Central Govt employees may opt for old pension scheme instead of NPS

Central Govt employees may opt for old pension scheme instead of NPS

The last date to avail the one-time option for the Central government employees to get coverage of CCS Pension Rules 1972, in place of the National Pension System (NPS), has been extended. The new revised date will now stand as May 31, 2021. This will be applicable for those employees who were selected before 01.01.2004 but joined after 01.01.2004. Earlier, the Department of Pension & Pensioners’ Welfare under the Government of India had issued an Office Memorandum (OM) giving an option to the impacted Central government employees to opt for the old pension scheme (OPS) instead of NPS.

The Office Memorandum provided for cut off dates for various activities involved in the process of exercising of option, deciding representations by appointing authorities and closure of NPS accounts of the concerned Government servants.

In view of the country-wide lockdown in the country due to the outbreak of Covid -19 pandemic and references received from some Ministries and Departments for extension of time schedule the government has decided to extend the cut-off dates as under:

1. Exercise of option by Government servant for coverage under old pension scheme

Last date mentioned in OM dated February 17, 2020: 31.05.2020
Revised last date: 31.05.2021

2. Examination and decision on the representation by the appointing authority

Last date mentioned in OM dated February 17, 2020: 30.09.2020
Revised last date: 30.09.2021

3. Closure of NPS accounts of Government servants on acceptance of their option

Last date mentioned in OM dated February 17, 2020: 01.11.2020
Revised last date: 01.11.2021

After the introduction of the National Pension System (NPS), all Government employees appointed on or after 01.01.2004 to the posts in the Central Government service (except armed forces) are mandatorily covered under NPS. The Central Civil Services (Pension) Rules, 1972 and other connected rules were also amended and were not applicable to the Government employees appointed to Government service after 31.12.2003.

However, the government had received representations from the Government employees appointed on or after 1.1.2004 requesting for the benefit of the pension scheme under Central Civil Services (Pension) Rules, 1972 on the ground that their appointment was delayed on account of administrative reasons or lapses.

Such Government employees who were declared successful for recruitment in the results declared on or before 31.12.2003 against vacancies occurring before 01.01.2004 and are covered under the National Pension System on joining service on or after 01.01.2004, are being given a one-time option to be covered under the CCS(Pension) Rules, 1972.

Original Order :

Coverage under CCS (Pension) Rules, 1972 of selection finalized before 01.01.2004 but joined on or after 01.01.2004

Source : Financial Express