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Editor's Pick: Select Central staff may opt for Old Pension Scheme

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thehindu.com

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news@newsalertth.thehindu.com

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Sat, Mar 4, 2023 05:37 AM

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In a significant decision, the government has decided to give a one-time option to select Central go

In a significant decision, the government has decided to give a one-time option to select Central government employees to migrate to the Old Pension Scheme (OPS). The employees should have applied for jobs advertised before December 22, 2003, the day the National Pension System (NPS) was notified, but joined service in 2004, when the NPS came into effect. The option is available to Central government employees enrolled under the NPS as they joined service on or after January 1, 2004. The order will also be applicable to the Central Armed Police Forces (CAPF) personnel. Employees have time till August 31 to opt for the OPS. The employees’ contribution to the NPS will be credited to the General Provident Fund (GPF) of the individual. The Bharatiya Janata Party-led government has maintained that restoration of the old system will cause unnecessary financial burden on the government while several Opposition-ruled States such as Chhattisgarh, Rajasthan, Jharkhand and Himachal Pradesh have announced that they would restore the OPS. A senior government official told The Hindu that the decision was taken to address the gamut of litigations that the government faced on the issue. “There were hundreds of litigations in courts across the country, the government did not win a single case. Through court orders, individual officials were getting benefit, we decided to issue general instructions for the benefit of all eligible officials,” said the official. The Department of Pension and Pensioners’ Welfare (DPPW) held extensive consultations with the Ministries of Finance and Law and Departments of Expenditure and Personnel and reached a consensus to allow the employees the option to switch to the OPS. In 2020, the DPPW gave one-time option to those Central government employees who were declared successful for recruitment in the results declared before December 31, 2003. However, representation was received from government employees referring to court judgment and orders by the Central Administrative Tribunals that allowed them to migrate to the OPS. Following this, the DPPW moved a proposal to issue a general circular to extend the benefit of the judgments to similarly placed employees. Union Minister of State for Personnel Jitendra Singh approved the proposal on Friday. The exact number of employees who will be covered under the new order is not known and it will be known after eligible employees have exercised the option, said the official. Till January 31, a total of 23,65,693 Central employees and 60,32,768 State government employees have enrolled under the NPS. Except West Bengal, all States had implemented the NPS. In an editorial when several States decided to revert to the Old Pension Scheme, The Hindu had said that it is “an imprudent option as it will only benefit organised government sector employees, increase the fiscal burden of carrying these payments and take up a significant portion of the State’s budget, thereby curtailing its outlays on general welfare as a whole.” With finances under strain, this story becomes important as it will be seen as a move implemented with short-term electoral gains in mind. The Hindu’s Editorials Choosing the watchdog: On Election Commissioners appointment Creative formulas: On India, G20 and the Ukraine conflict The Hindu Daily News Quiz According to the India Meteorological Department (IMD), February 2023 was the warmest it had been since which year? 1901 1932 1912 1894 To know the answer and to play the full quiz, click here. [logo] Editor's Pick 04 March 2023 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( Select Central staff may opt for Old Pension Scheme In a significant decision, the [government has decided to give a one-time option]( to select Central government employees to migrate to the Old Pension Scheme (OPS). The employees should have applied for jobs advertised before December 22, 2003, the day the National Pension System (NPS) was notified, but joined service in 2004, when the NPS came into effect. The option is available to Central government employees enrolled under the NPS as they joined service on or after January 1, 2004. The order will also be applicable to the Central Armed Police Forces (CAPF) personnel. Employees have time till August 31 to opt for the OPS. The employees’ contribution to the NPS will be credited to the General Provident Fund (GPF) of the individual. The Bharatiya Janata Party-led government has maintained that restoration of the old system will cause unnecessary financial burden on the government while several Opposition-ruled States such as Chhattisgarh, Rajasthan, Jharkhand and Himachal Pradesh have announced that they would restore the OPS. A senior government official told The Hindu that the decision was taken to address the gamut of litigations that the government faced on the issue. “There were hundreds of litigations in courts across the country, the government did not win a single case. Through court orders, individual officials were getting benefit, we decided to issue general instructions for the benefit of all eligible officials,” said the official. The Department of Pension and Pensioners’ Welfare (DPPW) held extensive consultations with the Ministries of Finance and Law and Departments of Expenditure and Personnel and reached a consensus to allow the employees the option to switch to the OPS. In 2020, the DPPW gave one-time option to those Central government employees who were declared successful for recruitment in the results declared before December 31, 2003. However, representation was received from government employees referring to court judgment and orders by the Central Administrative Tribunals that allowed them to migrate to the OPS. Following this, the DPPW moved a proposal to issue a general circular to extend the benefit of the judgments to similarly placed employees. Union Minister of State for Personnel Jitendra Singh approved the proposal on Friday. The exact number of employees who will be covered under the new order is not known and it will be known after eligible employees have exercised the option, said the official. Till January 31, a total of 23,65,693 Central employees and 60,32,768 State government employees have enrolled under the NPS. Except West Bengal, all States had implemented the NPS. In an editorial when several States decided to revert to the Old Pension Scheme,[The Hindu had said]( that it is “an imprudent option as it will only benefit organised government sector employees, increase the fiscal burden of carrying these payments and take up a significant portion of the State’s budget, thereby curtailing its outlays on general welfare as a whole.” With finances under strain, this story becomes important as it will be seen as a move implemented with short-term electoral gains in mind. The Hindu’s Editorials [Arrow][Choosing the watchdog: On Election Commissioners appointment]( [Arrow][Creative formulas: On India, G20 and the Ukraine conflict]( The Hindu Daily News Quiz According to the India Meteorological Department (IMD), February 2023 was the warmest it had been since which year? - 1901 - 1932 - 1912 - 1894 To know the answer and to play the full quiz, [click here](. Are you a book lover looking for your next literary adventure? Look no further than “The Hindu On Books” weekly newsletter! We scour the shelves to bring you the best new releases and hidden gems in all genres. With in-depth book reviews and recommendations, you can trust that you will find your next literary love here. Sign up now and discover your next favorite book!" [Subscribe Now!]( [[Quad Foreign Ministers take aim at Russia and China] Quad Foreign Ministers take aim at Russia and China]( [[Ayodhya authority gives final approval for mosque construction] Ayodhya authority gives final approval for mosque construction]( [[In Punjab, fear of the return of ‘dark days’] In Punjab, fear of the return of ‘dark days’]( [[Worldview with Suhasini Haidar | G20 Ministerial Meetings | Does India have a rocky road ahead?] Worldview with Suhasini Haidar | G20 Ministerial Meetings | Does India have a rocky road ahead?]( Copyright @ 2023, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please [try here]( If you do not wish to receive such emails [go here](

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