Option to select Old Pension Scheme (OPS)

In News

• Recently, The government has decided to give a one-time option to select Central government employees to migrate to the Old Pension Scheme (OPS), who applied for jobs advertised before December 22, 2003.

Major Points 

• The option is available to the Central government employees enrolled under the NPS as they joined the service on or after January 1, 2004, the day the NPS came into effect, even though such posts were advertised before December 22, 2003, the day it was notified.
•  The order will be applicable to Central Armed Police Force (CAPF) personnel and other Central government employees who joined the services in 2004 as the recruitment process was delayed due to administrative reasons.

About 

• Old Pension Scheme (OPS): Under Old Pension Scheme (OPS), employees get a defined pension. An employee is entitled to a 50% amount of the last drawn salary as a pension. 
  • The government bears the expenditure incurred on the pension.
  • It was discontinued by the NDA government in 2003 with effect from April 1, 2004.
• National Pension System (NPS):   Under the new pension scheme (NPS), employees contribute 10% of their basic salary towards pension while the  government contributes 14%.
  • It is being administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA) set up under PFRDA Act, 2013.
  • NPS is mandatorily applicable to Central Government employees (except Armed Forces) recruited on or after 01.01.2004. Subsequently, all State Governments excluding West Bengal have also adopted NPS for their employees. 

Source: TH