Jaipur, Nov.27,2025:Rajasthan OPS Update — a fresh and revised directive from the state’s finance department — has delivered what many government employees across Rajasthan saw as long-awaited relief. The new order clarifies once and for all which government-affiliated institutions will continue with the Old Pension Scheme (OPS), and under what conditions. As of the latest directive, institutions where OPS was active by 31 October 2023 will continue to provide OPS-based pension benefits.
This update marks a significant shift from the uncertainty and anxiety that gripped many boards, corporations, universities, and autonomous bodies. With OPS secured for many, those concerned about sudden shifts to other pension structures like the National Pension System (NPS) now have partial assurance — though the update also lays out clear conditions for others.
Why Was There Confusion Over OPS vs NPS
To understand the significance of the Rajasthan OPS Update, one must look at the backdrop of pension reforms
- Traditionally, OPS — a defined-benefit pension scheme — was the standard for many state employees across India. Under OPS, retirees receive a pension based on their last drawn pay, along with Dearness Allowances, among other benefits.
- However, since 2004, the Union government replaced OPS with the NPS for central employees, shifting to a defined-contribution scheme.
- In 2023, the previous administration in Rajasthan restored OPS for many employees — a move welcomed widely. But with financial constraints, some institutions—particularly loss-making boards, corporations, and autonomous bodies — struggled to maintain pension liabilities. This led to confusion and anxiety when another order (dated 9 October 2025) seemed to allow or encourage a shift back to NPS or other pension/benefit systems.
- Employees and pensioners feared that OPS might be rolled back, jeopardizing pension stability. The 9 October order triggered unrest among staff and pensioners, prompting demands and protests from various associations.
In this context, the latest Rajasthan OPS Update — clarifying continuation of OPS for many — has come as a relief, though with caveats.
Which Institutions Will Continue OPS
The Rajasthan OPS Update spells out clearly which institutions are covered
- All state government boards, corporations, undertakings, autonomous bodies, and universities where OPS (or the GPF-linked pension scheme) was already active by 31 October 2023 will continue under OPS.
- This means that for employees working in these institutions — whether currently serving or future retirees — pension benefits under OPS will not be withdrawn or replaced, as long as the institution maintains OPS in its books.
- Even in cases where institutions had earlier collected “option letters” from staff (for switching pension schemes), but had not yet implemented alternative systems, the OPS will continue — once funds are deposited and obligations met, benefits will be restored.
In short: If OPS was legitimate, active, and implemented by 31 Oct 2023 — that institution is safe from pension scheme disruptions.
What Happens to Institutions That Opted for NPS or CPF/EPF
The update also addresses institutions that, due to financial constraints, chose to shift out of OPS
- The finance department had earlier allowed institutions classified as “financially weak or loss-making” — boards, corporations, universities, autonomous bodies — to opt out of OPS or GPF-linked pension, and move to NPS or CPF/EPF, with proper approval.
- For such institutions, the obligation to finance pension or retirement benefits now rests with the institution itself, rather than the state government as a whole.
- Importantly, the updated order clarifies that the state government will not provide financial aid to these institutions for OPS — if they choose to continue it independently, they must mobilize resources themselves.
- If such institutions had already shifted employees (or new employees) to NPS, or were allowed to implement NPS after the 9 October directive, then pension benefits will follow NPS rules — not OPS.
Thus, while OPS is preserved for many, the update leaves room for divergence — depending on the institution’s financial health and prior steps taken.
Reaction from Employee Bodies and Pensioners
The Rajasthan OPS Update was widely welcomed — but not without caution.
- The state’s employee union, Akhil Rajasthan Rajya Karmchari Sanyukt Mahasangh, hailed the order as a victory of their long-drawn struggle. The union had vehemently opposed the 9 October directive that seemed to push institutions toward NPS.
- However, some pensioners’ associations and academic-staff bodies remain skeptical. For example, Rajasthan Finance Corporation Pensioners Association and Rajasthan University Teachers’ Association (RUTA) criticized the government’s earlier move as “dictatorial” and warned that this update, while a relief, may just be a temporary retreat — not a guarantee for long-term pension security.
- These groups argue that pushing the financial burden onto individual institutions undermines the spirit of restoring OPS statewide. There’s concern that future financial difficulties could again jeopardize pensions, especially for smaller or weaker institutions.
In short, while many view the update as a big win, others remain wary — calling for stronger guarantees and transparency.
What the Old Pension Scheme Means, and Why It Matters for Employees
To appreciate the importance of the Rajasthan OPS Update, it helps to understand what OPS actually entailed, and why its restoration had been significant.
- Under OPS, pensioners receive a guaranteed defined-benefit pension, calculated on the basis of their “last pay drawn” at retirement, along with allowances like Dearness Allowance (DA).
- This model provides financial security and predictability: retirees know what their pension will be, and can plan their post-retirement life accordingly. For many employees — especially those with moderate salaries — this benefit is crucial.
- By contrast, NPS is a defined-contribution scheme: contributions are invested (in market-linked funds), and pension benefits depend on accumulated corpus and market performance. This introduces uncertainty and risk — not ideal for many employees looking for stable retirement income.
- Given rising inflation, increasing costs of living, and economic uncertainty, OPS offers psychological and financial assurance. The assurance of a reliable pension — not depending on market performance — has historically been a major reason why employees preferred OPS.
Thus, reinstating OPS — at least for eligible institutions — reinstates a sense of security and fairness for many government employees in Rajasthan.
The Rajasthan OPS Update brings a breath of relief to many — but also leaves some questions open. Here’s a quick take
- Employees of boards, corporations, autonomous bodies and universities where OPS was active by 31 Oct 2023 need not worry: OPS will continue for them.
- Institutions that opted out or were financially weak may shift to NPS or other schemes — and pensions for their employees will depend on those schemes. The state will not foot the bill.
- Employee unions and pensioners’ associations have welcomed the update — but are demanding firmer guarantees. They insist that pension must remain a basic right, not subject to institutional financial health.
- Going forward, employees should watch for: official circulars, institution-wise implementation, and transparency in pension fund health. Those in weaker institutions may need to stay alert if financial stress resurfaces.
For now, this Rajasthan OPS Update offers stability and clarity — a much-needed respite after months of uncertainty.
