“OLD PENSION SCHEME VS NEW PENSION SCHEME IN INDIA: A COMPARATIVE, FISCAL, SOCIAL & POLICY ANALYSIS”

AUTHOR – DR. WAHEED ALAM, ASSISTANT PROFESSOR AT FACULTY OF LAW, SHIA PG COLLEGE, LUCKNOW

BEST CITATION – DR. WAHEED ALAM, “OLD PENSION SCHEME VS NEW PENSION SCHEME IN INDIA: A COMPARATIVE, FISCAL, SOCIAL & POLICY ANALYSIS”, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (7) OF 2026, PG. 01-04, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/IJLRV6I71

Abstract

The transition from the Old Pension Scheme (OPS), a defined-benefit pension system, to the New Pension Scheme (NPS), a defined-contribution model, represents one of the most significant public policy shifts in India’s social security architecture. This paper examines the structural differences between OPS and NPS, their fiscal implications, social welfare outcomes, employee perspectives, and institutional challenges. Drawing upon official reports (OASIS Committee, PFRDA annual reports), state-level case studies of reversion, and empirical data, the paper argues that while NPS offers greater fiscal sustainability, it introduces risks and uncertainties for retirees, especially lower‐income government employees. The paper proposes hybrid approaches and specific policy reforms—such as inflation-indexed annuities and minimum guaranteed pensions—to reconcile financial sustainability with social protection.

Keywords: Old Pension Scheme (OPS), New Pension Scheme (NPS), Defined Benefit, Defined Contribution, Pension Reform, Fiscal Sustainability, Annuity, India, Social Security.