India’s Pension Reforms: From OPS to NPS and APY
Why in the news
An ageing population is stressing India’s pension system; a review of scheme evolution shows progress and an informal-sector gap.
Key facts
- 153 million aged 60+ now; 347 million projected by 2050.
- 88% of seniors work informally without pensions.
| Scheme | Year | Features |
|---|---|---|
| IGNOAPS | 1995 | Social assistance for BPL persons aged 65+ |
| OPS | – | Formal-sector government employees |
| NPS | 2004 | Replaced OPS; corporate model for private staff |
| NPS 2.0 | – | 100% equity; multiple scheme framework (MSF) |
| APY | 2015 | Ages 18-40; flexible contribution cycle; government guarantees minimum pension |
Labour Codes and outreach
- ‘Wages’ redefined: basic pay at least 50% of earnings, enlarging the base for pension and gratuity.
- e-SHRAM is a national database of workers supporting registration and scheme awareness.
- LASI (2017-18): 42% of people 55+ did not know NPS eligibility.
Concerns
- 63% of the elderly cannot use the Internet.
- Aadhaar-bank linkage problems and registration errors.
Exam angle
- APY age band 18-40; NPS 2004; IGNOAPS 1995.