Central Government employees now have the option to switch from NPS to OPS

The Department of Pension and Pensioner’s Welfare (DoPPW) has provided eligible Central Government employees with a one-time option to get their pensions as per the Central Civil Services (Pension) Rules, 2021.

The official memorandum of the DoPPW stated that all Central Government employees, including civil employees, fulfilling all the below conditions are eligible to choose the Old Pension Scheme (OPS): 

• Appointed for a vacant post advertised or notified before the National Pension Scheme (NPS) notification date, i.e. 22.12.2003
• Joined service on or after 01.01.2024
• Covered under the NPS

However, such eligible employees should file for receiving a pension under the OPS before 31.08.2023.

The eligible Central Government civil employees who do not choose the one-time option within 31.08.2023 would continue to be covered under the NPS. The DoPPW stated that the option exercised by employees to opt for OPS would be final, and there cannot be a switch to NPS in the future.

The DoPPW stated that it would place the option exercised by eligible Central Government civil employees before the appointing authority of the posts for which the option is exercised for consideration.

The DoPPW will issue the necessary orders regarding the implementation of OPS when the employees fulfil the conditions under the Central Civil Services (Pension) Rules, 1972 (now 2021) by 31.10.2023. The NPS accounts of such employees will be closed from 31.12.2023. Such employees would be required to subscribe to the General Provident Fund (GPF) upon exercising the option to switch to OPS.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@clear.in