OPS Old Pension Scheme, OPS Vs NPS, PRAN Card : Strong Impact on Election Mood in 2024?

Key Highlights of OPS:

  • OPS Full Form is Old PENSION SCHEME. It is applicable to government employees.
  • In the old pension scheme, at the time of retirement, 50 percent of the last basic salary of is given as pension.
  • They also get the benefit of the revision of Dearness Relief (DR), twice a year.
  • The employee receives a lifetime income after retirement without doing any work.
  • In OPS scheme, the pension amount is given to employee’s family member if employee dies after retirement.
  • Through this scheme, the facility of medical allowance and reimbursement of medical bills is also given after retirement
  • In this scheme, the amount of gratuity up to Rs 20 lac is given to the retired employee.
OPS Full Form
OPS Full Form

Old Pension Scheme

Introduction and Overview:

Under the Old Pension Scheme i.e. Old Pension Scheme (OPS), before the year 2004, the government used to give a fixed pension to the employees after retirement. This pension was based on the salary of the employee at the time of retirement. Under OPS, there was a provision for General Provident Fund (GPF). General Provident Fund is applicable only to Government employees.

In G.P.F. Government employees have to contribute a certain percentage of their salary to GPF and the total amount accumulated during the entire employment period is paid to the employee at the time of retirement. The government bears the expenditure on pension. In this scheme, after the death of the retired employee, his family members were also given pension. However, this scheme was discontinued on 1 April 2004 and replaced by the National Pension Scheme(NPS). In This Article we cover all the details regarding Old Pension Scheme and New Pension Scheme and what is the impact at present.

Old Pension Scheme Latest News: Why Is This a Hot Topic?

There has been a long-standing debate about the Old Pension Scheme across the country. As soon as the time of elections comes in the country, this issue takes hold. Due to this this, the politicians are giving promises that their party will implement the OPS back. Recently, the old pension scheme has also been implemented in many states, including Chhattisgarh, Rajasthan etc.

The matter of old pension scheme has once again become hot in the country. The Reserve Bank has cautioned against rolling back the old pension scheme being followed by some states, saying it could pose a major risk to their exchequer. As a result, non-financial liabilities will go on increasing. After this, the round of allegations and counter-allegations has started again.

In the report published titled ‘State Finances: A study of the budget of 2022-23’, RBI has appealed to the states to avoid such tempting schemes. The RBI comments come in the backdrop of Congress-ruled Himachal Pradesh becoming the latest state to roll out the Old Pension Scheme (OPS) linked to Dearness Allowance (DA). Earlier, the governments of Rajasthan, Chhattisgarh and Jharkhand had had informed the central government and the Pension Fund Regulatory and Development Authority (PFRDA) about its decision to re-introduce OPS for its employees. The Punjab government had also implemented the OPS for their state government employee on November 18, 2022.

How Many States in India opted Old Pension Scheme (OPS)

Rajasthan in April 2022

Jharkhand and Punjab in October-November 2022

Chhatisgarh in December 2022

Himachal Pradesh in April 2023


Story of Himanchal Pradesh Regarding Old Pension Scheme

old pension scheme latest news
old pension scheme latest news


New Pension Scheme: Key Points:

  • NPS Full Form is National Pension System.
  • Scheme was Implemented from January, 2004  by Central Government.
  • NPS is being regulated by PFRDA thereunder by Department of Financial Services .
  • At retirement, employee can withdraw 60% of the corpus, which is tax-free and the remaining 40% is invested in annuities, which is taxed.
  • Monthly contribution equal to 10 percent of the sum of salary and dearness allowance will be made by the subscriber. In order of this, the fixed contribution(14% at present) of the service provider will be made by the state government.
  • Deduction from the salary for the newly defined contribution pension scheme will start from the salary payable for the month following the month in which the employee takes charge. Apart from this, the contribution of the amount given by the employer will also be deposited.
  • Since the new recruits will not be able to contribute to the General Provident Fund. Therefore, There will be two account One is Tier-I account, Second is Tier-II Account.
  • Contribution and investment income will be deposited in one account which will be Pension Tier-1 account. Any withdrawal from Tier-I account during the service period will be allowed as per rules.
  • Tier-II account will be voluntery. No Contribution will be made by employer to tier-II account.
  • Personnel own Tier-II Will be free to withdraw the whole or any part of the money in the account at any time.

Allocation of the Amount Contributed Among Pension Fund Managers

With effect from July 01, 2011 PFRDA Following the prescribed ratio of allocation of pension fund among pension fund managers for government employees, the Government of Uttar Pradesh has allocated the pension fund among the three pension fund managers for the subscribers of the New Pension Scheme as follows:

Pension Fund Manager Proportionate Percentage of Pension Fund
State Bank of India (SBI) 31.00 %
Unit Trust of India (UTI) 35.50 %
Life Insurance Corporation of India (LIC) 33.50 %


PRAN Full Form, PRAN Number and PRAN Card : Full Details

Pran full form is Permanent Retirement Account Number (PRAN), and it is a physical card. It is issued by NSDL e-Governance Infrastructure Limited (NSDL e-Gov), a Government of India initiative. PRAN helps to securely access the pension account of the subscriber, giving them easy access to funds. This card is very useful for the subscribers of National Pension System (NPS).

All NPS subscribers must compulsorily be issued a PRAN card. It contains a 12-digit unique identification number, which identifies the marker to existing and new subscribers. Person can get his or her pension account details, transaction etc through PRAN gateway. The physical card ensures that only authorized persons can access their pension funds.

PRAN Full Form, Pran Number and Pran Card : Full Details
PRAN Full Form, Pran Number and Pran Card : Full Details

How to apply for PRAN Online?

The process to apply for PRAN online is as follows:

  1. Log-in to the eNPS portal (https://enps.nsdl.com) through valid log-in credentials and select ‘New Registration’.
  2. Fill the required details like name, phone number, email address, nomination details and know your PRAN number by date of birth.
  3. After registration, OTP will be sent to the registered mobile number or email address for authentication.
  4. After the authentication is complete, the next step is KYC verification. This requires uploading and submitting valid identity and address proof documents like PAN card, voter ID, passport etc.
  5. After successful payment, NSDL will issue PRAN and email with PRAN number and other details.
  6. Within three weeks, you will get the physical card at your address.

How to apply for PRAN card offline?

If you take the offline approach to obtain the NPS PRAN card, you will need to visit an authorized Point of Presence (PoP). Thereafter, each applicant needs to fill and submit the Annexure S1 form or the National Pension System (NPS) Application Form.

This application form should include specific details such as:

  • Personal information of the applicant
  • Employment details of the applicant
  • Nominee Information
  • Scheme details
  • Declaration of Subscriber to PRFA, Pension Regulatory Fund and Development Authority

Also, you can apply for PRAN using PAN or Aadhaar card:

Using PAN:

For this process individuals need to fill Annexure S1 form, attach PAN card and submit it at the nearest NPS Point of Presence (PoP).

Using Aadhaar Card:

To open an NPS account, Aadhaar card can be used. For this, you have to fill Annexure S2 form, attach Aadhaar card and submit it at the nearest NPS Point of Presence (PoP).

Documents required for PRAN Card Application


  1. Proof of Identity (PAN Card, Driving License, Passport etc.)
  2. Address Proof (Voter ID Card, Electricity Bill, Ration Card etc.)
  3. Photograph of the applicant and the nominee
  4. Passport size photo
  5. Canceled Cheque/Bank Passbook
  6. Annexure S1 or Annexure S2 Form

NRI PRAN Card Application Process

NRIs can also apply for PRAN online or offline. To apply online, the NRI has to visit the ENPS portal and click on ‘How to apply for PRAN card online?’ For offline application, NRI has to fill Annexure S3 form and submit it at the nearest NPS Point of Presence (PoP). The documents required for NRI applicants remain the same as the above documents.

After submitting all the required documents along with the duly filled form, individuals will receive their physical PRAN card within three weeks after successful registration.

How to Login Portal for NPS

  1. Visit the ENPS portal at https://enps.nsdl.com
  2. Submit or enter your Twelve digit PRAN.
  3. Do verification .
  4. Click on ‘Login’ to access your account and view all your pension details and transactions, add/modify bank details as required. Click for Official Website

How to activate your PRAN card

  1. Visit the ENPS portal at https://enps.nsdl.com
  2. Need to put PRAN Details as required by you.
  3. Generate One Time Password (OTP) on your registered mobile number or email address to activate your account and receive your login credentials like User ID, Password etc.,
  4. Once logged in, you can view all necessary information related to NPS scheme and transactions done using this PRAN card status, add/modify bank details etc.
  5. To complete the activation process, click on the ‘Activation’ option from the main page and enter the OTP generated earlier along with other details provided by you while registering for PRAN card.
  6. After filling all the details, click on ‘Activate’ to successfully activate your e-PRAN card download.

How to check PRAN Card Balance?

To check your PRAN card balance, visit the eNPS portal and log-in using your 12-digit Permanent Retirement Account Number (PRAN) and other required details. Once logged in, you can view all relevant information related to the National Pension Scheme (NPS), including contributions made, transaction details, etc. You can add/modify bank information as required.

How to contact PRAN Card Customer Care?

In case the subscriber faces any issue or query related to their PRAN card, they can contact their respective NPS Point of Presence (PoP) customer care service. Visit the official website.

Difference between OPS and NPS


S.No Particular OPS (OLd Pension Scheme) NPS (National Pension System)
1 Deduction From Salary No deduction is made from salary for pension. 10% is deducted from the salary.
2 GPF Facility G.P.F. (General Provident Fund) facility is available. facility is not available.
3 Guaranteed Pension At the time of retirement, a pension of about 50 percent of the last basic pay is guaranteed. No guarantee. It is possible that due to the market recession, the money will be completely drowned.
4 Nature Secured Pension Scheme Market Based Pension Scheme
5 Dearness Allowance The enhanced rate of dearness allowance is received every six months. The increased rate of dearness allowance is not received every six months.
6 Pay Commission Gets the benefit of applicable pay commission every 10 years. Does not get the benefit of Pay Commission applicable every 10 years.
7 Gratuity There is a fixed provision of maximum gratuity up to Rs.20 lakhs. It is a temporary arrangement.
8 Family Pension Provision of family pension in case of death while in service. Temporary provision of family pension.
9 Funding Payment is made by the Government through the Treasury. Market based payment system.
10 Income Tax On retirement the G.P.F. Interest is received, no income tax has to be paid on it. The money received on retirement will be subject to income tax.
11 Invesment Getting pension at the time of retirement. Out of this, 40 percent does not have to be invested. At the time of retirement, 40 percent investment has to be made to get pension.
12 Lumpsum There is a facility of 40 percent pension computation i.e. getting lump sum money by selling pension. 40 percent pension computation means there is no facility to get lump sum money by selling pension.
13 Medical Reimbursement Facility Medical reimbursement facility is admissible. There is no clear provision for medical reimbursement facility.


OPS : Old Pension Scheme Rally in Ramleela Ground in Delhi on 01st October 2023
ops old pension scheme
ops old pension scheme

On 01st October 2023, Government employees from across the country protested for restoration of old pension at Ramlila Maidan in Delhi. A fair of thousands of employees from all over the country was seen at Ramlila Maidan in Delhi. Many political parties also supported this movement of employees and supported the government to consider this campaign.

Everyone’s eyes are on what decision the current Bharatiya Janata Party government takes in view of the upcoming Lok Sabha elections 2024.


For Government Employees, OPS and N.P.S are two new schemes or systems, due to lack of similarities between these two schemes, government employees of different states are opposing the new pension scheme, and are constantly requesting the government to restore the old pension scheme under a uniform system.

On the other hand, if we talk about politicians, the same old pension system has been restored for them, they are not covered by the new pension scheme. This thing has also become the reason for the anger of the government personnel. Although closed for more than 20 years of O.P.S. scheme, It is not easy for any government to re-operate. It will be challenging to adopt OPS in place of NPS for any state, but in view of the coming elections, it is possible that various state government personnel will restore the old pension system.


FAQ on OPS and NPS:

Which is best, OLd Pension Scheme or New Pension?

Old Pension is considered as fixed and satisfied pension where NPS is market based, thatswhy

most of goverment employee union are asking to implement OPS.

1.Can i have two pran card?

No, One person can avail one pran card only

2.How to get pran number if i forgot?

Go to the official website cra-nsdl.com/CRA/pranCardStatusInput.do.

With the help of your pan and adhar card details you can find you pran card easily.

3.Is there any Tax Benefits under NPS?

Yes, under Sec 80 CCD (1) You can avail tax benefits up to Rs. 1.5 lac.

4.Is there any Tax Benefits under NPS Tier-II?

No, in tier-II there is no tax benefits.


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