Centre changes pension rules of government employees

NEW DELHI, FEB 18 (AGENCIES) | Publish Date: 2/18/2020 12:57:17 PM IST

The Department of Pension and Pensioners’ Welfare has taken out an order through which all Central Government employees whose selection for appointment was finalized before January 1, 2004 but who joined service on or after 01.01.2004, can now opt to be covered under the Central Civil Services (Pension) Rules, 1972 instead of the NPS (National Pension System).

Minister of Personnel Dr Jitendra Singh said that the order effectively gives those employees of the Government of India who were recruited before 2004 the option of either switch over to the Central Civil Services (Pension) Rules, 1972 or continue to be covered under the National Pension System.

Dr Singh further added that the decision had been taken by the Department of Pensions and Pensioners’ Welfare to address the longstanding demand of Central Government employees whose recruitment was finalized before January 1, 2004 but who had, for various reasons, joined the services on or after January 1, 2004. 

However, he noted that the last date to exercise this option would be May 31, 2020, and those who fail to exercise the option by this stipulated date would continue to be covered by the National Pension System.

“The Central Government by this order has rectified a long standing grievance of a huge number of employees whose recruitment (including written examination, interview and declaration of result) had been finalized on or before 01.01.2004 (which was the cut-off date for employees to be covered under the old Pension scheme) but whose joining was delayed on account of administrative reasons and such delay was beyond the control of such Government servants,” a statement from the Central government said.

This order is expected to give relief to several Central Government employees, some of whom were knocking the doors of the Courts in order to get covered under the CCS (Pension) Rules, 1972 and will also substantially bring down the litigation on this subject matter.

The employees who exercise option to switch over to the pension scheme under CCS (Pension) Rules, 1972, will be required to subscribe to the General Provident Fund (GPF).

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