Govt announces amendments in pension rules

Modi Cabinet made some big changes in the pension rules of the government employees. The families of government employees dying after serving less than seven years will get enhanced pension now with the Centre amending rules. The move is likely to benefit the widows of Central Armed Police Forces personnel.

Earlier, the government employees should have rendered at least seven years of service in case of death so that the family could get the enhanced family pension at 50 percent of the last pay drawn.

The Central Government took a landmark decision by meetingthe long-standing demand of Central Government employees whose recruitment wasfinalized before 01/01/2004 but who had, for various reasons, joined theservices on or after 01/01/2004.

In an order that is set to bring relief to many governmentemployees, the Department of Pension and Pensioners' Welfare has said that allCentral Government employees whose selection for appointment was finalizedbefore 01.01.2004 but who joined service on or after 01.01.2004, can now opt tobe covered under the Central Civil Services (Pension) Rules, 1972 instead ofthe NPS (National Pension System), according to reports.

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

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

The order notes that the last date to exercise this optionwould be May 31, 2020. And if a central government employee fails to exercisethe option by this stipulated date would continue to be covered by the NationalPension 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.