National

Govt. modifies rules for Central Govt employees to be covered under Central Civil Services (Pension) Rules, 1972

NetIndian News Network

New Delhi, February 19, 2020

All Central Government employees whose selection for the appointment was finalized before January 1, 2004, but who joined service on or after that date, can now opt to be covered under the Central Civil Services (Pension) Rules, 1972 instead of the NPS (National Pension System).

Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh said that the order effectively gives those employees who were recruited before 2004 the option of either switching over to the Central Civil Services (Pension) Rules, 1972 or continuing to be covered under the NPS.

The decision had been taken by the Department of Pensions and Pensioners’ Welfare to address the long-standing 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 the date.+

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

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

NNN

NetIndian
www.netindian.in