NPS to OPS: These Central Government Employees Can Switch Pension Schemes; Check Eligibility Here

Select Central Government employees who have changed their jobs now have a one-time opportunity to transition from the National Pension System (NPS) to the Central Civil Services (Pension) Rules, 1972, commonly referred to as the Old Pension Scheme (OPS). The Department of Pension and Pensioners' Welfare (DoPPW) has issued an Office Memorandum (OM) outlining the eligibility criteria for this transition.

In a previous OM dated March 3, 2023, the DoPPW stated, "It has been decided that in all cases where a Central Government civil employee has been appointed against a post or vacancy advertised or notified for recruitment/appointment before the date of notification for the National Pension System, i.e., December 22, 2003, and is covered under the National Pension System upon joining service on or after January 1, 2004, they may exercise a one-time option to be covered under the CCS (Pension) Rules, 1972 (now 2021)."

For Central Government employees who were appointed to posts or vacancies advertised or notified for recruitment before December 22, 2003, they have the option to switch to the old pension scheme until November 30, 2023.

However, what about employees who are already enrolled in the National Pension System (NPS) but changed jobs after the specified date? The recent OM from the DoPPW states that Central Government employees included under CCS (Pension) Rules, 1972 as of March 3, 2023, for their appointment to any post or service in the Central Government and who transition to another Central Government service through the proper channel will be governed by the CCS (Pension) Rules, 1972. For employees from state governments or autonomous bodies who move to Central Government service on or after January 1, 2004, after resigning from their previous service, their case will be examined regarding the inclusion of past service when transitioning to Central Government service.

The DoPPW emphasizes that "Government servants who are eligible to exercise the option in accordance with the above but fail to do so by the specified date will remain under the National Pension System."

Now, the question arises regarding Central Government employees who have retired from service before the issuance of these instructions. The DoPPW clarifies that there are no restrictions on the applicability of the aforementioned OM dated March 3, 2023, to Central Government employees who are eligible for coverage under OPS and have already retired from service. In such cases, since the employee has already benefited from the NPS, the government contributions and returns under the NPS must be refunded, along with interest, by the retired government servant in order to avail the benefits under CCS (Pension) Rules, 1972, if found eligible for coverage under the old pension scheme as per the DoPPW OM dated March 3, 2023.