The Union Government has informed the Rajya Sabha that approximately 50.14 lakh employees currently work under the Central Government, while nearly 69 lakh pensioners are covered under the Old Pension Scheme (OPS). In comparison, 49,802 pensioners are currently under the National Pension System (NPS).

The information was provided by Minister of State for Finance Pankaj Chaudhary in a written reply to an Unstarred Question (No. 1993) raised by MP Pradip Kumar Varma in the Rajya Sabha on March 10, 2026.

Number of Employees and Pensioners

According to the Ministry of Finance, the Central Government workforce stands at about 50.14 lakh employees. The Government also presented scheme-wise data regarding pensioners:

• National Pension System (NPS) – 49,802 pensioners (as on January 31, 2026)
• Old Pension Scheme (OPS) – Approximately 69 lakh pensioners (as on December 8, 2025)

The data reflects the continued presence of a large number of retirees receiving pensions under the OPS, even though the system was replaced for new central government recruits in 2004.

No Delay Reported in NPS Pension Payments

The Government stated that neither the Government nor the Pension Fund Regulatory and Development Authority (PFRDA) has received any reports regarding delays in the payment of monthly pensions under the National Pension System.

Pensions under NPS are provided through Annuity Service Providers (ASPs) after retirement, and the system has reportedly functioned without delay complaints in the past three years.

Centre’s Stand on Restoration of OPS

Responding to questions regarding demands by several states to restore the Old Pension Scheme, the Government clarified that the decision to implement OPS lies entirely within the policy discretion of state governments.

However, the Government noted that the Comptroller and Auditor General (CAG) has highlighted the significant fiscal implications of reverting to the OPS model in its recent State Finance Audit Reports.

The Centre reiterated that NPS is a defined contribution-based pension system, introduced for Central Government employees (except armed forces) joining service on or after January 1, 2004.

To address concerns regarding pension security under NPS, the Government has introduced the Unified Pension Scheme (UPS) as an option within the NPS framework. The scheme aims to provide defined pension benefits after retirement while retaining the contribution-based structure.

Digitization Measures for Pensioners

The Government also highlighted several initiatives aimed at improving pension services through digital platforms.

A New Single Simplified Pension Application Form has been introduced through the centralized pension processing software “Bhavishya,” which is now mandatory for all Central Civil Ministries and Departments. The system aims to streamline pension processing and make filing easier for retiring employees.

Additionally, the Government has implemented Digital Life Certificates (DLCs) to allow pensioners to submit life certificates online.

For NPS subscribers, the exit and annuity processes are now fully digital, enabling subscribers to:

• Submit retirement and exit requests online
• Receive annuity payments through digital processing
• Get email and SMS notifications during various stages of the withdrawal and annuity credit process

The Government stated that continuous technological upgrades are being implemented to improve system efficiency and ensure ease of access for pension subscribers under the NPS architecture.

Ongoing Pension System Reforms

The Ministry emphasized that the introduction of UPS and digital initiatives reflects the Centre’s efforts to strengthen the pension framework while ensuring long-term fiscal sustainability.

The Government also reiterated that pension reforms and technological integration remain key priorities for improving the welfare and service delivery mechanisms for Central Government employees and pensioners.

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