Karnataka Government to Scrap NPS and Reintroduce Old Pension Scheme Soon

The Karnataka government has taken a major decision to abolish the New Pension Scheme (NPS) and restore the Old Pension Scheme (OPS) for state government employees. Addressing a state-level Teachers' Day celebration in Bengaluru, Deputy Chief Minister Dr. G. Parameshwara announced that Chief Minister D.K. Shivakumar and the state cabinet discussed the long-pending issue extensively and resolved to transition back to the defined-benefit pension system. Reverting to the Old Pension Scheme was a prominent promise made by the Congress party ahead of the state assembly elections, following sustained demands from government employee unions across Karnataka. Employees recruited after April 2006 were placed under the market-linked NPS framework, which created widespread dissatisfaction due to uncertainties regarding retirement benefits. The decision to restore OPS is expected to provide enhanced pension security and financial stability to over 2.8 lakh government workers currently covered under NPS. While administrative committees previously visited several states that reverted to OPS to study financial and operational models, state officials confirmed that formal implementation steps and Cabinet clearances will follow shortly. The government assured employee representatives that necessary legal and budgetary adjustments will be made to expedite the transition.