Conversion from NPS to OPS of retired employees appointed before December 22nd, 2003
This post is to clarify the options available for retired Central Government employees (appointed before December 22nd, 2003) to switch to the Central Civil Services (Pension) Rules, 1972 (referred to as CCS(Pension) Rules).
Intorduction
Sub- Options for inclusion under the Central Civil Services (Pension) Rules, 1972 in accordance with DOPPW OM dated 03.03.2023 to those employees who have since been retired- reg.
No. 57/05/2021-P &PW(B)/8860 Dated 09.04.2024
Issuing Authrotiy- Department of Pension and Pensioners’ Welfare, Ministry of Personnel, Public Grievances and Pensions
Background:
- The Department of Pension and Pensioners’ Welfare (DoPPW) issued an Office Memorandum (OM) dated March 3rd, 2023, providing a one-time option for eligible employees to switch from the National Pension System (NPS) to the CCS(Pension) Rules.
- This option was applicable even to those who had already retired.
- Following this, there were questions regarding the implementation for retired employees. The DoPPW has issued a fresh OM dated April 9th, 2024, to clarify these doubts.
Key Points:
- Eligibility: Retired Central Government employees (appointed before December 22nd, 2003) can still opt for the CCS(Pension) Rules if they meet the eligibility criteria set out in the DoPPW OM dated March 3rd, 2023.
- Refund Requirements: To switch to the CCS(Pension) Rules, you will need to refund the following:
- Government contribution to your NPS account.
- Return earned on the government contribution.
- Interest on the above amount (calculated as per DoPPW OM dated April 29th, 2002).
- Pension Start Date: Your pension under the CCS(Pension) Rules will commence from the day after your original retirement date.
- GPF Account: There won’t be a new GPF account opened for retired employees opting for the switch.
- NPS Account with Unwithdrawn Corpus:
- If you haven’t withdrawn your NPS corpus upon retirement, your account will be closed.
- The government contribution and returns will be transferred to the government account. There won’t be any interest on this amount.
- You will retain your own NPS contributions and the returns earned on them.
Recommendations:
- If you are a retired Central Government employee (pre-2004) interested in switching to the CCS(Pension) Rules, we recommend you carefully review the DoPPW OMs dated March 3rd, 2023, and April 9th, 2024.
Source- DOP&PW
