One more State implement Old Pension Scheme(OPS) for nearly 2,500 employees

Nearly 2,500 government workers will find great relief as the Punjab government formally announces the Old Pension Scheme's (OPS) implementation. Employees who entered the service after January 1, 2004, but whose job postings or appointment letters were posted prior to that date, would benefit from this long-awaited change. Even though their hiring process started before to 2004, these individuals had up to now been incorrectly classified under the New Pension Scheme (NPS).

The government issued the notification on May 23, 2025, following an order by the Punjab and Haryana High Court. This comes after a prolonged legal battle fought by affected employees seeking justice. Many of these employees have already completed over 20 years of service and belong to various government departments like:

• Punjab State Power Corporation Limited (PSPCL)
• Education Department
• Urban Local Bodies
• Other administrative departments

Who Will Benefit from the Old Pension Scheme?

As per the updated Punjab Civil Services Rules, Volume II, the OPS will now apply to:

• Employees who joined after January 1, 2004 but whose posts were advertised or appointment letters were issued before that date.
• Employees appointed on compassionate grounds after January 1, 2004, if their application was submitted and they met eligibility conditions before 2004.

OPS vs NPS: Employee Choice

Eligible employees will be allowed to choose between:

• Old Pension Scheme (OPS)
• New Defined Contributory Pension Scheme (NPS)

However, they must make a decision within 3 months from the date of the notification. If they don’t opt within this period, they will automatically remain under the NPS.

Reactions from Employee Groups

Jasvir Talwara, convenor of the Purani Pension Bahali Sangharsh Committee, called the move a “victory for justice.” He pointed out that these employees should never have been placed under the NPS, and the notification has corrected a long-standing error.

Talwara also urged the government to act quickly and open General Provident Fund (GPF) accounts for all 2,500 employees by May 28, 2025, as ordered by the High Court, so the implementation of OPS can begin without delays.

Concerns Over Remaining Employees

However, employee unions also raised concerns that around 2 lakh other employees who joined after January 1, 2004, are still not covered under OPS. Despite the AAP government’s promise in 2022 to restore OPS for all employees, a full rollback has not been implemented.

Talwara criticized recent efforts by AAP ministers to promote the Unified Pension Scheme introduced by the Centre, which unions strongly oppose.

Chief Minister Bhagwant Mann recently reiterated support for employees with pre-2004 appointments but has not addressed the demands of the larger group hired post-2004.