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The Narendra Modi Cabinet on Tuesday made some big changes in pension rules of the government employees.

The Central Government 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 that 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), according to reports.

This order of the Central Government is expected to give relief to several central government employees, some of whom were taking legal recourse in order to get covered under the CCS (Pension) Rules, 1972.

In a release published on PIB, Minister of State (I/C) for the Ministry of Personnel, Public Grievances and Pensions Jitendra Singh said the order effectively gives those central government employees who were recruited before 2004 the option of either switch over to the Central Civil Services (Pension) Rules, 1972 or continue to be covered under the National Pension System.

The order notes that the last date to exercise this option would be May 31, 2020.

And if a central government employee fails to exercise the option by this stipulated 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.

That was the cut-off date for employees to be covered under the old Pension scheme.

But for some joining was delayed on account of administrative reasons and such delay was beyond the control of such government servants.

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