KKN Gurugram Desk | The Jharkhand government has announced a major financial allocation for the Old Pension Scheme (OPS) in its state budget for 2025-26. The government has proposed ₹832 crore for this scheme, which aims to provide financial security to retired employees and their dependents. More than 1.62 lakh government employees and pensioners in Jharkhand will benefit from this initiative.
This move comes as a relief for thousands of government workers, ensuring that they receive a stable pension without contributing from their salaries. The establishment of a Pension Fund will help sustain OPS payments and reduce the financial burden on the government.
Jharkhand Budget 2025: Key Highlights on Old Pension Scheme (OPS)
✔ ₹832 crore allocated for Old Pension Scheme
✔ More than 1.62 lakh government employees to benefit
✔ Retired pensioners and dependents to get financial security
✔ Pension Fund established to manage financial sustainability
Government’s Announcement on OPS in Jharkhand Budget 2025
During the budget presentation, Jharkhand Finance Minister Radhakrishna Kishore highlighted that the state government is committed to reducing financial risks for retired employees.
To support the Old Pension Scheme (OPS), the government has set up a Pension Fund to manage future payments efficiently. Over the past few years, the government has consistently increased its investment in this fund:
- ₹700 crore allocated in 2023-24
- ₹780 crore allocated in 2024-25
- ₹832 crore proposed for 2025-26
The objective of this financial planning is to ensure that retired employees receive timely pension payments, even in challenging economic conditions.
What is the Old Pension Scheme (OPS)?
The Old Pension Scheme (OPS) is a retirement benefits plan for government employees that was discontinued by the Central Government on January 1, 2004. It was replaced by the New Pension Scheme (NPS), which requires employee contributions.
However, Jharkhand is among the few states that continue to follow OPS. Under this scheme:
???? Government employees do not have to contribute to their pension
???? Upon retirement, employees receive 50% of their last drawn salary as a monthly pension
???? Pensioners get benefits from DA (Dearness Allowance) hikes
???? In case of the pensioner’s death, dependents receive a pension
???? Pension payments continue for the retiree’s lifetime
These features make OPS a stable and predictable retirement plan, providing financial security for retired government employees.
Who Will Benefit from OPS in Jharkhand?
The Jharkhand government’s decision to continue OPS will benefit:
✔ 1,62,931 government employees currently working in the state
✔ More than 1.58 lakh retired government employees
✔ Families and dependents of pensioners
According to official reports, as of March 2025, Jharkhand had:
- 3,26,049 sanctioned government positions
- 1,67,203 government employees actively working
- 1,58,846 vacant government positions
This budgetary allocation ensures that employees do not have to worry about retirement savings, as the government will fully fund their pensions.
How OPS Differs from NPS?
Many states have debated whether OPS is better than NPS. Here’s how the Old Pension Scheme (OPS) and the New Pension Scheme (NPS) differ:
| Feature | Old Pension Scheme (OPS) | New Pension Scheme (NPS) |
|---|---|---|
| Employee Contribution | No contribution required | Employees contribute 10% of salary |
| Government Contribution | Fully funded by the government | Government contributes 14% of salary |
| Pension Calculation | 50% of last drawn salary | Pension depends on accumulated corpus |
| Risk Factor | No risk, guaranteed pension | Market-linked returns, no fixed pension |
| Death Benefit | Pension to dependents | Dependents get lump sum amount |
| DA Hike Benefits | Included | Not applicable |
Many employees prefer OPS over NPS because it ensures a lifetime pension without investment risks. This is why Jharkhand’s decision to continue OPS is being welcomed by government workers.
Other Key Employee Benefits in Jharkhand Budget 2025
Apart from the Old Pension Scheme, the Jharkhand government has introduced new welfare measures for state employees.
???? Health Insurance for Government Employees
The Jharkhand government launched a health insurance scheme for its employees on March 1, 2025. This scheme will benefit 1,62,931 employees and their dependents, providing medical coverage for hospitalization and treatment expenses.
???? Salary & Allowance Revisions
The government is also working on revising pay scales and allowances for state employees, ensuring they receive competitive salaries and benefits.
???? Recruitment Drive to Fill Vacant Positions
With 1,58,846 government job vacancies in Jharkhand, the state plans to recruit new employees to improve administrative efficiency and public service delivery.
Economic Impact of OPS in Jharkhand
The ₹832 crore investment in OPS is expected to have both positive and challenging economic implications:
✅ Positive Impact
- Ensures financial security for retirees, boosting their standard of living
- Increases employee satisfaction, leading to better work efficiency
- Boosts consumer spending, strengthening the local economy
⚠ Challenges
- Puts financial pressure on the government, as pension liabilities increase over time
- Reduces fund availability for infrastructure and development projects
The government will need to manage its finances carefully to ensure that OPS remains sustainable in the long run.
The Jharkhand Budget 2025 has reaffirmed the government’s commitment to social security by continuing the Old Pension Scheme (OPS). The ₹832 crore allocation will provide financial relief to thousands of employees and pensioners, ensuring retirement stability without requiring employee contributions.
With additional benefits like health insurance and revised pay scales, Jharkhand’s workforce will benefit significantly. However, the government must balance pension liabilities with economic growth and financial stability.
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