The Centre Friday allowed certain Union government employees a one-time option to shift to the Old Pension Scheme.
“In all cases where the Central Government Civil employee has been appointed against a post or vacancy which was advertised/notified… prior to the date of notification for National Pension Scheme 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),” reads an office memorandum issued by the Department of Pension and Pensioners’ Welfare.
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The department, which comes under the Ministry of Personnel, Public Grievances and Pension, issued the memorandum on Friday.
“This option may be exercised by the concerned Government servants latest by 31.08.2023,” reads the memorandum signed by Sanjiv Narain Mathur, Additional Secretary in the Department of Pension and Pensioners’ Welfare.
The memorandum said: “Those Government servants who are eligible to exercise option in accordance with para-4 above, but who do not exercise the option by the stipulated date, shall continue to be covered by the National Pension System.”
The option, once exercised, shall be final.
The memorandum said: “The Government servants who exercise the option to switch over to the pension scheme under CCS (Pension) Rules, 1972 (now 2021), shall be required to subscribe to the General Provident Fund (GPF).”
The Centre had notified the National Pension Scheme on December 12, 2003.
All those appointed on or after January 1, 2004 to posts in the central government services (except the armed forces) are mandatorily covered under the NPS.
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On February 17, 2020, the government had given a one-time option to Central government employees who were declared successful for recruitment in results declared on or before December 31, 2003 against vacancies which occurred before January 1, 2004 and were covered under the NPS on joining service on or after January 1, 2004.
After this move, several government employees had approached the Pension Department. These employees argued that they have been appointed on or after January 1, 2004 and requested the government 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 the NPS. They also referred to court judgments of various High Courts and Central Administrative Tribunals allowing such benefits to applicants. After their representation, the government has issued the memorandum.
There have been demands for restoration of the OPS. In fact, the Congress party has made the OPS a poll promise. Several states ruled by the Congress party have decided to restore the OPS.
