7th Pay Commission latest news: BIG NEWS! Modi Govt grants Old Pension System to these central government employees

7th Pay Commission latest news: The Narendra Modi Government has announced the grant of the Old Pension System (OPS) to those central government employees who were appointed after 1st January 2004 but their selection happened before 1st January 2004. The Government is of the view that once a candidate is selected for appointment, then delay in appointment due to police verification and other formalities are not his or her job. So, if selected before 1st January 2004, then such central government employee will be given one time option to choose either of the Old Pension System (OPS) or New Pension System (NPS). But, the central government employees falling under this benefit will have to choose either of these two by 31st May 2021.

According to the government order, if a central government employee was selected before 1st January 2004 but appointment happened on or after 1st January 2004, then they deserve to be given one time choice to choose either NPS or OPS. The eligible central government employees have to write an application in this regard to the pension department. Those eligible central government employees, who want NPS need not write an application to the pension department as they are already getting NPS. The application is required from only those eligible central government employees who want the Old Pension System instead of their existing NPS.

OPS vs NPS
Speaking on OPS vs NPS; Harishankar Tiwari, Former Chairman of Prayagraj-based AG Brotherhood said, "Old Pension System is more beneficial than the New Pension system as OPS covers both pensioners and their families." He said that OPS provides more secured retired life in comparison to NPS and advised eligible central government employees to immediately apply for the switch from NPS to OPS.

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Tiwari went on to add that in OPS, pension is calculated on the basis of the last drawn salary of the central government employee. In OPS, one's Dearness Allowance (DA) automatically increases with increase in inflation and one's pension increases automatically after the implementation of any pay commission recommendations.

The Central Government had implemented NPS from 1st January 2004 but the employees were not too happy with that as there have been demands emerging from various quarters for reinstatement of OPS.