Central govt employees' pension: NPS to OPS switch? Centre releases new FAQ answering all your queries
Centre offered a one-time window to the central government employees to switch from the National Pension System (NPS) to CCS (Pension) Rules, 1972 (now 2021), which was popularly known as the old pension scheme. Those who have shifted to the old pension scheme have several questions regarding how it will be implemented. To answer those queries, the Department of Pension and Pensioners’ Welfare (DoPPW) released a frequently asked questions (FAQs). Read here to find out.
In an Office Memorandum dated April 9, 2024, Department of Pension and Pensioners’ Welfare said:
1) The OM dated 20.10.2023 requires a refund of two elements viz. (a) Government contribution and return thereon under NPS and (ii) interest thereon. While the amount of Government contribution and the return thereon in the accumulated corpus of wealth under the NPS account of the subscriber at the time of his exit on retirement would be ascertained from NSDL, the rate and manner of recovery of interest (simple or compound and the rates at which compounding is to be done) from the date of exit to the date of refund by the employee is not clear.
In the DoPPW OM dated 20.10.2023, it was clarified that there is no restriction on the applicability of aforesaid OM dated 03.03.2023 to central government employees who are otherwise eligible for the coverage under OPS and who already retired from service. Since, in this case, the employee has already availed benefits under NPS, the government contribution and return thereon under the NPS would require to be
