OPS vs NPS: Which Pension Pays You More?
The Centre now allows compassionate-ground government employees appointed before 2004 to choose the Old Pension Scheme. This matters because OPS gives a fixed monthly pension for life, while NPS depends on market returns — a big difference for your retirement security.
An NPS corpus of ₹1 crore buys an annuity of ~₹40,000/month — OPS gives ~₹25,000 guaranteed, no market risk.
Your OPS pension can be this much more than NPS at retirement
Key Takeaways
Check your appointment letter date: if you or a family member was appointed on compassionate grounds before Jan 1, 2004, verify eligibility with your department's HR or pay office immediately.
Compare your projected OPS pension (50% of last drawn basic pay) vs your current NPS corpus projection using the NPS Trust calculator at npstrust.org.in before making any switch decision.
If eligible, submit a formal written application to your department citing the latest government circular — do not assume the switch happens automatically; a missed deadline can cost you OPS benefits permanently.
The Centre now allows compassionate-ground government employees appointed before 2004 to choose the Old Pension Scheme. This matters because OPS gives a fixed monthly pension for life, while NPS depends on market returns — a big difference for your retirement security.
Here's what happened: Central government employees appointed on compassionate grounds before January 1, 2004 can now opt for the Old Pension Scheme (OPS) instead of NPS.. The benefit was previously available only to regular appointees who applied before the 2004 cutoff — compassionate appointees were left out until now.. Eligibility is determined by the application date for compassionate appointment, not the actual joining date — a critical distinction for affected families..
What you should do: Check your appointment letter date: if you or a family member was appointed on compassionate grounds before Jan 1, 2004, verify eligibility with your department's HR or pay office immediately.. Compare your projected OPS pension (50% of last drawn basic pay) vs your current NPS corpus projection using the NPS Trust calculator at npstrust.org.in before making any switch decision.. If eligible, submit a formal written application to your department citing the latest government circular — do not assume the switch happens automatically; a missed deadline can cost you OPS benefits permanently..
Under OPS, your pension is inflation-protected via Dearness Relief (DR) revisions twice a year — NPS annuities from most insurers offer no such inflation link, quietly eroding your real income after 70.
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- [1]“Centre extends Old Pension Scheme (OPS) benefit to compassionate ground appointees: Application date to decide eligibility; who will benefit?” Wealth-Economic Times · 23 Jun 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.