Employees think that OPS is always better option than NPS, but here I will explain you how sometime NPS is better option than OPS.
1. There is not any monthly amount that is getting accumulated and growing for Employee under OPS from Employer side similar to NPS. In OPS, deduction of 10% salary goes to Provident Fund (not for pension fund). Many employees withdraw there PF partially before retirement for big expenditure. Growth of PF is limited to near bank deposit interest rate. After retirement they depend on income from pension mostly. If any big expenditure comes, they may fall in difficulties.
Under NPS, option of getting max 60% NPS accumulated amount on retirement (tax free) as lumpsum can fulfil many requirement i.e. buying House, land, child education etc.
2. NPS fund in past grew better than FD or pure debt fund. Return from NPS is more than 8% yearly (generally) and some time in the range of 12% yearly. This helps to accumulate large corpus in NPS, If this amount is reinvested in reputed and trusted Mutual funds, good annuity etc, it can provide more monthly payout than pension under OPS.
3. If Employee passes away during job or after retirement, to get Family Pension for wife/child/parent, various conditioned need to be fulfilled. Some times, family get reduced pension (30%) or sometime they may not get it at all if some conditions not met. In case of NPS, if employee passes away, NPS amount will be far better utilised by their family without any condition applied (if Employee had bought such type of pension plan from NPS amount).
Check approximate NPS pension calculator