Old Pension Scheme: Centre allows select government employees to opt for OPS. Who is eligible?
Certain Central government employees appointed on compassionate grounds may now have the option to be covered under the Old Pension Scheme (OPS), following a clarification issued by the Department of Pension and Pensioners’ Welfare (DoPPW).
The clarification applies to eligible employees who had applied for compassionate appointment before the National Pension System (NPS) came into effect on January 1, 2004, but whose appointments were made after that date. Since NPS applies to Central government employees joining service on or after January 1, 2004, such employees were brought under the contributory pension system despite having submitted their applications before the cut-off date.
In an Office Memorandum dated June 22, 2026, the DoPPW clarified that, in eligible compassionate appointment cases, the date of application, rather than the date of appointment, will be treated as the crucial date for determining coverage under the Central Civil Services (Pension) Rules, 2021.
Who is eligible to opt for OPS?
The clarification applies only to a specific category of employees appointed on compassionate grounds.
To be eligible, an employee must have applied for compassionate appointment on or before December 31, 2003, and should have otherwise fulfilled the eligibility conditions for appointment on that date. Even if the appointment or joining took place on or after January 1, 2004, such employees may exercise the option to be covered under the CCS (Pension) Rules, 2021, subject to the conditions specified by the DoPPW.
The Office Memorandum states that the clarification was issued after consultations with the Department of Personnel and Training (DoPT) and the Department of Expenditure. It also notes that the issue had been raised by the Staff Side of the National Council (Joint Consultative Machinery).
The clarification addresses cases where applications for compassionate appointment were submitted before January 1, 2004, but appointments were made after that date, resulting in such employees being covered under NPS.
Does this apply to all government employees?
No. The clarification does not permit all Central government employees or all NPS subscribers to switch to the Old Pension Scheme. It is restricted to eligible compassionate ground appointees who meet the conditions laid down by the DoPPW.
The issue gained attention after the Council of Scientific and Industrial Research (CSIR) issued an order on July 7, 2026, directing its laboratories and institutes to implement the DoPPW clarification for eligible employees. CSIR is among the first Central Autonomous Bodies to issue implementation instructions following the Centre’s clarification.
However, the DoPPW has not issued any blanket order extending the benefit to all Central Autonomous Bodies. Each organisation will have to examine the clarification and take its own decision on implementation, wherever applicable.
As a result, similarly placed compassionate appointees in other autonomous bodies may receive the OPS option only if their respective organisations adopt the Centre’s clarification. Employees recruited through the regular recruitment process or those who do not meet the prescribed eligibility conditions are not covered by this clarification.
