Civil servants can to opt for old pension plan as one-time option: Centre

The move comes after representations were received from All India Service (AIS) members seeking the benefits of the Old Pension Scheme (OPS).

Civil servants appointed in posts advertised for recruitment before December 22, 2003, when the new pension scheme (NPS) was notified, can opt for availing benefits under the Old Pension Scheme (OPS) until November 30 as a one-time option, the Union government has said in an official order.

before the introduction of the NPS will be given a one-time option to be covered under the provisions of OPS.

The move comes after representations were received from All India Service (AIS) members, Indian Administrative Services, Indian Police Services and Indian Forest Services officials, seeking the benefits of the Old Pension Scheme (OPS).

“The matter has been examined in consultation with the Department of Expenditure and it has been decided that the AIS officers, who have been appointed against a post/vacancy which was advertised/notified for recruitment prior to the date of notification of NPS (i.e. 22.12.2003) and who are covered under NPS on joining Service on or after 01.01.2004, may be granted one-time option to be covered under the provisions of old pension scheme under AIS (DCRB) Rules, 1958,” the government said in the order, a copy of which HT has seen.

The order, signed by under secretary Kuldeep Chaudhary, explained that for the implementation of NPS, which was introduced by the Union finance ministry on December 22, 2003, the All India Services (Death-Cum-Retirement Benefits) Rules, 1958 and the All India Services (Provident Fund) Rules, 1955 were amended. As a result, AIS members appointed on or after January 1, 2004, were mandated to be covered under NPS, thereby excluding them from the benefits of OPS, the order added.

“However, following judgments from various courts and administrative tribunals allowing the benefits of the old pension scheme to government servants appointed before the notification of the NPS, the department of personnel and training received representations from similarly placed AIS members. Taking these representations into account, the department of expenditure, in consultation with other relevant authorities, has made a decision,” the order added.

Under the latest guidelines, AIS officers appointed against posts advertised before the introduction of the NPS will be given a one-time option to be covered under the provisions of OPS. The deadline for exercising this option is November 30. Members who are eligible to exercise the option but fail to do so by the stipulated date will continue to be covered under NPS, and the option, once exercised, will be considered final. The order in this regard would have to be issued by January 31, 2024.

“The respective state governments, under whose cadre the member of the Service is borne, will handle the options exercised by AIS members. In case of any clarifications, references can be sent to the department of personnel and training for members of the Indian Administrative Service, the ministry of home affairs for members of the Indian Police Service, and the ministry of environment, forest and climate change for members of the Indian Forest Service,” said the order.

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OPS guaranteed inflation and pay commission indexed pension payouts without any contribution from the employee. The new pension scheme (NPS), on the other hand, is built by employee and employer contribution and the returns are market-based, not a fixed proportion of the salary at the time of retirement. The earlier scheme is more generous towards government employees.

Recently, a number of non-BJP states such as Rajasthan, Chhattisgarh, Jharkhand, Himachal Pradesh and Punjab have moved from NPS to OPS, triggering a row.