Why Is Centre Allowing Only Select Govt Employees to Opt for OPS? Who Is Eligible?

The Centre has provided a small window for a select group of government employees to opt for the Old Pension Scheme (OPS), but it does not mean that all National Pension System (NPS) subscribers can return. The latest clarification is only for a small class of employees appointed on compassionate grounds who got caught in a policy transition when the pension system changed in 2004.

The move follows a clarification issued by the Department of Pension and Pensioners’ Welfare (DoPPW) on June 22, 2026, to resolve a matter that had been troubling several employees for years.

Why Was This Clarification Needed?

The National Pension System replaced the Old Pension Scheme for the employees of the central government who joined service on or after 1st January, 2004. Thus, all who entered the service of the state thereafter were automatically brought under the contributory pension system.

However, there was a unique issue regarding appointments made on compassionate grounds.

In many cases the family members of the deceased government employees had applied for compassionate appointments before January 1, 2004. However, the time taken in the appointment process meant that they got their job offers or inducted into service after the NPS was introduced. Their applications were filed before the change in the pension policy but they were put under NPS as their actual joining date was after the cut-off.

This latest clarification is intended to remedy this anomaly.

What Has Changed?

In its Office Memorandum dated 22nd June, 2026, DoPPW has clarified that if a compassionate appointment is found in order, then the date of application shall be treated as the operative date of joining for the purpose of pension benefits under Central Civil Services (Pension) Rules, 2021 (for the Old Pension Scheme) and not the date of joining or date of appointment. This clarification came following consultation with the DoPT and the Department of Expenditure. The issue was also taken up by the staff side of the National Council under joint consultative machinery.

This means that if they had applied before the introduction of NPS, eligible employees who joined government service later can be considered for coverage under OPS.

Who Can Opt For OPS?

The benefit is available only to a small category of employees. An employee must have the following to qualify:

• Applications for compassionate appointments must be submitted on or before 31.12.2003.
• Met eligibility requirements for appointment on that date
• Been appointed or joined service on or after January 1, 2004, as the recruitment process was completed later.

If the conditions are satisfied, the employee may be permitted to opt for coverage under the CCS (Pension) Rules, 2021, subject to the conditions laid down by the DoPPW.

Does This Apply To All Government Employees?

No. This is one of the biggest misconceptions about the latest development.

The clarification does not allow all central government employees or all NPS subscribers to opt for the Old Pension Scheme. It is only for eligible compassionate ground appointees who are covered by the DoPPW’s guidelines.

This decision applies only to employees recruited through the normal recruitment process and who meet the prescribed eligibility conditions.

Why Is CSIR’s Order Important?

The problem came to light on July 7, 2026, when the Council of Scientific and Industrial Research (CSIR) issued an order to its laboratories and institutes to implement the clarification of the centre for eligible employees.

CSIR is a central autonomous body and this is a significant move as it is one of the first organisations of its kind to formally adopt the clarification.

Its verdict may prompt other autonomous bodies to consider similar cases and extend the same benefit where applicable.

Will All The Central Autonomous Bodies Follow Suit?

Not necessarily. The centre has not issued a blanket order for all the Central Autonomous Bodies (CAB). Each organisation will have to independently study the clarification from DoPPW and decide whether to implement it for its eligible employees.

This means that similarly placed compassionate appointees in different autonomous bodies may receive the OPS option only after their respective organisations have considered the Centre’s guidelines.

What Should Eligible Employees Do?

If you are an employee and believe you fall under this category, you should first verify whether your organisation has adopted the DoPPW clarification. They also need to check dates of their compassionate appointment application, appointment order and joining carefully, as these will decide whether they are eligible for the OPS option.

For now, the decision helps only a small group of workers. However, if more central autonomous bodies follow the CSIR, more eligible compassionate ground appointees may get the opportunity to opt for the old pension scheme in the coming months.

Also Read: No Mobile Internet? Here’s How UPI May Soon Allow Offline Payments Up to Rs 2,000

The post Why Is Centre Allowing Only Select Govt Employees to Opt for OPS? Who Is Eligible? appeared first on NewsX.