Effects of the Government OM dated 3rd March 2023

 

Implication of OM of Government for bringing NPS officials to OPS

Recently the Department of Pension and Pensioners Welfare (Central Government) on 3.3.2023 had issued an OM on coverage of CG Employees in OPS, if they were recruited for the vacancies advertised or notified for recruitment on or before 22.12.2003. Many queries are being raised about the OM and we want to clarify the issue here.

1.     Earlier the NPS was notified to the effect that all Civilian Employees appointed on or after 1.1.2004 to the posts under Central Government are mandatorily covered by NPS.

2.     The CCS Pension Rules were also amended subsequently through Notification dated 30/12/2003 so that the CCS Pension Rules are applicable to Government Employees appointed after 31.12.2003.

3.     Subsequently, by another OM dated 17/02/2020, one-time option was given to employees, who were declared successful for recruitment on or before 31.12.2003 against vacancies occurred prior to 1.1.2004 to change over from NPS to OPS.

4.     Representations were supposedly received from many by citing Court Orders etc that the benefit should be extended to all who were recruited towards advertised / notified vacancies while there was no NPS in existence.

5.     Accordingly now it has been decided that all CG Employees recruited towards advertised / notified vacancies prior to notification of the OM dated 22.12.2003 and joined in service on or after 1.1.2004 and therefore brought under NPS are given one-time option to switch from NPS to OPS.

6.     This option is to be exercised before 31/08/2023 and the option once exercised is final.

7.     Those employees who do not give their option before 31.08.2023 shall continue to be covered under NPS.

8.     Necessary orders will be issued by the appointing authorities of such officials who give their option from NPS to OPS and actually covered under the above Rules before 31.10.2023.

9.     Once Orders are issued as above, the NPS accounts will be closed with effect from 31.12.2023.

10.  Such Officials shall have to subscribe to the individual’s GPF scheme. The amount in NPS shall be adjusted and credited  in their individual GPF account and up to date interest will also be credited. There is noting mentioned in the OM about any handing over of money to the said officials but all their contribution till date shall be adjusted in their individual GPF account.

11.  The Government contribution to NPS towards such officials and the increased value of subscription on account of appreciation of investments will be credited into Government account.

12.  Though this OM specifically do not mention anything about the Retired Officials who were covered as per the OM of the Department of Pension, our interpretation is that the OM is automatically applies to any retired official also if he was recruited as per the advertisement / notification made by any department before the issue of Notification of NPS on 22.12.2003. If there is any hitch, the NCCPA shall intervene with the Government.

 

The crux of the OM is as above. Please be clear that the NPS is not taken back by the Central Government for all CG Employees but only to that section of CG Employees who were recruited as  per notification prior to 22.12.2003 when NPS rules were not promulgated. This is also as per Court interventions. All other Officials who were recruited as per advertisements / notifications released on or after the date of NPS notification (i.e., 22.12.2003) will be brought under NPS only. The fight to force the Central Government from total withdrawal of NPS for all employees and workers entered the Government service after the 22.12.2003 Notification continue. – KR Secretary General NCCPA