The Union government has said in an official decree that civil officials hired into positions that were advertised for recruitment before to December 22, 2003, when the new pension plan (NPS) was introduced, may choose to receive benefits under the Old Pension plan (OPS) until November 30 as a one-time option.
The action was taken in response to requests for the benefits of the Old Pension Scheme (OPS) made by All India Service (AIS) members, Indian Administrative Services, Indian Police Services, and Indian Forest Services personnel.
“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 upon 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 document states
The All India Services (Death-Cum-Retirement Benefits) Rules, 1958, and the All India Services (Provident Fund) Rules, 1955 were modified for the implementation of NPS, which was introduced by the Union finance ministry on December 22, 2003, according to the order, which was signed by under secretary Kuldeep Chaudhary. The ruling also said that as a consequence, AIS members appointed on or after January 1, 2004, were required to be covered by NPS, excluding them from OPS’s advantages.
“However, the department of personnel and training received submissions from similarly situated AIS members after judgements from different courts and administrative tribunals giving the benefits of the old pension system to government officials recruited before the introduction of the NPS. The department of spending has decided after considering these arguments and consulting with other pertinent authorities, the directive continued.
According to the most recent rules, AIS officers appointed to positions advertised prior to the implementation of the NPS will have a single choice to be covered by OPS. This option must be exercised by November 30. Members who are entitled to exercise the option but do not do so by the deadline will still be covered by NPS, and the option will be deemed final once it has been executed. The deadline for issuing the order in this case is January 31, 2024.
“The alternatives taken by AIS members will be handled by the different state governments, under whose cadre the member of the Service is borne. Referrals can be sent to the ministry of home affairs for members of the Indian Police Service, the department of personnel and training for members of the Indian Administrative Service, and the ministry of environment, forest and climate change for members of the Indian Forest Service in the event that any clarifications are needed, according to the order.
Without the need for employee contributions, OPS assured indexing for pay commissions and inflation in pension benefits. The returns of the new pension system (NPS), on the other hand, are market-based and not based on a predetermined percentage of the employee’s pay upon retirement. The previous plan is more kind to government workers.
Several non-BJP states, including Rajasthan, Chhattisgarh, Jharkhand, Himachal Pradesh, and Punjab, switched from NPS to OPS recently, igniting a controversy.
