Old pension scheme for select central government staff: How it works

Employees have until August 31 to choose the OPS.

The Centre in an important order said that a select group of central government employees have got a one-time option to opt for the old pension scheme.

The latest notification by the Ministry of Personnel said that the employees who joined the central government services against posts advertised or notified before December 22 2023, the day National Pension Scheme (NPS) was notified are eligible to join the old pension scheme under the Central Civil Services (Pension) Rules.

The Centre also said that the select group can opt for this option latest by August 31 2023. The ministry also noted that the option once notified will be final.

The ministry said that this decision was taken after receiving various representations/references and court decisions in this regard.

"Representations have been received...from the government servants appointed on or after 01.01.2004 requesting for extending the benefit of the pension scheme under Central Civil Services (Pension) Rules, 1972 (now 2021) on the ground that their appointment was made against the posts/vacancies advertised/notified for recruitment prior to notification for National Pension System, referring to court judgments of various Hon'ble High Courts and Hon'ble Central Administrative Tribunals allowing such benefits to applicants," read the order by the ministry.

The decision was taken following consultations with the Department of Financial Services, Department of Personnel and Training, Department of Expenditure and Department of Legal Affairs.

"It has now been decided that, in all cases where the central government civil employee has been appointed against a post or vacancy which was advertised/ notified for recruitment/appointment, prior to the date of notification for National Pension System i.e. 22.12.2003 and is covered under the National Pension System on joining service on or after 01.01.2004, may be given a one-time option to be covered under the CCS(Pension) Rules, 1972 (now 2021)," read the order.

Those government employees who are eligible for this option and do not opt for the same within the stipulated time, would continue to be covered by the NPS.

With regard to the coverage under the CCS (Pension) Rules, 1972 (now 2021), based on the option exercised by the government servant, shall be placed before the appointing authority.

The Ministry of Personnel said that in case the government servant fulfils the conditions for the coverage under the CCS (Pension) Rules, the necessary order in this regard shall be issued by October 31 2023.

Employees must note that the NPS account of such government servants will be closed with effect December 31 2023.

The decision was welcomed by the National Movement for Old Pension Scheme (NMOPS), an umbrella body with over 14 lakh central and state government employees.

NMOPS, Delhi unit chief, Manjeet Singh said, "it is good news for the eligible employees. We again ask the centre to amend the existing NPS to ensure that the benefits of the old pension scheme can be extended to all central government staff."