Chandigarh adopts old pension scheme for eligible employees covered under NPS
This decision, based on Office Memorandum No. 57/05/2021-P&PW(B) dated March 3, 2023, issued by the Ministry of Personnel, Public Grievances and Pensions, targets employees appointed to posts or vacancies advertised or notified on or before December 22, 2003, but who joined service on or after January 1, 2004, and were thus enrolled in the NPS.
The move addresses long-standing demands from government employees for the restoration of the Old Pension Scheme (OPS), which guarantees a fixed pension post-retirement, unlike the market-linked NPS. The OPS, seen as a more secure option, offers 50% of the last drawn salary as pension, adjusted for inflation, providing greater financial stability for retirees. The NPS, introduced in 2004, relies on contributions from employees and employers, with returns subject to market fluctuations, raising concerns among employees about retirement security.
The Chandigarh Administration has mandated that the process of identifying eligible employees and completing their transition to the CCS (Pension) Rules be finalised by August 15, 2025. This involves verifying service records and ensuring compliance with the central directive, a task assigned to respective departments.
Officials have hailed the decision as a progressive step toward enhancing social security for long-serving government personnel, reinforcing the administration's commitment to employee welfare.
This policy shift reflects a broader trend across states like Rajasthan, Chhattisgarh, and Himachal Pradesh, which have also reinstated the OPS in response to employee unions' demands. However, critics argue that reverting to the OPS could strain public finances, given its non-contributory nature and rising pension liabilities. For Chandigarh's employees, the decision is a welcome relief, promising greater certainty in their post-retirement lives.
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