The NPS challenge

We need to hang in there, to create safety for pensioners and the Indian state

The Old Pension System (OPS) was an important threat to India’s fiscal stability. At first, the National Pension System (NPS) had the promise of becoming the comprehensive solution to this problem. The NPS is now missing with military personnel, West Bengal, Rajasthan, and a few other states. This is starting to look like an important problem in the fiscal outlook. There has been a loss of institutional memory on fiscal stress, the role of rising pension payments in this stress, and the strategy for solving this through the NPS. 

The NPS was born of the fiscal crisis of the late 1990s.