The Assam Finance Department has set August 7, 2026, as the final deadline for administrative departments to submit comprehensive details of eligible regular State Government employees whose recruitment process began before February 1, 2005, to expedite the restoration of the Old Pension Scheme (OPS).

This directive aims to accelerate the transition for a specific cohort of employees from the National Pension System (NPS) to the more beneficial OPS, a move that has been a long-standing demand from various employee associations across the state. The decision follows a review meeting where concerns were raised about persistent delays in data submission from several departments.

What was announced

The Assam Finance Department, in a recent directive, mandated all administrative departments to furnish detailed information regarding state government employees eligible for the Old Pension Scheme by August 7, 2026. This crucial decision emerged from a review meeting presided over by the Commissioner & Secretary of the Finance Department. The meeting brought together senior officials from various administrative and finance departments to assess the ongoing status of data submissions.

A primary focus of the meeting was on departments that had yet to provide the necessary employee information in the prescribed format, particularly concerning positions advertised before the cut-off date of February 1, 2005. Officials noted that out of 24 defaulting administrative departments invited, representatives from nine were present, and five departments submitted ‘Nil Reports,’ indicating no eligible cases within their purview. The Chair of the meeting expressed considerable concern over these persistent delays, highlighting that the non-submission of accurate and timely data directly impedes the swift restoration of the Old Pension Scheme for deserving employees.

Why it matters

The restoration of the Old Pension Scheme for eligible employees holds significant financial implications for state government workers, offering a guaranteed income post-retirement. Under OPS, government employees are entitled to receive 50 percent of their last drawn basic salary plus dearness allowance upon retirement, provided they satisfy a 10-year service requirement. This scheme does not require any employee contributions and provides a guaranteed income after retirement.

In contrast, the National Pension System (NPS), introduced on April 1, 2004, is a contributory scheme where employees contribute 10 percent of their base pay, and employers can contribute up to 14 percent. NPS returns are market-linked, offering the potential for higher returns but also carrying increased risk as investment performance is not guaranteed. Employee organisations in Assam, such as the All Assam Government NPS Employees Association (AAGNPSEA), have long argued that NPS and the recently adopted Unified Pension Scheme (UPS) are self-contributory, market-dependent, unpredictable, and inadequate, leaving lakhs of workers vulnerable to an insecure retirement.

Background

The debate surrounding the Old Pension Scheme and the National Pension System has been a contentious issue across India for years. The OPS was introduced in the 1950s and provided a defined benefit pension, ensuring a fixed income for government employees after retirement. However, concerns over the fiscal burden of OPS led the Central Government to introduce the National Pension System (NPS) in 2004, which came into effect for central government employees from January 1, 2004, and subsequently adopted by state governments, including Assam, from February 1, 2005.

In Assam, government employees, particularly those recruited after February 1, 2005, have been vocal in their demand for OPS restoration. The All Assam Government NPS Employees Association (AAGNPSEA) and other employee unions have organised numerous protests, including statewide ‘pendown’ strikes and non-cooperation movements, to press their demands. They have consistently highlighted that states like Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh have already reverted to OPS, or are in the process of doing so, demonstrating its feasibility.

Assam’s Finance Minister, Ajanta Neog, in her budget speech on March 10, 2025, announced that the government would “consider restoring the Old Pension Scheme (OPS) for regular employees whose recruitment process began before February 1, 2005.” She also stated that the state would adhere to the principles set forth by the central government in this regard. Earlier, Chief Minister Himanta Biswa Sarma had indicated a decision to abolish NPS in Assam and implement a Unified Pension Scheme (UPS) from April 2025, which would ensure 50 percent of the last drawn salary and dearness allowance as pension after 25 years of service. However, employee organisations have largely rejected UPS as an inadequate alternative.

The state’s annual pension bill for 2025–26 is estimated at around ₹9,000 crore. While restoring OPS could require an additional ₹2,500 crore annually for the first few years, Assam receives nearly ₹18,500 crore from the Centre under Special Assistance to States for Capital Expenditure (SASCI), which significantly offsets pension expenditure, making the net financial burden approximately ₹800 crore per year, or less than 0.5 percent of the state budget, according to an analysis by Ajmal IAS Academy.

Key details

The current deadline of August 7, 2026, specifically targets administrative departments to submit details for regular State Government employees whose recruitment process commenced prior to February 1, 2005. This includes employees who may have joined government service on or after February 1, 2005, but whose posts were advertised before this cut-off date.

The information sought by the Finance Department includes, but is not limited to, the names of employees and their respective departments, the date of floating advertisements for their recruitments, the date of appointment and joining with appointment letters, the actual date of recruitment, and the difference between dates of recruitment and appointment, as well as dates of retirement. The submission must be in a prescribed format and accompanied by a certification of authenticity. A soft copy in Excel format is also required to be sent to a specified email address.

The push for this data submission underscores the government’s intention to formalise the transition for this specific group of employees, as indicated by previous discussions between the government and employee associations like the Sadou Asom Karmachari Parishad (SAKP).

Reactions

“It is high time for the Assam government to show whether it is genuinely employee-friendly or not. A decent pension is a right of an employee and it should be honoured.” Achyutananda Hazarika, President of the All Assam Government NPS Employees’ Association (AAGNPSEA), said in August 2022.

“Retired employees under the National Pension System (NPS) get a very nominal amount every month as pension such as Rs 500, Rs 600, or Rs 1,000 after retirement. Today, all officers, employees, teachers, and police personnel of the state demonstrated and demanded in one voice to restore the old pension scheme (OPS).” Achyutananda Hazarika said.

Employee organisations have consistently urged the Assam Government and Chief Minister Himanta Biswa Sarma to take a positive decision on restoring OPS, citing the “united voice of Assam’s workforce.” They have stressed that employees, who are the backbone of the administration, cannot be pushed into an uncertain future despite dedicating their entire careers to public service. The AAGNPSEA has reiterated its strong opposition to the Centre’s proposed Universal Pension Scheme (UPS), pressing for the reinstatement of OPS.

What’s next

The August 7, 2026, deadline is expected to act as a final push to ensure compliance from all administrative departments. Following the submission, the Finance Department will likely proceed with the verification and processing of the data to facilitate the long-awaited pension transition for eligible employees. The government’s adherence to this deadline will be closely watched by employee associations, who have indicated plans for intensified democratic movements if their demands for OPS restoration are not met.

The implementation of the Old Pension Scheme for this specific group of employees will mark a significant step towards addressing a key demand of the state’s workforce, potentially influencing future policy decisions regarding other government employees currently under NPS. The Finance Department continues to play a pivotal role in the state’s economic and financial matters, including the formulation and execution of policies like pension schemes.

Quick FAQs

Who is eligible for OPS restoration under this directive?

This directive applies to regular State Government employees whose recruitment process began before February 1, 2005, even if they joined service on or after this date.

What is the deadline for data submission?

Administrative departments must submit the required employee details by August 7, 2026.

Why is this data being collected?

The data is being collected to expedite the restoration of the Old Pension Scheme for eligible employees, a move aimed at providing them with guaranteed post-retirement financial security.

What is the difference between OPS and NPS?

The Old Pension Scheme (OPS) offers a guaranteed, fixed pension based on the last drawn salary without employee contributions. The National Pension System (NPS) is a contributory scheme with market-linked returns, meaning the pension amount depends on investment performance.

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