Friday, March 3, 2023

Old Pension to NPS Employees appointed before 1.1.2004 One Time Option Memo 57 Dated: 3.3.2023

 No.S7/0S/2021-P&PW(B) Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Pension and Pensioners' Welfare

Lok Nayak Bhawan, Khan Market, New Delhi, the 03rd March,  2023


Subject:  Coverage  under  Central   Civil Services  (pension)  Rules,  in place  of National Pension  System,  of those  Central  Government   employees who were  recruited   against the posts/vacancies  advertised  /notified for recruitment,   on or before 22.12.2003.

The  undersigned  is  directed  to  say  that  consequent  on  introduction  of  National Pension   System  (NPS)  vide  Ministry  of  Finance  (Department  of  Economic  Affairs) Notification No. 517/2003-ECB & PR dated 22.12.2003, all Government servants appointed on or after 01.01.2004 to the posts in the Central Government service (except armed forces) are mandatorily covered under the said scheme. The Central Civil Services (Pension) Rules, 1972 and other connected rules were also amended vide Notification dated 30.12.2003 and, after  the  said  amendment,  those  rules  are  not  applicable  to  the  Government  servants appointed to Government service after 31.12.2003.

2. Subsequently,  Department of Pension and Pensioners'  Welfare in consultation with the Department  of Personnel &  Training, Department of Expenditure  and Department  of Legal Affairs in the light of the various representations/references and decisions of Hon'ble Courts, issued instructions vide OM No. 57/04/20 19-P&PW(B) dated 17.02.2020 giving one time option to Central Government employees who were declared successful for recruitment in the results  declared  on or before 31.12.2003 against vacancies which  occurred  before 01.01.2004 and were covered under the National Pension System on joining  service on or after 01.01.2004,  to be covered under the CCS(Pension) Rules, 1972 ( now 2021). There was fixed time schedule for different activities under the aforesaid OM dated 17.02.2020.

3.Representations have been received in this Department from the Government servants appointed on or after 01.01.2004 requesting for extending  the benefit of the pension scheme under  Central Civil  Services (Pension) Rules,  1972 (now 2021)  on the ground that their appointment was made against the posts/vacancies  advertised/notified for recruitment prior to notification for National Pension System, referring to court judgments of various Hon'ble High  Courts  and  Hon 'ble  Central  Administrative  Tribunals  allowing  such  benefits  to applicants.

4.The  matter  has  been  examined   in  consultation   with  the  Department   of  Financial Services,  Department   of Personnel  & Training,  Department   of Expenditure   and Department of Legal  Affairs  in the light  of the  various  representations/references     and  decisions   of the Courts   in  this   regard.   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 National   Pension  System  Le. 22.12.2003  and is covered  under  the National  Pension  System 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).  This  option  may  be  exercised   by  the concerned  Government  servants  latest  by 31.08.2023.

5.Those  Government   servants  who  are  eligible  to  exercise  option  in accordance   with para-4  above,  but who do not exercise  this option  by the stipulated  date, shall continue  to be covered  by the National  Pension  System.

6.The option  once exercised  shall be final.

7.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  of the posts for which such option is being exercised  for consideration, in accordance  with  these  instructions.  In case the Government  servant  fulfills  the conditions for  coverage  under  the  CCS  (pension)  Rules,   1972 (now  2021),  in  accordance   with  these instructions,   necessary   order   in this  regard   shall  be issued  latest  by 3pt   October,   2023. The   NPS   account   of  such   Government    servants shall,   consequently,    be  closed   w.e.f. 3rd  December,   2023.

8.The  Government   servants  who  exercise  option  to switch  over to the  pension  scheme under CCS (Pension)  Rules,  1972 (now 2021),  shall be required  to subscribe  to the  General Provident   Fund   (GPF).   Regarding   accountal   of  the  corpus   in  the  NPS account   of  the Government   servant,   Controller   General  of  Accounts   (CGA)  has  furnished   the  following clarification  vide  letter No.  1(7)(2)/20 1O/cIa.1TA  IIIJ390 dated   14.11.2019  & LD. Note  No. TA-3-6/312020- TA-JIVcs-4308/450   dated  23.12.2022:

1.Adjustment    of Employees'    contribution     in Accounts:   Amount  may  be credited  to individual's    GPF  account   and  the  account   may  be  recasted permitting   up-to-date interest (Authority-FR-16   &Rule  11 ofGPF   Rules). Adjustment of   Government      contribution      under     NPS    in   Accounts:     To  be accounted   for as  (-)  Dr.  to object  head   70  - Deduct  Recoveries   under  Major  Head 2071  -  Pension  and other  Retirement   benefit  - Minor  Head  911-  Deduct  Recoveries of  over  payment   (GAR  35  and  para  3.10  of  List  of  Major  and  Minor  Heads   of Accounts).   

11.Adjustment    of  increased   value  of  subscription    on  account   of  appreciation of investments  - May be accounted for by crediting the amount to Govt. account under M.H.  0071-  Contribution  towards  Pension  and  Other  Retirements  Benefits 800- Other Receipts (Note under the above Head in LMMHA).

9.All  Ministries/Departments are requested to give wide publicity to these orders without fail. The cases of those Government servants who fulfill the conditions mentioned in this  O.M.  and  who  exercise  option  to  switch  over  to  the  pension  scheme  under  CCS (Pension)    Rules,     1972    (now    2021)     may    be    settled     by    the     administrative Ministries/Departments  in accordance with these orders.

10.This issues in consultation with Ministry of Finance, Department of Expenditure  vide ID  Note  No.    1(7)/EV/20I9   dated  05.12.2022  &  07.02.2023  and  in  consultation  with Controller General of Accounts vide their I.D. Note No. TA-3-6/3/2020- TA-III/cs-43 08/450 dated 23.l2.2022.

11.In so far as the persons  serving in the Indian Audit  and Accounts  Department  are concerned, these orders are issued in consultation with Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

12.Hindi version will  follow.

Download memo


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