A choose group of central authorities workers have been given a one-time choice to go for the outdated pension scheme, in response to a Personnel Ministry order.
The matter has been examined in session with the Department of Financial Services, Department of Personnel & Training, Department of Expenditure and Department of Legal Affairs within the gentle of the varied representations/references and selections of the courts on this regard, it stated.
Who Is Eligible To Opt For Old Pension Scheme?
The workers who joined the central authorities providers in opposition to posts marketed or notified earlier than December 22, 2003, the day National Pension System (NPS) was notified, are eligible to hitch the outdated pension scheme underneath the Central Civil Services (Pension) Rules, 1972 (now 2021), stated the order on Friday.
“Representations have been obtained…from the federal government servants appointed on or after 01.01.2004 requesting for extending the advantage of the pension scheme underneath Central Civil Services (Pension) Rules, 1972 (now 2021) on the bottom that their appointment was made in opposition to the posts/vacancies marketed/notified for recruitment previous to notification for NPS, referring to court docket judgments of assorted Hon’ble High Courts and Hon’ble Central Administrative Tribunals permitting such advantages to candidates,” the order stated.
“It has now been decided that, in all cases where the central government civil employee has been appointed against a post or vacancy which was advertised/ notified for recruitment/appointment, prior to the date of notification for NPS i.e. 22.12.2003 and is covered under the NPS on joining service on or after 01.01.2004, may be given a one-time option to be covered under the CCS(Pension) Rules, 1972 (now 2021),” the order stated.
Those authorities servants who’re eligible to train the choice, “however who don’t train this selection by the stipulated date”, shall continue to be covered by the NPS, it added.
What Is The Last Date To Opt For Old Pension Scheme?
This option may be exercised by the government servants concerned latest by August 31, 2023. The option once exercised shall be final, the order said.
The matter regarding coverage under the CCS (Pension) Rules, 1972 (now 2021), based on the option exercised by the government servant, shall be placed before the appointing authority.
In case the government servant fulfils the conditions for coverage under the CCS (Pension) Rules, 1972 (now 2021), necessary order in this regard shall be issued latest by October 31, 2023, it said.
The NPS account of such government servants shall, consequently, be closed with effect from December 31, 2023.
The National Movement for Old Pension Scheme (NMOPS), an umbrella body of more than 14 lakh central and state government employees, has welcomed the government decision.
“It is good news for the eligible central government employees. We again ask the central government to amend the existing NPS to ensure that the benefits of the old pension scheme can be extended to all central government staff,” NMOPS Delhi unit head Manjeet Singh Patel stated.
Moreover, the controversy across the distinction between OPS and the NPS (earlier generally known as the New Pension Scheme) is just not new and it has made headlines every so often.
OPS and NPS: Key variations
- A retired worker receives 50% of their final drawn wage as month-to-month pensions within the OPS. On the opposite hand, NPS is a contributory pension scheme the place the worker and the employer contribute their respective shares.
- The OPS is an outlined pension scheme of Govt. of India, whereas NPS is a contributory pension scheme.
- Only authorities workers have been eligible for receiving a pension after retirement in OPS. NPS covers the personal sector as effectively.
- The expenditure incurred on the OPS is borne by the federal government. NPS relies on market based mostly returns over the long run.
Meanwhile, the deadline for choosing greater pension for members of Employees Pension Scheme 1995 (EPS) who retired earlier than September 1, 2014, ended on Saturday.
However, different members of the EPS can apply for greater pensions until May 3, 2023, a labour ministry assertion stated.
“The Employees’ Provident Fund Organisation (EPFO) closed the choices on 4th of March 2023 for the retired EPS members (previous to 01.09.2014 and whose choices weren’t thought-about earlier). It has obtained 91,258 on-line functions from this class of workers as on March 4, 2023.” The EPFO has been making all-out efforts to publicize the process of joint option which can be submitted online till 3rd May, 2023, it stated.
(With PTI inputs)
Read all of the Latest Business News right here
