One-Time Pension Option for Central Government Employees

The pension and pensioners’ welfare department issued an office memorandum regarding the coverage under the Central Civil Services (Pension) Rules, 1972 in place of the National Pension System (NPS) for the Central Government employees whose appointments were finalised before 01.01.2004 but joined government service after 01.01.2004.

One-Time Pension Under the OPS

The pension and pensioners’ welfare department provided a one-time pension option to the Central Government employees under the Old Pension Scheme (OPS) in place of NPS. The department provided the option of a one-time pension to those employees declared successful for retirement in the results declared before 31.12.2003 against vacancies occurring before 01.01.2004. These employees are also covered under the NPS upon joining service after 01.01.2004.

The department of pension and pensioners’ welfare noticed that despite the submission of options by the employees within the time limit prescribed, some offices may not have decided these options within the stipulated schedule of these activities. The department specified the cut-off dates for processing cases to ensure faster resolution of grievances of employees and its time-bound disposal.

The department’s latest note mentioned that the cut-off dates should not be taken as a reason not to process the option given by the employee within the due time. Therefore, it requested all ministries and departments to take the necessary action upon the exercise of options by the employees within a stipulated time.

Request for One-Time Pension

After introducing the NPS, it mandatorily covers all Central Government employees appointed to the posts in the Central Government service (except armed forces) after 01.01.2004. The Central Civil Services (Pension) Rules, 1972 and other related rules were also amended and made inapplicable to the Central Government employees appointed to the government services after 31.12.2003.

However, the government received representations from the Central Government employees appointed after 1.1.2004 requesting to get the pension scheme’s benefit under the Central Civil Services (Pension) Rules, 1972 on the ground of delay in their appointment due to administrative lapses or reasons.

Thus, the department of pension and pensioners’ welfare issued an office memorandum to provide a one-time pension option under the OPS in place of the NPS to the Central Government employees declared successful for retirement in the results declared before 31.12.2003.

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