Modi cabinet has made some BIG changes in Pension Rules.Take a look:
7th Pay Commission latest news: The Modi government today took a landmark decision by meeting the long-standing demand of Central Government employees whose recruitment was finalized before 01/01/2004 but who had, for various reasons, joined the services on or after 01/01/2004. In an order which is set to bring relief to many government employees, the Department of Pension and Pensioners’ Welfare has said that all Central Government employees whose selection for appointment was finalized before 01.01.2004 but who joined service on or after 01.01.2004, can now opt to be covered under the Central Civil Services (Pension) Rules, 1972 instead of the NPS (National Pension System).This order of the Government of India is expected to give some 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.
Now, here’s something very important for the Central Govt Employees.Must read:-
The order notes that the last date to exercise this option would be May 31, 2020 (31/05/2020).And if a central government employee fails to exercise the option by this date would continue to be covered by the National Pension System.The Central Government by this order has rectified a long standing grievance of a huge number of employees whose recruitment (including written examination, interview and declaration of result) had been finalized on or before 01.01.2004.
Who all are eligible for coverage under Central Civil Services (Pension) Rules, 1972?
The ministry’s order also gave few examples where the selection was finalized before 01.01.2004 but actual joining took place on or after 01.01.2004 are as under:
The result for recruitment was declared before 01.01.2004 but the offer of appointment and actual joining of the Government servant was delayed on account of police verification, medical examination etc.;Some of the candidates selected through a common selection process were issued offers of appointments and were also appointed before 01.01.2004 whereas the offers of appointments to other selected candidates were issued on or after 1.1.2004 due to administrative reasons/constraints including pending Court/CAT cases.
The result for recruitment was declared before 01.01.2004.More than one candidates were declared disqualified on the grounds of medical fitness or verification of character and antecedents, caste or income certificates.
In all the above illustrative cases, since the result for recruitment was declared before 01.01.2004, denial of the benefit of pension under CCS (Pension) Rules, 1972 to the affected Government servants is not considered justified.
It has been decided that in all cases where the results for recruitment were declared before 01.01.2004 against vacancies occurring on or before 31.12.2003, the candidates declared successful for recruitment shall be eligible for coverage under the CCS (Pension) Rules, 1972.Accordingly, such Government servants who were declared successful for recruitment in the results declared on or before 31.12.2003 against vacancies occurring before 01.01.2004 and are covered under the National Pension System on joining service on or after 01.01.2004, may be given a one-time option to be covered under the CCS (Pension) Rules, 1972. This option may be exercised by the concerned Government servants latest by 31.05.2020.
The matter regarding coverage under the CCS (Pension) Rules, 1972 based on the option exercised by the Government servant shall be placed before the appointing authority for consideration in accordance with these instructions. In case the Government servant fulfils the conditions for coverage under the CCS (Pension) Rules, 1972, in accordance with these instructions, necessary order in this regard shall be issued latest by 30th September, 2020. The NPS account of such Government servants shall, consequently, be closed w.e.f. 01st November, 2020.The Government servants who exercise option to switch over to the pension scheme under CCS (Pension) Rules, 1972, shall be required to subscribe to the General provident fund.