Delhi: In a sudden announcement, the central government has issued an important notification regarding the old pension scheme for government employees. The notification states that the government has directed all state governments to provide a voluntary option to choose the old pension scheme for government employees who were appointed as All India employees before December 22, 2003.
The National Pension Scheme, introduced by the Government of India in 2003, was initially meant for central government employees but later extended to all individuals between the ages of 18 and 65. Private sector employees are also eligible to open an account under this scheme, which is administered by the Pensions Regulatory Authority.
The scheme offers pension benefits and tax incentives, making it a popular option among the younger generation. However, the central government has recognized the need to address the concerns of employees who joined the government service before the implementation of the National Pension Scheme.
The Department of Personnel and Training has sent a letter to the Chief Secretaries of all states and Union Territories, outlining the provision for government employees to opt for the old pension scheme. According to the AIS (All India Service) (DCRB) Rules, 1958, All India Service officers who joined the government service before the implementation of the National Pension Scheme can choose to switch to the old pension scheme.
The notification clarifies that AIS officers who were selected through the Civil Service Examination 2003, Civil Service Examination 2004, and Indian Forest Service Examination 2003 are eligible to exercise this option. It further states that various courts have allowed government servants appointed after January 1, 2004, to benefit from the old defined benefit pension scheme.
To exercise this one-time option, officers must submit their selection to the State Government in which they belong to the State Cadre. The deadline for exercising this option is November 30, 2023. Failure to exercise this option within the stipulated date will result in the officer being covered under the National Pension Scheme. The central government employees are pleased with this announcement as it means that orders for the old pension scheme will be issued by January 31, 2024.
The government has taken this action under the AIS (DCRB) Rules, 1958, and eligible employees will receive orders to avail the old pension scheme by January 31, 2024. Subsequently, their NPS accounts will be closed by March 31, 2024.
This sudden announcement has brought relief to government employees who joined the service before the implementation of the National Pension Scheme. It ensures that they have the choice to switch to the old pension scheme, which offers different benefits. The government employees are grateful for this opportunity and eagerly await the issuance of orders by January 31, 2024.