Central Government employees selected for appointment before 2004 can switch from NPS to old Pension scheme

There is good news for central government employees whose selection for an appointment was finalized before 1st of January 2004 but who joined service on or after this date. The central government has provided them with a one-time opportunity to get covered under the Central Civil Services (Pension) Rules, 1972 instead of the NPS (National Pension System).

The Department of Pension & Pensioners' Welfare under the Government of India has issued an Office Memorandum (OM) recently thus giving an option to the impacted central government employees to opt for old pension scheme (OPS) instead of NPS.

Ministry of Personnel, Public Grievances and Pensions said, this order is expected to give relief to several Central Government employees, some of whom were seeking court's intervention to be covered under the old Pension Scheme.

The Ministry has said that the Central Government employees will be given one time option to get coverage of Pension Rules, in place of the NPS. This option may be exercised by the concerned government servants latest by May 31, 2020.

With this order, the central government has rectified a long-standing grievance of a huge number of employees whose recruitment (including written examination, interview and declaration of result) had been finalized on or before January 1, 2004 (which was the cut-off date for employees to be covered under the old Pension scheme) but whose joining was delayed on account of administrative reasons and such delay was beyond the control of such Government servants.

A few illustrations where the selection was finalized before January 1, 2004, but actual joining took place on or after January 1, 2004, are as under:

(i) The result for recruitment was declared before January 1, 2004, but the offer of appointment and actual joining of the Government servant was delayed on account of police verification, medical examination etc.

(i) Some of the candidates selected through a common selection process were issued offers of appointments and were also appointed before January 1, 2004, whereas the offers of appointments to other selected candidates were issued on or after January 1, 2004, due to administrative reasons/constraints including pending Court/CAT cases.

(iii) Candidates selected before January 1, 2004, through a common competitive examination were allocated to different Departments/organization. While recruitment process was completed by some Department(s) / organizations on or before December 31, 2003, in respect of one or more candidates, the offers of appointment to the candidates allocated to the other Departments /Organization were issued on or after January 1, 2004.

(iv) Offers of appointment to selected candidates were made before January 1, 2004, with a direction to join on or after January 1, 2004.

(v) Offers of appointment were issued to selected candidates before January 1, 2004, and many/most candidates joined service before January 1, 2004. However, some candidate(s) were allowed the extension of joining time and they joined service on or after January 1, 2004. However, their seniority was either unaffected or was depressed in the same batch or to a subsequent batch, the result for which subsequent batch was declared before January 1, 2004.

(vi) The result for recruitment was declared before January 1, 2004, but one or more candidates were declared disqualified on the grounds of medical fitness or verification of character and antecedents, caste or income certificates.

Subsequently, on review, they were found fit for appointment and were issued offers of appointment on or after January 1, 2004.

This order of the Government of India is expected to give relief to several Central Government employees, some of whom were knocking the doors of the Courts to get covered under the CCS (Pension) Rules, 1972 and will also substantially bring down the litigation on this subject matter.

Those Government servants who are eligible to exercise the option, but who do not exercise this option by the stipulated date, shall continue to be covered by the National Pension System and the option once exercised shall be final.

The matter regarding coverage under the CCS (Pension) Rules, 1972 is based on the option exercised by the Government servant shall be placed before the appointing authority for consideration in accordance with these instructions. In case the Government servant fulfils the conditions for coverage under the CCS (Pension) Rules, 1972, in accordance with these instructions, necessary order in this regard shall be issued latest by September 30, 2020. The NPS account of such Government servants shall, consequently, be closed w.e.f. November 1, 2020.

The Government servants who exercise the option to switch over to the pension scheme under CCS (Pension) Rules, 1972, shall be required to subscribe to the General Provident Fund (GPF).