living relief to millions of retirees.
Return of Defined Benefits
Under OPS, he or she is given a pension of half the amount of last drawn basic pay as a retiree. This scheme insulates pensioners unlike the market-linked returns to the current scheme. The family pension will not face the ax after the 2025 revision, but will be maintained at 30 percent of the initial pension and thus spouses and dependents are secured.
Increased Dearness Relief
The expenses incurred due to these costs have increased dramatically the past few years. The government has pegged the Dearness Relief ( DR ) at 55 percent of the basic pension to counter inflation. The payment on DR pensions is carried out semi-annually so that the incomes of retirees correspond to the increase in prices without having to recalculate the wages.
Who Can Opt In
The OPS will automatically include all central government workers who are appointed afterward on January 1, 2025. Current NPS subscribers will have an option of migrating to OPS within a period of six months. The different States governments will have the option of mimicking the same rules to their employees, thus having a common framework across America.
How to Enrol or Migrate
Employees who want to transfer to OPS have to fill Form OP-1 through their HR. Upon affordable verification of service records and consent, pension authorities will also calculate the guaranteed pension and inform members of their estimated pensions. There is no extra money payable besides what is already contributed by employer and employees.
Pension Benefit Matrix
The table below illustrates monthly pension payouts under OPS for common basic pay levels. It factors in the 50 percent pension rate and 55 percent DR.
| Last Drawn Basic Pay (₹) | Base Pension (50%) (₹) | DR (55% of base) (₹) | Total Monthly Pension (₹) |
|---|---|---|---|
| 30,000 | 15,000 | 8,250 | 23,250 |
| 50,000 | 25,000 | 13,750 | 38,750 |
| 80,000 | 40,000 | 22,000 | 62,000 |
Also read: PPF Withdrawal Rules 2025: Everything You Need to Know